Does anyone here own a tool truck?

[nutsnbolts]

I was on the Snap On and Mac sites yesterday and one of them (I believe Mac) has a link for information on getting a tool truck and becoming a distributor. Does anyone here have a truck, or had one in the past, or maybe has a close friend that knows the ins and outs of the tool truck racket? If so, please share your knowledge and insight. It might be a path I would like to look down.

 

[malykaii]

I did an independent tool route for a year.

Without writting a novel... The odds are against you.

Don't finance anything. If you don't have the money to buy outright and a cushion (say another income from a house you rent) it a very slippery slope into debt.

 

[ihateminimumwage]

A really good read if you have some time.
http://www.garagejournal.com/forum/showthread.php?t=217037

 

[DBendr]

If you research it enough you'll probably change your mind.
Buy yourself a nice bread type truck and put a few graphics on it. You can arrange wholesale and make some money selling a mixed bag of stuff. Lisle, Gearwrench, Makita,Proto,Dewalt, Milwaukee.Get a few IR and CO kits, stuff like that.Sell some Tekton stuff.Make a buffet.
Lots of lubes and other consumables,teflon tape, never sieze, WD, loctite,TapGold, drill bits, individual taps-rethreaders,cyclone sockets in commonly used auto sizes.
Just make sure the distributors can handle warranty requests for you fairly easy..as in On Site parts and service.
A few days is fine for hand tools since you'll wind up a once a week show anyway.

I'd rather be tied into something like that than be a liar for one brand *****.If the item that a customer wants is overpriced or inferior junk I wouldn't like being in a 'have to oblige' position either.Make your own rules.

 

[nutsnbolts]

I did an independent tool route for a year.

Without writting a novel... The odds are against you.

Don't finance anything. If you don't have the money to buy outright and a cushion (say another income from a house you rent) it a very slippery slope into debt.

Yes, it is definitely something that would have to be well planned and very well organized.

Without getting too personal, can I ask what a ballpark figure was for getting the truck and getting started?

 

[nutsnbolts]

A really good read if you have some time.
http://www.garagejournal.com/forum/showthread.php?t=217037

Thank you...l will read this

 

[nutsnbolts]

If you research it enough you'll probably change your mind.
Buy yourself a nice bread type truck and put a few graphics on it. You can arrange wholesale and make some money selling a mixed bag of stuff. Lisle, Gearwrench, Makita,Proto,Dewalt, Milwaukee.Get a few IR and CO kits, stuff like that.Sell some Tekton stuff.Make a buffet.
Lots of lubes and other consumables,teflon tape, never sieze, WD, loctite,TapGold, drill bits, individual taps-rethreaders,cyclone sockets in commonly used auto sizes.
Just make sure the distributors can handle warranty requests for you fairly easy..as in On Site parts and service.
A few days is fine for hand tools since you'll wind up a once a week show anyway.

I'd rather be tied into something like that than be a liar for one brand *****.If the item that a customer wants is overpriced or inferior junk I wouldn't like being in a 'have to oblige' position either.Make your own rules.

Wow...you have my wheels turning! This is really more up my alley anyway! Now for the big question...how would a guy go about buying wholesale? I am guessing large quantity sales would be required. Still, it couldn't be more expensive than getting a Snap On truck, and the freedom would be fantastic. Thanks!

 

[malykaii]

If you research it enough you'll probably change your mind.
Buy yourself a nice bread type truck and put a few graphics on it. You can arrange wholesale and make some money selling a mixed bag of stuff..

That kind of sums up what I did. Problems:
1) even with a tax id and wholeseller account you'll find dealing with suppliers *****. Your not buying in bulk, so you'll have to go through a third party like ISN. Since these companys act like your privileged to buy from them, they almost upcharge you. I found that tooltopia and amazon had significantly cheaper prices than any comercial setup. Now your prices are too high to compete.
2)mechanics are used to credit. The "why pay $25 a week for 2 months for an 80tooth snap on ratchet when you can pay me $50 cash for a better gearwrench 120 tooth model" doesn't work. I found most guys can't do logical math. Really.

 

[malykaii]

Here are your sale/brand options.

Tool Truck (Snap On, Matco, Mac, Cornwell)
You play by their rules and die by their rules. The business model is set up in a way that they make more money by your failure than success.

Conventional Whored Out Brands (SK, Gearwrench, Mountain, Makita, IR, Sunex, GP)
Everyone knows what they are worth. The cheapest place to get them is amazon and tooltopia. You'll have a hard time selling them.

Semi Exclusive Brands (Genius, Grey, Toptul)
Not as easily accessible by consumers, hence less arguing about price. However, now your fighting to convince buyers these are even worthwhile brands. Also, many have incomplete catalogs, so you'll still have to suplement the gaps with more popular brands, so again, see above.

Used (like the company "Used Pro Tools" in NJ)
If I did it again, I'd try it this way. Go find deals like someone selling a box with tools on C.l. for $4k. Break up all the sets. Sell everything for 50% list. Now you have all the prestige of a name brand you without the warranty issues. Also, no need for credit as your selling at such a "bargain" it's a take it or leave it case. No special orders, just roll in as a mobile flea market. Then post the empty box back up on C.l. for 2k and out it goes. Or find a local finance company and try to get one of your customers to buy it for $2500.

 

[nutsnbolts]

Here are your sale/brand options.

Tool Truck (Snap On, Matco, Mac, Cornwell)
You play by their rules and die by their rules. The business model is set up in a way that they make more money by your failure than success.

Conventional Whored Out Brands (SK, Gearwrench, Mountain, Makita, IR, Sunex, GP)
Everyone knows what they are worth. The cheapest place to get them is amazon and tooltopia. You'll have a hard time selling them.

Semi Exclusive Brands (Genius, Grey, Toptul)
Not as easily accessible by consumers, hence less arguing about price. However, now your fighting to convince buyers these are even worthwhile brands. Also, many have incomplete catalogs, so you'll still have to suplement the gaps with more popular brands, so again, see above.

Used (like the company "Used Pro Tools" in NJ)
If I did it again, I'd try it this way. Go find deals like someone selling a box with tools on C.l. for $4k. Break up all the sets. Sell everything for 50% list. Now you have all the prestige of a name brand you without the warranty issues. Also, no need for credit as your selling at such a "bargain" it's a take it or leave it case. No special orders, just roll in as a mobile flea market. Then post the empty box back up on C.l. for 2k and out it goes. Or find a local finance company and try to get one of your customers to buy it for $2500.

Thank you for all your input, I appreciate it.

I have already had thoughts of reselling used, and I am very much a guy who loves vintage tools, so this too is probably the direction I would go. In fact, when someone mentioned wholesale earlier, my thought was, "That would be cool, and then I could sell some used stuff as well."

One big question about wholesale though...you said that the companies don't cut you a break based on bulk, and that the cheapest price out there is Amazon...so how does Amazon get such a great deal on it? Because they buy at another level of huge bulk?

 

[nutsnbolts]

A really good read if you have some time.
http://www.garagejournal.com/forum/showthread.php?t=217037

I read through a bunch of this thread, good stuff. I think one guy put it best when he said that a tool truck owner is more of a loan guy than he is a tool guy.

 

[malykaii]

My advise...

If your collecting a pension, own your home, and looking for a retirment gig: take $15k and buy a few loaded Tool boxes off c.l. Repackage it nicely and stuff it into a beater $3k Sprinter Van along with one of the tool boxes. Rotate stock weekly and change the tool box out monthly. A stuffed van with limited rotating stock looks better than a loosely packed but we'll apointed step van.

If you have a mortage and want to invest in a business... Find a busy Subways (one of the best franchises) where the owner isn't struggling with finances but with personal issues. Say divorce, alcoholism, cancer or whatever (cause why else does anyone sell a profitable business?)
Then work there yourself as the full time manager. Profit.

 

[malykaii]

I read through a bunch of this thread, good stuff. I think one guy put it best when he said that a tool truck owner is more of a loan guy than he is a tool guy.

That's what ultimately drove me out. Not lack of sales, but how I had to sell.

 

[ihateminimumwage]

Conventional Whored Out Brands (SK, Gearwrench, Mountain, Makita, IR, Sunex, GP)
Everyone knows what they are worth. The cheapest place to get them is amazon and tooltopia. You'll have a hard time selling them.

Had an Indy truck guy that carried all of those brands that recently went under. My boss put it along the lines of 'Someone needs to die in this area for tool trucks to make a sale.'

What few younger guys there are in the area know they can just check out everything on the truck and hop on their phones to order it cheaper and have it in a couple of days through Amazon.

As I said previously in another thread, it appeared the nail in his business' coffin was running a promotion on sets of USA made Gearwrench torque wrenches. When folks finally got their orders in, Gearwrench had shipped him all the new Chinese made ones.

 

[malykaii]

One big question about wholesale though...you said that the companies don't cut you a break based on bulk, and that the cheapest price out there is Amazon...so how does Amazon get such a great deal on it? Because they buy at another level of huge bulk?

In simplistic terms, amazon wants to sell a 20 Piece gearwrench set. They call G.W direct and speak with a major sales rep. They buy not a pallet, but a whole tractor trailer worth of sets. If all goes well, they also expect another shipment in two months.

I tried to call G.W. and become a dealer and after a bit was able to just get a Secretary/Operator that said the minimum order is something like 10 grand. Otherwise call ISN.

ISN is the largest tool broker in the county. They buy the tractor sized shippment then divy it up. I would but from them. Say amazon sells that set for $85. ISN would quote me $95 and claim that's because they provide tech support and warranty tools for me. Now the kick is that they (unlike amazon) needed a $500 order to qualify for free shipping. Then I'd find that even though I met that amount, if something was out of atock, they would ship the rest of the order of $485 and then bill me $60 shipping. Then two days later ship that $15 ratchet and rack on another $10 shipping.

I towards the end found it to be easier to just buy the tools off tooltopia for the advertised price of $85 and should a warranty issue arise just replace the broken wrench for $5 out of pocket and still save $5.

The best kicker... Tooltopia isn't an actal seller or place. It is a web site that literally drop ships their order through ISN. So I would be buying from ISN but paying Tooltopia and get free shipping after $75 yet if I tried to just pay ISN direct I'd pay $10 more and pay shipping.

 

[LXCam]

There's two methods of making money and it really doesn't matter what it is if you're selling a product. One, sell one item with a huge margin a half a dozen times a year...maybe. And two sell thousands of items at a dollar profit. The other avenue is your buy in with a wholesaler. Lots of these types of companies require you drop 50-100k in order to attain a pricing level that you can resell at a profit you can survive on. Problem is can you afford to have those items sitting idle on the shelf for weeks, months, years? If you don't maintain their annual sales figure you lose that price point.


You've been given some great advice already. The most important is what's your nut you need to crack to live. If it's high and you don't have a wad of cash to back yourself, you will fail. I like the idea of misc tools, used may work but a good assortment may be your best bet as long as you can carry the loan. If a guys got cash in full, he won't be buying from you. Good luck bud.

 

[malykaii]

One big question about wholesale though...you said that the companies don't cut you a break based on bulk, and that the cheapest price out there is Amazon...so how does Amazon get such a great deal on it? Because they buy at another level of huge bulk?

In simplistic terms, amazon wants to sell a 20 Piece gearwrench set. They call G.W direct and speak with a major sales rep. They buy not a pallet, but a whole tractor trailer worth of sets. If all goes well, they also expect another shipment in two months.

I tried to call G.W. and become a dealer and after a bit was able to just get a Secretary/Operator that said the minimum order is something like 10 grand. Otherwise call ISN.

ISN is the largest tool broker in the county. They buy the tractor sized shippment then divy it up. I would but from them. Say amazon sells that set for $85. ISN would quote me $95 and claim that's because they provide tech support and warranty tools for me. Now the kick is that they (unlike amazon) needed a $500 order to qualify for free shipping. Then I'd find that even though I met that amount, if something was out of atock, they would ship the rest of the order of $485 and then bill me $60 shipping. Then two days later ship that $15 ratchet and rack on another $10 shipping.

Now I've paid $570 for what I thought was $500 but could have bought on Amazon for $420. Then I have to declare taxes from the id vs amazon who would sell me anything question free. Add in gas and expenses and now I'm $120 deep into a wrench set anyone can buy for $85.

I towards the end found it to be easier to just buy the tools off tooltopia for the advertised price of $85 and should a warranty issue arise just replace the broken wrench for $5 out of pocket and still save $5.

The best kicker... Tooltopia isn't an actal seller or place. It is a web site that literally drop ships their order through ISN. So I would be buying from ISN but paying Tooltopia and get free shipping after $75 yet if I tried to just pay ISN direct I'd pay $10 more and pay shipping.

 

[malykaii]

Another tactic I see on ebay and very profitable. Find a tool. Say, coolant pressure tester. (real life example) Call the same place Mac gets theirs. Buy the minimum bulk shipment. I'll guess it's half a truck at $15k. Stick it in your garage and list it on ebay at a 40% mark up. Sell away.

This is how you see the exact same coolant pressure tester Mac sells for $300 on ebay for $85, literally.

 

[Roberts210]

You could also specialize. When I worked as an auto glass mechanic, we had our own specialized tool guy who came around in his van. He had all the tools specific to glass shops as well as specialized adhesives, etc. All in a 3/4 ton white van.

 

[malykaii]

You could also specialize. When I worked as an auto glass mechanic, we had our own specialized tool guy who came around in his van. He had all the tools specific to glass shops as well as specialized adhesives, etc. All in a 3/4 ton white van.

That! I forgot, when I was wrenching we had a retired old guy who did tire stuff. Stocked every wheel weight, chemical, tool, and even storage/selving in a minivan. He would show up when you called or swing by every month just to check in.

Then again, his bill was like $100 every few weeks. So again, kewl retirement gig or second job,

 

[nutsnbolts]

My advise...

If your collecting a pension, own your home, and looking for a retirment gig: take $15k and buy a few loaded Tool boxes off c.l. Repackage it nicely and stuff it into a beater $3k Sprinter Van along with one of the tool boxes. Rotate stock weekly and change the tool box out monthly. A stuffed van with limited rotating stock looks better than a loosely packed but we'll apointed step van.

If you have a mortage and want to invest in a business... Find a busy Subways (one of the best franchises) where the owner isn't struggling with finances but with personal issues. Say divorce, alcoholism, cancer or whatever (cause why else does anyone sell a profitable business?)
Then work there yourself as the full time manager. Profit.

I hear ya. I will probably just continue on my current path, absorb more knowledge, and at some point maybe dabble in some reselling of used tools to support my addiction

In all honesty, I am not really looking for a business...I like the idea of reselling tools because I am a tool junkie and I think I could have fun with it.

 

[montanafordman]

Its a business venture that sounded fun to me on the surface but when you do some digging its not a great career path and in most cases you're set up to fail. If it were something I was seriously going to pursue I wouldn't consider it unless you had 200-300K in startup capital. If you can buy the truck and the inventory outright without incurring ANY debt, and still have about 3-6 months liquid capitol /pay to survive on in case of mechanical difficulties with the truck, illness, etc. then you could probably have a profitable and successful business model *IF* you are located in the right area / demographic to support enough sales for your business model. If you are in a large rural area with few customers, or an area with intense competition you might have a hard time generating enough sales to support or justify your business.

 

[nutsnbolts]

Had an Indy truck guy that carried all of those brands that recently went under. My boss put it along the lines of 'Someone needs to die in this area for tool trucks to make a sale.'

What few younger guys there are in the area know they can just check out everything on the truck and hop on their phones to order it cheaper and have it in a couple of days through Amazon.

As I said previously in another thread, it appeared the nail in his business' coffin was running a promotion on sets of USA made Gearwrench torque wrenches. When folks finally got their orders in, Gearwrench had shipped him all the new Chinese made ones.

Yeah, I have to agree with this. These kids really seem to be able to rule the world with their phones, don't they?

Did GearWrench get in trouble for that stunt? It seems like they would have broken some law or another.

 

[ihateminimumwage]

I hear ya. I will probably just continue on my current path, absorb more knowledge, and at some point maybe dabble in some reselling of used tools to support my addiction

In all honesty, I am not really looking for a business...I like the idea of reselling tools because I am a tool junkie and I think I could have fun with it.

I made decent money to help with rent while in school by rebuilding lots of air tools from eBay and also reselling tools bought with my student discount. Also resold a good amount of misc tools I've had for years without using, tools I've picked up in the clearance section of different tool manufacturers, etc.

It's a good way to waste some time and get rid of random junk taking up space and replace it with tools you'll use, but far from making a living.

 

[nutsnbolts]

In simplistic terms, amazon wants to sell a 20 Piece gearwrench set. They call G.W direct and speak with a major sales rep. They buy not a pallet, but a whole tractor trailer worth of sets. If all goes well, they also expect another shipment in two months.

I tried to call G.W. and become a dealer and after a bit was able to just get a Secretary/Operator that said the minimum order is something like 10 grand. Otherwise call ISN.

ISN is the largest tool broker in the county. They buy the tractor sized shippment then divy it up. I would but from them. Say amazon sells that set for $85. ISN would quote me $95 and claim that's because they provide tech support and warranty tools for me. Now the kick is that they (unlike amazon) needed a $500 order to qualify for free shipping. Then I'd find that even though I met that amount, if something was out of atock, they would ship the rest of the order of $485 and then bill me $60 shipping. Then two days later ship that $15 ratchet and rack on another $10 shipping.

I towards the end found it to be easier to just buy the tools off tooltopia for the advertised price of $85 and should a warranty issue arise just replace the broken wrench for $5 out of pocket and still save $5.

The best kicker... Tooltopia isn't an actal seller or place. It is a web site that literally drop ships their order through ISN. So I would be buying from ISN but paying Tooltopia and get free shipping after $75 yet if I tried to just pay ISN direct I'd pay $10 more and pay shipping.

Gotcha. Sounds like a big racket.

But tell me if I understand this correctly...a guy could buy directly from GearWrench if he has $10k or more to pony up right off the bat? So the possibility of buying wholesale directly from companies does exist, it is just that most of us don't have the kind of monopoly money to get into that game.

 

[ihateminimumwage]

Yeah, I have to agree with this. These kids really seem to be able to rule the world with their phones, don't they?

Did GearWrench get in trouble for that stunt? It seems like they would have broken some law or another.

Not that I know of. The promo was probably meant to clear out old USA stock, with no guarantee of what the dealer would get (they know how to cover their own ***).

Screws the dealer in the short run, and GW in the big picture if you can't trust what you might get. I was a supporter of GW until it turned into a toss up if you'll get Taiwan or China ordering the same part number. They are a good brand, but Apex has to be one of the worst parent companies out there at this point.

 

[nutsnbolts]

Not that I know of. The promo was probably meant to clear out old USA stock, with no guarantee of what the dealer would get (they know how to cover their own ***).

Screws the dealer in the short run, and GW in the big picture if you can't trust what you might get. I was a supporter of GW until it turned into a toss up if you'll get Taiwan or China ordering the same part number. They are a good brand, but Apex has to be one of the worst parent companies out there at this point.

I don't know a whole lot about the conglomeration of tool companies. I have heard the name Apex thrown around a lot here, and there doesn't seem to be a lot of good in those conversations. Danaher is another name that I hear about. I am guessing they own several tool companies?

 

[malykaii]

Gotcha. Sounds like a big racket.

But tell me if I understand this correctly...a guy could buy directly from GearWrench if he has $10k or more to pony up right off the bat? So the possibility of buying wholesale directly from companies does exist, it is just that most of us don't have the kind of monopoly money to get into that game.

Exactly. I doubt it's even hard to get done. If you called up a general 800 number and told the operator you need $100k in 3/8 ratchets you'd be in contact with someone worthwile in under 5 minutes. However, as a basic reseller, Call ISN.

 

[nutsnbolts]

Exactly. I doubt it's even hard to get done. If you called up a general 800 number and told the operator you need $100k in 3/8 ratchets you'd be in contact with someone worthwile in under 5 minutes. However, as a basic reseller, Call ISN.

Money really does talk, doesn't it?

Thank you so much man...you have been super helpful and I appreciate your insight.

 

[3 Gun Shooter]

The one thing you really need to think about is it is very easy to have $20,000 to $30,000 out on the street at a time. Mostly owed to you by people you normally wouldn't loan a dollar to for a soda.

I knew a guy tried to be a Snap On dealer, his biggest problem was he could not sleep at night having only $10,000 out on the street. He got out at 6 months.

 

[metaldad]

i dont know how a truck owner can make a living. seems like a huge dollar investment.
does an owner charge interest, on his 'loan' to a mechanic?

 

[AndypCT]

I know quite a few truck owners as I am a service manager. The struggle is collecting the money and the new guys do not take the pride in tools the way the older technicians did. With the new age of millennials they google everything. He says you just cant make a buck. The most selling he does is to the guys with no credit or they would just buy online. You have to chase them constantly and they switch shops a lot.

 

[LB-1911]

I don't know a whole lot about the conglomeration of tool companies. I have heard the name Apex thrown around a lot here, and there doesn't seem to be a lot of good in those conversations. Danaher is another name that I hear about. I am guessing they own several tool companies?

Some background starting in 2010.

July of 2010 Danaher & Cooper formed APEX -

Facilities in more than 30 countries and 7,600 employees worldwide.

Apex brands in the tool industry worldwide, including Allen, Apex, Armstrong Tools, Campbell, Cleco, Crescent, Erem, GearWrench, H.K. Porter, Jacobs, Chuck, Jobox, K-D Tools, Lufkin, Nicholson, Plumb, Sata, Weller, and Wiss, among others, as well as manufactures several industry leading private label brands for large retailers and industrial distributors.

Source
http://www.inddist.com/news/2010/07/danaher-and-cooper-industries-form-joint-venture


February 2013
Bain Capital Partners has completed the acquisition of Apex Tool Group, a tools manufacturer. The purchase from Danaher Corporation and Eaton* was valued at approximately $1.6 billion.

Source
http://www.apextoolgroup.com/news/apex-tool-group-purchased-bain-capital

*Eaton acquired Cooper November 2012
http://www.eaton.com/Eaton/OurCompany/NewsEvents/NewsReleases/PCT_428107


August 2014
APEX moving Springdale operations to South Carolina, 250 jobs lost

"APEX Tool Group has made the difficult decision to close our manufacturing facilities in Dallas, Texas and Springdale, Ark., by the end of 2015, and to consolidate production of our Made in the USA brands to an existing facility we own in Sumter, S.C.,” the APEX Tool Group noted in a statement. “We plan to add 150 to 200 jobs in Sumter to handle this additional capacity, and our associates in Dallas and Springdale whose jobs are impacted will have the first opportunity to apply for these positions. All three of these facilities are operating substantially below capacity so we need to consolidate these manufacturing operations in order to be competitive and serve our customers efficiently.”

Source
http://talkbusiness.net/2014/08/apex-moving-springdale-operations-to-south-carolina-250-jobs-lost/


August 2014
Apex Tool Group to expand Sumter County employment

The company's Sumter facility produces hand tools under the Crescent®, Wiss®, HK Porter® and Xcelite®brand names, and will be adding production of Armstrong® and Allen® hand tools as well as private label brands. Apex will be consolidating several of its manufacturing facilities into its Sumter plant, which currently employs approximately 200 associates. Apex's presence in Sumter County spans more than three decades.

Source
http://sccommerce.com/news/press-releases/apex-tool-group-expand-sumter-county-employment


ATG Brands
http://www.apextoolgroup.com/brands-faceting


You should find this of interest -

The Truck Tool Equivalents Thread 2.0 - Expanded with Part Numbers
The purpose of this thread is the same as the original "Tool Truck Equivalents" thread; To provide information on the original manufacturers of many of the "Truck Brand" re-badged tools, so they can be bought without the markup.

http://www.garagejournal.com/forum/showthread.php?t=249851