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Power Tool Sales and Marketing Strategies for B2B Retailers Power tools are essential for both professionals and consumers. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains close to or at levels prior to the pandemic. In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's follows closely. Both are however being pushed by China-made power tools. Tip 1: Commit to a brand Many industrial products manufacturers prioritize sales over marketing. This is because the long-term sales process requires a lot back-and-forth communication as well as a detailed understanding of the product. This kind of communication doesn't permit emotional marketing techniques. But, companies that produce industrial tools should rethink their marketing strategy. The digital world has raced past traditional manufacturers who rely on a few distributors and retailers for sales. Brand commitment is an important factor in power tool sales. When a customer is committed to a brand they are less prone to the messages of competitors. They are also more likely to buy the products of the brand they are loyal to and to recommend them to others. To make a successful impact in the United States market, you must have an organized strategy. This means adapting your tools to meet local needs and positioning your brand in a strategic manner, and leveraging distribution channels and marketing platforms. It is also essential to work with local authorities and industry associations as well as experts. When you do this you can ensure that your power tools conform to the laws of the country and standards. Tip 2: Be aware of Your Products Retailers need to be knowledgeable about the products they sell especially in a marketplace which places a great value on the quality of the product. This will allow them to make informed choices about what they can offer their customers. This information can be the difference between making a successful or a poor sale. Knowing which tool is perfect for a particular project will aid in matching the right tool to your customer's needs. This will aid in building trust and loyalty with your customers. This will help you feel confident that you are offering an entire service. Also, knowing the latest trends in DIY culture can help you better know what your customers are looking for. For example, a growing number of homeowners are taking on home renovation projects which require power tools. This could lead to a rise in the sale of power tools. According to cordless power tools , DeWalt leads in power tool share of 16%, however Ryobi and Craftsman brands have seen their share decrease year-over-year. However sales in stores and online are increasing. Tip 3: Offer Full-Service Repair The majority of consumers purchase power tools to replace the broken one or tackle an upcoming project. Both of these tools 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. These customers typically require additional accessories or may need to upgrade to higher performance models. Whether your customer has experience in DIY or is just beginning the hobby, they will have to replace the carbon brushes, drive cords and power cords of their tools over time. These items will ensure your customer gets the most from their investment. Technicians take into consideration three main aspects when making power tool purchases: application, how it will be used and safety. These factors aid technicians in making informed decisions about the best tools to use for their maintenance and repairs. This allows them to maximize the efficiency of their tools and lower the cost of owning it. Tip 4: Stay current with the latest technology The most recent power tools, for example they feature smart technology that improves the user's experience and sets them aside from rivals who rely upon old battery technology. B2B wholesalers who stock and sell these tools could increase sales by focusing on tech savvy contractors and professionals. For Karch who's business has more than three years of experience and a 12,000 square-foot department for tools, staying up with new technologies is essential. He says that manufacturers are constantly changing their product designs. “They used to hold their designs for five or 10 years, but now they're changing them every year.” B2B wholesalers need to not only embrace the latest technologies but also enhance their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are crucial for a lot of professional contractors who need to make use of the tools for long periods. The power tools industry is divided into professional and consumer groups, which means that major players are constantly improving their designs and developing new features that will appeal to a wider audience. Tip 5: Create a Point of Sale The online marketplace has transformed the power tools market. Advancements in data collection methods have enabled business professionals to gain a holistic overview of market trends which allows them to design inventory and marketing strategies more effectively. Point of sale (POS) data can, for example, allow you to monitor the kinds of projects that DIYers are working on when purchasing tools and accessories. Knowing the kinds of projects that your customers are working on enables you to offer additional sales and opportunities for upselling. It also helps you to anticipate the requirements of your clients making sure you have the appropriate products in stock. You can also use transaction data to identify trends in the market and adjust production cycles accordingly. You could, for instance, use this data to monitor changes in your retail partners' and brand's market shares. This allows you to align your strategy for product to the preferences of consumers. POS data can also be used to improve levels of inventory, reducing the risk of stocking up. It is also used to evaluate the effectiveness of promotional campaigns. Tip 6 Tip 6: Be a good neighbor Power tools are a tangled market that is high-profit and requires a substantial amount of sales and marketing effort to stay in the game. In the past, gaining a competitive advantage in this market was accomplished by pricing or positioning products. However, these strategies are not effective in today's omnichannel environment where information is readily available to be shared. Retailers who focus on service are more likely to keep customers 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. The department was initially home to several brands. However when he talked to contractors, he realized that they were loyal to their favorite brand. To be successful in their customers, Karch and his team first ask their customers what they would like to accomplish with the tool before showing them the options available. This gives them the confidence to recommend the most effective tool for the job and also builds trust with the customer. Customers who are familiar with their product well are less likely to blame their supplier for a tool failure on the job. Tip 7: Make an effort to be a Point of Customer Service The market for power tools has become a highly competitive category for hardware retailers. People who have had success in this category tend to make a firm commitment to a brand rather than merely carrying a sampling of manufacturers. The amount of space that a retailer is able to devote to a specific category could affect the number of brands they carry. Customers usually require assistance when they come in to purchase a power device. If they're replacing an old one that is broken or tackling a renovation project, customers need expert advice from sales representatives. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the employees at his store are trained to ask questions that can lead to a sale. They start by asking what the buyer is planning to use the tool for according to him. “That's the way to decide what kind of tool you need,” he says. Next, they ask about the project and what kind of experience the client has with different types of projects. Tip 8: Create an End of Warranty The warranties of the power tool makers are very different. Some are fully comprehensive, while others aren't as generous or do not cover certain components of the tools at all. 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 an 12,000 square foot power tool department as well as an on-site repair shop that repairs 50 different lines of tools. He has observed that many of his clients are brand loyal. Therefore, he prefers to carry a select few brands rather than carry samples of different products. He also appreciates that his employees are able to meet with vendors in person to discuss new products and give feedback. This type of personal interaction is crucial because it helps to build trust between the store and its customers. Good relationships with suppliers can even lead to discounts for future purchases.