Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. Despite power tools sale uk in 2021 due to the COVID-19 pandemic demand remains near or at levels prior to the pandemic.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's follows closely. Both are competing with power tools made in China.
Tip 1: Make an Engagement to Brands
Many manufacturers of industrial products put a higher priority on sales over marketing. This is because a long-term sale requires a lot back-and forth communication and in-depth knowledge of the product. This type of communication is not conducive to emotional marketing tactics.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital age has overtaken traditional companies that rely on a few retailers and distributors for sales.
The key to selling power tools is brand loyalty. If a customer is committed to a brand they are less sensitive to communications from competitors. Additionally they are more likely to buy the item of the customer again and recommend it to others.
You need a well-planned plan to be successful in the US market. This includes adapting your tools to meet local needs and positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. It is also important to work with local authorities and industry associations as well as experts. By doing so you can ensure that the power tools you purchase conform to the laws of the country and standards.
Tip 2: Know Your Products
In a marketplace where quality of the product is so important, retailers should know the products they offer. This will help them make informed choices about the products they offer. This information can be the difference between a successful or a bad purchase.
For instance, knowing that a tool is suitable for specific projects will allow you to match your customer with the best tool to meet their needs. You'll earn trust and loyalty among your customers. This will ensure that you're providing a complete service.
Understanding DIY culture trends can help you better understand your customers' needs. As an example the increasing number of homeowners are taking on home renovation projects requiring the use of power tool. This can lead a spike in sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16%. However, Ryobi and Craftsman have seen their shares decrease year-overyear. Despite this, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason why a consumer makes a power tool purchase is to replace a tool that has been damaged or failed or to embark on 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 power tool purchases are the result of planned replacements. The customers might require additional accessories or upgrade to a more powerful model.
If your customer is an experienced DIYer or new to the hobby, they'll likely need to replace their power tools' carbon brushes, drive belts and power cords with time. Keeping up with these essentials will allow your customer to make the most of their investment.
Technicians consider three key items when making power tool purchases: application, how it will be powered and safety. These factors aid technicians in making educated decisions about the most suitable 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: Stay up-to-date with the latest technologies.
For example, the latest battery tools have advanced technology that enhances users' experience and differentiates them from other brands that still depend on old-fashioned battery technology. Wholesalers of B2B that offer and sell these tools can boost sales by targeting professionals and contractors who are technologically advanced.
For Karch, whose business has more than three years of experience and a 2,000-square-foot tool department, keeping up with the latest technologies is crucial. "Manufactures are constantly changing the design of their products" he says. "They used to hold their designs for five or 10 years, but now they're changing them every year."
In addition to embracing 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 for many professional contractors who use the tools over a long period of time. The market for power tools is divided into professional and consumer groups and this means that the biggest players are constantly enhancing their designs and creating new features to appeal to a wider audience.
Tip 5: Create a Point of Sale
The ecommerce landscape has changed the power tool market. Data collection techniques have improved, allowing business professionals to get a better understanding of the market. This helps them develop more efficient inventory and marketing strategies.
Point of sale (POS) data can, for example, allow you to keep track of the types of projects that DIYers are working on when they purchase power tools and accessories. Knowing what projects your customers are working on allows you to offer upsells and add-ons. It allows you to anticipate your customers' needs to ensure that you have the appropriate products on the market.
Additionally, transaction data can help you to identify market trends and adjust production cycles in line with. You could, for instance utilize this data to monitor fluctuations of your retail partners' and brand's market share. This allows you to align your product strategies with consumer preferences. In the same way, you can utilize POS data to optimize levels of inventory and decrease the chance of overstocking. It can also help you to evaluate the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools is a profitable, complex market that requires substantial marketing and sales efforts to stay competitive. The classic ways to gain an advantage in this market have been by establishing pricing or positioning of products, but these tactics no longer work in today's multichannel marketplace where information is shared in such a rapid manner.
Retailers who concentrate on service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin has a 12,000 square-foot department for power tools. In the beginning, his store featured various brands, but when he began to listen to the customers of contractors, he discovered that the majority were brand loyal.
To win their customers' business, Karch and his team first ask their customers what they want to do with the tool before showing them the tools they have available. This gives them confidence to recommend the most effective tool for the job, and builds trust with the customer. Customers who are familiar with their product well are less likely to blame their retailer for a tool failure on the job.
Tip 7: Be a guru in customer service
The market for power tools has become a highly competitive market for retailers of hardware. People who have had success in this category tend to make a strong commitment to a brand instead of simply carrying a few manufacturers. The amount of space that a retailer needs to dedicate to this category could be a factor in the number of brands it can carry.
When customers come in to purchase power tools, they often need help selecting the right product. When they're replacing an old tool damaged or undertaking an upgrade project clients require expert guidance from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the staff at his store is trained to ask questions that can result in an offer. They start by asking what the customer is planning to do with the tool according to him. "That's the primary factor in deciding the kind of tool to offer them," he adds. Next, they ask about the project and the level of experience they have with various types of projects.
Tip 8: Make sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Some are fully comprehensive, while others aren't as generous or refuse to cover certain aspects of the tool at all. It is crucial for retailers to know the distinctions before purchasing, as customers 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 in-house that handles 50 kinds of tools. He has discovered over the years that many of his contractors are brand loyal, so he prefers to focus on the most popular brands rather than offer a wide range of products.
He also likes the fact that his employees can have one-on-one meetings with vendors to discuss new products and provide feedback. This kind of interaction is vital because it helps build trust between the store's customers and employees. Building strong relationships with suppliers may lead to discounts on future purchases.