How To Outsmart Your Boss With Power Tool Sale
Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both consumers and professionals. The demand for power tools remains at or close to pre-pandemic levels, despite a slowdown due to the COVID-19 outbreak in 2021.
In terms of outlet dollar share, Home Depot leads all outlets in sales of power tools. Lowe's is second in line. Both are however being pushed by China-made power tools.
Tip 1: Create an Efficacious Brand Commitment
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because the long-term selling process requires a lot of back-and-forth communication as well as a detailed understanding 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 world has surpassed traditional manufacturers who depend on a small group of distributors and retail outlets for sales.
The key to selling power tools is brand loyalty. If a customer is committed to a brand they are less prone to the messages of competitors. They are also more likely to buy the client's products again and to recommend them to friends and family.
To make a successful impact on the United States market, you must develop an organized strategy. This means adjusting your tools to meet the local requirements and positioning your brand in a strategic way, and leveraging distribution channels and marketing platforms. It is also crucial to collaborate with local authorities as well as industry associations and experts. You can be certain that your power tool will meet the requirements and standards of the country when you do this.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they sell particularly in a market which places a great value on product quality. This will help them make informed decisions about the products they offer their customers. This information can make the difference between a successful sale and a poor one.
For example knowing that a particular tool is suitable for the particular task can help you connect your client with the appropriate tool for their requirements. This will help you build trust and loyalty with your customers. It will also give you the assurance that you're offering an entire solution.
Understanding DIY cultural trends can help you understand your customers' requirements. For instance, a rising number of homeowners are undertaking home improvement projects that require the use of power tools. This could lead to an increase in sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to repair the broken one or tackle an upcoming project. Both offer 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 purchases of power tools were the result of an anticipated replacement. These customers typically require additional accessories or require upgrading to better performing models.
Whether your customer has experience in DIY or is just beginning the hobby, they will have to replace their carbon brushes, drive cords and power cords of their power tools as time passes. These essentials will ensure that your client gets the most out of their investment.
When purchasing power tools, technicians consider three aspects: the tool's application the power source, and safety. These factors allow technicians to make informed decisions when choosing the appropriate tools for their maintenance and repair work. This will help them improve the effectiveness of their tools and lower the cost of ownership.
Tip 4: Continue to Keep Up with Technology
For instance, the latest battery tools have smart technology that improves users' experience and sets them apart from competitors that still depend on old-fashioned battery technology. Wholesalers of B2B that offer and sell these tools can increase sales by targeting tech-forward contractors and professionals.
For Karch who's business has more than three decades of experience and a 12,000-square-foot department for tools, staying up with the latest technology is vital. He says that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or ten years, but now they alter them each year."
B2B wholesalers should not just embrace the latest technologies but also enhance their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the fatigue caused by prolonged use. These features are crucial for many contractors working in the field who utilize the tools for a lengthy period of time. The power tool industry is divided into professional and consumer groups. This means that the biggest players are always working to improve their designs and develop new features to appeal to a wider public.
Tip 5: Create an Point of Sale
The e-commerce landscape has transformed the market for power tools. Advancements in data collection methods have allowed business professionals to get a holistic overview of market trends and help them develop marketing and inventory strategies more effectively.
Point of sale (POS) data can, for example, allow you to monitor the kinds of projects DIYers tackle when they purchase tools and accessories. Knowing the kinds of projects your customers are working on enables you to provide additional sales and opportunities to upsell. It also helps you to anticipate the requirements of your customers making sure you have the right products available.
Moreover, transaction data enables you to detect trends in the market and adjust production cycles accordingly. For instance, you can make use of this information to track changes in your brand's and retail partner market shares which allows you to adapt your product strategies to consumer preferences. POS data can also be used to improve levels of inventory, reducing the risk of stocking up. It is also used to determine the effectiveness of promotional campaigns.
Tip 6: Create an Point of Service
Power tools are a complicated market with high profits that requires a substantial amount marketing and sales effort to stay in the game. The classic ways to gain an advantage in this field have been through pricing or product positioning--but these tactics no longer work in the omnichannel world of today where information is distributed rapidly.
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, Wisconsin has a 12,000 square-foot department for power tools. In the beginning, his store featured a sampling of brands, but as he began listening to customers who were contractors and found that the majority were loyal to a particular brand.
Karch and his staff ask their customers what they intend to do with a tool prior to showing them the alternatives. This gives them the confidence to recommend the right tool for the job and also builds trust with the customer. Customers who know their product well are less likely to blame their supplier for a tool failure during the course of work.
Tip 7: Become a guru in customer service
The power tool market has become a very competitive area for retailers of hardware. People who have had success in this area tend to make a firm commitment to a particular brand instead of simply carrying a sampling of manufacturers. The amount of space that a retailer can devote to a particular category can determine the number of brands they carry.
When customers visit a store to purchase power tools and require assistance, they usually need help selecting a product. Whether they are replacing an old one that's broken or taking on a renovation project Customers need 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 educated to ask questions that will result in a sale. They start by asking what the customer is planning to use the tool for, he adds. "That's the best way to determine what kind of tool you need," he says. Then, they inquire about the project and the level of experience the client has with various types of projects.
Tip 8: Create a Point of Warranty
The warranty policies of the power tool makers are very different. Certain manufacturers offer a full warranty, whereas others offer a limited warranty or do not offer warranties for certain tools. Before purchasing a tool, it is essential that retailers understand the distinctions. Customers will only purchase tools from companies who back them up.
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 as well as a repair shop on site that repairs 50 different brands of tools. He has learned that many of his clients are brand loyal. So, her explanation chooses to carry a select few brands rather than carry a variety of products.
He also appreciates that his employees have the opportunity to get one-on-one time with vendors to discuss new products and give feedback. This type of personal interaction is crucial because it helps to build trust between the retailer and customers. Good relationships with suppliers may even result in discounts for future purchases.