Cheryle Tribble

Power Tool Sales and Marketing Strategies for B2B Retailers

Power tools are essential for both professional and consumer use. The demand for power tools remains at or near pre-pandemic levels despite a slowdown owing to the COVID-19 epidemic that will hit in 2021.

In terms of outlet dollar share, Home Depot leads all outlets in sales of power tools. Lowe's is second in line. Both are competing with power tools manufactured in China.

Tip 1: Make a Brand Commitment

Many manufacturers of industrial products place a higher priority on sales than marketing. This is because the long-term sales process requires a lot of back-and-forth communication as well as a detailed understanding of the product. This kind of communication does not permit emotional marketing techniques.

But, companies that produce industrial tools should rethink their marketing strategy. The digital world has surpassed traditional companies that rely on a select group of distributors and retail outlets to sell their products.

Brand commitment is an important aspect in the sales of power tools. When a customer is committed to a brand and is loyal to a brand, they are less sensitive to communications from competitors. They are also more likely to purchase the product of the customer again and to recommend them to friends and family.

You require a well-planned strategy to have an impact on the American market. This includes adapting your tools to meet the local requirements and positioning your brand in a strategic manner, and leveraging distribution channels and marketing platforms. Collaboration with local authorities and associations, as well as experts is also essential. By doing so you can be sure that the power tools you purchase be in compliance with the regulations of the country and standards.

Tip 2: Be aware of Your Products

In a marketplace where quality of the product is so crucial, retailers should be aware of the products they sell. This will enable them to make informed choices about the products they sell. This knowledge can also make the difference between a successful sale and a poor one.

Knowing which tool is ideal for a particular project will aid in matching the right tool to the requirements of your customer. You'll earn trust and loyalty with your customers. This will ensure that you're providing a complete service.

Understanding DIY culture trends can aid in understanding your customers' requirements. For example, a growing number of homeowners are tackling home improvement projects that require power tools. This could lead to an increase in sales of these tools.

According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have seen their share decrease year-over-year. However, online and in-store sales are increasing.

Tip 3: Offer Full-Service Repair

Most consumers purchase power tools to replace the broken one or tackle a new project. Both present opportunities for upsells and 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. These customers may require additional accessories or upgrade to a more powerful model.

Your customer may have experience in DIY or is new to the hobby, they will have to replace carbon brushes, drive cords, and power cords of their tools in time. These basic items will ensure that your customer reaps the maximum benefit from their investment.

Technicians consider three key items when making power tool purchases: application, how it will be powered and safety. These aspects allow technicians to make informed decisions when choosing the right tools for maintenance and repair work. This helps them maximize the performance of their tools and lower the cost of ownership.

Tip 4: Stay up-to-date with the latest technologies.

The latest battery tools, for instance, offer smart technology which improves the user's experience and differentiates them from competitors who still rely upon old battery technology. Wholesalers in B2B who stock and sell these devices can increase sales by focusing on professionals and contractors who are technologically advanced.

Karch's business, which has more than 30 years of experience and a 12,000 square feet tooling department is a testament to the importance of staying current with the latest technologies. He states that manufacturers are constantly changing their designs for their products. "They used to keep their designs for five or ten years, but they're now changing them each year."

In addition to embracing most recent technologies, B2B wholesalers should also be looking to improve existing models. By adding lightweight materials and adjustable handles, wholesalers can reduce fatigue from prolonged use. These features are important for many professional contractors who need to make use of the tools for long periods of time. The industry of power tools is divided into professional and consumer groups, which means that major players are constantly improving their designs and introducing new features that will appeal to an even larger audience.

Tip 5: Create a point of Sale

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

Point of sale (POS) information, for instance, allows you to keep track of the types of projects that DIYers are working on when they purchase tools power tools and accessories. Knowing the types of projects that your customers are working on allows you to offer add-on sales and upsell opportunities. It also helps you to anticipate the requirements of your customers and ensure that you have the appropriate products available.

Furthermore, transaction data allows you to detect trends in the market and adjust production cycles accordingly. For instance, you could use this data to monitor changes in your brand's and the market share of your retail partners, enabling you to match your product strategies to consumer preferences. POS data can also be used to optimize inventory levels, which reduces the risk of stocking up. It can also be used to assess the effectiveness of promotional campaigns.

Tip 6: Make a Point of Service

Power tools are a complex, high-profit market that requires a significant amount of marketing and sales effort to remain competitive. The most common methods of gaining a strategic advantage in this market were by positioning or pricing products. However, these strategies are no longer effective in the omnichannel world of today where information is distributed so quickly.

Retailers who provide a high level of providing excellent service are more likely to retain customers and develop brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin has a 12,000 square-foot department for power tools. At first, the department offered several brands, but when he began to listen to customers who were contractors, he discovered that the majority were brand loyal.

To win their customers, Karch and his team first ask their customers what they'd like to achieve with the tool before showing them the options available. This gives them the confidence to recommend the right tool for a job, and also increases trust with their customers. Customers who are familiar with their product are less likely to blame the retailer for the failure of a tool for the job.

Tip 7: Make a point of customer service

The market for power best tools online has become a very competitive area for hardware retailers. The retailers that have had success in this area tend to make a strong commitment to a brand instead of simply carrying a selection of manufacturers. The size of the space that a retailer needs to dedicate to this category could also play a role in how many brands it can carry.

Customers frequently require assistance when they come in to purchase a power device. Sales associates can offer expert guidance to customers seeking to replace a damaged tool or undertaking an upgrade project.

Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are educated to ask the right questions in order to make an offer. He says they begin by asking the customer what they plan to do with the item. "That's the most important factor to consider when deciding what kind of tool to market them," he adds. Then, they inquire about the experience of the customer with different types projects and the project.

Tip 8: Be sure to mention your warranty

The manufacturers of power tools differ greatly in their warranty policies. Some are completely comprehensive, while others are stingy, or refuse to cover certain aspects of the tools at all. It's important for retailers to be aware of the differences prior to making a purchase, because customers will buy tools from firms that provide them with a warranty.

Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department as well as an on-site repair shop with tools that repairs 50 different types of tools. He has realized over time that a lot of his contractor customers are loyal to their brands, which is why he focuses on a limited number of brands rather than carry a sampling of different products.

He also appreciates that his employees have the opportunity to get one-on-one time with vendors to discuss new products and share feedback. This type of personal interaction is essential since it builds trust between the customers and employees. Good relationships with suppliers can even result in discounts on future purchases.