Power Tool Sale Isn't As Tough As You Think

Wiki Article

Power Tool Sales and Marketing Strategies for B2B Retailers

Power tools are a staple for both consumer and professional use. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains near or at levels prior to the pandemic.

In terms of outlet dollar share, Home Depot leads all outlets in power tool sales. Lowe's follows closely behind. But both companies are facing stiff competition from China-manufactured power tools.

Tip 1: Create a Brand Commitment

Many industrial products manufacturers prioritize sales over marketing. This is because the long-term sales process involves a lot of back and forth communication and detailed knowledge of the product. This kind of communication isn't ideal for marketing that is based on emotion.

However, companies that manufacture industrial equipment should reconsider their marketing strategy. The digital world has raced past traditional manufacturers who rely on a small circle of retailers and distributors for sales.

Brand loyalty is a major element in the sale of power tools. If a customer is loyal to a particular brand and is loyal to a brand, they are less sensitive to communications from competitors. Additionally they are more likely to buy the product of the client again and recommend it to others.

To be successful in the United States market, you must develop a well-planned strategy. This means adjusting your tools to meet local needs, positioning your brand in a strategic way, and making use of distribution channels and marketing platforms. It is also important to work with local authorities as well as industry associations and experts. You can be sure that your power tool is in line with the standards and regulations of the country when you do this.

Tip 2: Be aware of Your Products

Retailers should be familiar with the products they offer especially in a marketplace which places a great value on product quality. This will enable them to make informed choices about what they offer their customers. This knowledge can make the difference between a successful or a poor sale.

For instance knowing which tool is suitable for a particular project will allow you to connect your client with the appropriate tool to meet their requirements. This will aid in building trust and loyalty with your customers. This will help you feel confident that you're providing the complete service.

Understanding DIY culture trends can aid in understanding your customers' needs. For example, a growing number of homeowners are taking on home renovation projects that require power tools. 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 shares decrease year-overyear. However sales in stores and online are increasing.

Tip 3: Offer Full-Service Repair

The most frequent reason that a buyer makes a tool purchase is to replace one that is broken down or to take on the task of a new one. Both of these tools offer opportunities for upsells or 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. The customers might require additional accessories or upgrade to a better-performing model.

No matter if your customer is an experienced DIYer or is new to the hobby, they'll require replacing their carbon brushes for power tools, drive belts and power cords with time. These items will ensure your customer gets the most from their investment.

When purchasing power tools, technicians consider three aspects: the tool's application the power source, and safety. These factors aid technicians in making informed choices about the best tools to use for their repairs and maintenance tasks. This helps them maximize the performance of their tools and lower the cost of ownership.

Tip 4: Keep current with the latest technology

For example, the latest power tools offer smart technology that improves users' experience and sets them apart from competitors that still depend on old-fashioned battery technology. B2B wholesalers who stock and sell these tools can increase sales by focusing on professionals and contractors who are tech-savvy.

Karch's business, which has more than 30 years of experience, and a 12,000 square foot tool department is a testament to the importance of keeping up-to-date with the latest technology. "Manufactures are constantly changing the look of their products," Karch says. "They used hold their designs for 5 or 10 years but now they are changing their designs every year."

In addition to embracing the latest technologies, B2B wholesalers should also concentrate on improving their existing models. By adding lightweight materials and adjustable handles, wholesalers can decrease fatigue caused by prolonged use. These features are essential to professionals who employ the tools for a long period of time. The power tool industry is split into professional and consumer groups. This means that the major players are always working to improve their designs and come up with new features to appeal to a wider audience.

Tip 5: Make a Point of Sale

The e-commerce market has changed the market for power tools. Data collection techniques have been improved and business professionals can gain a better understanding of the market. This allows them to develop more efficient inventory and marketing strategies.

Utilizing data from the point of sale (POS) You can track DIY projects your customers undertake when buying power tools and accessories. Knowing the kinds of projects your customers are working on enables you to offer add-on sales and upsell opportunities. It allows you to anticipate your customers' needs to ensure that you have the appropriate products on hand.

You can also utilize transaction data to spot trends in the market and adjust production cycles in line with these trends. You can, for example utilize this data to monitor fluctuations of your retail partners' and your brand's' market shares. This allows you to align your product strategies to consumer preferences. POS data can also be used to improve inventory levels, reducing the risk of stocking up. It is also used to assess the effectiveness of promotions.

Tip 6: Create a Point of Service

Power tools are a tangled, high-profit market that requires a significant amount of marketing and sales efforts to remain in the game. In the past, getting an advantage in this market was achieved by pricing or positioning products. However, these strategies are not as effective in the current omnichannel environment where information is readily available to be shared.

Retailers who make a point of service are better able to keep customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool department. At first, the department offered a sampling of brands, but when he began to listen to contractor customers and found that the majority were brand loyal.

Karch and his staff ask their customers what they plan to accomplish using a tool before showing them the alternatives. This gives them the confidence to recommend the appropriate tool for a job, and also builds trust with customers. Customers who are familiar with their product are less likely to blame their retailer for a tool malfunction during the course of work.

Tip 7: Make an effort to be a Point of Customer Service

Power tool retailers are facing a fiercely competitive market. People who succeed in this market tend to be more loyal to a single brand rather than to carry a variety of manufacturers. The amount of space a retailer must devote to this category can also affect the number of brands it can carry.

When customers visit a store to purchase a power tool and require assistance, they usually need help selecting the right product. Whether they are replacing an old model damaged or undertaking the task of renovating Customers need guidance 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 will lead to an offer. He says they start by asking the customer about what he or she plans to do with the product. "That's the best way to decide what kind of tool they need," he says. Then they ask about the experience of the customer with various types of projects and the project.

Tip 8: Create a Point of Warranty

The manufacturers of power tools differ greatly in power tool sale their warranty policies. Some manufacturers offer a comprehensive warranty, while others are more limited or do not offer warranties for certain tools. Before purchasing a tool, it is crucial that the retailer understands the distinctions. Customers will only buy tools from companies that will guarantee their products.

Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tools department as well as an repair shop in-house that handles 50 kinds of tools. He has discovered through the years that a majority of his contractor customers are loyal to their brands, which is why the company prefers to stick to the most popular brands rather than trying to offer a variety of products.

He is also happy that his employees are able to meet with vendors one-on-1 to discuss new products and exchange feedback. This personal contact is crucial because it helps build trust between the store's clients and employees. Good relationships with suppliers can even result in discounts on future purchases.