Anyone started their own tool truck round?

[nickjj]

Do the smaller shops get serviced by tool trucks in your neck of the woods? A lot of us are comparing it to the US where most shops are on one of the truck routes for tools but if this sales method isn't as popular over there you might really be able to carve out a market. If they are serviced by trucks then many of the replies trying to talk you out of it should be contemplated.

There's a snap on van, and an independent van doing the rounds, by UK standards this is quite an isolated area, so very little competition from b&m stores, if I can keep prices low and margins high I should be ok, hopefully...

 

[nes999]

I just asked people what they regularly needed and bought, so stuff like latex gloves, blue roll, cable ties etc

I've got some good deals from wholesalers, so I can sell for far less than eBay/ Amazon and still make a decent margin

So it sounds like your target is smaller guys without services such as Cintas. I think in that case that negative I said earlier might be a postive. You can show up to resupply their consumables and sell them on tools.



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[nickjj]

So it sounds like your target is smaller guys without services such as Cintas. I think in that case that negative I said earlier might be a postive. You can show up to resupply their consumables and sell them on tools.



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In this area there are no big dealerships or workshops, so I'd only target small places, of which there are a lot, plus farmers, bus operators, truck companies etc

 

[paranoid56]

Plan is to sell good value useful things, all straight sales, no accounts or debt chasing.

This is my unfinished can't be ordered from website that will run alongside the van sales:

https://bordertools.co.uk/

Not exactly snap-on...

The mainstay of the business will be consumables, but the plan is to have a reasonable selection of tools with a theme around garages/agricultural engineers/farm workshops etc

i wouldn't rule out the dept thing, as i would use a 3rd party such as affirm and have them deal with it.

 

[JMLangford]

I was a Matco distributor for 4 1/2 years (1995-2000) and when I started out I loved being my "own boss"

I soon realized, I was simply just a corporate pawn, and always had a District Manager (DM) constantly up my *** badgering me to keep my numbers up.....

I chased money from the time I left my driveway at 7:30am until I pulled back into my drive most times after 7pm.....EVERYDAY and then your day still wasn't over......finally I said "this is not for me" and voluntary dissolved my distributorship.

Some people are cut out for the dealings and stress related to being a "tool man".....I found out "Not me"

It's like the old joke....."How do you make a million dollars in the tool business?"......Start out with 2 million.....


YMMV


.

 

[nickjj]

I was a Matco distributor for 4 1/2 years (1995-2000) and when I started out I loved being my "own boss"

I soon realized, I was simply just a corporate pawn, and always had a District Manager (DM) constantly up my *** badgering me to keep my numbers up.....

I chased money from the time I left my driveway at 7:30am until I pulled back into my drive most times after 7pm.....EVERYDAY and then your day still wasn't over......finally I said "this is not for me" and voluntary dissolved my distributorship.

Problem with being Matco/Snapon/Mac etc distributor is that you're not really the boss.

You have to pony up a six figure fee to join, and then do what they say.

Worse everything costs so much the only way to sell it is via weekly payments, and then you spend all your time chasing debts.

 

[mikebaker1129]

I sold tools in the industrial market for years and we even had such good pricing I sold on Amazon as well. I even helped a guy on here one time with a return for Wright Tool. You'll notice I said that in the past tense. Tools are a cut throat market. My company did over $5million in tool sales a year so we could buy direct with the best pricing from Wright, Proto, Williams, Apex Tool Group (Gear Wrench, Armstrong, Crescent, etc), Klein, Channellock, etc. We also sold other industrial products but or niche was oilfield drilling equipment.

Even with all that we'd still have a hard time selling into certain markets or to the public. The problem is that the tool companies give all of their top distributors the best pricing so then it's just a race to the bottom to find out who will sell the stuff for the least. Some distributors handle certain tool lines and make as little as 5% - 10% gross profit margin on tools in hopes that their sales will reach a level where they can get a 10%-15% rebate.

One problem you'll have if you don't go with one of the big tool truck brands is that you won't have enough buying power to get to the top tier discount level. In fact many of them won't even set you up at all. I know for a fact Williams won't set-up tool truck operators as it creates competition for their parent companies Snap-On trucks. Also most will want you to warranty exchange the tool on the spot and then expect you to come to them for the warranty exchange. It doesn't sound that bad until you start having multiple warranty claims up in the air and it doesn't take too many before you can get burned. More than likely you'd have to start out going through a wholesaler like ORS Nasco to source tools. You can still be competitive and they'll have specials from time to time that are cheaper than even going factory direct. About the only thing you won't be able to compete with is the big box stores on their power tools. Lowes and Home Depot sells their power tools for stupid low margins, again pushing for a volume rebate at the end of the year to bring up their profit margin. They're happy to sell at a loss on a door buster deal to get people in the store buying other merchandise at a higher margin. In fact I even sent my purchasing people to Home Depot a few time to buy Milwaukee and Dewalt power tools that I knew they were selling at cost or below. It was cheaper than going direct to Milwaukee or through a wholesaler! There are a lot of advantages to going with a wholesaler. They have hubs nearby that are usually a day away on UPS and they can drop ship direct to your customer and if your're close to one you can will call material the same day. You'll have access and be able to compete on shop supplies like Wypall towels, aerosols, lights, etc. You'll also have easier credit terms than going direct to the manufacturer.

Overall Wright Tool was by far the best manufacturer I represented and they have a great staff. They had good drop shipping terms and they made very good product. In an automotive tech setting their offerings can be low though so I'd really suggest that if you do this you reach out to a wholesaler like ORS Nasco. You can buy just about any tool brand through them to include Wright, Proto plus all the ones I mentioned before and more. They can also do pneumatic tools but that's another extremely cut throat business.

Sometimes I miss the business because I got great deals on any tools I needed and often if I just inquired with my factory reps the next day a UPS box showed up with whatever I was asking about (within reason). It shows in my tool collection as I've got way more tools than most and they are all top notch made in the USA industrial brands. Having said that now that I'm out of the business I make enough to afford whatever tools I need and don't really have a desire to go back to it.

Excellent information .
Thanks for sharing your story!

 

[Dave455]

Excellent info from niferous, but remember he’s talking about the U.S., the U.K. is different.

There is a business here, but selling Taiwanese stuff that folks can get anywhere/everywhere, and probably cheaper, isn’t it!

Two guys locally have tried it, both made same mistake, both failed!

Stock some decent stuff, maybe Stahlwille, maybe with some PB Swiss and Knipex, and you will be able to make an O.K. margin, still be cheaper than Snap On, but offering really decent tools.

 

[nickjj]

Stock some decent stuff, maybe Stahlwille, maybe with some PB Swiss and Knipex, and you will be able to make an O.K. margin, still be cheaper than Snap On, but offering really decent tools.

But nobody would buy them, for every set of Knipex pliers sold I would have though 200 pairs of Taiwan pliers have been sold.

Although the above brands are famous on GJ, few everyday mechanics here have heard of them, and the only way to sell expensive stuff is to give credit, and then like all the doomed Snap-on and Mac men you'd be chasing payments more time than selling.

 

[Dave455]

That’s where your’re wrong!

Even if they’ve never heard of Knipex, they have eyes and can look, and they know that German made tools are a league above anything Taiwanese. If they’re not sure you only need one person to buy them and word will spread!

Customers are more discerning than you think. These guys pay £45 + VAT for Snap On pliers on a deal. They won’t worry about paying £25 for German made!

You also have to think about the bottom line. If you work with relatively similar margins, then the higher the value of the tool you sell, the greater the sum that ends up in your pocket!

 

[nickjj]

That’s where your’re wrong!

Even if they’ve never heard of Knipex, they have eyes and can look, and they know that German made tools are a league above anything Taiwanese. If they’re not sure you only need one person to buy them and word will spread!

Customers are more discerning than you think. These guys pay £45 + VAT for Snap On pliers on a deal. They won’t worry about paying £25 for German made!

You also have to think about the bottom line. If you work with relatively similar margins, then the higher the value of the tool you sell, the greater the sum that ends up in your pocket!

I don't share your optimism, give the choice of 4 for £10 or 1 for £25 they'll always go for Taiwan.

People buy Snap-on because they can pay £10 a week and spread the cost, so the actual prices are almost a moot point, as the weekly payment is the only amount they think about.

The other thing to remember is the initial outlay, I could spend a fortune of top brand tools and then take years to sell them, or spend a fraction of the cost on cheaper lines that are easier to sell, when you have an entire LWB van to fill, that's an issue.

 

[Dave455]

Good luck!

Edit - don’t mean that in a sarcastic way.

Unfortunately, setting up a tool truck involves a chunk of cash up front even if you don’t buy a franchise.

My own experiences of selling have always been that the margins are pretty much fixed by factors you can’t control, so the only way to up your cut is to increase the value of what you are selling.

The only good thing, is that if the worst comes to the worst, you can hopefully sell any stock held to offset costs!

The big advantage of any tool truck is that you get straight to the end user without having to find rent and rates on premises. That’s more of an advantage in the U.K. than the U.S. and partly why Snap On are so successful here!

 

[nickjj]

Some progress, van lined, and floored, racking to get done nect

 

[nmantas]

I know you said you wanted to have inexpensive options that smaller shops might want but I also think you are going to need some sort of midrange and higher-end tools as well. Even you buy-sell them to just break even you'll at least have a rounded inventory and have something for everyone to see what sells. I just feel like you might have all your eggs in one basket (lots of DIY tools) and folks that wouldn't mind paying more for quality might not be interested to deal with you.

 

[nickjj]

Got some virtually new van racking, and altered it a bit to suit

 

[Wamsutta]

Your business model reminds me of the guy in that video. He sells Boxo tools and consumables. His route is in the UK.

 

[scooby074]

Good luck, sincerely! But I just dont see it. Looks like all your tools are just cheap imports (like I could buy at Princess Auto local) and youre not really offering much value for money . By the time you mark up your tools to cover your costs youre going to price yourself out of the market?

Clever to sell consumables, but that puts you up against a company like Wurth who offers everything from handcleaner to socket sets, but at a higher quality.

 

[mudflap]

Thank you for the progress update, and the pics...and please continue to do so.. I hope you have much success.. Nice set up by the way.. I think alot of the negative comments are from guys here in the States..that have no way to really know your target customers..or how they do business.. and im not so sure what your attempting to do would work here.. Most of us are no more than 5 or 10 min from a giant mega big box stores that have all that stuff for cheap... but you mentioned yours being a rural route with a mix of big and small shops, and you are selling convenience ...we pay more for convenience here too A Coke is $1.50 at the gas station..but go to the grocery store..and you can buy a 12pk for $4.00... I still wonder how you are going to be able to warranty tools..Do you have an agreement with your supplier..they will credit broken tools..? Or are you planning to eat that cost..?... Staying tuned...good luck...

 

[nickjj]

Good luck, sincerely! But I just dont see it. Looks like all your tools are just cheap imports (like I could buy at Princess Auto local) and youre not really offering much value for money .

All the tools in this country are imports now (well virtually all), and around 60% of what I'm planning to sell is £10 or under, so hopefully pretty good value?

 

[nickjj]

Thank you for the progress update, and the pics...and please continue to do so.. I hope you have much success.. Nice set up by the way.. I think alot of the negative comments are from guys here in the States..that have no way to really know your target customers..or how they do business.. and im not so sure what your attempting to do would work here.

I suppose you have Harbor Freight, and places like that, nothing really like that here.

Most of us are no more than 5 or 10 min from a giant mega big box stores that have all that stuff for cheap...

The nearest big box, more of a small box really, is 40 minutes away, and UK home improvement stores have a very limited range of tools, at very high prices.

https://www.diy.com/departments/combination-spanner-set-of-8/1776084_BQ.prd

No Kobalt, Craftsman or Husky here.

but you mentioned yours being a rural route with a mix of big and small shops, and you are selling convenience ...we pay more for convenience here too A Coke is $1.50 at the gas station..but go to the grocery store..and you can buy a 12pk for $4.00... I still wonder how you are going to be able to warranty tools..Do you have an agreement with your supplier..they will credit broken tools..? Or are you planning to eat that cost..?... Staying tuned...good luck...

I have to eat the cost, but then the hope is nobody will expect a snap-on style warranty from a $10 set of pliers.

 

[Wamsutta]

No interest in the video; I find that very surprising. I thought you would at least be interested in the wrap he has for the outside of the van.

 

[scooby074]

All the tools in this country are imports now (well virtually all), and around 60% of what I'm planning to sell is £10 or under, so hopefully pretty good value?

Personally, I think you need to go to the next level of tool at a minimum. Step up to something like a Tektron or Sunnex or Astro or Toptul or Gearwrench.

Its not so much about being cheap as being value. Sunnex are "cheapish" but very good tools, therefore good value. Same as Gearwrech and Astro's offerings.

I know I wouldnt buy those tools even at $20, even if delivered to my door. Its not about being a tool snob (im not, I have lots of GW, Sunnex and rebranded Astro), but those tools you are carrying are the tools you see in the bargin bin at the dollar store! I dont mean that as insulting, just those types of tools dont last in service (for me). And even as cheap as they are, guys WILL be expecting you to warranty them as a dealer. Youre heading for a major headache, low grade tools and having to warranty.

I guess what Im saying is for me, I wouldnt even consider buying less than GW/Sunnex/astro/Toptul (AKA the Taiwan brands) as a tool I can rely on.

Id also add Wera as an "upper mid level" brand. Maybe Knipex for what they offer in pliers. Or even Beta or Facom. Both are solid upper end Euro tool brands not sold much in NA.

We had a guy local who did something similar to what youre doing minus the consumables. He carried SK as his main line with Sunnex and GW as a secondary. He was independent but basically acted as a mobile store for a wholesaler out of Quebec named G2S.. He stocked the standard stuff and would order whatever else you needed delivered for the following week. He also gave out their flyers.

Dont underestimate your overhead. Youre in an expensive area like I am, fuel and insurance are crazy. That guy above had to close his semi-rural route back home and move to the city to make enough money!

Another thing to consider diversifying into is bolts and fasteners.

 

[Tallpilot]

I’m not sure about that. If a guy is in the middle of a job and one of his tools happens to break right before this chap shows up with the weekly shop towel delivery why not pay 10 quid for a cheap import to use while waiting to warranty the tool that broke? Think of these tools more like the gum and sodas in the checkout aisle. They are just low margin impulse buys that may help push him over the edge of profitability.

 

[WittHay]

In this area there are no big dealerships or workshops, so I'd only target small places, of which there are a lot, plus farmers, bus operators, truck companies etc

Good luck with your new business. I think you could do well selling to these types of companies or places.

You don't need too high of price tools. Some places have a full time mechanic that either has his own tools or is going to buy tool truck brands anyways. The tool sales comes from a business buying tools for the operators of the vehicles or equipment or for quick general maintenance

Tools will get lost or damaged and will always need to be replaced. I know a lot of smaller companies are fairly cheap when it comes to buying tools for their employees.

 

[nmantas]

I think he also needs a high range tool line just for the profit margins. Selling one 100 pound tool has the same profit as selling literally ten of the 10 pound tools.

 

[nickjj]

Personally, I think you need to go to the next level of tool at a minimum. Step up to something like a Tektron or Sunnex or Astro or Toptul or Gearwrench.

What I'm planning to sell is equal to the above brands.

Another thing to consider diversifying into is bolts and fasteners.

Those are too heavy and low margin for me, if I load up on nuts and bolts I'll risk running overloaded and the MPG will suffer.

 

[nickjj]

I’m not sure about that. If a guy is in the middle of a job and one of his tools happens to break right before this chap shows up with the weekly shop towel delivery why not pay 10 quid for a cheap import to use while waiting to warranty the tool that broke? Think of these tools more like the gum and sodas in the checkout aisle. They are just low margin impulse buys that may help push him over the edge of profitability.

It's a different world here, only 2 truck tool brands that offer any sort of long warranty, MAC and Snap-On, so most people just use what's around.

 

[nickjj]

I think he also needs a high range tool line just for the profit margins. Selling one 100 pound tool has the same profit as selling literally ten of the 10 pound tools.

Selling a £100 tool without offering weekly terms is almost impossible, plus the margins are pretty poor on anything expensive.

Plus hard not to resist an box full of Taiwanese tools for the price of 1 tool from Germany or America.

 

[landrover bodger]

the van is looking good . Bergen and us pro tools maybe cheap compared to snapon but they are good tools for the price . I have not had an problems with them . small independent garages are a good target market as they can have the tool now bought and paid for . good luck

 

[nickjj]

the van is looking good . Bergen and us pro tools maybe cheap compared to snapon but they are good tools for the price . I have not had an problems with them . small independent garages are a good target market as they can have the tool now bought and paid for . good luck

9 garages to visit tomorrow, hopefully a good first day...

 

[Tallpilot]

Here's hoping! Let us know. I admire your hard work and would like to see you succeed. It is very interesting how different it is there from the States.

 

[dutchgray]

the van is looking good . Bergen and us pro tools maybe cheap compared to snapon but they are good tools for the price . I have not had an problems with them . small independent garages are a good target market as they can have the tool now bought and paid for . good luck

Not that I own any Bergen or US Pro, but what I have seen about looks fine, cheap but perfectly serviceable, part of a whole load of Asian made brands that are cheap but work, so they probably wont be lifetime tools, but they are so cheap you just buy more if you wear them out. 20 years ago tools in the same price bracket (in real terms) were junk, but not now.
There are a few van dealers about that have this cheap stuff, but I don't think they typically last that long, you see them at carboots sometimes as well.

 

[hefnerconstructionlc]

Good luck with your truck route I think it looks great. Don’t get too caught up in the naysayers. The good part about your set up is you’re not married to any one brand or how they would like you to stock your inventory. You’ll know quickly what your guys want and what they don’t and you can adjust accordingly. I think you wil have a good go at it that way. If you find your customers one higher margin items then you can add those. I think the most important thing will be the service out in the rural areas service is pretty important. If you can get them what they need and get them back and going it’ll be real helpful for them. And you’ll be rewarded for that I believe. People in big cities often forget that rule towns get overlooked and if somebody comes along and provides a service a good service it usually works pretty well. Not everybody wants to do business over the Internet often want to talk to somebody and get some help.Good luck.

 

[scooby074]

What I'm planning to sell is equal to the above brands.



Those are too heavy and low margin for me, if I load up on nuts and bolts I'll risk running overloaded and the MPG will suffer.

If Bergen is as good as Gearwrench or Sunnex you should do fine.

Bergen is unknown this side of the pond so I have no idea on what to base its' quality on other than your statement that most of your tools will be under $20. You wont get much from Gearwrench or Sunnex for less than $20.

 

[nes999]

I would try to get into a construction company. I know we will buy certain size wrenches/socketa buy the 500+ load. We just tell the distributor we want XYZ as cheap as possible. For the prices of the tools you are saying I could see companys stocking up.

Around me I see more company's at harbor freight than DIYers.

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[Tallpilot]

Around me I see more company's at harbor freight than DIYers.

I made the same comment in another thread. Unless it is a Saturday afternoon during a parking lot sale (a time I would usually avoid) the parking lot is full of trucks with service bodies and almost everyone in the store is wearing work uniforms.

 

[nickjj]

Here's hoping! Let us know. I admire your hard work and would like to see you succeed. It is very interesting how different it is there from the States.

So day 1.

What I learnt.

Big franchise dealerships are great, lots of mechanics.

Big transport companies are great, loads of mechanics.

Vans full of tools are like sweetshops for mechanics.

Enough room for 3 people on board browsing at once.

Everyone seems to have Bergen tools already and rates them.

Anything on the top shelf sells, stuff at eye level on the walls sells.

Need to land on payday, or just after - young techs are skint by half way through the month.

Consumables sell ok.

Van managed a respectable 34mpg.

Top sellers

3 piece airgun set
Hook and pick set
Impact sockets
Trim tools

 

[L.Cheapo]

Glad you had a great first day. Wishing you much success in your future.

 

[xin]

So day 1.

What I learnt.

Big franchise dealerships are great, lots of mechanics.

Big transport companies are great, loads of mechanics.

Vans full of tools are like sweetshops for mechanics.

Enough room for 3 people on board browsing at once.

Everyone seems to have Bergen tools already and rates them.

Anything on the top shelf sells, stuff at eye level on the walls sells.

Need to land on payday, or just after - young techs are skint by half way through the month.

Consumables sell ok.

Van managed a respectable 34mpg.

Top sellers

3 piece airgun set
Hook and pick set
Impact sockets
Trim tools

Got any pics of your van?

 

[nickjj]

Glad you had a great first day. Wishing you much success in your future.

Cheers!