How did MAC screw their dealers?

[GoBlue]

I always hear refrences to this but cant find anything on the net about it. Whats the story with they did or didnt do?

 

[sselander]

there was a a website from a former dealer a couple of years ago that explained his side, but has since been taken down.

 

[Charles (in GA)]

I think there is a similar web site for some disgruntled former Snap On dealers also, don't know if it is still up or not. Fact is, the companies do look out for themselves and expect the dealers to tow the line. Before getting into any franchise, be it a tool dealership or a McDonalds, you have to know what you are doing and what you are up against.

Charles

 

[jjjrmx5]

Before getting into any franchise, be it a tool dealership or a McDonalds, you have to know what you are doing and what you are up against.

Charles

Which is exactly the tip of the iceburg for the MAC dealers.

The ones I have dealt with also mentioned declining availability of credit extended to drivers for buying tools which cut into costs of keep truck stocked, ability to order items for customers using the drivers truck line of credit vs. customer pre-pay and warranty replacement cost issues where Mac was not reimbursing drivers for warranty work done or dragging thier feet reimbursing costs of work completed.

It all adds up to heaping a greater financial burden upon the driver and unless he has a very lucrative route, the costs add significantly to the bottom line.

The ongoing lawsuit from a few weeks back...

http://www.tradershuddle.com/201110...ed-With-Fraud-Claims-in-N.J.-State-Court.html

Wife of Mac Tools Franchisee Permitted to Proceed With Fraud Claims in N.J. State Court
Written by TradersHuddle Staff
Wednesday, 12 October 2011 09:47


NEWARK, N.J., Oct. 12, 2011 /PRNewswire/ -- A federal judge has cleared the way for the spouse of a former Mac Tools distributor to proceed with fraud claims against the division of Stanley Black & Decker, Inc. (NYSE: SWK) in a New Jersey state court.

The Hon. Mary Cooper of the United States District Court for the District of New Jersey issued an Order and written opinion on Oct. 5 granting the motion of Elba Maria Ceballo, the wife of a former Mac Tools distributor, to remand her lawsuit back to New Jersey Superior Court, Middlesex County (Ceballo v. Mac Tools, Inc. et al, 3:11-cv-04634-MLC-DEA). Ms. Ceballo's lawsuit charged that Mac Tools violated FTC (Federal Trade Commission) regulations by selling her and her husband a tool sales route as a "distributorship" when, in fact, it was an undisclosed "franchise."

"FTC regulations provide important protections to individuals and families who invest in small route sales and other franchised businesses," said Ms. Ceballo's attorney, Gerald Marks of Red Bank, NJ-based Marks & Klein, LLP. "One of the major protections is the requirement that the seller of a franchise provide a buyer with a Franchise Disclosure Document (FDD) that contains over 22 items of information, including the names of all current and former franchisees so that the prospective purchaser can contact them to determine if they feel they believe the business investment is worthwhile."

Ms. Ceballo, a resident of Perth Amboy, NJ, contends that although she was entitled to receive an FDD, one was not provided because Mac Tools fraudulently mislabeled its business as an "independent distributorship."

After the lawsuit's original filing in State Court, Mac Tools removed the case to federal court, arguing that Ms. Ceballo only named a district manager of Mac as a defendant to keep the case in state court and avoid federal jurisdiction. Marks & Klein immediately moved to remand the case back to state court, arguing that Ms. Ceballo had independent, factually specific fraud claims against the district manager and that the federal court did not have jurisdiction.

"Despite Mac's protestations that our client named the district manager solely to manipulate jurisdiction, the Court rejected Mac's arguments and agreed that Ms. Ceballo had asserted valid claims against all of the named parties," said lead counsel Marks, who has represented tool dealers in various franchise and distributorship systems for the past 20 years. "We are extremely pleased with the Court's decision to properly remand this case to State Court, where it belongs. Mac's suggestion that its district manager employee was named solely to defeat federal court jurisdiction was a red herring and a futile attempt to avoid what may become a class action."

Louis D. Tambaro, another member of Marks & Klein, added: "We are excited for the opportunity to try our claims on the merits before a New Jersey state jury of Ms. Ceballo's peers. Unfortunately, we have had to contend with Mac Tool's efforts to throw up procedural roadblocks; however, those delay tactics were handily defeated and will similarly not be tolerated in the future.

"We expect Mac to make additional efforts to stall the case," Mr. Tambaro continued, "but are confident that the case will be rightly and favorably decided by a Middlesex County jury."

SOURCE Marks & Klein, LLP

 

[otis66]

Which is exactly the tip of the iceburg for the MAC dealers.

The ones I have dealt with also mentioned declining availability of credit extended to drivers for buying tools which cut into costs of keep truck stocked, ability to order items for customers using the drivers truck line of credit vs. customer pre-pay and warranty replacement cost issues where Mac was not reimbursing drivers for warranty work done or dragging thier feet reimbursing costs of work completed.

It all adds up to heaping a greater financial burden upon the driver and unless he has a very lucrative route, the costs add significantly to the bottom line.

The ongoing lawsuit from a few weeks back...

http://www.tradershuddle.com/201110...ed-With-Fraud-Claims-in-N.J.-State-Court.html

One of the two reasons I stopped buying MAC Tools

 

[kythri]

Sounds familiar:

http://www.theautochannel.com/news/2004/01/13/176738.html

For Mac: http://web.archive.org/web/20100903174757/http://www.mactoolssuck.com/
For Snap-On: http://web.archive.org/web/20040609005007/http://www.snap-onfranchisefraud.com/

Both websites are long since gone, but archive.org rocks mightily.

 

[CaseyJoes.]

MAC has a well known reputation of being less than kind to their dealers. At a shop were I work in the summer, we used to have a great MAC guy but he was really getting screwed over by MAC. Needless he got out of the truck business. I wouldnt buy tools from MAC at this point anyways due to more and more of their tools being imported, and they are on the road to going out of business in my eyes. Not to mention not supporting their dealers (which hurts the consumer too when he wants something and the truck isent stocked and he has to wait WEEKS for something to finally come in.)

 

[Seanbev24]

I guess that explains why the 2 Mac trucks I've been on had more hats and t-shirts than tools

 

[Subytech]

Had a mac dealer a few years ago, only lasted a few months until he went under.I really liked mac tools until I heard how they treated their dealers.

 

[GoBlue]

Wow...thanks for the link...very informative. I was never a big fan, but now i certainly wont buy any of their chicom garbage. I feel bad for my MAC guy as he is a great salesman.

 

[FergusonTO35]

In Kentucky, all Mac dealers are company drivers.They last on average about nine months on the job, one of them lasted all of two weeks. Those that stay longer than this do well until Mac goes schizo on them and orders them to buy into it or turn in the truck. Whats weird though, is that Mac's main business model called a "distributorship" is not a legally recognized form of business in Kentucky. So, Mac is telling these guys to invest their own money into something that legally doesn't exist here.

The best tool guy I ever dealt with was a Mac guy named Paul Dickison. Friendliest guy you ever met, he won all kinds of sales and customer service awards from Mac. For a couple of years he dominated Nicholasville and south Lexington which have been Snap-On turf for decades. One would think Mac would do anything they could to keep him but in 2006 they give him and all the other dealers in central Kentucky the usual invest-or-quit ultimatum and Paul left the tool business.

 

[GoBlue]

hey...noticed your from Winchester. You ever been to a place called the Kanetucky diner? Phenomenal home cooking and the best chicken and dumplings i have ever had. We always stop there anytime we pass through! I would weigh 500lbs if i lived there!

 

[vssjim]

They also had an massive massive problems with back orders, showing items in catalogs and sale fliers they never had even stocked and then changing or out right limiting warranty on tools after they were told they would stand behind them. The last straw was on being aloud to send in a small percentage of warranty items based on sales volumes. They also reject alot of tools after the fact, you can as a customer send a tool to MAC they will replace to you but would reject the same tool to a dealer, my old dealer actually used to do this to get tools replaced for customers. Send in as joe blow no hasstle got them back right away send it in as Mr. Mac half would come back others slow to get credit on account. Snap on just went straight out and cut down the route stops some times in a quarter of the old size and will take away stops and send in government or industrial reps if they want also even if it is in your area.

 

[BloodySinner]

I guess that explains why the 2 Mac trucks I've been on had more hats and t-shirts than tools

You should check out their monthly flyer for a laugh.

 

[FergusonTO35]

Goblue, yes, I've eaten at the Cantuckee Diner many times. Its not good for my waistline thats for sure. When you want a real Kentucky dining tradition try Hall's on the river!!

 

[jjjrmx5]

The last straw was on being aloud to send in a small percentage of warranty items based on sales volumes. They also reject alot of tools after the fact, you can as a customer send a tool to MAC they will replace to you but would reject the same tool to a dealer, my old dealer actually used to do this to get tools replaced for customers. Send in as joe blow no hassle got them back right away send it in as Mr. Mac half would come back others slow to get credit on account.

That was the largest problem that one of my drivers had. He'd hem and haw over warranty repair or exchange because he never knew if he was going to get reimbursed as the MAC rules changed for him week to week it seemed.

Always had several repo'd boxes on his truck at good prices.

Non-stocked items that needed to be ordered would take weeks if not months to get in. Flyer was inviting but he seldom had any of the sale times in stock.

It came to the point where his goal was to only come in and collect his weekly payments and BS with old standing customers. By that time most folks realized if they need it in a hurry S-O was the only route and if you bought Mac you better not break it.

Driver was a good guy put in a bad professional predicament.Sad.

 

[GoBlue]

Goblue, yes, I've eaten at the Cantuckee Diner many times. Its not good for my waistline thats for sure. When you want a real Kentucky dining tradition try Hall's on the river!!

I knew it was spelled funny!

 

[wafrederick]

Mac was almost sold to Danaher 4 years ago,the deal fell out.There is another thing about Mac too,Stanley wants to dump them and never wanted Mac when Stanley bought out Mac in 1980.I had a Mac dealer too,it was costing him and he had a choice: Lose his house or the route.Luckily at the end,I did not owe him any money called paid off.

 

[GoBlue]

After further consideration...I guess it comes down to the dealer for me. My MAC dealer is a great dealer. Great for getting what i need and great for warranty stuff. I will continue to buy from him not because i support MAC but because i support him. Is this crazy? If he sold Matco or Snappy...he would still be my guy...hes just a better salesman.

 

[woody 73]

My memory is a little hazy but I seem to recall the one Mac dealer that started the the web protest and lawsuit was from up north in Canada but that was a long time ago. I do remember reading his web site and he had a lot of legitimate grievances against Mac.

Many years ago before a lot of the younger GJ members were born Mac had a good thing going for them; Today sadly that is not the case.

 

[GoBlue]

Mac was almost sold to Danaher 4 years ago,the deal fell out.There is another thing about Mac too,Stanley wants to dump them and never wanted Mac when Stanley bought out Mac in 1980.I had a Mac dealer too,it was costing him and he had a choice: Lose his house or the route.Luckily at the end,I did not owe him any money called paid off.

If Stanley didnt want MAC...why did they buy them out?

 

[Garage5.9]

you think you guys have it bad , when i was working at a acura dealer on maui the mac truck would come around every 2 months no ******** with barley anything in the truck. Pretty much the only thing i bought was a used but brand new blue point car for like 400$ i ended up only paying like 25 because she hardly never came and shortly after went out of buisness , also good luck with ordering some thing and actually getting it. My co worker at the time ordered a jack and some stands and till this day never got them.

 

[DontBeFooledAgain]

Which is exactly the tip of the iceburg for the MAC dealers.

The ones I have dealt with also mentioned declining availability of credit extended to drivers for buying tools which cut into costs of keep truck stocked, ability to order items for customers using the drivers truck line of credit vs. customer pre-pay and warranty replacement cost issues where Mac was not reimbursing drivers for warranty work done or dragging thier feet reimbursing costs of work completed.

It all adds up to heaping a greater financial burden upon the driver and unless he has a very lucrative route, the costs add significantly to the bottom line.

The ongoing lawsuit from a few weeks back...

http://www.tradershuddle.com/201110...ed-With-Fraud-Claims-in-N.J.-State-Court.html

From my experiences jjjrmx5 is right on with his comments.

Listed below are additional links to recent (4th quarter 2011) Mac Tools Distributor Lawsuit information.

http://www.unhappyfranchisee.com/category/franchisor/mac-tools/

http://www.unhappyfranchisee.com/mac-tools-guilty-of-franchise-fraud/

 

[billymade]

Using the internet archive way back machine; here is the website mactoolssuck.com that I remember form the earlier lawsuits that seemed to be a reaction to the changes that took place when stanley bought mac tools: http://web.archive.org/web/20100903174757/http://www.mactoolssuck.com/

This seemed to be his "history" of mac tools in the post stanley buyout era; overview of complaints about the stanley version of mac tools:

http://web.archive.org/web/20090404114926/http://www.mactoolssuck.com/welcome/history.htm

 

[-->]

whos screwing the pooch on this one? Is it mac or stanley thats the problem? Does anybody have a problem with proto stuff as they're both stanley companies ?