Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. Despite a slowdown in 2021 due to the COVID-19 virus, the demand is still at or near levels prior to the pandemic.
In terms of outlet dollar share, Home Depot leads all outlets in power tool sales. Lowe's is not far behind. Both are competing against power tools manufactured in China.
Tip 1: Create a Brand Commitment
Many industrial products manufacturers prioritize sales over marketing. This is because a long-term sales requires a lot of back-and-forth communication and in-depth knowledge of the product. This kind of communication isn't ideal for marketing that is based on emotion.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital world has raced over traditional manufacturers who depend on a small group of retailers and distributors for sales.
A key to selling power tools is brand commitment. When a buyer is committed to a certain brand they are less receptive to competitor's messages. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to friends and family.
To make a successful impact in the United States market, you must have an organized strategy. This includes adapting your tools to meet local needs, positioning your brand in a strategic way, and making use of distribution channels and marketing platforms. It is also important to collaborate with local authorities as well as industry associations and experts. You can be assured that your power tool will meet the requirements and standards of the country if you follow these guidelines.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they offer particularly in a market which places a great value on product quality. This will enable them to make informed choices about what they offer their customers. This information can be the difference between making a good or bad sale.
Knowing that a certain tool is perfect for a particular project will help you match the right tool to the needs of your customer. You'll earn trust and a sense of loyalty among your customers. It will also give you assurance that you're offering a complete solution.
In addition, understanding the trends in DIY culture will help you know what your customers are looking for. As an example the increasing number of homeowners are taking on home renovations that require the use of power tool. This can result in an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. However, online and in-store sales are growing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace an old one or tackle a new project. Both of these can be used to increase sales and add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all purchases of power tools are the result of planned replacements. These customers often require additional accessories, or require an upgrade to better performance models.
If your customer is experienced in DIY or is new to the hobby, they will need to replace carbon brushes, drive cords and the power cords on their power tools as time passes. Making sure they are up to date with these essentials will help your customer get the most out of their investment.
Technicians consider three key items when purchasing power tools: application, how it will be operated and safety. These factors help technicians make informed choices about the best tools to use for their repairs and maintenance tasks. This will help them maximize the performance of their tools and reduce the cost of ownership.
Tip 4: Keep Keeping Up With Technology
The most modern battery tools, for instance are equipped with smart technology that enhances the user experience and sets them apart from those who rely upon old battery technology. Wholesalers of B2B who stock and sell these tools could boost sales by targeting tech savvy contractors and professionals.
For Karch who's business has more than three decades of experience and a 12,000 square-foot department for tools, staying up with new technologies is essential. He says that manufacturers are constantly changing their designs for their products. "They were able to hold their designs for five or ten years, but now they are changing their designs every year."
In addition to embracing most recent technologies, B2B wholesalers should also focus on improving existing models. By adding lightweight materials and adjustable handles, wholesalers can lessen fatigue caused by long-term use. These features are essential to professionals who employ the tools for a lengthy period of time. The industry of power tools is divided into consumer and professional groups, which means that major players are always working on enhancing their designs and creating new features to appeal to a wider audience.
Tip 5: Create a Point of Sales
The e-commerce market has changed the power tools market. Data collection methods have improved and business professionals can gain a better understanding of the market. This helps them develop more effective inventory and marketing strategies.
By utilizing information from the point of sale (POS), you can track DIY projects that customers are completing when purchasing power tools and accessories. Knowing what projects your customers are working on permits you to upsell and offer extras. It also helps you anticipate the requirements of your customers and ensure that you have the right products on hand.
Furthermore, transaction data allows you to identify market trends and adjust production cycles accordingly. You can, for example, use this data to monitor changes in your retail partners' and brand's market share. This allows you to align your product strategies to the preferences of consumers. POS data can also be used to improve inventory levels, reducing the risk of overstocking. It can also be used to evaluate the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a lucrative complex market that requires significant sales and marketing efforts to remain competitive. The traditional methods to gain an advantage in this market were by positioning or pricing products. However, these strategies are no longer effective in today's omnichannel marketplace in which information is dispersed so quickly.
Retailers who focus on service are more likely to retain customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin is the owner of a 12,000-square-foot power tool department. His initial department featured several brands. However, as he listened to contractors, he noticed that they were loyal to their preferred brand.
Karch and his staff members ask their customers what they intend to do with a tool before showing them the options. This gives them the confidence to recommend the right tool for the job and increases trust with their customers. Customers who are familiar with their product are less likely to blame their retailer for a tool malfunction during the course of work.
Tip 7: Become a guru in customer service
The market for power tools has become a highly competitive market for retailers of hardware. The retailers that have had success in this area tend to have a strong commitment to a particular brand rather than merely carrying a sampling of manufacturers. The size of the space a retailer must devote to the category may be a factor in the amount of brands it is able to carry.
Customers usually require assistance when they go in to purchase a power device. Sales associates can offer professional guidance to customers looking to replace a broken tool or undertaking an upgrade project.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are trained to ask questions that can result in the sale. He says they begin by asking the customer what they intend to do with the item. "That's the way to decide what kind of tool they require," he says. Then, they inquire about the project and what kind of experience the customer has with various types of projects.
Tip 8: Make a Point of Warranty
Power tool manufacturers vary greatly in their warranty policies. Certain manufacturers offer a full warranty, while others offer a limited warranty or do not cover certain tools. Before buying a product, it is essential that retailers understand the differences. Customers will only buy tools from companies who guarantee their products.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square foot power tool department and a repair shop on site that repairs 50 different lines of tools. He has realized over time that a lot of his customers who are contractors are loyal to their brands, which is why he prefers to focus on the most popular brands rather than trying to offer a variety of products.
power tools online uk likes the fact that his employees have the opportunity to get one-on-one time with vendors to discuss new products and share feedback. This type of personal interaction is essential because it builds trust between the customers and employees. Good relationships with suppliers can even lead to discounts for future purchases.