Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. The demand for power tools is at or near pre-pandemic levels, despite a slowdown due to the COVID-19 epidemic in 2021.
Home Depot is the leader in the sales of power tools based on dollar share. Lowe's follows closely behind. Both are competing against power tools manufactured in China.
Tip 1: Commit to a brand
Many manufacturers of industrial products place an emphasis on sales over marketing. This is because the long-term sales process requires a lot back-and-forth communication and detailed knowledge of the product. This type of communication is not suitable for emotional marketing strategies.
However, industrial tool manufacturing companies should think about rethinking their approach to marketing. The digital age has overtaken traditional companies that rely on a select group of retailers and distributors for sales.
A key to power tool sales is brand loyalty. If a customer is loyal to a brand they are less prone to the messages of competitors. They are also more likely to purchase the client's products again and to recommend them to others.
To have a positive impact in the United States market, you must develop a well-planned strategy. This means adjusting your tools to meet local requirements, positioning your brand in a competitive way, and making use of marketing channels and distribution channels. It is also important to cooperate 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 do this.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they are selling particularly in a market which places a great value on the quality of the product. This will allow them to make informed decisions about what they sell. This knowledge can make the difference between making a successful or a poor sale.
Knowing which tool is suitable for a particular project will help you match the right tool to your customer's needs. This will aid in building trust and loyalty with your customers. It will also give you the confidence that you're offering an entire solution.
Understanding DIY culture trends can also help you better understand your customers' requirements. As an example, more homeowners are undertaking home renovations that require the use of power tools. This can result in an increase in sales of these tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, while Ryobi and Craftsman brands have seen their share decrease year-over-year. However, online and in-store sales are increasing.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to repair the broken one or tackle an upcoming project. Both provide the possibility of upselling or adding 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 often require additional accessories, or require upgrading to better performance models.
Whether your customer has experience in DIY or is just beginning the hobby, they will have to replace their carbon brushes, drive cords, and power cords of their power tools as time passes. Being on top of these important items will allow your customer to make the most of their investment.
Technicians take into consideration three main aspects when buying power tools: application, how it will be operated and safety. These factors allow technicians to make informed decisions when choosing the appropriate tools for their repair and maintenance work. This allows them to improve the performance of their tools and reduce the cost of ownership.
Tip 4: Continue to Keep Up with Technology
For instance, the most recent battery tools have intelligent technology that enhances users' experience and differentiates them from other tools that depend on old-fashioned battery technology. Wholesalers in B2B who carry and sell these tools could increase sales by focusing on professionals and contractors who are tech-savvy.
For Karch who's business has more than three decades of experience and a 2,000-square-foot tool department, keeping up with the latest technology is vital. He says that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or 10 years, but they're now changing them every year."
B2B wholesalers need to not only adopt the latest technology, but also upgrade their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are essential to professionals who employ the tools over a long period of time. The market for power tools is divided into consumer and professional groups. This means that the major players are constantly striving to improve their designs and come up with new features to reach a larger audience.
Tip 5: Create an Point of Sale
The online marketplace has changed the market for power tools. The advancements in data collection techniques have allowed business professionals to gain an entire overview of market trends and help them develop inventory and marketing strategies more efficiently.
Utilizing data from the point of sale (POS), you can track DIY projects your customers undertake when buying power tools and other accessories. Knowing what projects your customers are working on allows you to upsell and offer extras. It allows you to anticipate the needs of your customers to ensure that you have the right products in hand.
Furthermore, transaction data allows you to spot trends in the market and adjust production cycles in line with. For example, you can utilize this information to track changes in your brand's and the market share of your retail partners and help you adapt your product strategies to consumer preferences. POS data can also be used to optimize inventory levels, reducing the risk of stocking up. It is also used to evaluate the effectiveness of promotions.
Tip 6: Establish a Point of Service
Power tools is a profitable complex market that requires substantial marketing and sales efforts in order to stay competitive. In the past, gaining a competitive advantage in this market was achieved through pricing or positioning products. However, Powertoolsonline are not as effective in the current omnichannel environment where information is easily shared.
Retailers who make a point of providing a high-quality service are more likely to keep customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool department. His initial department featured a variety of brands. However when he talked to contractors, he realized that they were loyal to their favorite brand.
Karch and his team ask their customers what they intend to accomplish using a tool before presenting them with the alternatives. This gives them confidence to recommend the right tool for the job, and builds trust with the customer. Customers who are familiar with their product well are less likely to blame their vendor for a tool malfunction during the course of work.
Tip 7: Make a point of customer service
The market for power tools has become a highly competitive market for retailers of hardware. The retailers that have had the most success in this market tend to make a firm commitment to a particular brand rather than merely carrying a selection of manufacturers. The amount of space a retailer must devote to this category can also affect how many brands it can carry.
Customers usually require assistance when they go in to purchase a power tool. Sales associates can offer expert guidance to customers looking to replace a damaged tool or undertaking an upgrade project.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is educated to ask questions that could lead to a sale. He says they begin by asking the customer about what he or she plans to use the product. "That's the most important factor to consider when deciding the kind of tool to offer them," he adds. Next, they ask about the project and what level of experience the customer has with different types of projects.
Tip 8: Be sure to be sure to mention your warranty
The warranty policies of the power tool makers are very different. Some manufacturers offer a comprehensive warranty, whereas others are more limited or do not cover certain tools. It is crucial for retailers to understand these differences before buying, since customers will buy tools from companies that back them up.
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 as well as a repair shop on site that repairs 50 different brands of tools. He has discovered over the years that many of his contractor customers are loyal to a particular brand, so he focuses on a limited number of brands rather than offer a wide range of products.
He also likes the fact that his employees get one-on-one time with vendors to discuss new products and give feedback. This kind of interaction is vital because it helps build trust between the store's clients and employees. Good relationships with suppliers may even lead to discounts for future purchases.