Keep An Eye On This: How Power Tool Sale Is Gaining Ground, And What To Do
Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and consumers. Despite a slowdown in 2021 due to the COVID-19 pandemic the demand is still at or near pre-pandemic levels.
Home Depot is the leader in power tool sales by dollar share. Lowe's isn't far behind. Both are competing with power tools made in China.
Tip 1: Create a Brand Commitment
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because the long-term selling process involves a lot of back and forth communication and detailed knowledge of the product. This kind of communication does not permit emotional marketing strategies.
Nevertheless, industrial tools manufacturing companies should consider rethinking their approach to marketing. The digital age has overtaken traditional companies that rely on a few distributors and retail outlets to sell their products.
One of the most important factors in power tool sales is brand loyalty. If a client is adamant about a particular brand, they are less sensitive to the messages of competitors. Moreover they are more likely to buy the product of the client repeatedly and recommend it to others.
To be successful to be successful in the United States market, you must have a well-planned strategy. This includes adapting tools to local requirements and positioning your brand in a manner that is competitive and leveraging marketing platforms and distribution channels. It is also important to cooperate with local authorities as well as industry associations and experts. When you do this you can ensure that your power tools will conform to the laws of the country and standards.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they offer, especially in a market that places such a high value on product quality. This will enable them to make informed decisions about the products they can offer their customers. This knowledge can also make the difference between a good deal and a bad one.
For example knowing that a particular tool is suitable for a particular project can help you match your client with the appropriate tool for their requirements. This will help you build trust and loyalty with your customers. This will ensure that you provide the complete service.
Understanding DIY culture trends can aid in understanding the needs of your customers. For instance, more homeowners are undertaking home renovations that require the use of power tool. This can result in a surge in the sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16%. However, Ryobi and Craftsman have seen their share decrease year-over-year. However, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most frequent reason for a person to make a power purchase is to replace a tool that has been damaged or broken down or to take on the task of a new one. Both of these can be used to increase sales 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 may 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 require replacement of their carbon brushes for power tools as well as drive belts and power cords with time. Keeping up with these essentials will allow your customer to get the most out of their investment.
Technicians must consider three important aspects when purchasing power tools applications, how it will be used and safety. These factors aid technicians in making informed decisions about the best tools to use for their repairs and maintenance tasks. This helps them maximize the effectiveness of their tool and reduce the expense of owning it.
Tip 4: Continue to Keep Up 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 older battery technology. Wholesalers in B2B who stock and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's business, which has more than 30 years of experience, and a 12,000 square feet department for tools is a testimony to the importance of keeping up-to-date with the latest technology. "Manufactures are constantly changing the design of their products," he says. "They used to hold their designs for five or 10 years, but they're now changing them each year."
In power tools offers to embracing the modern technologies, B2B wholesalers should also focus on improving existing models. By adding lightweight materials and adjustable handles, wholesalers can lessen fatigue caused by long-term use. These features are essential for many professional contractors who need to use the tools for long periods of time. The market for power tools is divided into professional and consumer groups, which means that major players are always working on improving their designs and developing new features that will appeal to an even larger audience.
Tip 5: Create a Point of Sale
The online marketplace has changed the market for power tools. Modern methods for data collection have enabled business professionals to gain an entire view of market trends which allows them to design strategies for inventory and marketing more efficiently.
By utilizing information from the point of sale (POS), you can track DIY projects your customers complete when purchasing power tools and accessories. Knowing what projects your customers are working on enables you to increase sales and provide extras. It allows you to anticipate your customers' needs to ensure that you have the right products on the market.
You can also utilize transaction data to identify market trends, and adapt production cycles accordingly. You can, for example utilize this data to monitor changes in your retail partners' and your brand's market shares. This will allow you to align your strategy for product to the preferences of consumers. POS data can also be used to improve inventory levels, reducing the chance of overstocking. It also helps to assess the effectiveness of promotional campaigns.
Tip 6: Make an Point of Service
Power tools is a lucrative complex market that requires substantial marketing and sales efforts to stay competitive. In the past, gaining a competitive advantage in this market was accomplished by pricing or positioning products. However, these strategies are not as effective in the current world of omnichannels where information is easily communicated.
Retailers who provide a high level 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 is the owner of a 12,000-square-foot power tool department. His initial department featured a variety of brands. However when he spoke to contractors, he realized that they were loyal to their favorite brand.
To be successful in their customers, Karch and his team first ask their customers what they want to do with the tool before showing them what they have available. 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 are less likely to blame their supplier for a malfunctioning tool on the job.
Tip 7: Make an effort to be a Point of Customer Service
The market for power tools has become a very competitive area for hardware retailers. The retailers that are successful in this category tends to be more devoted to a specific brand rather than to carry a variety of brands. The size of the space that a retailer needs to dedicate to this category could be a factor in the amount of brands it is able to carry.
Customers usually require assistance when they go in to buy a power tool. If they're replacing an old one damaged or undertaking an upgrade project Customers need advice from sales associates.
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 help make an offer. They begin by asking questions about what the buyer is planning to use the tool, he adds. "That's the best way to determine the type of tool they need," he says. Then they ask about the customer's experience with different types of projects as well as the project.
Tip 8: Create an End of Warranty
The warranty policies of power tool manufacturers are very different. Certain manufacturers offer a full warranty, while others are more limited or do not cover certain tools. It is crucial for retailers to know these differences before making a purchase, because customers will buy 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 as well as a repair shop on site that repairs 50 different types of tools. He has learned that many of his contractors are loyal to their brands. So, he chooses to carry only a few brands instead of trying to offer samples of various products.
He also likes the fact that his employees have one-on-one meetings with vendors to discuss new products and give feedback. This personal contact is important as it helps establish trust between the store and the customers. Good relationships with suppliers could result in discounts on future purchases.