Power Tool Sale: What No One Has Discussed
Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and personal use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic, the demand is still at or near levels prior to the pandemic.
Home Depot is the leader in the sales of power tools by dollar share. Lowe's is close 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 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 suitable for emotional marketing strategies.
However, companies that manufacture industrial tools need to rethink their marketing strategy. The digital age has outpaced traditional manufacturers who depend on a select group of retailers and distributors for sales.
Brand commitment is an important element in the sale of power tools. When a customer is adamant about a particular brand they are less receptive to the messages of competitors. They are also more likely to buy the products of the brand they are loyal to and to recommend them to friends and family.
It is essential to have a well-planned strategy to have an impact on the US market. This means adapting tools to local requirements and positioning your brand in a way that is competitive, and making use of distribution and marketing platforms channels. Collaboration with local authorities as well as associations and experts is also essential. You can be assured that your power tool will be in compliance with the requirements and standards of the country when you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they sell, especially in a market which places a great value on the quality of the product. This will enable them to make informed decisions about what they are selling. This information can make the difference between a successful sale and a poor one.
For instance, knowing that a tool is suitable for the particular task will allow you to connect your client with the appropriate tool to meet their needs. You'll earn trust and loyalty among your customers. This will help you feel confident that you provide the complete service.
Understanding DIY cultural trends can help you better understand your customers' requirements. As an example the increasing number of homeowners are taking on home improvement projects that require the use of power tool. This can lead to a spike in the sale of these tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16 percent. However, hop over to this site and Craftsman have seen their share decrease year-over-year. Despite this sales in stores and online are on the increase.
Tip 3: Offer Full-Service Repair
The most frequent reason for a person to make a power tool purchase is to replace one that has broken down or to take on an entirely new project. Both provide opportunities for upsells or additional sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories 35 percent of all purchases for power tools are the result of planned replacements. Customers often require additional accessories or may require upgrading to better performance 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. These basic items will ensure that your customer reaps the maximum benefit from their investment.
Technicians must consider three important aspects when buying power tools the application, the way it will be powered and safety. These aspects allow technicians to make informed choices when selecting the right tools for their maintenance and repair work. This will help them maximize the efficiency of their tools as well as lower the cost of ownership.
Tip 4: Always Keep Up With Technology
For instance, the latest power tools offer intelligent technology that enhances the user 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 professional and tech-savvy contractors.
For Karch who's business has more than three decades of experience and a 2,000-square-foot tool department, keeping up with the latest technology is vital. "Manufactures are constantly adjusting the design of their products" Karch says. "They used hold their designs for five or 10 years, but now they are changing them each year."
B2B wholesalers should not just adopt the latest technology, but also upgrade their existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the strain caused by long use. These features are crucial for many contractors working in the field who utilize the tools for a long period of time. The power tools industry is divided into consumer and professional groups and this means that the biggest players are always working on improving their designs and introducing new features that will appeal to a wider audience.
Tip 5: Create a Point of Sales
The online marketplace has transformed the market for power tools. Advancements in data collection methods have allowed business professionals to get an entire view of market trends, allowing them to shape strategies for inventory and marketing more efficiently.
Point of sale (POS) data for instance, allows you to monitor the kinds of projects DIYers tackle when purchasing power tools and accessories. Knowing what projects your customers are working on allows you to offer upsells and add-ons. It also helps you to anticipate the requirements of your customers, ensuring that you have the right products in stock.
You can also utilize transaction data to spot trends in the market, and then adjust production cycles in line with these trends. For instance, you can make use of this information to monitor fluctuations of your brand's and retail partners market share. This will allow you to align your strategy for product to the preferences of consumers. In the same way, you can utilize POS data to optimize levels of inventory and decrease the chance of overstocking. It can also assist you to evaluate the effectiveness of promotions.
Tip 6: Establish an Point of Service
Power tools are a complex, high-profit market that requires a significant amount of sales and marketing effort to stay competitive. In the past, getting an advantage in this market was accomplished by pricing or positioning products. However, these strategies are not effective in today's omnichannel environment where information is easily shared.
Retailers who focus on service are more likely to retain customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, operates a 12,000-square-foot power tool department. His department initially featured several brands. However when he spoke to contractors, he realized that they were loyal to their favorite brand.
Karch and his staff ask their customers what they plan to do with the tool prior to showing them the alternatives. This gives them the confidence to recommend the appropriate tool for the job, and it builds trust with customers. Customers who know their product well are less likely to blame their vendor for a tool failure on the job.
Tip 7: Create a point of customer service
Power tool retailers are facing an extremely competitive market. Those who have seen success in this area tend to make a firm commitment to a particular brand rather than merely carrying a selection of manufacturers. The size of the space that a retailer needs to dedicate to this category could be a factor in the number of brands it can carry.
When customers visit a store to purchase a power tool they may need assistance choosing a product. Whether they are replacing an old model damaged or undertaking the task of renovating, customers need expert advice from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that his store's staff is educated to ask questions that could lead to the sale. They begin by asking questions about what the buyer is planning to use the tool for, he says. "That's how you determine the type of tool you need," he says. Then, they inquire about the project and the level of experience the client has with different kinds of projects.
Tip 8: Make sure to make mention of your warranty
The warranty policies of the power tool makers differ greatly. Some are completely complete, while others aren't as generous or refuse to cover certain aspects of the tools at all. Before making a purchase it is crucial that the retailer understands the distinctions. Customers will only purchase tools from companies who back them up.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tool department as well as an repair shop within the premises that can handle 50 models of tools. He has realized over the years that many of his customers who are contractors are brand loyal, so the company prefers to stick to a limited number of brands rather than attempting to offer a variety of products.
He also likes that his employees have one-on-one meetings with vendors to discuss new products and share feedback. This kind of interaction is vital because it builds trust between the customers and employees. Having good relationships with suppliers could lead to discounts on future purchases.