Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and consumer use. The demand for power tools is at or close to pre-pandemic levels despite a slowdown due to the COVID-19 epidemic in 2021.
In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's is second in line. Both are competing with power tools manufactured in China.
Tip 1: Commit to a brand
Many manufacturers of industrial products put an 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 type of communication does not lend itself to emotional consumer marketing techniques.
But, companies that produce industrial tools should rethink their marketing strategy. The digital age has accelerated past traditional companies that rely on a small circle of retailers and distributors for sales.
Brand commitment is a key factor in power tool sales. When a buyer is adamant about a particular brand, they are less sensitive to competitors' communications. They are also more likely to purchase the client's products again and to recommend them to others.
To have a positive impact to be successful in the United States market, you must develop a well-planned strategy. This means adapting tools to local requirements, positioning brands in a manner that is competitive and using marketing platforms and distribution channels. It is also essential to collaborate with local authorities, industry associations, and experts. By doing so you can be sure that your power tools will be in compliance with the regulations of the country and standards.
Tip 2: Be aware of Your Products
In a market where product quality is crucial, retailers should be aware of the products they sell. This will help them make informed decisions about the products they offer their customers. This information can be the difference between a successful or bad sale.
Knowing that a certain tool is ideal for a particular project will aid in matching the right tool to the requirements of your customer. This will aid in building trust and loyalty with your customers. This will help you feel confident that you're providing the complete service.
Additionally, understanding the trends in DIY culture can help you better understand what your customers want. For instance the increasing number of homeowners are taking on home renovation projects requiring the use of power tools. This could lead to an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this the fact that sales on both stores and online are growing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace an old one or tackle an upcoming project. Both offer opportunities for upsells and 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 for power tools resulted from an anticipated replacement. These customers typically require additional accessories or may need to upgrade to higher performing models.
If your customer is experienced in DIY or is just beginning the hobby they will need to replace their carbon brushes, drive cords and power cords of their tools over time. Making sure they are up to date with these essentials will allow your customer to get the most out of their investment.
Technicians consider three key items when making power tool purchases: application, how it will be powered and safety. These aspects allow technicians to make informed decisions when choosing the right tools for repair and maintenance work. This helps them maximize the performance of their tool and lower the expense of owning it.
Tip 4: Keep up to date with technology
The most recent battery tools, for instance they feature smart technology that enhances user experience and differentiates them from those who rely upon old battery technology. Wholesalers in B2B who carry and sell these devices can boost sales by targeting tech-forward contractors and professionals.
Karch's company, which has more than 30 years of experience, and a 12,000 square feet tooling department, is a testament to the importance of keeping current with the latest technologies. "Manufactures are constantly changing the look of their products," he says. "They used hold their designs for five or 10 years, but now they alter their designs every year."
In addition to embracing the latest technologies, B2B wholesalers should also concentrate on improving their existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are crucial for many professionals who have to make use of the tools for long durations. The market for power tools is divided between consumer and professional groups. This means that the major players are always working to improve their designs and develop new features to appeal to a wider audience.
Tip 5: Create a point of Sale
The online marketplace has transformed the power tools market. The advancements in data collection techniques allow business professionals to get a holistic view of market trends, allowing them to shape marketing and inventory strategies more effectively.
Point of sale (POS) data, for instance, allows you to track the types of projects that DIYers are working on when purchasing tools and accessories. Knowing the kinds of projects your customers are undertaking enables you to offer additional sales and opportunities for upselling. It also allows you to anticipate the requirements of your clients and ensure that you have the appropriate products available.
You can also use transaction data to identify trends in the market and adjust production cycles accordingly. 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 align your product strategies with consumer preferences. POS data can also be utilized to optimize inventory levels, reducing the risk of overstocking. It is also used to determine the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools is a high-profit complex market that requires significant sales and marketing efforts to stay competitive. In the past an advantage in this market was achieved through pricing or positioning products. However, these tactics are not as effective in the current world of omnichannels where information is easily communicated.
Retailers who provide a high level of providing a high-quality service are more likely 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 a sampling of brands, but when he listened to the customers of contractors, he learned that most were loyal to a particular brand.
Karch and his staff ask their customers what they would like to accomplish using a tool before showing them the alternatives. the best power tools to buy gives them the confidence to recommend the right tool for the job and also increases trust with their customers. Customers who are familiar with their product are less likely to blame the store for a failure of a tool on the job.
Tip 7: Be a guru in customer service
The market for power tools has become a highly competitive category for hardware retailers. People who succeed in this market tend to be more committed to a single brand rather than to carry a variety of brands. The amount of space a retailer must dedicate to this category could also play a role in the number of brands it can carry.
When customers come in to purchase power tools, they often need help selecting the right product. Whether they are replacing an old model 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 the employees at his store are trained to ask questions that could result in an offer. They begin by asking questions about what the customer plans to do with the tool, he says. "That's how you determine the type of tool you need," he says. Next, they ask about the project and what kind of experience the client has with different kinds of projects.
Tip 8: Make sure to mention your warranty
The warranty policies of the power tool makers differ greatly. Some are fully comprehensive, while some are stingy, or refuse to cover certain aspects of the tool at all. It's important for retailers to understand the differences prior to purchasing, as buyers will purchase tools from firms that provide them with a warranty.
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 and 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 their brands, which is why the company prefers to stick to only a few brands rather than trying to offer a wide range of products.
He also likes that his employees can get one-on-one time with vendors to discuss new products and share feedback. This personal contact is crucial because it helps build trust between the store's clients and employees. Having good relationships with suppliers could result in discounts on future purchases.