Selling tools for a living

[onecheck]

So, can it be summed up that if you are willing to work very hard, especially at first. Then get a decent route and have a bit of luck, you can make a good living at it?

If it was that simple everybody that had a good work ethic would be successful.

I think there’s too many factors in this business to make a good living.

Average techs work week

Let’s break it down weekly. (average techs salary in the field)
A tech working 48hr work week @ $15 hr =$720 (48X15=$720 a week).
Let’s take $720 a week X 52 weeks in a year (720X52) $40,320 with no debt of 150K to 250K, enjoy one or 2 days off. Not have to chase dead beats that are not paying your tool credit. No brainer

Truck tool franchise work week

Tool route working schedule M-F on truck rout 10hrs a day 50hrs.
Saturday 5 hours inventory.
Sunday 3 hours for accounting.
Then include maybe 2 hours every other week for truck maintenance.
50 hrs M-F, Saturday 5 hours Sunday 3 hours 50+5+3= 58 hours a work week to make 25K to 45K.

Conclusion
An average tech makes more on a 48 hour work week with 1 or 2 days off and not being in debt for 150K to 250K.

I dont think it is a good investment

We all have a love for tools on this board. When making a business decision. Don’t let emotion take the best of you think it through do the math weigh the risk with the rewards

 

[stock z/28]

This may be wrong and possibly even the wrong way to look at it, but I "think" at one time most industrial (factories) received about a 55% discount from Snap On?


It seemed the dealers typically got a 33% discount on most items?

If that is true it would be hard for me to make any personal financial investment in a situation where a customer was buying a product for less than a dealer? Dosent make sense to me.


In one sense I kinda think the tool compaies might tend to look at the typical dealer as the end user. There may well be some potential benefits to having a situation where dealers are replaced on a regular basis.

In my "theory", once a dealer is fairly framilar with an area he fiqures out who will pay and who wont, and "probably" stops or greatly reduces the tools he will "sell" to certain individuals.

A new dealer is typically (again this is just my opinion) very gung ho and wants to see tools going off the truck at a fast pace. More tools moved = more money? Not if they are not going to be paid for, but typically the company will still see revenue, because the dealer is still paying the company.



I have been in the auto repair business since about 1970 and have seen a bunch dealers from all 3 go and come. My original Mac guy lasted for 30-40 years. He retired in about mid 90s I guess. So far there has been about 4-8? new Mac dealers try this area, sadly all have failed. One only lasted about 2-3 months.


There have probably been 20 Snap On dealers over that time (just a guess) the current was once a student of mine and is a great guy works very hard and I wish him the best, but he knows my feelings. Hes been there abour 3 years now I guess. Before him it was the Snap On rep that ran the area for Snap On, not on a dealer basis.

My current Matco guy is great as well, works hard and offers excellent service.

There is no Mac dealer currently. I think the last quit about a year ago.


Sorry to ramble but I guess I dont understand why the companies dont try and support their dealers better than they appear to?

I buy so few tools now that I generally tell the dealers its fine with me if they dont stop. Time is money to them, and I can generally guarantee that in this stage of my buisiness I probably wont be making any major purchases from them and if I do I will contact them.

In my opinion its a tough and very demanding job, and I wish all that do it the best of luck.


Jeff

 

[Chris Adams]

My Snap-On guy borrowed some money from a relative when he started out. He worked his a$$ off for years, even got behind on his payments to Snap-On. He didn't know what he was doing wrong (and it turned out that he was doing nothing wrong), but he continued to work hard for more years. Those long days and getting up very early that someone mentioned earlier in this thread sound familiar to what he had to do.

It's sort of sad because he is a great guy, and gives great service (unlike most of the other Snap-On guys I've known). He's one of those guys that will sometimes let himself get screwed over a little to help you out, knowing that there's a chance that he will pick up a loyal customer.

Well fast forward a few more years and he's making good money, and fast forward a few more years and he's making REALLY good money. My Snap-On guy lives in an awesome house, in a great neighborhood. He's got a great family and works his own schedule. He takes off when he wants, and does whatever family or social activity he wants. People are jealous of him.

I hear some people ***** about how Snap-On guys make a lot of money off of mechanics who can barely afford to pay them. Well, I've got no problem with that. If they can do it, more power to them. The good ones had to work to get there.

I hear what the guys in this thread are saying. But I think it's like anything else in life. If you work hard, and are a decent guy to your customers (even let yourself get taken advantage of every now and then), and have the financial wherewithall to stick it out, I bet you will do very well.

I hate to sound like an a-hole, but I think alot of people don't have the long term vision and determination to make it in that business. Their "long term" is 12 months, not 12 years.

Joe Mamma

Darn good post, but you are understating it.
From many years in business, dealing with guys wanting to own their own business I've learned that few people EVER think very far ahead.
About ten percent of people think 'long term' is five years.
About half think long term is 2 years.
And the rest go from 3 months to three weeks when you say long term.

I don't think I have met twenty people in all those years who could comprehend that 'long term' could honestly mean 10 years.
I think all of them were Asian... And all of them are rich now.

 

[Diesel_Crawler]

I was into my own business for a while. we did small engines like lawn mowers chain saws for the most of it, also skidders and tree farmers as well.

There are not only dead beats a dirt bags if you do business out of a truck, keep this in mind. People just talk about it more, We had a wall just were we out up overdue bills and or bounced checks. Even after we had you leave a deposit on items if you were a walk in people still never came clean and just stuck you with some old mower or something.

I just don't think that saying "think about chasing people down" should keep you from going into something on your own. It happens to everyone.


I was however wondering if daveblank might be able to answer this question for me. Can you put some one with an over due truck account through collecting and take the cut. I know were did several times on lager items. I just did not now if it was different set of terms working a tool truck.

Other then that, if you can work your nuts off be good to the people you deal with and "know when to hold them and know when to fold them, know when to walk away and know when to run" You can set yourself up a good future in business.

 

[bowtie3]

This may be wrong and possibly even the wrong way to look at it, but I "think" at one time most industrial (factories) received about a 55% discount from Snap On?


It seemed the dealers typically got a 33% discount on most items?

If that is true it would be hard for me to make any personal financial investment in a situation where a customer was buying a product for less than a dealer? Dosent make sense to me.


In one sense I kinda think the tool compaies might tend to look at the typical dealer as the end user. There may well be some potential benefits to having a situation where dealers are replaced on a regular basis.

In my "theory", once a dealer is fairly framilar with an area he fiqures out who will pay and who wont, and "probably" stops or greatly reduces the tools he will "sell" to certain individuals.

A new dealer is typically (again this is just my opinion) very gung ho and wants to see tools going off the truck at a fast pace. More tools moved = more money? Not if they are not going to be paid for, but typically the company will still see revenue, because the dealer is still paying the company.

Jeff

I would have to say that this post could be the most accurate description of the mobile tool business I have read to date. Nice theory Jeff!

I know for a FACT that industrial (end user) customers can buy Snap-On products for considerably less than dealers. That seems to be about a crooked as it gets in my opinion. I wonder if the dealers can buy from the industrial reps? I bet my family jewels they cannot.... What a rip! Not only are the dealers getting shafted but if one of those industrial customers price something from him he will look like the shark and not the company. Nice way to treat someone with their whole life invested in your company huh?

 

[daveblank]

I was however wondering if daveblank might be able to answer this question for me. Can you put some one with an over due truck account through collecting and take the cut. I know were did several times on lager items. I just did not now if it was different set of terms working a tool truck.

Yes, an outside collection agency can be used. Too pamy prople on this post are focused on skips. It's not as big of a deal as some are making it out to be.

 

[Diesel_Crawler]

Yes, an outside collection agency can be used. Too pamy prople on this post are focused on skips. It's not as big of a deal as some are making it out to be.

Out of all the dealings you do, about what percent don't pay? is it even as high as 2-4%? or even less.

 

[daveblank]

I've lost about 1% of total sales to skips.

 

[Big Bad Jon]

I am just curious, Dave what did you do before you became a distributor for Matco? You seem to be VERY organized.

 

[Diesel_Crawler]

I've lost about 1% of total sales to skips.

there that makes a better point then I was trying to, people not paying is not going to murder your business.