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Power Tool Sales and Marketing Strategies for B2B Retailers Power tools are a staple for both professional and personal use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic, demand remains close to or at pre-pandemic levels. In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's is second in line. Both are however confronting stiff competition from Chinese-made power tools. Tip 1: Commit to a brand Many industrial product manufacturers place more emphasis on sales over marketing. This is because the long-term sales process involves a lot of back and forth communication and detailed knowledge of the product. This kind of communication does not permit emotional marketing tactics. However, industrial tools manufacturing companies should consider rethinking their approach to marketing. The digital world has surpassed traditional manufacturing companies that rely on a small group of distributors and retail outlets to sell their products. Brand loyalty is a major aspect in the sales of power tools. If a client is committed to a specific brand and brand, they are less responsive to competitor's messages. Additionally they are more likely to buy the client's product again and recommend it to others. It is essential to have a well-planned strategy to have an impact on the American market. This means 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, associations and experts is also essential. When you do this, you can be confident that your power tools conform to the laws of the country and standards. Tip 2: Know Your Products In a world where product quality is so important, retailers should know the products they offer. This will enable them to make informed choices about the products they can offer their customers. This information can be the difference between making a good or a bad purchase. For instance knowing which tool is suitable for the particular task will help you match your client with the appropriate tool for their requirements. You'll build trust and loyalty with your customers. It will also give you the assurance that you're offering the complete solution. Understanding DIY culture trends can also aid in understanding the needs of your customers. For instance, a rising number of homeowners are tackling home improvement projects which require power tools. This can result in a surge in sales of power tools. According to Durable IQ, DeWalt leads in power tool unit share at 16%, however Ryobi and Craftsman brands have seen their share decrease year-over-year. However the fact that sales on both stores and online are growing. Tip 3: Offer Full-Service Repair The most frequent reason that a buyer makes a tool purchase is to replace one that is been damaged or broken, or to embark on the task of a new one. Both present opportunities for upsells and add-on sales. According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories 35 percent of all purchases of power tools are the result of planned replacements. Customers often require additional accessories or require upgrading to better performance models. Whether your customer has experience in DIY or is just beginning the hobby, they will have to replace their carbon brushes, drive cords, and power cords of their tools over time. Making sure they are up to date with these essentials will allow your customer to get the most out of their investment. When buying power tools, technicians consider three factors: the application, the power source and security. These factors aid technicians in making informed choices about the best tools to use for their repairs and maintenance tasks. This will help them maximize the effectiveness of their tools and lower the cost of ownership. Tip 4: Keep up-to-date with the latest technologies. The most recent power tools, for example, offer smart technology which improves the user's experience and sets them apart from rivals who rely upon old battery technology. B2B wholesalers that carry and sell these devices can boost sales by targeting professional and tech-savvy contractors. Karch's business, with more than 30 years of experience and a 12,000 square feet tool department is a testimony to the importance of keeping up-to-date with new technologies. “Manufactures are constantly changing the look of their products” Karch says. “They used to hold their designs for five or 10 years, but they're now changing them each year.” B2B wholesalers need to not only embrace the latest technologies but also enhance their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can lessen fatigue caused by prolonged use. These features are essential for a large number of professionals who have to make use of the tools for long durations. The market for power tools is divided between professional and consumer groups. This means that major players are always working to improve their designs and come up with new features in order to appeal to a wider audience. Tip 5: Create a Point of Sale The e-commerce landscape has transformed the market for power tools. Data collection techniques have improved, allowing business professionals to gain a better understanding the market. This helps them develop more effective inventory and marketing strategies. Point of sale (POS) information for instance, allows you to monitor the kinds of projects DIYers undertake when they purchase tools and accessories. Knowing what projects your customers are working on enables you to offer upsells and additional products. It allows you to anticipate your customers' needs, so that you always have the right products on the market. You can also use transaction data to spot trends in the market, and then adjust production cycles accordingly. For instance, you can make use of this information to monitor changes in your retail partners' and brand's market share. This allows you to align product strategies to consumer preferences. Similarly, you can use POS data to improve levels of inventory and decrease the chance of overstocking. It can also be used to assess the effectiveness of promotional campaigns. Tip 6: Create a Point of Service Power tools are a tangled market that is high-profit and requires a significant amount of sales and marketing effort to stay in the game. The classic ways to gain an advantage in this industry have been by positioning or pricing products. However, these strategies are no longer effective in the omnichannel world of today where information is shared rapidly. power tools for sale who concentrate 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 is the owner of a 12,000-square-foot power tool department. His initial department featured several brands. However, as he listened to contractors, he noticed that they were loyal to their favorite brand. Karch and his staff ask their customers what they plan to do with a tool prior to showing them the options. This gives them the confidence to recommend the best tool for the job, and 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 device on the job. Tip 7: Be a guru in customer service The power tool market has become a highly competitive category for hardware retailers. People who have had success in this area tend to make a strong commitment to a particular brand instead of simply carrying a few manufacturers. The amount of space that a retailer can devote to a category may also influence how many brands they can carry. When customers come in to purchase a power tool and require assistance, they usually need help selecting a product. When they're replacing an old one that is broken or tackling an upgrade project clients require expert advice from sales representatives. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are trained to ask the right questions to help make an offer. They start by asking what the customer is planning to do with the tool, he says. “That's the primary factor in deciding what kind of tool to sell them,” he adds. Next, they ask about the project and the level of experience they have with different types of projects. Tip 8: Be sure to be sure to mention your warranty The warranty policies of the manufacturers of power tools differ greatly. Some are completely comprehensive, while some are stingy or even do not cover certain components of the tools at all. Before making a purchase it's important that retailers know the distinctions. Customers will only purchase tools from companies that 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 shop and an on-site repair shop that repairs 50 different types of tools. He has learned that many of his contractors are loyal to a particular brand. So, he chooses to carry only a few brands instead of trying to carry samples of different products. He is also happy that his employees have the ability to meet with vendors one-on-1 to discuss new products and exchange feedback. This kind of interaction is essential because it helps to build trust between the store and the customers. Good relationships with suppliers can even result in discounts on future purchases.