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Power Tool Sales and Marketing Strategies for B2B Retailers Power tools are a staple for both professional and consumer use. The demand for power tools remains at or close to 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 when it comes to sales of power tools. Lowe's isn't far behind. But both companies are being pushed by China-made power tools. Tip 1: Be committed to a brand Many manufacturers of industrial products put an emphasis on sales than marketing. This is because the long-term sales process requires a lot back-and-forth communication and a thorough understanding of the product. This kind of communication does not allow for emotional consumer marketing strategies. However, companies that make industrial tools need to rethink their marketing strategy. The digital world has surpassed traditional manufacturers who depend on a small group of retailers and distributors for sales. A key to selling power tools is brand commitment. When a customer is committed to a certain brand, they are less sensitive to competitors' communications. They are also more likely to buy the products of the brand they are loyal to and to recommend them to others. It is essential to have a well-planned strategy to be successful in the American market. This means adapting your tools to local needs, positioning brands in a manner that is competitive and making use of distribution and marketing platforms channels. It is also important to cooperate with local authorities and industry associations as well as experts. By doing so you can ensure that your power tools will conform to the laws of the country and standards. Tip 2: Know Your Products In a world where product quality is crucial, retailers should be aware of the products they offer. power tools for sale will help them make informed decisions about what they are selling. This knowledge could also be the difference between a good deal and a bad one. Knowing which tool is ideal for a particular project will help you match the right tool to the requirements of your customer. You will build trust and loyalty with your customers. This will give you confidence 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. As an example the increasing number of homeowners are taking on home renovations that require the use of power tool. This can lead to an increase in the sales of these tools. According to DurableIQ, DeWalt is the leader in power tool sales with 16%. However, Ryobi and Craftsman have seen their share decrease year-over-year. However sales in stores and online are growing. Tip 3: Offer Full-Service Repair The most frequent reason a consumer makes a power purchase is to either replace one that is been damaged or broken, or to embark on the task of a new one. Both of these tools offer 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 often require additional accessories or may require an upgrade to better performing models. Your customer may have experience in DIY or is new to the hobby they will need to replace the carbon brushes, drive cords, and power cords of their power tools as time passes. These essentials will ensure that your client gets the most from their investment. Technicians consider three key items when making power tool purchases: application, how it will be powered and safety. These factors aid technicians in making informed choices about the best tools to use for their maintenance and repairs. This allows them to maximize the effectiveness of their tool and reduce the cost of owning it. Tip 4: Stay current with the latest technology The latest power tools, for example are equipped with smart technology that improves the user's experience and differentiates them from rivals who rely on old-fashioned battery technology. B2B wholesalers who stock and sell these tools can increase sales by focusing on tech savvy contractors and professionals. 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 the latest technology. He says that manufacturers are constantly changing their product designs. “They used to keep their designs for five or 10 years, but they're now changing them each year.” B2B wholesalers must not only embrace the latest technologies but also upgrade their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can decrease fatigue from prolonged use. These features are essential for a lot of professionals who have to use the tools for long periods. The power tool industry is divided between the consumer and professional segments. This means that the biggest players are constantly striving to improve their designs and create new features in order to reach a wider market. Tip 5: Make a Point of Sale The e-commerce market has changed the market for power tools. Modern methods for data collection allow professionals in the field to get a holistic overview of market trends, allowing them to shape strategies for inventory and marketing more effectively. Point of sale (POS) data can, for example, allow you to keep track of the types of projects DIYers undertake when purchasing power tools and other accessories. Knowing the type of projects your customers are working on enables you to offer additional sales and upsell opportunities. It allows you to anticipate your customers' needs to ensure that you have the right products on your shelves. You can also utilize transaction data to determine trends in the market, and then adjust production cycles in line with these trends. You can, for example utilize this data to monitor fluctuations of your retail partners' and your brand's market share. This allows you to align your strategy for product with consumer preferences. POS data can also be used to improve levels of inventory, reducing the risk of stocking up. It can also be used to assess the effectiveness of promotions. Tip 6 Tip 6: Be a good neighbor Power tools is a high-profit complex market that requires substantial sales and marketing efforts to stay competitive. The most common methods of gaining an advantage in this market were through pricing or product positioning—but these tactics no longer work in the omnichannel world of today in which information is dispersed so quickly. Retailers who focus on service are more likely to retain customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool department. The department was initially home to several brands. However when he spoke to contractors, he realized that they were loyal to their favorite brand. To be successful in their business, Karch and his team first ask customers what they'd like to achieve with the tool, then show them the options available. This gives them the confidence to recommend the appropriate tool for the job and it builds trust with customers. Customers who are familiar with their product are less likely to blame their retailer for a tool malfunction on the job. Tip 7: Create an effort to be a Point of Customer Service Power tool retailers are in a fiercely competitive market. Those who have seen success in this area tend to make a strong commitment to a brand rather than simply carrying a selection of manufacturers. The amount of space that a retailer can devote to a category may also affect the number of brands they can carry. When customers visit a store to purchase power tools they may need assistance selecting a product. If they're replacing an old one damaged or undertaking an upgrade project Customers need advice from sales representatives. Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that his store's staff is educated to ask questions that will result in an offer. He says they start by asking the customer about what they intend to use the product. “That's the key to determining the kind of tool to market them,” he adds. The next step is to inquire about the project and what kind of experience they have with different kinds of projects. Tip 8: Be sure to mention your warranty The warranty policies of power tool manufacturers differ greatly. Some manufacturers offer a comprehensive warranty, whereas others offer more limited warranties or refuse to cover certain tools. It's important for retailers to know the distinctions before making a purchase, because customers will purchase tools from companies that offer warranties. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000-square-foot power tool department and an in-house repair shop that handles 50 kinds of tools. He has learned through the years that a majority of his contractor customers are loyal to their brands, which is why the company prefers to stick to the most popular brands rather than attempting to offer a variety of products. He also appreciates that his employees have the ability to meet with vendors in person to discuss new products and exchange feedback. This type of personal interaction is essential since it builds trust between the store's clients and employees. Building strong relationships with suppliers may result in discounts on future purchases.