5 Myths About Power Tool Sale That You Should Avoid

Wiki Article

Power Tool Sales and Marketing Strategies for B2B Retailers

Power tools are essential for both professionals and consumers. The demand for power tools is at or near pre-pandemic levels, despite a slowdown due to the COVID-19 epidemic that will hit in 2021.

Home Depot is the leader in the sales of power tools by dollar share. Lowe's is not far behind. Both are competing with power tools made in China.

Tip 1: Make a commitment to a brand

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 a thorough understanding of the product. This type of communication does not permit emotional marketing tactics.

But, companies that produce industrial tools need to rethink their marketing strategy. The digital age has outpaced traditional manufacturers who depend on a select group of distributors and retail outlets for sales.

The key to power tool sales is brand loyalty. If a customer is committed to a brand, they will be less prone to messages from competitors. They are also more likely to buy the products of the brand they are loyal to and to recommend them to others.

It is essential to have a well-planned strategy to have an impact on the American market. This includes adapting your tools to local needs and positioning your brand in a competitive manner, and using marketing platforms and distribution channels. It is also essential to collaborate with local authorities and industry associations as well as experts. By doing so you can be sure that your power tools will comply with the country's regulations and standards.

Tip 2: Know Your Products

In a world where product quality is so crucial, retailers should be aware of the products they sell. This will help them make informed decisions about what they offer. This knowledge could also be the difference between a good sale and a bad one.

For example knowing which tool is suitable for the particular task will help you match your customer with the best tool to meet their needs. You will build trust and loyalty with your customers. It will also give you confidence that you're offering an entire solution.

Understanding DIY cultural trends can help you understand the needs of your customers. As an example increasing numbers of homeowners are completing home renovation projects requiring the use of power tools. This can result in an increase in sales of these tools.

According to Durable IQ, DeWalt leads in power tool unit share at 16%, however Ryobi and Craftsman brands have seen their share decrease year-over-year. However the fact that both in-store and online purchases are on the rise.

Tip 3: Offer Full-Service Repair

The most frequent reason that a buyer makes a tool purchase is to replace a tool that has been damaged or broken down or to take on the task of a new one. Both offer the possibility of upselling or adding on sales.

According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories 35 percent of all power tool purchases are the result of planned replacements. Customers often require additional accessories or need to upgrade to higher performing models.

If your customer is experienced in DIY or is just beginning the hobby, they will need to replace the 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.

When purchasing power tools, technicians consider three factors: the application, the power source and security. These aspects help technicians make informed choices when selecting the right tools for maintenance and repair tasks. This allows them to improve the performance of their tools and lower the cost of ownership.

Tip 4: Keep Keeping Up with Technology

For instance, the most recent power tools offer smart technology that improves users' experience and differentiates them from competitors that still rely on old battery technology. B2B wholesalers who stock and sell these tools could boost sales by targeting professional and tech-savvy contractors.

For Karch, whose business has more than three years of experience and a 2,000-square-foot tool department, keeping up with the latest technologies is crucial. "Manufactures are constantly changing the look of their products" Karch says. "They were able to hold their designs for 5 or 10 years but now they are changing their designs every year."

In addition to embracing modern technologies, B2B wholesalers should also be looking to improve existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can decrease fatigue caused by prolonged use. These features are crucial for a large number of professional contractors who need to use the tools for long periods. The power tool industry is divided between consumer and professional groups. This means that major players are always working to improve their designs and develop new features in order to appeal to a wider public.

Tip 5: Create a Point of Sale

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

Point of sale (POS) information, for instance, allows you to keep track of the types of projects DIYers undertake when they purchase power tools and other accessories. Knowing what projects your customers are working on permits you to increase sales and provide additional products. It helps you anticipate your customers' needs, so that you always have the appropriate products on hand.

You can also utilize transaction data to determine trends in the market, and then adapt production cycles accordingly. You could, for power tool shop instance utilize this data to monitor fluctuations of your brand's and retail partners market share. This allows you to align your strategy for product to consumer preferences. Additionally, you can make use of POS data to optimize inventory levels and reduce the chance of overstocking. It is also used to determine the effectiveness of promotions.

Tip 6: Be a good neighbor

Power tools is a profitable, complex market that requires significant sales and marketing efforts to stay competitive. The traditional methods to gain a strategic advantage in this market were by positioning or pricing products. However, these tactics no longer work in today's multichannel marketplace in which information is dispersed rapidly.

Retailers that focus on customer service are more likely to retain 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. In the beginning, his store featured various brands, but when he began to listen to the customers of contractors and found that the majority were brand loyal.

To make a mark in their business, Karch and his team first ask customers what they'd like to achieve using the tool, before showing them the options available. This gives them the confidence to recommend the right tool for a job, and builds trust with customers. Customers who are familiar with their product are less likely to blame the store for a failure of a tool on the job.

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

The power tool market has become a very competitive area for hardware retailers. The retailers that are successful in this market tend to be more loyal to a single brand than to carry a variety of manufacturers. The amount of space a retailer is able to devote to a specific category could determine the number of brands they can carry.

Customers usually require assistance when they go in to buy a power tool. When they're replacing an old model damaged or undertaking the task of renovating clients require expert advice from sales associates.

Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is trained to ask questions that will lead to an offer. They begin by asking questions about what the customer is planning to use the tool for according to him. "That's the primary factor in deciding the kind of tool to offer them," he adds. Next, they ask about the project and what kind of experience they have with different kinds of projects.

Tip 8: Make an End of Warranty

The warranty policies of the power tool makers differ greatly. Certain manufacturers offer a full warranty, while others are more limited or do not cover certain tools. Before purchasing a tool, it's important that retailers know the differences. Customers will only purchase tools from companies who guarantee their products.

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 and an on-site repair shop that repairs 50 different types of tools. He has learned that many of his clients are loyal to a particular brand. So, he chooses to carry a select few brands instead of trying to offer samples of various products.

He also appreciates that his employees have the opportunity to meet with vendors one-on-one to discuss new products and give feedback. This kind of interaction is vital because it builds trust between the store's customers and employees. Good relationships with suppliers may even lead to discounts for future purchases.