Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both consumer and professional use. The demand for power tools is at or close to pre-pandemic levels despite a slowdown due to the COVID-19 outbreak in 2021.
In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's follows closely behind. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Commit to a brand
Many manufacturers of industrial products put more emphasis on sales over marketing. This is because a long-term sale requires a lot of back and forth communication and in-depth knowledge of the product. This type of communication is not ideal for marketing that is based on emotion.
However, companies that manufacture industrial tools need to rethink their marketing strategy. The digital age has overtaken traditional manufacturers who depend on a few distributors and retail outlets for sales.
Brand commitment is a key factor in power tool sales. If a client is loyal to a brand they are less prone to the messages of competitors. They are also more likely to buy the products of the brand they are loyal to and to recommend them to friends and family.
To have a positive impact on the United States market, you need to have a well-planned strategy. This includes adapting your tools to meet the local requirements and positioning your brand in a strategic way, and making use of marketing channels and distribution channels. Collaboration with local authorities, associations and experts is also essential. You can be assured that your power tool will be in compliance with the standards and regulations of the country if you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they are selling particularly in a market that places such a high value on product quality. This will enable them to make informed choices about the products they offer their customers. This information can make the difference between a successful sale and a bad one.
Knowing that a certain tool is suitable for a project will help you match the right tool to the needs of your customer. This will help you build trust and loyalty with your customers. It will also give you assurance that you're offering a complete solution.
Also, knowing the latest trends in DIY culture can help you understand what your customers want. For instance, a growing number of homeowners are tackling home renovation projects which require power tools. This could lead to an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16%. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this sales in stores and online are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason why that a buyer makes a tool purchase is to replace one that has broken down or to take on an entirely new project. Both of these tools offer opportunities for upsells or add-on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of purchases of power tools were the result of a planned replacement. The customers might require additional accessories, or upgrade to a more powerful model.
Whether your customer is a seasoned DIYer or just starting out in the hobby, they'll require replacing their carbon brushes for power tools, drive belts and power cords over time. These basic items will ensure that your client gets the most out of their investment.
When buying power tools, technicians look at three aspects: the tool's application, the power source and safety. These factors help technicians make educated decisions about the most suitable tools to use in their repairs and maintenance work. This helps them maximize the performance of their tool and lower the cost of owning it.
Tip 4: Stay up-to-date with the latest technologies.
The latest power tools, like are equipped with smart technology that improves the user's experience and differentiates them from those who rely upon old battery technology. B2B wholesalers who stock and sell these tools can increase sales by focusing on tech savvy contractors and professionals.
Karch's business, with more than 30 years of experience, and a 12,000 square feet tool department is a testament to the importance of staying current with the latest technologies. He says that manufacturers are constantly changing their product designs. "They used to keep their designs for five or 10 years, but they're now changing them every year."
B2B wholesalers should not just take advantage of the latest technologies, but also improve existing models. By incorporating lightweight materials and adjustable handles, wholesalers can reduce fatigue from 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 market for power tools is divided into consumer and professional groups, which means that major players are constantly improving their designs and developing new features that will appeal to an even larger audience.
Tip 5: Make an Point of Sale
The online marketplace has changed the power tool market. The advancements in data collection techniques have allowed business professionals to get an overall overview of market trends which allows them to design inventory and marketing strategies more effectively.
Utilizing data from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects your customers are completing when purchasing power tools and other accessories. Knowing power tool deals of projects that your customers are working on enables you to offer additional sales and upsell opportunities. It also helps you to anticipate the requirements of your clients, ensuring that you have the appropriate products on hand.
Moreover, transaction data enables you to spot trends in the market and adjust production cycles accordingly. For instance, you could utilize this information to track fluctuations in your brand's or market share of retail partners which allows you to align your product strategies with consumer preferences. POS data can also be used to optimize inventory levels, reducing the risk of overstocking. power tool deals black friday can also be used to determine the effectiveness of promotions.
Tip 6: Establish an Point of Service
Power tools is a profitable, 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. However, these strategies are not as effective in the current multichannel environment, where information is readily shared.
Retailers who provide a high level of service are better able to keep customers coming back and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, runs a 12,000 square foot power tool section. Initially, his department featured various brands, but as he began to listen to customers who were contractors and found that the majority were loyal to a particular brand.
To win their customers' business, Karch and his team first ask their customers what they want to do with the tool, then show them the options available. This gives them the confidence to recommend the most effective tool for the job, and builds trust with the customer. Customers who are familiar with their product are less likely to blame their supplier for a tool malfunction during the course of work.
Tip 7: Make an effort to be a Point of Customer Service
Power tool retailers face an extremely competitive market. The retailers that are successful in this market tend to be more devoted to a single brand than to carry a variety of manufacturers. The amount of space a retailer must dedicate to this category could also play a role in how many brands it can carry.
When customers go in to purchase power tools, they often need help selecting a product. Sales associates can provide professional advice to customers who are looking to replace a damaged tool or are planning an upgrade project.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that his store's staff is educated to ask questions that will result in a sale. They begin by asking what the buyer is planning to use the tool according to him. "That's the most important factor to consider when deciding the kind of tool to market them," he adds. Then, they inquire about the experience of the customer with different types of projects as well as the project.
Tip 8: Create a Point of Warranty
The warranty policies of power tool manufacturers are quite different. Some manufacturers offer a comprehensive warranty, whereas others offer more limited warranties or do not offer warranties for certain tools. Before buying a product, it's important that retailers know the distinctions. Customers will only buy tools from companies that guarantee their products.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tools department as well as an in-house repair shop that handles 50 models of tools. He has observed that many of his contractor clients are loyal to a particular brand. So, he chooses to carry a limited number of brands instead of trying to carry a variety of products.
He also likes the fact that his employees can get one-on-one time with vendors to discuss new products and share feedback. This type of personal interaction is crucial because it helps to build trust between the store and the customers. Having good relationships with suppliers can even result in discounts on future purchases.