Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and consumer use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic demand remains near or at pre-pandemic levels.
Home Depot is the leader in the sales of power tools based on dollar share. Lowe's is not far behind. However, both are confronting stiff competition from Chinese-made power tools.
Tip 1: Make an Efficacious Brand Commitment
Many industrial products manufacturers prioritize sales over marketing. This is because a long-term purchase requires a lot back-and forth communication and detailed product knowledge. This kind of communication does not allow for emotional consumer marketing strategies.
Nevertheless, industrial tools manufacturing companies should think about rethinking their marketing strategy. The digital age has raced past traditional companies that rely on a few retailers and distributors to sell their products.
Brand commitment is an important factor in power tool sales. If a client is committed to a specific brand they are less receptive to competitors' communications. Moreover they are more likely to purchase the client's product repeatedly and recommend it to others.
You need a well-planned plan to make an impact on the US market. This includes adapting your tools to meet the local requirements and positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. It is also crucial to collaborate with local authorities as well as industry associations and experts. In this way you can ensure that your power tools will comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they sell, especially 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 knowledge can make the difference between making a successful or a bad purchase.
For instance, knowing that a tool is suitable for the particular task will allow you to connect your customer with the right tool to meet their needs. You will build trust and loyalty among your customers. It will also give you the assurance that you're offering the complete solution.
Understanding DIY culture trends can also help you understand the needs of your customers. For instance the increasing number of homeowners are taking on home improvement projects that require the use of power tool. This can lead a spike in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, however Ryobi and Craftsman brands have seen their share drop year-over-year. However, online and in-store sales are growing.
Tip 3: Offer Full-Service Repair
The most frequent reason why a consumer makes a power purchase is to replace a tool that has been damaged or broken down or to take on an entirely new project. Both present opportunities for upsells and additional sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study 35 percent of purchases for power tools resulted from a planned replacement. These customers typically require additional accessories, or require an upgrade to better performance models.
If your customer is a seasoned DIYer or new to the hobby, they'll likely need to replace their carbon brushes for power tools, drive belts and power cords over time. These items will ensure your customer reaps the maximum benefit from their investment.
When purchasing power tools, technicians consider three aspects: the tool's application, the power source and safety. These factors aid technicians in making informed choices about the best tools to use for their maintenance and repairs. This helps them maximize the performance of their tool and lower the cost of owning it.
Tip 4: Continue to Keep Up With Technology
The most recent power tools, like they feature smart technology that enhances the user experience and sets them apart from competitors who still rely upon old battery technology. Wholesalers in B2B who offer and sell these tools can increase sales by focusing on professionals and contractors who are technologically advanced.
Karch's company, which has more than 30 years of experience and a 12,000 square feet tool department, is a testament to the importance of staying up-to-date with new technologies. "Manufactures are constantly changing the look of their products," Karch says. "They used to hold their designs for five or ten years, but now they're changing them each year."
In addition to taking advantage of the latest technologies, B2B wholesalers should also concentrate on improving their existing models. By adding lightweight materials and adjustable handles, wholesalers can reduce fatigue due to long-term use. These features are essential to many contractors working in the field who utilize the tools over a long period of time. The industry of power tools is divided into consumer and professional groups, which means that major players are constantly improving their designs and developing new features to appeal to more people.
Tip 5: Create an Point of Sale
The online marketplace has transformed the power tools market. Data collection techniques have been improved allowing business professionals to get a better understanding of the market. This helps them develop more effective marketing and inventory strategies.
Point of sale (POS) data for instance, allows you to monitor the kinds of projects DIYers undertake when they purchase tools and accessories. Knowing the type of projects that your customers are working on allows you to offer additional sales and opportunities to upsell. It also helps you anticipate the requirements of your clients, ensuring that you have the correct products in stock.
You can also utilize transaction data to identify trends in the market, and then adjust production cycles in line with these trends. You could, for instance utilize this data to track fluctuations in your brand's and retail partners' market shares. buy power tools online uk allows you to align your product strategies to consumer preferences. POS data can also be used to improve inventory levels, which reduces the chance of overstocking. It can also assist you to evaluate the effectiveness of promotional campaigns.
Tip 6: Make an Point of Service
Power tools is a lucrative, complex market that requires significant marketing and sales efforts in order to remain competitive. In the past, gaining a competitive advantage in this market was achieved through pricing or positioning products. But these methods are no longer effective in today's world of omnichannels where information is easily communicated.
Retailers who make a point of providing excellent service are more likely to keep customers coming back 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. In the beginning, his store featured various brands, but when he began to listen to contractor customers, he learned that most were brand loyal.
To win their customers, Karch and his team first ask their customers what they'd like to achieve with the tool before showing them the tools they have available. This gives them the confidence to recommend the best tool for a job, and it increases trust with their customers. Customers who know their product are less likely to blame their retailer for a tool failure during the course of work.
Tip 7: Make a point of customer service
Power tool retailers are facing a fiercely competitive market. The retailers that have had success in this category tend to have a strong commitment to a particular brand rather than simply carrying a sampling of manufacturers. The amount of space that retailers can dedicate to a specific category could influence how many brands they carry.
When customers visit a store to purchase power tools, they often need help choosing a product. When they're replacing an old one damaged or undertaking the task of renovating Customers need advice from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is educated to ask questions that can lead to a sale. They begin by asking what the buyer is planning to do with the tool according to him. "That's the best way to determine the type of tool they need," he says. The next step is to inquire about the project and what kind of experience the customer has with different kinds of projects.
Tip 8: Make sure to make mention of your warranty
The makers of power tools vary widely in their warranty policies. Some are fully complete, while others are stingy or even refuse to cover certain parts of the tool at all. It's crucial for retailers to be aware of the distinctions before buying, since buyers will purchase tools from companies that offer warranties.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tool department as well as an repair shop within the premises that can handle 50 models of tools. He has discovered that a lot of his clients are loyal to their brands. Therefore, he prefers to carry only a few brands rather than carry samples of different products.
He also appreciates that his employees are able to meet with vendors one-on-1 to discuss new products and exchange feedback. This type of personal interaction is crucial because it helps to establish trust between the retailer and customers. Building strong relationships with suppliers may lead to discounts on future purchases.