To avoid these ads, REGISTER NOW!

Serious opinions needed

S

sonexer

Well-known member
Joined
May 20, 2009
Messages
65
Location
Detroit, Michigan
After that, time to lay it all out on paper. Pro's, con's, costs etc. See where I would be at.

Whew. I am nervous and excited at the same time.



Shocker,

Please keep us posted. I too am considering a mobile tool distributorship, but have not gone as far as you have. So for now, I am living vicariously through you.
 
To avoid these ads, REGISTER NOW!
OP
S

Shocker

Well-known member
Joined
Nov 23, 2008
Messages
2,015
Location
Olympia, WA
Hey Dave, the reason is that both dealers are driving about 45 minutes to get to the territories. The one I rode with has to drive about an hour and 10 minutes to get to the farthest out area that he see's. It is only 15 minutes for me to the farthest current area. I can stretch out this area farther west as well if I can manage it.

I asked the exact same question to my ride along guy. Why are you wanting to give up a steady source of income? He felt that having to break in new shops in the un-travelled area would cause some cash flow issues at first, but the time he would save per week (10+ hours of just driving to the areas) would make up for that in the long run.


Sonexer - Welcome to GJ! I will post what I can figure out next week after the dealership meeting. I would follow some of what I did to get started. You will need to evaluate your area as things are different everywhere.

Thanks!
 
3

35mastr

Well-known member
Joined
Dec 6, 2007
Messages
2,534
Location
Norcal
daveblank said:
Think of this. Why are they moving? Are they traveling a long distance to get there? Honestly, if they are good shops, why would they give them up & start over at new ones?
Click to expand...

These shops may be known as stagnent shops. Or shops that have a high employee turn around.

Many distibutors do this when a new one comes into their area. They weed out so they can visit fresh ones that may have no other distributor.

You never know what you are gonna get.
 
Last edited:
B

billymade

Well-known member
Joined
Apr 2, 2008
Messages
7,461
Location
New Mexico
The fact that both want to move away from that area; would give me pause.... why? Definitely, something to think about and investigate further!
 
OP
S

Shocker

Well-known member
Joined
Nov 23, 2008
Messages
2,015
Location
Olympia, WA
Well, I am doing just that. I am not worried about the areas. Their full financial information is available to me and it is not because business is slow or that shops/techs are not paying.

I believe that they just want to stay closer to home. Makes sense to me. I wouldn't take an area 45 minutes away. Fuel and truck maintenance cost a lot.
 
S

sonexer

Well-known member
Joined
May 20, 2009
Messages
65
Location
Detroit, Michigan
daveblank,
I tried to PM you with a response and I don't know if it went through. I am new to this forum and how it works so please bear with me.

Thanks
sonexer
 
G

global72

Well-known member
Joined
Aug 22, 2008
Messages
365
Location
Gainesville Florida
billymade said:
The fact that both want to move away from that area; would give me pause.... why? Definitely, something to think about and investigate further!
Click to expand...

It may not be a want. If the DM surveyed the territory and found it has grown and there is room for 3 dealers they may just be taking part of the routes.
 
R

rhandwor

Well-known member
Joined
Oct 10, 2008
Messages
1,366
Ask your friend if you can ride him for a week. Look at sales and cash flow,cash flowing in and going out on credit.
Your risking your house and vehicles as banks don't loan with no equity.
 
D

Diesel_Crawler

Well-known member
Joined
Apr 17, 2009
Messages
1,267
Location
Canada, NB
Shocker said:
Well, I have not made any progress. My wife is not feeling the love on this.
Click to expand...

Take that little gold shackle off your finger. Go get the paper work signed and once its in the yard you are good.
You may have to sleep in it for a week or so. but it will be worth it.
 
B

bowtie3

Well-known member
Joined
Nov 11, 2007
Messages
195
Shocker said:
Well, I have not made any progress. My wife is not feeling the love on this.
Click to expand...

Sometimes they help keep us in line. There is no way I would leave a steady good job to leap into that right now.
 
To avoid these ads, REGISTER NOW!
OP
S

Shocker

Well-known member
Joined
Nov 23, 2008
Messages
2,015
Location
Olympia, WA
Hehehe, yes, my job is pretty good and I am in a stable position. I am still working things out. The main issue is of course the uncertainty of the paycheck and what happens if I get sick? I mean really sick? I have some neurological issues that plague me from time to time and can keep me down for a month.

Anyway. sorry to all those that I let down by not just jumping in. :)
 
B

bowtie3

Well-known member
Joined
Nov 11, 2007
Messages
195
Shocker said:
Hehehe, yes, my job is pretty good and I am in a stable position. I am still working things out. The main issue is of course the uncertainty of the paycheck and what happens if I get sick? I mean really sick? I have some neurological issues that plague me from time to time and can keep me down for a month.

Anyway. sorry to all those that I let down by not just jumping in. :)
Click to expand...

I would say being down for a month or two within the first year could be enough to put you under. Does your job provide or help provide health insurance? You would have to provide your own if you were self employed. Sounds like your doing the right thing for sure.
 
M

msrfrog

Well-known member
Joined
May 31, 2009
Messages
72
Location
new york
as a new tool guy not coming around for a month can sink you. techs will not like that at all. You would loose their confidence. who would collect for you in that time?

as a tech I like when the tool guys have that "cool" tool right there to buy. also most things we buy are because we need it now.keep that in mind when stocking stuff. you could make it work though as with anything if you want it bad enough you can do it.
 
OP
S

Shocker

Well-known member
Joined
Nov 23, 2008
Messages
2,015
Location
Olympia, WA
Ya, i completely understand. Hopefully I won't be down and out much. My plan was to really stock up and have a nice full truck. It is hard to tell from the beginning what will sell fast and what will stay on the shelf.

I have plenty of insurance and an understanding mgmt, so I am doing OK where I am at. I just love the idea of my own company, and the opportunity that Cornwell provides.

Maybe I will go the way Mike Wren has.
 
OP
S

Shocker

Well-known member
Joined
Nov 23, 2008
Messages
2,015
Location
Olympia, WA
Dave - Thanks for all your advice and info!

Merk - Well, after reading a lot posts and what people seem to want and need. Maybe Gray from Canada, stuff from Europe, maybe SK?

I would love to hear some opinions on what people would like to buy! :)
 
D

daveblank

Well-known member
Joined
Aug 9, 2008
Messages
2,678
Location
Dallas, Texas
Shocker said:
Dave - Thanks for all your advice and info!

Merk - Well, after reading a lot posts and what people seem to want and need. Maybe Gray from Canada, stuff from Europe, maybe SK?

I would love to hear some opinions on what people would like to buy! :)
Click to expand...

SK has franchises. If you want to go totally independent it's 100% possible. That way you could carry high end & low end to gain a broader market share.
 
OP
S

Shocker

Well-known member
Joined
Nov 23, 2008
Messages
2,015
Location
Olympia, WA
My thinking exactly. I have been reading some of the articles from Professional Distributor magazine and there are quite a few guys that have made the switch from a dedicated tool brand to a independent. All of them love it and do not regret it for a minute.

Going the independent route has more risk, but greater rewards I think. Broader tool selection (something for every budget), no worries about territories or anything like that. It would be completely on me to make it work, no help from a tool company.

I am not sure I would go the tool truck way with it, especially right off the bat. If I start with web sales, ebay and to all the fine folks here :), I can then look at a dedicated tool truck when things are successful that way. Maybe the web sales business would be so good, that I wouldn't need to move to a tool truck model at all.

But I think it would be cool to have several guys working for me driving routes in the more heavily populated areas as well.

I also plan on working in to the business things like lifts, tire changers etc.
 
3

35mastr

Well-known member
Joined
Dec 6, 2007
Messages
2,534
Location
Norcal
Outside financing should not be an issue. I sold plenty of lifts through outside vendors that dealt in shop equipment. They have their own financing avalible through their own channels.

Also you make alot more profit that way. Not to mention is that if there is an issue with warrenty. The equipment distributor is close by and can handle it without you having to get involved.
 
V

Vinko

Well-known member
Joined
Jul 7, 2008
Messages
5,829
Location
Los Angeles
I like the idea of one of those extra tall Dodge Sprinters for a tool truck. Last year, Dodge was starting the basic models out at $18K after all the rebates available. Not as big as a Freightliner, but you could get creative in a space like that, if you were an indy dealer.
 
OP
S

Shocker

Well-known member
Joined
Nov 23, 2008
Messages
2,015
Location
Olympia, WA
It is amazing the cost to outfit a tool truck. The tool truck guys I have spoken with tell me that if you do it yourself, you will have more into it than if you just bought one.

There are a lot of tool trucks available for a decent price.
 
OP
S

Shocker

Well-known member
Joined
Nov 23, 2008
Messages
2,015
Location
Olympia, WA
Well, the business license will vary from state to state. I am not sure. I sold a business about 12 years ago and that was the last time.

The website will be easy. I can get the name registered easily. Building the site will also not be too hard. Lots of pre-fab back ends to deal with shopping carts etc.
 
You must log in or register to reply here.
To avoid these ads, REGISTER NOW!
Top Bottom