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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 that will hit in 2021.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's follows closely behind. However, both are facing stiff competition from China-manufactured power tools.
Tip 1: Be committed to a brand
Many industrial product manufacturers place more emphasis on sales and marketing. This is because a long-term sales requires a lot of back and forth communication and in-depth knowledge of the product. This kind of communication does not permit emotional marketing tactics.
However, industrial tools manufacturing companies should think about rethinking their marketing strategy. The digital age has overtaken traditional manufacturing companies that rely on a few distributors and retail outlets to sell their products.
Brand commitment is an important factor in power tool sales. If a customer is committed to a brand, they will be less prone to the messages of competitors. In addition they are more likely to purchase the item of the customer again and recommend it to others.
You require a well-planned strategy to be successful in the US market. This means adapting your tools to meet local needs, positioning your brand in a competitive way, and leveraging marketing channels and distribution channels. Collaboration with local authorities and associations, as well as experts is also crucial. When you do this you can ensure that your power tools comply with the country's regulations and standards.
Tip 2: Know Your Products
Retailers should be familiar with the products they sell especially in a marketplace which places a great value on the quality of the product. This will allow them to make informed choices about the products they offer. This information can make the difference between a successful sale and a bad one.
Knowing that a certain tool is ideal for a particular project will help you match the right tool to the requirements of your customer. This will help you build trust and loyalty with your customers. This will help you feel confident that you are offering an entire service.
Additionally, understanding the trends in DIY culture can help you better know what your customers are looking for. For example, a growing number of homeowners are tackling home renovation projects 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%, however Ryobi and Craftsman brands have seen their share drop year-over-year. However, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to repair an old one or tackle the new project. Both provide 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 resulted from a planned replacement. Customers often require additional accessories, or require upgrading to better quality models.
Your customer may have experience in DIY or is new to the hobby, they will need to replace carbon brushes, drive cords, and power cords of their power tools in time. These essentials will ensure that your customer gets the most from their investment.
When purchasing power tools, technicians take into consideration three aspects: the tool's application the power source, and security. These factors allow technicians to make informed choices when it comes to selecting the right tools for repair and maintenance work. This enables them to maximize the effectiveness of their tool and lower the cost of owning it.
Tip 4: Keep up-to-date with the latest technologies.
For instance, the most recent battery tools have intelligent technology that enhances the user experience and differentiates them from other tools that rely on old battery technology. Wholesalers in B2B who carry and sell these devices can boost sales by targeting tech-forward contractors and professionals.
Karch's business, with more than 30 years of experience, and a 12,000 square feet tooling department, is a testament to the importance of staying up-to-date with the latest technology. He states that manufacturers are constantly changing their product designs. "They used hold their designs for five or ten years, but now they are changing them each year."
B2B wholesalers need to not only adopt the latest technology, but also enhance their existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are essential to many professional contractors who use the tools for a lengthy period of time. The power tool industry is split into consumer and professional groups. This means that the biggest players are constantly working to improve their designs and develop new features to appeal to a wider audience.
Tip 5: Create a Point of Sales
The online marketplace has changed the power tool market. Data collection techniques have improved, allowing business professionals to gain a better understanding of the market. This allows them to develop more efficient inventory and marketing strategies.
special power tools of sale (POS) data for instance, allows you to track the types of projects that DIYers are working on when they purchase power tools and accessories. Knowing what projects your customers are working on permits you to upsell and offer extras. It helps you anticipate the needs of your customers, so that you always have the appropriate products on your shelves.
Moreover, transaction data enables you to identify market trends and adjust production cycles in line with. For example, you can make use of this information to track fluctuations in your brand and market share of retail partners which allows you to match your product strategies to consumer preferences. In the same way, you can utilize POS data to optimize inventory levels and reduce the risk of overstocking. It can also be used to determine the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools are a complicated market with high profits that requires a significant amount of marketing and sales effort to stay in the game. The traditional methods to gain a strategic advantage in this field have been by positioning or pricing products. However, these tactics no longer work in the omnichannel world of today where information is shared rapidly.
Retailers who are committed to providing a high level of providing a high-quality service are more likely to keep customers coming back and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin is the owner of a 12,000-square-foot power tool department. The department was initially home to several brands. However when he talked to contractors, he discovered that they were loyal to their preferred brand.
Karch and his staff ask their customers what they would like to do with a tool before showing them the options. This gives them the confidence to recommend the right tool for the job and it builds trust with customers. Customers who are familiar with their product are less likely to blame the store for the failure of a device on the job.
Tip 7: Make a point of customer service
Power tool retailers are facing a fiercely competitive market. The retailers that are successful in this area tend to be more committed to a single brand rather than to carry a variety of brands. The amount of space that retailers can dedicate to a specific category could affect the number of brands they can carry.
When customers come in to purchase an electric tool they may need assistance selecting the right product. Sales associates can offer professional guidance to customers looking to replace a broken device or completing a renovation project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are trained to ask the right questions to make a sale. He says they begin by asking the buyer what they plan to do with the item. "That's how you determine what kind of tool you need," he says. The next step is to inquire about the project and the level of experience the customer has with different types of projects.
Tip 8: Make an End of Warranty
The warranties of the power tool makers are very different. Some are completely comprehensive, while some aren't as generous or refuse to cover certain aspects of the tool at all. Before buying a product, it's important that retailers know the distinctions. Customers will only buy tools from companies that provide a warranty.
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 repair shop within the premises that can handle 50 models of tools. He has learned that many of his contractor clients are loyal to their brands. Therefore, he prefers to carry a select few brands instead of trying to carry a variety of products.
He also appreciates that his employees are able to meet with vendors one-on-one to discuss new products and give feedback. This type of personal interaction is essential since it builds trust between the customers and employees. Good relationships with suppliers could even result in discounts on future purchases.