Is there a Harbor Freight tool truck yet ?

[dchawk81]

The employee is the single biggest cost of the truck, so having regular employee in the seat and removing the middle-man represents a significant reduction in overall operating cost. There's also probably some efficiency in having the trucks be a corporate thing too.

It's cheaper to have an independent contractor than an employee. You have to pay an employee the entire time he's out there, plus benefits if full time. A truck would have to be full time. That's whether he sells anything or not.

You don't have to pay an IC anything and his income is 100% on sales. No sales, no income.

Employees are not free. If you take one from the store you have to put one back in the store. They don't already have truck salesman in there stocking shelves instead. They're stocking shelves. Put them in a truck, now you need to hire someone to stock shelves.

Not to mention the IC is the one paying for the truck overhead. All of it.

 

[David99]

If there were a HF truck, you would be able to smell the cosmoline coming for a mile..lol

Uh, that's not cosmoline. It's the stench of prematurely rotting screwdriver handles.

it's neither, it's the smell of that good rubber they use (wonder if they'd make the tires for their tool trucks??).

 

[BarrelRoll]

I can see an icon truck working in bigger cities targeting big dealerships with lots of mechanics. Many of those places are revolving doors with entry level guys who need a lot of tools ASAP. Being able to cycle 20-40 people through the truck per hour has potential. Doing the usual tool truck thing hitting shops with less than 5 mechanics who are experienced would be tough. The convenience of not having to deal with running to China Freight after a day loosing your *** on a flat rate job is worth something.

I see it working with the following model in a large city with big shops
-Just stock Icon/ the highest priced option of a particular tool with some blue point equivalent sets for entry level guys
-Icon boxes and the full height tool cart in stock on the truck with "special edition" truck only color combo boxes
-Ability to buy individual tools such as the elusive 10mm wrench
-Stock consumables people run to harbor freight for anyways
-0% truck accounts for up to a reasonable amount ($2kish)
-Ability to fully finance an Icon box
-Truck only specials
-Warranty on all HF tools, the guy will have the replacement the following week

Part of the tool truck model is just getting the guy on the truck. Get him on the truck to pay his bill and before you know it the rep is pushing a $10k box off the truck for him. If you can lure the guy on the truck for a box of gloves the inventory sells it's self. I'll go on the truck to warranty something and before I know it something I have to have is on sale and my truck account is up another $600.

 

[dchawk81]

I can see an icon truck working in bigger cities targeting big dealerships with lots of mechanics. Many of those places are revolving doors with entry level guys who need a lot of tools ASAP. Being able to cycle 20-40 people through the truck per hour has potential. Doing the usual tool truck thing hitting shops with less than 5 mechanics who are experienced would be tough. The convenience of not having to deal with running to China Freight after a day loosing your *** on a flat rate job is worth something.

I see it working with the following model in a large city with big shops
-Just stock Icon/ the highest priced option of a particular tool with some blue point equivalent sets for entry level guys
-Icon boxes and the full height tool cart in stock on the truck with "special edition" truck only color combo boxes
-Ability to buy individual tools such as the elusive 10mm wrench
-Stock consumables people run to harbor freight for anyways
-0% truck accounts for up to a reasonable amount ($2kish)
-Ability to fully finance an Icon box
-Truck only specials
-Warranty on all HF tools, the guy will have the replacement the following week

Part of the tool truck model is just getting the guy on the truck. Get him on the truck to pay his bill and before you know it the rep is pushing a $10k box off the truck for him. If you can lure the guy on the truck for a box of gloves the inventory sells it's self. I'll go on the truck to warranty something and before I know it something I have to have is on sale and my truck account is up another $600.

Not me. I stepped on for a ratchet, bought a ratchet, haven't been on one since.

I did buy some pre-owned on eBay though. Generally half the price or less than the tool truck or NLM.

That said, I don't question that you could sell some stuff. I question the margins to support it full time. Harbor Freight appeal is low prices. Close the gap and people will just go with the known/better stuff.

IOW I believe people at Harbor Freight who know their actual numbers have already run them by now. It's not like tool trucks haven't been around long enough to think "hey maybe we oughta..."

 

[Bucko]

I'm just waiting for the Harbor Freight air freshener to come out.

 

[dchawk81]

I'm just waiting for the Harbor Freight air freshener to come out.

They just need to figure out how to capture that whoosh that hits you when the sliding doors open.

 

[2ndGearRubber]

They just need to figure out how to capture that whoosh that hits you when the sliding doors open.

With snap on, that's the air rushing past as my credit card comes out at Mach 3.

 

[dchawk81]

With snap on, that's the air rushing past as my credit card comes out at Mach 3.

My credit card cowers in fear so it's more of a whimper.

 

[anndel]

That's all we need, chinese **** on four wheels.

 

[M635_Guy]

I don't know what color the sky is in your world brother, but...

You want it to be possible more than the reality.

I don't really care one way or another

The 5k was just a random *** number. Point being the margins on HF stuff doesn't support running it around on a truck with a guaranteed income employee all else being equal.

It wasn't a random number for me. It was some rounded-up napkin-math.

15k for SO is probably 5k to HF if you're buying the same tools anyway. So you'd have to do FAR more volume. Shops simply aren't going to buy that much HF stuff.

Your overestimation is in how much HF stuff the shops would actually buy. HF is a consumer grade store, not a professional one. The truck would have to target personal homes, and that entire concept is absolutely absurd.

You, on the other hand, are pull math and some apparently-deep-seated grump out of your rear end.

It's definitely absurd to think they'd target homes. That's not a business model, and not anywhere close to what I was suggesting.

When I'm in HF, it's pretty clear that more than half of the people in the store are in the trades of some kind. I'd guess it is you underestimating how much volume opportunity is there. It probably varies, but the younger set someone is, the less likely they're likely they're tied to an antiquated model.

 

[M635_Guy]

It's cheaper to have an independent contractor than an employee. You have to pay an employee the entire time he's out there, plus benefits if full time. A truck would have to be full time. That's whether he sells anything or not.

You don't have to pay an IC anything and his income is 100% on sales. No sales, no income.

Employees are not free. If you take one from the store you have to put one back in the store. They don't already have truck salesman in there stocking shelves instead. They're stocking shelves. Put them in a truck, now you need to hire someone to stock shelves.

Not to mention the IC is the one paying for the truck overhead. All of it.

I think you should do some actual napkin math, or maybe better to stop trying so hard. There is no income equivalency (or need for it) between these two concepts for the guy at the wheel.

 

[Meursault74]

 

[dchawk81]

I think you should do some actual napkin math, or maybe better to stop trying so hard. There is no income equivalency (or need for it) between these two concepts for the guy at the wheel.

I don't know what your background is but you seem to really be pushing something HF hasn't done, for what seems to me very obvious and good reasons.

Heck you even talked yourself out of it at first.

I can do math in my head. I have to as an independent contractor in transportation myself (DOT numbers, big insurance bills, relatively expensive equipment, etc).

I don't know HFs numbers to do actual math. Neither do you, obviously. But I do know the spread between HF tool pricing and SO tool pricing is significant, and far bigger than the cost to manufacture.

 

[2ndGearRubber]

I don't know what your background is but you seem to really be pushing something HF hasn't done, for what seems to me very obvious and good reasons.

Heck you even talked yourself out of it at first.

I can do math in my head. I have to as an independent contractor in transportation myself (DOT numbers, big insurance bills, relatively expensive equipment, etc).

I don't know HFs numbers to do actual math. Neither do you, obviously. But I do know the spread between HF tool pricing and SO tool pricing is significant, and far bigger than the cost to manufacture.

When people are employees, they don't "get" it. Unless they profit on the wins and take it in the *** when they lose, they'll never get it. Same reason nobody gets why diesel being $6/gallon means everything is expensive, or why a tool truck selling $10 ratchets makes zero sense.


Discussion at my gym yesterday. Gym buys bulk costco bottle water, sells $1/bottle from a fridge. $6/case of 40, $6 input is $34/profit. "Wow that's a really big profit" someone says. No, it isn't ****. He's moving 3 bottles a day, with a cost of $0.15 cents each, for $1 each, making PRETAX of 30% $0.85/bottle. His profit percentage is good, yes, but the low gross dollar number makes it basically a service to the members. You're talking $20 a week max he's making on that, then paying $6 of that in business tax, then making $14.

I've posted the gross profit% formula here before. Let's assume roughly 65% GP, which is roughly a 3X multiplier. HF selling a $20 ratchet, means they're buying around $6/ratchet. Snap on/Matco/Mac selling at $100 means roughly $33/ratchet. One guy makes $14, the other $66. Same GP%. The "pro" brand or proto/wright selling at $100 will make more $$$ per weekly payment than the HF truck would make on the total sale! LOL.

Both sold one ratchet. Both ratchets have the same transportation costs, warranty liability, and service costs. Both trucks would be floating some amount of money on the street. Which business would you rather be in? You're getting 5mpg running an emissions equipped diesel truck with AC for the back, 10+ hour days. This isn't some giant corporation where you can just squirrel away tens of thousands in payroll and benefit liabilities in the black hole. If you don't move chrome, scan tools, boxes, your kids don't get braces.

 

[yellowbox]

Y’all laugh now until that ICON truck comes rollin’ into a shop near you.

Could be, all the young ones at work have plenty of icon tools, and u.s general boxes

 

[WWheeler]

I don't know about a fully stocked Harbor Freight or Icon truck making rounds to every wrench-turning business on a regular basis BUT I could definitely see each store having a 'delivery area' and a truck that could bring orders of tools, tool boxes, etc, anything over some set $ amount, right to your home or business door and maybe even take care of warranty replacements. Order over the internet, perhaps put it on your pre-approved Harbor Freight no interest Credit account, and they bring it out to you. Need a 44", 56", or 72" US General or Icon cabinet and top chest brought to your garage door today, no problem!

Actually, I'm a little surprised they aren't doing this already.

 

[dchawk81]

Companies like money. If there's a viable way to make more, they'll generally do it.

Look at the companies that professionals actually use. You'll see that most of them deliver.

 

[zendriver]

I'm surprised HF even survived, let alone flourished, without tool trucks.

A dumb idea, just figuring people will come into the store and buy what they need or want, plus a bunch of other stuff as well.

 

[dchawk81]

I don't know about a fully stocked Harbor Freight or Icon truck making rounds to every wrench-turning business on a regular basis BUT I could definitely see each store having a 'delivery area' and a truck that could bring orders of tools, tool boxes, etc, anything over some set $ amount, right to your home or business door and maybe even take care of warranty replacements. Order over the internet, perhaps put it on your pre-approved Harbor Freight no interest Credit account, and they bring it out to you. Need a 44", 56", or 72" US General or Icon cabinet and top chest brought to your garage door today, no problem!

Actually, I'm a little surprised they aren't doing this already.

You figuring this would be same day or what? If it's not same or next day, they already do ship FedEx or UPS or whatever.

 

[dchawk81]

I'm surprised HF even survived, let alone flourished, without tool trucks.

A dumb idea, just figuring people will come into the store and buy what they need or want, plus a bunch of other stuff as well.

Retail. What a dumb idea.

 

[pooterguy]

I think we should all get together, buy a Freightliner and start a weekly garage route offering rental whores.

 

[WWheeler]

You figuring this would be same day or what? If it's not same or next day, they already do ship FedEx or UPS or whatever.

That's a whole different thing. I'm talking about competing with the tool trucks. Plus, their larger tool cabinets and their largest air compressors etc are usually 'in-store' only, and their smaller ones can cost $100 shipping and can take a week or two to get there.

I was thinking more like same or next day 'FREE' delivery on anything they have in stock at the store or warranty exchanges for orders $50 or more for Inside Track Club members or something like that to anywhere within that store's defined delivery area. Not an Inside Track Member? No prob, just tick this box and we'll add your membership to your no interest financing. Why wait a week for the Snap-on or Cornwell truck when you can order from Harbor Freight and schedule to have your new tools/chest/cart/etc delivered or replace that impact that died or jack that started leaking down today or tomorrow morning right to where you work or to your home?

 

[pooterguy]

$50 per week, unlimited credit and free exchanges.

 

[dchawk81]

That's a whole different thing. I'm talking about competing with the tool trucks. Plus, their larger tool cabinets and their largest air compressors etc are usually 'in-store' only, and their smaller ones can cost $100 shipping and can take a week or two to get there.

I was thinking more like same or next day 'FREE' delivery on anything they have in stock at the store or warranty exchanges for orders $50 or more for Inside Track Club members or something like that to anywhere within that store's defined delivery area. Not an Inside Track Member? No prob, just tick this box and we'll add your membership to your no interest financing. Why wait a week for the Snap-on or Cornwell truck when you can order from Harbor Freight and schedule to have your new tools/chest/cart/etc delivered or replace that impact that died or jack that started leaking down today or tomorrow morning right to where you work or to your home?

You seriously think a $50 order is worth them sending a truck out to you?

 

[Meursault74]

You seriously think a $50 order is worth them sending a truck out to you?

 

[WWheeler]

You seriously think a $50 order is worth them sending a truck out to you?

Yes, definitely, especially so to customers who already pay a yearly membership fee.

Not much different than getting a $10 pizza delivered if their delivery area is only ~10 miles or so max from the store, especially if they only have to get it there when they get there, not while it's still hot, so they can route multiple deliveries to go out at the same time. $50 would be the minimum. The average sale would likely many times that amount. They'd certainly be able to sell a lot more of those $1K to $3K to $5K or more tool chests and other large items if they lift gated them for free to the customer.

This would just be a delivery to a business or home for an already made sale. Tool trucks drive around every day loaded with tools hoping they are going to get a sale after they get there, often for less than $50.

 

[2ndGearRubber]

You seriously think a $50 order is worth them sending a truck out to you?

A truck, with a lift gate at that.

Charge a delivery fee for a radius X from a store. That might actually make sense, you'd have to actually run the numbers and look at your target customer. Radically different from a pizza, as a pizza shop likely sells more pizzas in a week than a HF sells tool boxes in a year.


Of course, the customer can just rent a Uhaul trailer for the day to drag an empty box around.

 

[softailgarage]

The thought of buying a Harbor Freight tool on credit is enough to make me laugh. the damn thing would be broken before it could be paid off.

 

[dchawk81]

Yes, definitely, especially so to customers who already pay a yearly membership fee.

Not much different than getting a $10 pizza delivered if their delivery area is only ~10 miles or so max from the store, especially if they only have to get it there when they get there, not while it's still hot, so they can route multiple deliveries to go out at the same time. $50 would be the minimum. The average sale would likely many times that amount. They'd certainly be able to sell a lot more of those $1K to $3K to $5K or more tool chests and other large items if they lift gated them for free to the customer.

This would just be a delivery to a business or home for an already made sale. Tool trucks drive around every day loaded with tools hoping they are going to get a sale after they get there, often for less than $50.

You're supposed to tip the pizza delivery driver....it's not free. Those guys are also running beater cars and not paying a host of other high overhead costs a delivery truck requires.

 

[lardy1]

i try to never say never. But from my distant view, I just don't see it fitting HF's current sales approach at all. Availability seems to be the name of HF's sales game and those of us outside that convenience (think rural) aren't likely to generate enough sales to make it attractive to them. Whether the shops & businesses would create enough sales is a good question. Butif I was HF, I wouldn't gamble on it when my current method seems to be so successful.

Just an opinion. I rarely even go there.

 

[dchawk81]

i try to never say never. But from my distant view, I just don't see it fitting HF's current sales approach at all. Availability seems to be the name of HF's sales game and those of us outside that convenience (think rural) aren't likely to generate enough sales to make it attractive to them. Whether the shops & businesses would create enough sales is a good question. Butif I was HF, I wouldn't gamble on it when my current method seems to be so successful.

Just an opinion. I rarely even go there.

Exactly.

There is no doubt that SOME people would take advantage of the service, but that doesn't mean the volume or margins are sufficient for a business plan.

 

[metlmunchr]

No reason I can dream up that would cause the owner of HF to want to enter the tool truck business. HF's gross revenue is 1.5X that of Snap On and all of its subsidiaries. Eric Smidt's net worth is over $9 billion. Snap On's total market cap is a bit over $12 billion, so if Smidt wanted to play in the tool truck business he could likely buy controlling interest in Snap On.

Even with their insanely high prices, Snap On hasn't been any great performer in the stock market in the current or recent past era. Considering Smidt is growing his company at warp speed, there's not much reason to think he'd want to get into another market segment whose growth appears to be a mere fraction of what he's already got.

 

[JesSharTucker]

Y’all laugh now until that ICON truck comes rollin’ into a shop near you.

Hopefully it's not driven by a Swift driver!!

 

[AEAdam]

I don’t get the fascination with comparing HF, an importer of low quality Asian goods, and Snap On, a major US based tool manufacturer.

The comparison to make is HF and Sears Craftsman.

Might HF sponson race cars? They certainly seem to have a lot of the market that used to be Sears’. Sears was also just a reseller, like HF.

 

[zendriver]

I don’t get the fascination with comparing HF, an importer of low quality Asian goods, and Snap On, a major US based tool manufacturer.

The comparison to make is HF and Sears Craftsman.

Might HF sponson race cars? They certainly seem to have a lot of the market that used to be a Sears’.

Other than people who don't use them, who says their products are "low quality"?

Maybe the comparison is being made, because many more than we'd like to believe, these days are using HF products professionally, the major realm of Snap On.

The idea of an HF tool truck, obviously seems like a silly one, the OP sounded like a goof. If the guy was going to have a tool truck why not keep the Snap On?

Besides, wondering around the store is half the fun. If a wrench had to make a warranty tool swap out, he/she could pick up a 40 on the way back to the shop.

 

[dchawk81]

I don’t get the fascination with comparing HF, an importer of low quality Asian goods, and Snap On, a major US based tool manufacturer.

The comparison to make is HF and Sears Craftsman.

Might HF sponson race cars? They certainly seem to have a lot of the market that used to be Sears’. Sears was also just a reseller, like HF.

It's fun to spend $20 to do what people say you need to spend $200 to do.

 

[rockettauto]

I knew a guy that would buy HF and resell it to shops on a route he established.
It worked for him.
He moved a lot of consumables, even with his markup.

A guy comes by my shop with mostly cal-hawk and Daytona stuff.

Pretty much just doubles or quadruples the prices. Some guys still buy **** from him. One guy just got a pick set and a prybar at roughly Mayhew price for cal-hawk.

 

[dchawk81]

A guy comes by my shop with mostly cal-hawk and Daytona stuff.

Pretty much just doubles or quadruples the prices. Some guys still buy **** from him. One guy just got a pick set and a prybar at roughly Mayhew price for cal-hawk.

My man puttin the CON in convenience.

 

[KevinF]

I'm waiting for the Toptul truck myself.

 

[rockettauto]

No problem, just gotta be in western Australia.