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Power Tool Sales and Marketing Strategies for B2B Retailers Power tools are vital for both consumers and professionals. Despite a slowdown in 2021 due to the COVID-19 virus, demand remains close to or at pre-pandemic levels. In terms of outlet dollar share, Home Depot leads all outlets in sales of power tools. Lowe's is not far behind. Both are however facing stiff competition from China-manufactured power tools. Tip 1: Make a commitment to a brand Many industrial products manufacturers prioritize sales over marketing. This is because a long-term purchase requires a lot of back-and-forth communication and in-depth knowledge of the product. This type of communication is not ideal for marketing that is based on emotion. However, industrial tool manufacturing companies should think about rethinking their marketing strategy. The digital world has surpassed traditional companies that rely on a select group of distributors and retail outlets for sales. The key to selling power tools is brand loyalty. If a client is adamant about a particular brand they are less receptive to competitor's messages. They are also more likely to purchase the client's products again and to recommend them to others. To have a positive impact to be successful in the United States market, you must have a well-planned strategy. This means adapting your tools to meet local needs, positioning your brand in a competitive manner, and leveraging marketing channels and distribution channels. Collaboration with local authorities as well as associations and experts is also essential. In this way, you can be confident that your power tools will comply with the country's regulations and standards. Tip 2: Know Your Products Retailers need to be knowledgeable about the products they offer especially in a marketplace that places such a high value on the quality of the product. This will allow them to make informed choices about what they offer their customers. This knowledge can make the difference between a successful or a bad purchase. For example, knowing that a tool is suitable for specific projects will help you match your customer with the best tool for their needs. This will aid in building trust and loyalty with your customers. more tips here will give you confidence that you're providing a complete service. Understanding DIY culture trends can also help you understand your customers' needs. For instance, a rising number of homeowners are tackling home renovation projects that require power tools. This could lead to a rise in the sales of power tools. According to DurableIQ, DeWalt is the leader in power tool units with 16%. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this the fact that sales on both stores and online are increasing. Tip 3: Offer Full-Service Repair The most common reason that a buyer makes a tool purchase is to replace one that has been damaged or broken, or to embark on an entirely new project. Both provide opportunities for upsells or 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. Customers may require additional accessories or upgrade to a higher-performing model. Whether your customer is an experienced DIYer or new to the hobby, they'll need to replace their power tools' carbon brushes, drive belts and power cords with time. Keeping up with these essentials will help your customer get the most out of their investment. When buying power tools, technicians consider three factors: the application, the power source and security. These factors help technicians make informed choices about the best tools to use in their repairs and maintenance work. This allows them to maximize the efficiency of their tools and lower the cost of owning it. Tip 4: Stay up to date with technology For instance, the most recent power tools offer smart technology that improves the user experience and sets them apart from other brands that still depend on old-fashioned battery technology. Wholesalers of B2B that carry and sell these devices can increase sales by targeting professionals and contractors who are technologically advanced. Karch's business, with over 30 years of experience, and a 12,000 square foot tool department is a testimony to the importance of staying current with the latest technologies. “Manufactures are constantly adjusting the design of their products,” he says. “They used hold their designs for five or 10 years, but now they change their designs every year.” B2B wholesalers need to not only take advantage of the latest technologies, but also upgrade their existing models. By adding lightweight materials and adjustable handles, wholesalers can lessen fatigue caused by prolonged use. These features are essential for many professional contractors who use the tools for a lengthy period of time. The market for power tools is divided into the consumer and professional segments. This means that the major players are constantly working to improve their designs and come up with new features in order to reach a larger market. Tip 5: Create a Point of Sale The online marketplace has changed the power tool market. Advancements in data collection methods have allowed business professionals to get an overall view of market trends, allowing them to shape marketing and inventory strategies more effectively. Point of sale (POS) information for instance, allows you to track the types of projects DIYers undertake when they purchase power tools and accessories. Knowing what projects your customers are working on permits you to increase sales and provide additional products. It also allows you to anticipate the needs of your customers making sure you have the appropriate products available. Moreover, transaction data enables you to detect trends in the market and adjust your production cycles accordingly. You can, for example make use of this information to monitor fluctuations of your retail partners' and your brand's market shares. This allows you to align product strategies to the preferences of consumers. POS data can also be used to optimize inventory levels, which reduces the risk of overstocking. It is also used to assess the effectiveness of promotions. Tip 6: Be a good neighbor Power tools are a complicated, high-profit market that requires a substantial amount marketing and sales efforts to stay in the game. The most common methods of gaining an advantage in this industry were by positioning or pricing products. However, these methods are no longer effective in the omnichannel world of today where information is shared so quickly. Retailers who provide a high level of service are better able to keep customers coming back 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. At first, the department offered several brands, but as he began to listen to the customers of contractors, he learned that most were brand loyal. Karch and his staff ask their customers what they intend to do with a tool prior to showing them the possibilities. This gives them confidence to recommend the most effective tool for the job and builds trust with the customer. Customers who are familiar with their product are less likely to blame the store for a failure of a tool for the job. Tip 7: Make a point of customer service The market for power tools has become a highly competitive market for hardware retailers. Those who have seen success in this area tend to make a strong commitment to a particular brand rather than merely carrying a few manufacturers. The amount of space a retailer can devote to a category may also influence how many brands they can carry. When customers go in to purchase an electric tool, they often need help choosing a product. Sales associates can provide expert advice to customers looking to replace a damaged device or completing an upgrade project. 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 make a sale. He says they begin by asking the customer about what they intend to do with the item. “That's the best way to determine the type of tool they require,” he says. Then, they inquire about the experience of the customer with different types of projects as well as the project. Tip 8: Be sure to make mention of your warranty The makers of power tools vary widely in their warranty policies. Some companies offer a complete warranty, whereas others offer a limited warranty or do not cover certain tools. Before buying a product, it is essential that retailers understand the differences. Customers will only buy tools from companies that will back them up. Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square foot power tool department and an on-site repair shop that repairs 50 different lines of tools. He has learned through the years that a majority of his contractor customers are loyal to a particular brand, so the company prefers to stick to a limited number of brands rather than attempting to carry a sampling of different products. He also appreciates that his employees get one-on-one time with vendors to discuss new products and share feedback. This kind of interaction is essential as it helps create trust between the retailer and customers. Good relationships with suppliers may even lead to discounts for future purchases.