power tool deals and Marketing Strategies for B2B Retailers
Power tools are essential for both consumers and professionals. The demand for power tools is at or close to pre-pandemic levels despite a slowdown due to the COVID-19 epidemic in 2021.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's isn't far behind. However, both are facing stiff competition from China-manufactured power tools.
Tip 1: Commit to a brand
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is due to the fact that the long-term sales process involves a lot of back and forth communication and a thorough understanding of the product. This kind of communication does not lend itself to emotional consumer marketing techniques.
However, industrial tool manufacturing companies must rethink their approach to marketing. The digital age has overtaken traditional manufacturers who depend on a small group of distributors and retail outlets for sales.
A key to power tool sales is brand loyalty. When a customer is committed to a certain brand, they are less sensitive to competitor's messages. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to others.
You require a well-planned strategy to have an impact on the US market. This means adapting your tools to local needs, positioning brands in a way that is competitive, and leveraging marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also crucial. When you do this you can ensure that the power tools you purchase be in compliance with the regulations of the country and standards.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they offer, especially in a market which places a great importance on the quality of products. This will allow them to make informed choices about the products they are selling. This knowledge can make the difference between making a successful or a poor sale.
Knowing that a certain tool is ideal for a particular project will aid in matching the right tool to the requirements of your customer. You will build trust and loyalty among your customers. It will also give you confidence that you're offering an entire solution.
In addition, understanding the trends in DIY culture can help you better comprehend what your customers want. For instance, a growing number of homeowners are undertaking home renovation projects that require power tools. This could lead to a rise in sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, however Ryobi and Craftsman brands have seen their share drop year-over-year. Despite this the fact that sales on both stores and online are increasing.
Tip 3: Offer Full-Service Repair
The most common reason for a person to make a power tool purchase is to replace one that has failed or to embark on a new project. Both of these can be used to increase sales 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 for power tools resulted from a planned replacement. These customers may require additional accessories or upgrade to a higher-performing model.
Your customer may have experience in DIY or is new to the hobby they will need to replace the carbon brushes, drive cords, and power cords of their power tools in time. These items will ensure your client gets the most out of their investment.
When purchasing power tools, technicians look at three aspects: the tool's application the power source, and safety. These aspects help technicians make informed choices when it comes to selecting the appropriate tools for their maintenance and repair work. This helps them optimize the efficiency of their tools as well as lower the cost of ownership.
Tip 4: Stay current with the latest technology
The most recent battery tools, for instance, offer smart technology which enhances the user experience and sets them apart from those who rely upon old battery technology. Wholesalers in B2B who stock and sell these devices can increase sales by targeting professional and tech-savvy contractors.
Karch's company, which has more than 30 years of experience, and a 12,000 square foot department for tools is a testament to the importance of keeping current with the latest technologies. He states that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or 10 years, but now they're changing them every year."
In addition to embracing most recent 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 a large number of professionals who have to use the tools for long durations. The market for power tools is divided into professional and consumer groups and this means that the biggest players are constantly improving their designs and introducing new features to reach an even larger audience.
Tip 5: Create a Point of Sale
The online marketplace has changed the power tool market. Data collection techniques have been improved, allowing business professionals to gain a better understanding the market. This allows them to develop more efficient inventory and marketing strategies.
Using data from the point of sale (POS) You can track DIY projects that customers undertake when buying power tools and accessories. Knowing what projects your customers are working on allows you to upsell and offer add-ons. It allows you to anticipate your customers' needs to ensure that you have the right products in the market.
You can also use transaction data to spot market trends, and adjust production cycles accordingly. For instance, you can utilize this data to monitor fluctuations of your retail partners' and your brand's market shares. This allows you to align product strategies to consumer preferences. Similarly, you can use POS data to optimize levels of inventory and decrease the risk of stocking up. It can also help you to evaluate the effectiveness of promotions.
Tip 6: Create an Point of Service
Power tools is a lucrative, complex market that requires significant marketing and sales efforts in order to stay competitive. In the past, gaining an advantage in this market was accomplished through pricing or positioning products. However, these tactics are no longer effective in today's world of omnichannels where information is easily shared.
Retailers who provide a high level of service are better able to keep customers coming back and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, runs a 12,000 square-foot power tool department. Initially, his department 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.
To win their customers, Karch and his team first ask their customers what they would like to accomplish with the tool before showing them what they have available. This gives them the confidence to recommend the appropriate tool for a job, and it builds trust with customers. Customers who are familiar with their product are less likely to blame the store for the failure of a tool for the job.
Tip 7: Create a point of customer service
The power tool market has become a highly competitive market for hardware retailers. People who have had the most success in this market tend to make a strong commitment to a brand rather than simply carrying a few manufacturers. The amount of space a retailer is able to devote to a category may also affect the number of brands they are able to carry.
Customers frequently require assistance when they go in to buy a power tool. Sales associates can offer the best advice to customers looking to replace a broken device or completing an upgrade project.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the staff at his store is trained to ask questions that can lead to the sale. He says they start by asking the buyer what they plan to use the product. "That's the key to determining the kind of tool to sell them," he adds. The next step is to inquire about the project and what level of experience the client has with different types of projects.
Tip 8: Be sure to mention your warranty
The warranties of the power tool makers are quite different. Some are completely comprehensive, while others are stingy, or refuse to cover certain aspects of the tool at all. It's crucial for retailers to understand the differences prior to making a purchase, because customers will purchase tools from companies that offer warranties.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000-square-foot power tool department and an repair shop within the premises that can handle 50 kinds of tools. He has learned that many of his contractor clients are loyal to a particular brand. So, he chooses to carry only a few brands rather than carry samples of different products.
He is also happy that his employees are able to meet with vendors in person to discuss new products and exchange feedback. This kind of interaction is essential because it helps to establish trust between the store and the customers. Good relationships with suppliers may even result in discounts for future purchases.