To avoid these ads, REGISTER NOW!

Anyone started their own tool truck round?

scooby074

Well-known member
Joined
Oct 26, 2008
Messages
5,259
Location
Nova Scotia
Awesome you found your niche.

Smart about not offering truck credit, most of the dealers I had spent their time being bill collectors and babysitters as opposed to salesmen.
 
To avoid these ads, REGISTER NOW!

scooby074

Well-known member
Joined
Oct 26, 2008
Messages
5,259
Location
Nova Scotia
There are a small handful of drivers that are doing very well and have bigger trucks like this:
AC6DB830-5AF3-4B09-95D8-9D6B41FC051D.jpeg

In most cases big American pickups and vans simply won't fit in UK roads - they were built 2000 years ago for a horse and haven't really been improved since. Particularly where the OP lives in deepest darkest Wales.
That Merc is pretty fn sweet. Love COEs.

Most drivers here have your traditional "Breadvan". Many cover pretty large teritories outside the city. Ive been told by many that they max out at 90 on the hills when there's a full load on. ****** and makes for a long day..
Capturesgs.JPG
 

PoorUB

Well-known member
Joined
Mar 29, 2021
Messages
11,686
Location
Fargo, ND
Business 101: When credit is accepted and or made available, customers spend significantly more. Just be smart about how you offer this to limit your liability.
It was probably discussed, but get set up to offer a credit card that they can sign up for on the truck. With this day and age he should be able to do it online and have approval in seconds, minutes at the most.
 
OP
N

nickjj

Well-known member
Joined
Feb 21, 2014
Messages
327
Location
Bournemouth UK
just let them use their credit card that they have . you get paid they have to pay the credit card bill no problem to you if they dont pay .
I don't even take cards, just take payment via mobile banking, £5 a month for a business bank account, £300 odd a year for an accountant, insurance is expensive but essential, but other than that nice flat business model, no franchise fees etc.
 

Handyandy23

Well-known member
Joined
Nov 8, 2017
Messages
1,523
Location
Ontario, Canada
The giant tool trucks that roll around in North America is probably a big reason why all of the stateside posters that have attempted to get into this business end up going under pretty quickly. The trucks probably cost 3-4x what the OPer has into his van setup, and that's just to get started. Then you have that much more space to fill up with tools, again $$$.

The tool truck business model is set up to 100% benefit the tool manufacturers and allow them to have their products sold with basically zero risk taken on by the company. They require the truck operator to buy the truck to their specifications, and then pay for the product to fill it up with, plus dealer fees and everything else that goes along with business (insurance, etc). Company is out of pocket nothing and puts all the burden on the operator.

This setup is smart business because the initial investment is low, and the risk is pretty low. And I bet the profits are still pretty comparable to a big branded tool truck in a lot of cases because there's no fooling around with credit, warranty, being forced to stock and sell "deals" that nobody wants, and having the company get their "share". And there's always room to expand if the business is there.
 

Ton ton

Well-known member
Joined
Oct 16, 2019
Messages
4,592
Location
Page County,VA
That Merc is pretty fn sweet. Love COEs.

Most drivers here have your traditional "Breadvan". Many cover pretty large teritories outside the city. Ive been told by many that they max out at 90 on the hills when there's a full load on. ****** and makes for a long day..
Capturesgs.JPG
That's the size of my snap on rep's truck.
 
To avoid these ads, REGISTER NOW!

Under_Pressure

Well-known member
Joined
May 13, 2014
Messages
115
Location
NE Wisconsin
While many/most countries don't have the "big truck" culture that the US does (i.e. 1/2 ton through 1 ton trucks being commonly used for regular personal transport), the UK in particular seems to have adapted to using smaller trucks and less "stuff" in general to get a remarkable amount done. From what I have seen, even 1 ton+ service trucks like we are used to are quite rare there, even for heavy equipment dealers. They tend to use vans similar to nickjj is using. No cranes, often no air or power other than what is available at the site, and no carrying 10k lbs of tools around to every single job. There was an awesome thread on a heavy equipment forum by a guy from the UK who was an independent heavy equipment mechanic. His specialty was big jobs on Cat equipment, especially older non-high drive dozers and the like including big ones up to D9 size. On these, getting into the finals and rear end is quite a project- pulling massive sprockets and bull gears, driving out huge track pins. But this guy worked exclusively out of the back of his Land Rover Defender (the original version, of course, that they stopped making several years ago). That's all he had used his entire career. No real power tools of any kind- big bolts were tackled with torque multipliers or using a sledge, hoist or other piece of equipment (like an excavator bucket) on the end of a slugging breaker bar. Used the old school Cat hand pumped hydraulic track press with all sorts of factory and homemade adapters to remove and install parts requiring 100+ tons of force. Now I'm not sure everyone over there is like him, but I did get the distinct impression that his approach is far less of an outlier than it would be in the US, for instance.
 
OP
N

nickjj

Well-known member
Joined
Feb 21, 2014
Messages
327
Location
Bournemouth UK
The giant tool trucks that roll around in North America is probably a big reason why all of the stateside posters that have attempted to get into this business end up going under pretty quickly. The trucks probably cost 3-4x what the OPer has into his van setup, and that's just to get started. Then you have that much more space to fill up with tools, again $$$.

The tool truck business model is set up to 100% benefit the tool manufacturers and allow them to have their products sold with basically zero risk taken on by the company. They require the truck operator to buy the truck to their specifications, and then pay for the product to fill it up with, plus dealer fees and everything else that goes along with business (insurance, etc). Company is out of pocket nothing and puts all the burden on the operator.

This setup is smart business because the initial investment is low, and the risk is pretty low. And I bet the profits are still pretty comparable to a big branded tool truck in a lot of cases because there's no fooling around with credit, warranty, being forced to stock and sell "deals" that nobody wants, and having the company get their "share". And there's always room to expand if the business is there.
You have to warranty stuff, but overall returns are pretty minimal.

Round these parts there's as many independent tool trucks/vans as franchise guys.
 

M635_Guy

Well-known member
Joined
Dec 5, 2019
Messages
4,335
Location
NC
Just a suggestion if he wants to increase sales, revenue and profitability, the lifeblood of a business.
I get it. I'm sure he gets it. It's possible that the whole thing around credit isn't something he wants to be part of. He's apparently making the money he wants to make, and clearly has made a decision that's not what he wants. :dunno:
 

CGarage

Well-known member
Joined
Nov 23, 2018
Messages
3,030
Location
United States/Switzerland
I get it. I'm sure he gets it. It's possible that the whole thing around credit isn't something he wants to be part of. He's apparently making the money he wants to make, and clearly has made a decision that's not what he wants. :dunno:

Respectfully, are you a ventriloquist?
Is he not able to speak for himself?
Lots of “tool guys” are not finance guys and may not be aware of various credit facilities that are usually available that will help to boost sales. This was the point of my post, to make him aware that money is being left on the table because he has not developed avenues to make him a more competitive supplier to his clients.

I would consider this a necessity for future viability of the business. Especially with the new prevalence of micro-lending now being offered by major companies.
 

M635_Guy

Well-known member
Joined
Dec 5, 2019
Messages
4,335
Location
NC
Respectfully, are you a ventriloquist?
Is he not able to speak for himself?
Lots of “tool guys” are not finance guys and may not be aware of various credit facilities that are usually available that will help to boost sales. This was the point of my post, to make him aware that money is being left on the table because he has not developed avenues to make him a more competitive supplier to his clients.

I would consider this a necessity for future viability of the business. Especially with the new prevalence of micro-lending now being offered by major companies.
Respectfully, are you his accountant?

You offered some advice, he said he's made a decision not to do that, and you keep re-stating the advice. I'm sure it goes against your MBA, but the guy has been running his business for several years now, and it's not like you're sharing little-known insight.
 
To avoid these ads, REGISTER NOW!
Top Bottom