Power Tool Sales and Marketing Strategies for B2B Retailers

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

Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's isn't far behind. But both companies are confronting stiff competition from Chinese-made power tools.

Tip 1: Make a commitment to a brand

Many manufacturers of industrial products 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 kind of communication does not lend itself to emotional consumer marketing techniques.

However, industrial tools manufacturing companies must rethink their approach to marketing. The digital age has outpaced traditional companies that rely on a small group of retailers and distributors to sell their products.

A key to selling power tools is brand commitment. If a client is adamant about a particular brand, they are less sensitive to competitors' communications. They are also more likely to buy the products of the brand they are loyal to and to recommend them to friends and family.

To make a successful impact in the United States market, you must develop an organized strategy. This includes adapting your tools to meet the local requirements, positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. Collaboration with local authorities as well as associations and experts is also crucial. You can be certain that your power tool will be in compliance with the standards and regulations of the country when you follow these guidelines.

Tip 2: Know Your Products

Retailers need to be knowledgeable about the products they are selling particularly in a market that places such a high importance on the quality of products. This will enable them to make informed decisions about what they offer. This knowledge could also be the difference between a good deal and a bad one.

Knowing which tool is perfect for a project will assist you in matching the perfect tool to your customer's needs. You'll earn trust and loyalty with your customers. This will ensure that you are offering an entire service.

Understanding DIY cultural trends can help you better understand the needs of your customers. As an example, more homeowners are undertaking home renovations that require the use of power tools. This can result in a surge in the sale of power tools.

According to DurableIQ, DeWalt is the leader in power tool sales with 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this, online and in-store sales are growing.

Tip 3: Offer Full-Service Repair

The most frequent reason why a consumer makes a power purchase is to replace a tool that has been damaged or broken down or to take on an entirely new project. Both offer the possibility of upselling or adding 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 were the result of a planned replacement. These customers typically require additional accessories, or require an upgrade to better quality models.

Whether your customer has experience in DIY or is just beginning the hobby they will need to replace the carbon brushes, drive cords and power cords of their power tools over time. These items will ensure your customer reaps the maximum benefit out of their investment.

Technicians must consider three important aspects when making power tool purchases applications, how it will be operated and safety. These aspects help technicians make informed choices about the best tools to use for their repairs and maintenance tasks. This allows them to maximize the efficiency of their tools and lower the cost of owning it.

Tip 4: Stay up to date with technology

For example, the latest power tools offer advanced technology that enhances users' experience and differentiates them from competitors that still rely on older battery technology. Wholesalers of B2B that stock and sell these devices can boost sales by targeting professional and tech-savvy contractors.

For Karch, whose business has more than three years of experience and a 12,000-square-foot tool department, keeping up with the latest technologies is crucial. "Manufactures are constantly changing the design of their products," Karch says. "They used to keep their designs for five or ten years, but now they're changing them each year."

In addition to taking advantage of the latest technologies, B2B wholesalers should also focus on improving existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can decrease fatigue due to prolonged use. These features are crucial for many professional contractors who use the tools over a long period of time. The power tool industry is divided between consumer and professional groups. This means that the biggest players are constantly striving to improve their designs and create new features to appeal to a wider audience.

Tip 5: Create a Point of Sales

The e-commerce landscape has transformed the power tools market. Data collection methods have improved, allowing business professionals to gain a better understanding of the market. This allows them to develop more effective marketing and inventory strategies.

Point of sale (POS) data for instance, allows you to monitor the kinds of projects that DIYers are working on when they purchase power tools and accessories. Knowing the types of projects your customers are working on allows you to offer additional sales and opportunities for upselling. It helps you anticipate your customers' needs to ensure that you have the appropriate products on hand.

Moreover, transaction data enables you to detect trends in the market and adjust your production cycles accordingly. For instance, you could use this data to monitor fluctuations in your brand and the market share of your retail partners and help you adapt your product strategies to consumer preferences. POS data can also be used to improve levels of inventory, reducing the risk of overstocking. It can also be used to assess the effectiveness of promotional campaigns.

Tip 6: Be a good neighbor

Power tools are a tangled market with high profits that requires a substantial amount of marketing and sales effort to remain in the game. The most common methods of gaining an advantage in this field have been by positioning or pricing products. However, these strategies are no longer effective in today's omnichannel marketplace in which information is dispersed rapidly.

Retailers who focus on service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin has a 12,000 square-foot department for power tools. At first, the department offered several brands, but when he began listening to contractor customers, he learned that most were loyal to a particular brand.

Karch and his staff ask their customers what they plan to accomplish using a tool before presenting them with the options. This gives them the confidence to recommend the right tool for the job, and also builds trust with customers. Customers who are familiar with their product are less likely to blame the retailer for a malfunction of a device on the job.

Tip 7: Become a master of customer service

Power tool retailers are facing a fiercely competitive market. The retailers that are successful in this area tend to be more loyal to a single brand rather than to carry a variety of brands. The amount of space a retailer must devote to the category may also play a role in how many brands it can carry.

Customers frequently require assistance when they come in to purchase a power tool. Sales associates can offer expert advice to customers who are seeking to replace a damaged tool or are planning a renovation project.

Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is trained to ask questions that could result in a sale. They start by asking what the customer plans to use the tool according to him. "That's the key to determining the type of tool to market them," he adds. The next step is to inquire about the project and what kind of experience the client has with different types of projects.


Tip 8: Be sure to make mention of your warranty

The warranty policies of power tool manufacturers differ greatly. Certain manufacturers offer a full warranty, while others offer a limited warranty or refuse to cover certain tools. Before buying a product, it is essential that retailers understand the differences. Customers will only purchase tools from companies that will 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 repair shop on site that repairs 50 different brands of tools. He has learned through the years that a majority of his contractors are loyal to their brands, which is why the company prefers to stick to only a few brands rather than trying to carry a sampling of different products.

He also likes the fact that his employees have the opportunity to get one-on-one time with vendors to discuss new products and provide feedback. Learn Additional Here Links to an external site. of personal interaction is essential because it builds trust between the store's customers and employees. Building strong relationships with suppliers can even lead to discounts on future purchases.