Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and users. Despite an expected slowdown in 2021 due to the COVID-19 pandemic, demand remains close to or at levels prior to the pandemic.
In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's follows closely behind. Both are competing with power tools made in China.
Tip 1: Make a Brand Commitment
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term sales requires a lot of back-and-forth communication and detailed product knowledge. This kind of communication isn't conducive to emotional marketing tactics.
However, industrial tool manufacturing companies should consider rethinking their approach to marketing. The digital age has accelerated past traditional manufacturers who rely on a small group of retailers and distributors for sales.
One of the most important factors in power tool sales is brand loyalty. If a client is committed to a brand they are less prone to the messages of competitors. just click the up coming web site are also more likely to purchase the client's products again and to recommend them to others.
To be successful in the United States market, you must have an organized strategy. This includes adapting your tools to meet local needs and positioning your brand in a strategic way, and making use of marketing channels and distribution channels. It is also important to cooperate with local authorities, industry associations, and experts. You can be certain 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
In a marketplace where quality of the product is so important, retailers must be aware of the products they offer. This will enable them to make informed decisions about what they are selling. This information can make the difference between a good deal and a bad one.
For example knowing which tool is ideal for a particular project can help you connect your customer with the best tool to meet their requirements. This will aid in building trust and loyalty with your customers. This will ensure that you provide a complete service.
Understanding DIY culture trends can also help you understand the needs of your customers. For instance increasing numbers of homeowners are completing home renovation projects requiring the use of power tool. This could lead to a spike in the sale of these tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, while Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this sales in stores and online are growing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to repair a broken one or to tackle the 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 power tool purchases were the result of a planned replacement. These customers often require additional accessories, or need to upgrade to higher performing models.
If your customer is experienced in DIY or is new to the hobby, they will have to replace the carbon brushes, drive cords and power cords of their tools in time. Keeping up with these essentials will allow your customer to get the most out of their investment.
When purchasing power tools, technicians look at three factors: the application the power source, and security. These factors allow technicians to make informed choices when selecting the right tools for their maintenance and repair tasks. This will help them improve the performance of their tools and reduce the cost of ownership.
Tip 4: Keep up to date with technology
For instance, the latest power tools feature intelligent technology that enhances users' experience and sets them apart from other brands that still rely on old battery technology. Wholesalers in B2B who carry and sell these devices can increase sales by focusing on tech savvy contractors and professionals.
For Karch who's business has more than three decades of experience and a 12,000-square-foot tool department, staying current with the latest technologies is crucial. "Manufactures are constantly changing the design of their products" Karch says. "They used to keep their designs for five or 10 years, but now they're changing them every year."
In addition to embracing latest technologies, B2B wholesalers should also focus on improving existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the fatigue caused by prolonged use. These features are essential for professionals who employ the tools for a long period of time. The market for power tools is divided into consumer and professional groups. This means that the biggest players are constantly working to improve their designs and develop new features in order to reach a larger audience.
Tip 5: Create an Point of Sale
The online marketplace has transformed the market for power tools. Modern methods for data collection have allowed business professionals to get an entire perspective of market trends which allows them to design strategies for inventory and marketing more efficiently.
Using information from the point of sale (POS) You can track DIY projects that customers are completing when purchasing power tools and other accessories. Knowing what projects your customers are working on allows you to upsell and offer add-ons. It helps you anticipate your customers' needs, so that you always have the right products in the market.
You can also use transaction data to determine trends in the market, and then adapt production cycles accordingly. You can, for example make use of this information to track fluctuations in your brand's and retail partners market shares. This allows you to align your strategy for product to consumer preferences. Additionally, you can make use of POS data to improve inventory levels and reduce the risk of stocking up. It is also used to assess the effectiveness of promotions.
Tip 6: Make a Point of Service
Power tools are a complex, high-profit market that requires a substantial amount of marketing and sales efforts to stay in the game. In the past, gaining an advantage in this market was achieved by establishing prices or positioning of products. However, these strategies are no longer effective in today's multichannel environment, where information is easily available to be shared.
Retailers who make a point of providing excellent service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, operates a 12,000-square-foot department for power tools. The department was initially home to a variety of brands. However when he spoke to contractors, he discovered that they were loyal to their favorite brand.
Karch and his staff ask their customers what they intend to do with a tool before presenting them with the alternatives. This gives them the confidence to recommend the right tool for the job, and builds trust with the customer. Customers who are familiar with their product are less likely to blame the retailer for a failure of a tool on the job.
Tip 7: Create a point of customer service
Power tool retailers face an extremely competitive market. People who succeed in this market tend to be more committed to a specific brand rather than to carry a variety of brands. The amount of space that retailers can dedicate to a particular category can influence how many brands they carry.
Customers usually require assistance when they go in to purchase a power tool. When they're replacing an old model that is broken or tackling a renovation project Customers need advice from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are educated to ask questions that can result in a sale. They begin by asking what the buyer is planning to use the tool, he says. "That's the most important factor to consider when deciding the type of tool to market them," he adds. Then, they inquire about the project and the level of experience the client has with different kinds of projects.
Tip 8: Be sure to be sure to mention your warranty
The makers of power tools vary widely in their warranty policies. Some are fully comprehensive, while others are stingy, or refuse to cover certain aspects of the equipment. Before buying a product, it is crucial that the retailer understands the differences. Customers will only purchase tools from companies that guarantee their products.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department and an on-site repair shop that repairs 50 different brands of tools. He has discovered through the years that a majority of his customers who are contractors are loyal to a particular brand, so he prefers to focus on the most popular brands rather than 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 provide feedback. This type of personal interaction is crucial as it helps create trust between the retailer and customers. Having good relationships with suppliers could result in discounts on future purchases.