Power Tool Sales and Marketing Strategies for B2B Retailers

Power tools are an essential for both professional and personal use. 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.

In terms of outlet dollar share, Home Depot leads all outlets in sales of power tools. Lowe’s is not far behind. However, both are being pushed by China-made power tools.

Tip 1: Make an Engagement to Brands

A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because the long-term sales process involves a lot of back and forth communication as well as a detailed understanding of the product. This type of communication does not permit emotional marketing techniques.

However, industrial tool manufacturing companies should think about rethinking their marketing strategy. The digital age has raced past traditional manufacturers who rely on a few retailers and distributors for sales.

The key to selling power tools is brand loyalty. If a client is committed to a brand, they will be less sensitive to communications from competitors. Additionally, they are more likely to buy the product of the client repeatedly and recommend it to others.

To make a successful impact in the United States market, you must develop an organized strategy. This includes adapting your tools to meet local needs, positioning your brand in a strategic way, and making use of distribution channels and marketing platforms. Collaboration with local authorities as well as associations and experts is also essential. You can be sure that your power tool is in line with the standards and regulations of the country if you follow these guidelines.

Tip 2: Be aware of Your Products

Retailers need to be knowledgeable about the products they offer particularly in a market which places a great importance on the quality of products. This will help them make informed choices about what they can offer their customers. This information can be the difference between a successful or a poor sale.

For example, knowing that a tool is suitable for the particular task can help you connect your client with the appropriate tool to meet their needs. This will allow you to build trust and loyalty with your customers. This will give you confidence that you’re providing an entire service.

Understanding DIY cultural trends can help you understand the needs of your customers. For instance, more homeowners are undertaking home renovations that require the use of power tools. This can lead to an increase in the sales of these tools.

According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, however Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this sales in stores and online are increasing.

Tip 3: Offer Full-Service Repair

The most common reason a consumer makes a power tool purchase is to replace one that has broken down or to take on an entirely new project. Both provide 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 of power tools resulted from a planned replacement. The customers might require additional accessories, or upgrade to a more powerful model.

No matter if your customer is an experienced DIYer or just starting out in the hobby, they will likely need to replace their power tools’ carbon brushes as well as drive belts and power cords over time. Being on top of these important items will help your customer get the most out of their investment.

When purchasing power tools, technicians take into consideration three aspects: the tool’s application the power source, and security. These factors help technicians make informed decisions about the best tools to use for their repairs and maintenance tasks. This helps them maximize the efficiency of their tools and lower the cost of owning it.

Tip 4: Stay current with the latest technology

For instance, 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 that offer and sell these tools can increase sales by targeting professional and tech-savvy contractors.

Karch’s business, which has over 30 years of experience, and a 12,000 square foot tooling department is a testament to the importance of keeping up-to-date with new technologies. “Manufactures are constantly adjusting the design of their products” he says. “They used to keep their designs for five or 10 years, but they’re now changing them every year.”

In addition to taking advantage of the latest technologies, B2B wholesalers should also concentrate on improving their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the fatigue caused by prolonged use. These features are important for many professional contractors who need to utilize the tools for lengthy periods of time. The power tool industry is split into professional and consumer groups. This means that major players are constantly striving to improve their designs and develop new features to appeal to a wider public.

Tip 5: Create a Point of Sales

The online marketplace has transformed the market for power tools. Data collection methods have improved allowing business professionals to get a better understanding of the market. This helps them develop more effective inventory and marketing strategies.

By utilizing data from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects that customers undertake when buying power tools and other accessories. Knowing the kinds of projects your customers are working on allows you to provide additional sales and opportunities for upselling. It also allows you to anticipate the needs of your customers, ensuring that you have the right products on hand.

Additionally, transaction data can help you to identify market trends and adjust production cycles accordingly. For instance, you can use this data to monitor changes in your brand’s and retail partner market shares which allows you to match your product strategies to consumer preferences. POS data can also be utilized to optimize levels of inventory, reducing the risk of overstocking. It can also be used to assess the effectiveness of promotions.

Tip 6: Be a good neighbor

Power tools are a tangled market with high profits that requires a substantial amount of marketing and sales efforts to remain competitive. In the past, getting a competitive advantage in this market was accomplished by pricing or positioning products. But these methods are no longer effective in today’s multichannel environment, where information is readily communicated.

Retailers who concentrate on service are more likely to retain customers and build brand loyalty. Mike Karch, president of Nue’s Hardware and Tools in Menomonee Falls in Wisconsin, operates a 12,000-square-foot power tool department. His department initially featured a variety of brands. However when he spoke to contractors, he realized that they were loyal to their favorite brand.

Karch and his team ask their customers what they intend to accomplish using a tool before presenting them with the options. This gives them confidence to recommend the most effective tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely than others 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 market for power tools has become a very competitive area for retailers of hardware. People who have had success in this category tend to make a strong commitment to a particular brand rather than simply carrying a sampling of manufacturers. The amount of space a retailer must devote to the category may also affect the amount of brands it is able to carry.

Customers often need assistance when they go in to purchase a power tool. Sales associates can provide professional advice to customers who are seeking to replace a damaged tool or are planning an upgrade project.

Mike Karch, president of Nue’s Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are educated to ask the right questions in order to make an offer. He says they begin by asking the buyer what they plan to do with the product. “That’s the primary factor in deciding the type of tool to sell them,” he adds. Next, they ask about the project and the level of experience the client has with various types of projects.

Tip 8: Create an End of Warranty

The warranties of power tool manufacturers differ greatly. Some are fully comprehensive, while some are stingy or even do not cover certain components of the tools at all. It’s important for retailers to know these differences before buying, since customers will buy tools from companies that back them up.

Mike Karch, president of Nue’s Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tool department as well as an repair shop in-house that handles 50 models of tools. He has learned that many of his contractor clients are loyal to a particular brand. Therefore, he prefers to carry only a few brands instead of trying to carry samples of different products.

He also likes that his employees can meet with vendors one-on-one to discuss new products and share feedback. This kind of interaction is vital because it helps build trust between the store’s customers and employees. Good relationships with suppliers may even lead to discounts for future purchases.