Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both consumer and professional use. The demand for power tools remains at or near pre-pandemic levels despite a slowdown owing to the COVID-19 epidemic that will hit in 2021.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's is close behind. Both are competing against power tools manufactured in China.
Tip 1: Be committed to a brand
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term purchase requires a lot of back-and-forth communication and a thorough understanding of the product. This kind of communication doesn't permit emotional marketing techniques.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital age has raced past traditional companies that rely on a small group of distributors and retailers for sales.
One of the most important factors in power tool sales is brand commitment. When a customer is committed to a brand, they will be less prone to messages from competitors. Moreover, they are more likely to purchase the item of the customer repeatedly and recommend it to others.
You need a well-planned plan to make an impact on the US market. This includes adapting tools to local requirements and positioning your brand in a manner that is competitive and making use of distribution and marketing platforms channels. It is also important to work with local authorities, industry associations, and experts. By doing so you can be sure that your power tools be in compliance with the regulations of the country and standards.
Tip 2: Be aware of Your Products
In a market where quality of the product is so crucial, retailers should be aware of the products they offer. This will enable them to make informed decisions about the products they can offer their customers. This knowledge could also be the difference between a good sale and a poor one.
For instance knowing which tool is best suited to specific projects will allow you to match your customer with the best tool for their requirements. This will allow you to build trust and loyalty with your customers. power tools shop near me will ensure that you are offering an entire service.
Understanding DIY culture trends can also help you understand the needs of your customers. For instance, a rising number of homeowners are tackling home improvement projects that require power tools. This can lead a spike in the sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16%. However, Ryobi and Craftsman have decreased their share year-over-year. However, online and in-store sales are increasing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace a broken one or to tackle an upcoming project. Both present opportunities for upsells and add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories 35 percent of all power tool purchases are the result of planned replacements. Customers may require additional accessories or upgrade to a better-performing model.
Whether your customer is a seasoned DIYer or new to the hobby, they'll likely need to replace their power tools' carbon brushes drive belts, drive belts, and power cords as time goes by. These essentials will ensure that your client gets the most from their investment.
When buying power tools, technicians look at three factors: the application, the power source and security. These aspects allow technicians to make informed choices when it comes to selecting the appropriate tools for their maintenance and repair work. This enables them to maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Keep up to date with technology
For instance, the latest power tools offer advanced technology that enhances users' experience and differentiates them from other tools that rely on old battery technology. Wholesalers in B2B who carry and sell these tools can increase sales by focusing on tech savvy contractors and professionals.
For Karch, whose business has more than three decades of experience and a 12,000-square-foot tool department, staying current with the latest technologies is crucial. He states that manufacturers are constantly changing their product designs. "They used hold their designs for five or 10 years, but now they change them each year."
B2B wholesalers need to not only embrace the latest technologies but also improve existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can decrease fatigue due to prolonged use. These features are crucial for professionals who employ the tools over a long period of time. The market for power tools is divided between the consumer and professional segments. This means that major players are always working to improve their designs and develop new features to reach a wider market.
Tip 5: Make an Point of Sale
The online marketplace has transformed the market for power tools. Advancements in data collection methods allow business professionals to gain a holistic view of market trends, allowing them to shape strategies for inventory and marketing more effectively.
By utilizing information from the point of sale (POS), you can track DIY projects your customers are completing when purchasing power tools and accessories. Knowing what projects your customers are working on permits you to increase sales and provide additional products. It allows you to anticipate your customers' needs, so that you always have the appropriate products on your shelves.
You can also use transaction data to spot trends in the market, and then adjust production cycles in line with these trends. You could, for instance utilize this data to monitor fluctuations of your retail partners' and brand's' market shares. This will allow you to align your strategy for product to consumer preferences. POS data can also be used to optimize levels of inventory, reducing the risk of overstocking. It can also be used to assess the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools is a lucrative, complex market that requires significant sales and marketing efforts to stay competitive. The traditional methods to gain a strategic advantage in this market have been through pricing or product positioning--but these strategies are no longer effective in the omnichannel world of today in which information is dispersed in such a rapid manner.
Retailers who are committed to providing a high level of providing excellent service are more likely to keep customers and build brand loyalty. power tool shops near me , president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, operates a 12,000-square-foot power tool department. In the beginning, his store featured various brands, but when he listened to contractor customers, he learned that most were loyal to a particular brand.
Karch and his team ask their customers what they intend to accomplish using a tool before presenting them with the options. This gives them the confidence to recommend the best tool for the job and it increases trust with their customers. Customers who are familiar with their product are less likely than others to blame the retailer for a failure of a tool for the job.
Tip 7: Be a customer service guru
Power tool retailers face an extremely competitive market. People who have had success in this category tend to have a strong commitment to a brand rather than merely carrying a few manufacturers. The amount of space a retailer has to devote to the category may also affect how many brands it can carry.
When customers come in to purchase an electric tool they may need assistance selecting a product. Sales associates can offer the best advice to customers looking to replace a damaged tool or undertaking the renovation of their home.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are educated to ask questions that could lead to the sale. He says they begin by asking the buyer what he or she plans to use the product. "That's how you determine what kind of tool they need," he says. Then they ask about the customer's experience with different types projects and the project.
Tip 8: Make sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Some manufacturers offer a comprehensive warranty, while others offer a limited warranty or do not cover certain tools. Before purchasing a tool, it's important that retailers know the differences. Customers will only buy tools from companies that guarantee their products.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department as well as repair shop on site that repairs 50 different types of tools. He has learned that many of his contractor clients are loyal to a particular brand. Therefore, he prefers to carry a select few brands instead of trying to carry a variety of products.
He is also happy that his employees have the ability to meet with vendors in person to discuss new products and give feedback. This kind of interaction is essential as it helps build trust between the retailer and customers. Good relationships with suppliers may result in discounts on future purchases.