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Power Tool Sales and Marketing Strategies for B2B Retailers Power tools are essential for both professionals and consumers. Despite the fact that 2021 will see a slowdown due to the COVID-19 pandemic, the demand is still at or near levels prior to the pandemic. Home Depot is the leader in power tool sales based on dollar share. Lowe's follows closely behind. Both are however being pushed by China-made power tools. Tip 1: Commit to a brand Many manufacturers of industrial products put an emphasis on sales than marketing. This is because a long-term sale requires a lot of back and forth communication and in-depth knowledge of the product. This kind of communication does not permit emotional marketing techniques. However, industrial tools manufacturing companies should think about rethinking their marketing strategy. The digital age has overtaken traditional companies that rely on a select group of retailers and distributors to sell their products. One of the most important factors in selling power tools is brand loyalty. When a customer is committed to a specific brand, they are less sensitive to competitor's messages. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to others. You require a well-planned strategy to be successful in the US market. This means adapting tools to local requirements and positioning your brand in a way that is competitive, and leveraging marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also essential. When you do this you can be sure that the power tools you purchase comply with the country's regulations and standards. Tip 2: Know Your Products Retailers need to be knowledgeable about the products they sell particularly in a market which places a great importance on the quality of products. This will enable them to make informed choices about what they can offer their customers. This knowledge could also be the difference between a good sale and a poor one. For example knowing which tool is ideal for specific projects can help you connect your client with the appropriate tool to meet their requirements. You will build trust and a sense of loyalty among your customers. This will help you feel confident that you are offering an entire service. Also, knowing the latest trends in DIY culture will help you know what your customers are looking for. For instance the increasing number of homeowners are taking on home renovations that require the use of power tools. This can result in a surge in the sale of power tools. According to Durable IQ, DeWalt leads in power tool share of 16%, although Ryobi and Craftsman brands have seen their share decrease year-over-year. Despite this the fact that sales on both stores and online are on the increase. Tip 3: Offer Full-Service Repair The most common reason for a person to make a power purchase is to either replace one that has failed or to embark on an entirely new project. Both offer 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 purchases for power tools were the result of a planned replacement. The customers might require additional accessories or upgrade to a more powerful model. If your customer is an experienced DIYer or is new to the hobby, they'll likely need to replace their carbon brushes for power tools drive belts, drive belts, and power cords with time. These items will ensure your customer reaps the maximum benefit out of their investment. When purchasing power tools, technicians take into consideration three aspects: the tool's application, the power source and safety. These factors help technicians make educated decisions about the most suitable tools to use for their maintenance and repairs. This allows them to maximize the performance of their tool and lower the expense of owning it. Tip 4: Continue to Keep Up with Technology For example, the latest battery tools have intelligent technology that enhances users' experience and sets them apart from other brands that still rely on old battery technology. B2B wholesalers who stock and sell these tools can boost sales by targeting tech savvy contractors and professionals. Karch's business, which has more than 30 years of experience, and a 12,000 square feet department for tools, is a testament to the importance of staying current with the latest technologies. “Manufactures are constantly changing the look of their products” he says. “They were able to hold their designs for five or ten years, but now they change them every year.” In addition to embracing latest technologies, B2B wholesalers should also concentrate on improving their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue caused by prolonged use. These features are essential to many contractors working in the field who utilize the tools over a long period of time. The power tools industry is divided into professional and consumer groups and this means that the biggest players are always working on improving their designs and developing new features to reach an even larger audience. Tip 5: Create a point of Sales The online marketplace has changed the market for power tools. The advancements in data collection techniques allow professionals in the field to get an overall view of market trends, allowing them to shape inventory and marketing strategies more effectively. Point of sale (POS) information can, for example, allow you to track the types of projects DIYers undertake when purchasing power tools and other accessories. Knowing the types of projects your customers are working on enables you to provide additional sales and opportunities for upselling. It helps you anticipate the needs of your customers, so that you always have the appropriate products on the market. Additionally, transaction data can help you to identify market trends and adjust your production cycles accordingly. For instance, you could use this data to monitor fluctuations in your brand's or the market share of your retail partners, enabling you to align your product strategies with consumer preferences. Additionally, Suggested Reading can make use of POS data to optimize levels of inventory and decrease the risk of overstocking. It can also be used to evaluate the effectiveness of promotional campaigns. Tip 6 Tip 6: Be a good neighbor Power tools are a complicated market that is high-profit and requires a significant amount of marketing and sales effort to remain competitive. In the past, gaining a competitive advantage in this market was accomplished by establishing prices or positioning of products. But these methods are not as effective in the current omnichannel environment where information is readily communicated. 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 in Wisconsin, operates a 12,000-square-foot power tool department. In the beginning, his store featured various brands, but when he listened to contractor customers, he discovered that the majority were loyal to a particular brand. To make a mark in their customers, Karch and his team first ask customers what they would like to accomplish with the tool, then show them what they have available. This gives them confidence to recommend the right tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame their supplier for a tool failure on the job. Tip 7: Make a point of customer service The power tool market has become a highly competitive market for hardware retailers. The retailers that are successful in this area tend to be more devoted to a specific brand rather than to carry a variety of brands. The amount of space retailers can dedicate to a category may also influence how many brands they carry. When customers visit a store to purchase an electric tool they may need assistance selecting the right product. Whether they are replacing an old tool that's broken or taking on an upgrade project clients require expert advice from sales associates. 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 a sale. He says they begin by asking the customer what they plan to use the product. “That's the way to determine what kind of tool you need,” he says. Then, they inquire about the customer's experience with different types projects and the project. Tip 8: Create a Point of Warranty The warranties of the manufacturers of power tools are quite different. Some are completely comprehensive, while some are stingy or even refuse to cover certain parts of the tools at all. It's important for retailers to be aware of the differences prior to buying, since customers will buy tools from firms that provide them with a warranty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tools department as well as an repair shop in-house that handles 50 models of tools. He has realized over time that a lot of his contractors are brand loyal, so he focuses on only a few brands rather than offer a variety of products. He also likes the fact that his employees have the opportunity to have one-on-one meetings with vendors to discuss new products and give feedback. This personal contact is crucial because it builds trust between the store's customers and employees. Good relationships with suppliers may even result in discounts for future purchases.