Independent Tool Trucks - How would you do it thread?

[[memphis]]

I am debating about self employed life... I like tools and want to stick in the automotive world. Currently in sales and have connections in the field so I wouldn't be jumping in completely blind.

I would not be jumping into a franchise; Snap-On, MAC, Matco etc. because I want the flexibility to stock other wares on this vehicle.

I am Canadian so I have access to some different tool suppliers as well as G2S which is like the Costco of tool flyers.

Vehicle Rules and regs are different in Canada so I am hoping to stay under weight to avoid higher insurance costs, more fuel consumption, annual safeties, parking a massive truck etc.

My business plan revolves around the Sprinter chassis or the like if someone has a better suggestion?

I often see a lot of extra **** in these big tool trucks which appears completely unnecessary.

A sprinter would allow me to still do a peg board ceiling to hang small tools, I could put a tool box along the partition wall in the van and have that stationed as my computer/storage etc.

I would have room for shelving etc and have a a light duty set up. I plan to offer other things, tools being the secondary line. Shop consumables being the primary.

Am I completely off in my own world? The only reason I can see the benefit to having a huge truck is to cart around massive tool boxes, which I do not want to do?

I'm pretty sure I've seen pictures of an Armstrong Sprinter van but I can't find them now?

 

[sberry]

It would be easier and less painless to hit yourself with a hammer every time you flushed a hundred down the toilet till you were broke and in debt, quicker too.

 

[L.Cheapo]

It would be easier and less painless to hit yourself with a hammer every time you flushed a hundred down the toilet till you were broke and in debt, quicker too.

Wouldn't be so funny if it weren't true. Best of luck to you, OP, but the odds are not in your favor. If I owned a shop, I'd just order a large multipack of consumable widgets every once in a while online and have them delivered, likely with free shipping. Sure you can save the day now and then, but I cant see it being enough to make a decent living on a regular basis.

 

[MWEric]

Seems like a very hard way to make a living. There is another very detailed thread on here about a member who became a Cornwell dealer. If someone could find it it's very informative. BTW my Snap On dealer carries Milwaukee, Knipex, EZ Red and others. Good luck with whatever path you choose.

 

[bobcatdan]

A buddy of mine is an indy tool dealer. He shops between I believe six tool wholesalers for the best deals. He stocks GW as good tools, SK as better tools along with sunnex and GP. Also big in the oem for most specialty tools. Also goes big into body shop supplies. He has his good months and bad months, but overall is making a good living doing it. Besides prices, big thing for him is choice. Want a a cordless impact, he has IR, Milwaukee and Dewalt on the truck to play with.

 

[B_Bimmer]

I would never try to sell just tools. I would have a salvage yard, stock tons of tools, and offer delivery.

 

[sberry]

Right, lots of stock and a super diligent guy. No one will wait for orders and a small truck couldn't carry enough stuff. On top of that the guy probably had extensive experience of some type in this field and a possible client list or specialty.

 

[Davefr]

It would be easier and less painless to hit yourself with a hammer every time you flushed a hundred down the toilet till you were broke and in debt, quicker too.

^^I think he's right!!

Instead of focusing on the van and shelving, I think you need a well thought out business plan.

-How will you source the tools and price them so there's good margin without looking like your gouging your potential customers. (the traditional tool truck suppliers have this covered)

-How will you offer truck account financing (your competitors do)

-How will you handle warranty (your competitors make it seamless)

-Where will you source the highly specialized tools/electronics, etc.

These are just the tip of the iceberg. There's probably another 100 items that should be in your business plan with shelving and truck type well down the list.

Having an interest in tools and automotive ain't enough. You need a keen business sense.

Maybe you have all this covered but it wasn't obvious in your post.

 

[cdeer001]

There is another very detailed thread on here about a member who became a Cornwell dealer.

http://garagejournal.com/forum/showthread.php?t=217037

 

[kd3pc]

I love your enthusiasm, but as I "almost" signed up to mortgage a tool truck and stock for the largest too truck group in the world.... I must suggest you really talk to some guys who do this both the big guys deals and the small independents.

It is not an easy life. 99 "no thank you" or worse for every one maybe that you get. Fuel costs are low right now, and the sprinter is a good platform, if you can stay under the weight limits, but if fuel climbs more than a dime or two, your margins shrink quickly.

Warranty claims will eat in to your pocket, as most tool truck owners can not afford to go argue with the distributor/supplier several hours a week and HOPE to get a replacement. Just driving to and from a handful of suppliers can eat up a day.

Best of luck, but like drag racing, the best way to make a million is to start with several million. Tool truck is very similar.

 

[gdocktor3]

I think if it were 1980 again, a tool truck would work, but with the age of the internet, overnight shipping and free two day shipping, tool trucks are really only good for warranties, specialty items, and the occasional splurge on new or promo items.

 

[sberry]

I been on a truck twice in 35 years and spent less than 150$ and someone bought ne an item from one for 150.
None stop at my place, I see one pretty dedicated to the snap guy and cant stay off of it but I got no use for them especially with the net and Tooltopia and the likes. A good auto parts delivers daily and has all the same items,.
I am not buying grease rags and soap off of a truck, cant think of a single thing I need them for.
A truck isn't a bad thing but I aint waiting for one at 2x or 10x the price.

 

[a52-830]

interesting idea.

be careful with the truck. tool weight adds up quickly, and watch where it is inside the volume of the truck: you dont want to make it top heavy by putting things on the ceiling.

if you decide to go this way, i would suggest you try and go about it differently than the classic "tool truck" model. as an example, i wouldn't waste all that space with displays. have a web site, where people can order things for you to bring around. this way, you know before you get there what they are looking for, and possibly even what options they are considering. also, items that they are looking to get "warrantied", so you can be sure to bring the replacement with you, or let them know before had you had to order it, and won't have it with you this week.

this will also allow you to get things from them like a credit line set up before, so they can start buying immediately.

you are also going to need to understand how warranty returns work for the different lines you are carrying.

the one thing you are selling is convenience. asking some of the younger mechanics around what they like and dislike about the tool truck might help you find a successful formula.

you might also want to operate an online presence, either your own site, or an ebay store, if you agreements with the distributors allow that.

but you do have one big disadvantage. if i bought tools off the snap on truck, and moved to the other side of boston, the snap on guy there will deal with me, and offer sales and support. if you are my "local guy" when i move 50 miles away, there is no on there to help me. sure, i can still get warranty support from GW directly, as an example, but the ease of getting support from he truck vanishes.

lastly, find something cheap to give out with your contact information on it that a mechanic will likely hold onto. this way, as new mechanics appear, they can get your contact information easily. a coffee mug, a small magnifying glass (well, plastic), or something like that. and dont forget to have a great relationship with the service manager. . . . . .

i wish you luck. go the extra mile and create a company (likely a LLC or an S Corp). that way, if it all falls apart, you can lose the seed money you put in, but not be on the hook for anything else.

 

[MWEric]

http://garagejournal.com/forum/showthread.php?t=217037

Thanks

 

[Tim37]

Drive a truck for a year or two for someone else to get a idea of what to expect, you can also build your reputation and clientele while you learn the ropes.

Btw If I where you I would start growing my own food that way I wouldnt starve.

 

[M6erfan]

it would be easier and less painless to hit yourself with a hammer every time you flushed a hundred down the toilet till you were broke and in debt, quicker too.

rotflmao!

 

[sberry]

You need to be as much of a shopper as a seller and figure out a way to mark up most things from 2 to 5x or better.
If I really wanted a cottage deal selling would find somewhere I could park a couple times a day and have some coffee in thermos I could sell along with a donut for a couple dollars.

 

[K13]

The one thing I see a number of you mention is the cheap Internet prices and free next day shipping. You need to take into consideration that he is in Canada and all of that is pretty much non existent up here. I work in the body shop world and there is not a shop out their that doesn't buy everything they use from a local dealer. There are not too many "good deals" on the internet up here so that is really a non factor in Canada at the present time.

 

[sberry]

It will be and something else to consider is that if there is existing business not everyone is just going to slide over and give you a slice. Only so much stuff someone needs and only so many dollars to go around and a new competitor may mean even more war over pricing and service.

 

[K13]

It will be and something else to consider is that if there is existing business not everyone is just going to slide over and give you a slice. Only so much stuff someone needs and only so many dollars to go around and a new competitor may mean even more war over pricing and service.

Not anytime soon. Outrageous shipping cost/distances and a small population does not make for much of a savings when buying online. I get online only specials from a number of Canadian companies on a regular basis and almost always any savings is eaten up by the shipping costs.

As an example I ordered my last set of contacts online in Canada the contacts were $27 the shipping was $13 for a box about the size of a credit card only thicker. The only reason I did it that way and not locally is my prescription had run out and I needed contacts ASAP and didn't have time to wait for an appointment because I saved practically nothing.

If new businesses never started up because someone else was already doing it there would not be too many new businesses.

 

[[memphis]]

^^I think he's right!!

Instead of focusing on the van and shelving, I think you need a well thought out business plan.

-How will you source the tools and price them so there's good margin without looking like your gouging your potential customers. (the traditional tool truck suppliers have this covered)

Looking at Gray as an option; as well G2S http://www.g2sequip.ca/flip-c/index.html. Again tools are not the primary line. Consumables would be my bread and butter

-How will you offer truck account financing (your competitors do)

Valid point and a bridge I need to cross... Starting out I don't think I could do financing until I build trust. Net-30 would be my limit

-How will you handle warranty (your competitors make it seamless)

Little to no warranties on consumables, Gray is lifetime replacement (mostly) G2S varies by vendor (problematic)

-Where will you source the highly specialized tools/electronics, etc.

Flip through G2S catalog, bases are covered but not my main goal here

These are just the tip of the iceberg. There's probably another 100 items that should be in your business plan with shelving and truck type well down the list.

Having an interest in tools and automotive ain't enough. You need a keen business sense.

Maybe you have all this covered but it wasn't obvious in your post.

I been on a truck twice in 35 years and spent less than 150$ and someone bought ne an item from one for 150.
None stop at my place, I see one pretty dedicated to the snap guy and cant stay off of it but I got no use for them especially with the net and Tooltopia and the likes. A good auto parts delivers daily and has all the same items,.
I am not buying grease rags and soap off of a truck, cant think of a single thing I need them for.
A truck isn't a bad thing but I aint waiting for one at 2x or 10x the price.

The idea isn't to be 2x the price, the idea is to be at or below the price of the local jobbers. I'll have less overhead because I'm not paying for a building. I deal with people like yourself all day long. When a sales rep comes in your typical response is "I'm good" because you are set in your ways. I'm not saying there is anything wrong with that, but nobody can change you but you. These types of accounts I typically don't waste time on, I'll stop in to show my face but I'm not bending over backwards for you.

 

[sberry]

As an example I ordered my last set of contacts online in Canada the contacts were $27 the shipping was $13 for a box about the size of a credit card only thicker. The only reason I did it that way and not locally is my prescription had run out and I needed contacts ASAP and didn't have time to wait for an appointment because I saved practically nothing

Would this truck have had those?

The idea isn't to be 2x the price, the idea is to be at or below the price of the local jobbers. I'll have less overhead because I'm not paying for a building

How are you going to be below the jobbers? You will drive around and see customers one at a time. The tool trucks that are out there now are not discount vendors. They cant make it on low price.

 

[sberry]

I deal with people like yourself all day long. When a sales rep comes in your typical response is "I'm good" because you are set in your ways. I'm not saying there is anything wrong with that, but nobody can change you but you. These types of accounts I typically don't waste time on, I'll stop in to show my face but I'm not bending over backwards for you.

You would be correct. It isn't that I wont change but what could you offer me I cant do? You going to have the buying power of Sams club and carry around cases of paper towel and try to beat their price? Going to tote hundreds of pieces and tools around on the odd chance I want one if and when you show up? Even the jobber starves from me but for a few auto parts. He has 100 in the store and 1000 times the stock in his warehouse can be had with a phone call. Be out in an hour.
I don't need anything on yo0ur truck but want 20 gallons of mineral spirits a box of scotch brite, a 15mm socket I lost, a strut for a caravan today and 5 gallons of industrial purple. I decided I wanted an oil filter I didn't have. How much of this could come off the sprinter?

 

[K13]

Would this truck have had those?

My point is, if you would stop trying to be difficult about everything, is one cannot buy online in Canada at any sort of discount unlike the U.S.. You may think otherwise or want to argue the point but you are wrong regardless of whether it is contacts or tools it doesn't happen.

 

[Davefr]

The idea isn't to be 2x the price, the idea is to be at or below the price of the local jobbers. I'll have less overhead because I'm not paying for a building.

Once you do the math you might not like what you see.

The B&M guys can amortize their overhead over many, many more items then you could stock/sell on one truck. These trucks depreciate, require maint., fuel, insurance and where will you park the truck and store your excess inventory off hours. Storage unit?? Secure parking?? Your home??

If you can't do the volume of the jobbers, you might not get the same wholesale price breaks they do. That would make it tough to be competitive.

All these things need to be addressed in your plan. Good luck.

 

[[memphis]]

You would be correct. It isn't that I wont change but what could you offer me I cant do? You going to have the buying power of Sams club and carry around cases of paper towel and try to beat their price? Going to tote hundreds of pieces and tools around on the odd chance I want one if and when you show up? Even the jobber starves from me but for a few auto parts. He has 100 in the store and 1000 times the stock in his warehouse can be had with a phone call. Be out in an hour.
I don't need anything on yo0ur truck but want 20 gallons of mineral spirits a box of scotch brite, a 15mm socket I lost, a strut for a caravan today and 5 gallons of industrial purple. I decided I wanted an oil filter I didn't have. How much of this could come off the sprinter?

I would have had the scotch brite, the 15mm (the local snap on truck doesn't carry a 15mm), That could have been $25 in my pocket! And I would have tried to up sell you on a couple cases of brake clean for $1.89ea or a 5 gallon drum for $65

 

[[memphis]]

Once you do the math you might not like what you see.

The B&M guys can amortize their overhead over many, many more items then you could stock/sell on one truck. These trucks depreciate, require maint., fuel, insurance and where will you park the truck and store your excess inventory off hours. Storage unit?? Secure parking?? Your home??

If you can't do the volume of the jobbers, you might not get the same wholesale price breaks they do. That would make it tough to be competitive.

All these things need to be addressed in your plan. Good luck.

Jobber parts trucks all share this same issue and are beat like a red head step child to boot. Plenty of storage at home, and JIT delivery on the truck with space for 10-12 calls a day.

 

[shockwave]

We have independent guy comes by sells a lot but tells us to go to manufacturer for warranty of sk or gearwrench or vim but usually gets a better deal than other trucks on certain items

 

[bob15]

I can buy consumables at Sam's Club, BJ's, Costco, Amazon, Amazon Business, Zoro, MSC, McMaster, Graingers, internet, ebay, ect and have it the same day or within two days and not wait a week for you to show up.

You have been given real good advice, listen to it. it seems you are overlooking the big picture and are only concentrating on the final item. Did you read the link about being a Cornwall dealer?

There probably isn't a lot of consumable material trucks around because the profit isn't really there.

How good are you at cold calls? Have you ever tried it?

Maybe go to a few places you think you would go to if you had a van and talk/ask them if they would even be interested in your van in the future. If you get a bunch of no's, or he & haws, there is your answer and you can save a ton of money and move on.

 

[bob15]

Jobber parts trucks all share this same issue and are beat like a red head step child to boot. Plenty of storage at home, and JIT delivery on the truck with space for 10-12 calls a day.

Storage of chemicals in bulk for a business and at your home might be breaking local building codes, not to mention the insurance requirements.

 

[wafrederick]

There are a couple of them on Facebook,Nathan Arnold and Nick J Morello III that are independent tool dealers.Nathan Arnold used to be a Snap On dealer.They do send out orders and get a great feedback from customers.One is quick shipping.

 

[bob15]

I would have had the scotch brite, the 15mm (the local snap on truck doesn't carry a 15mm), That could have been $25 in my pocket! And I would have tried to up sell you on a couple cases of brake clean for $1.89ea or a 5 gallon drum for $65

What would you be buying the brake clean at?

At a $1.89, your mark-up isn't going to be much. Not enough to even cover fuel to get to the business. You must remember that even buying the spray can for a buck and making 89 cents on it isn't going to cut it. Not enough sales volume for it.

 

[[memphis]]

What would you be buying the brake clean at?

At a $1.89, your mark-up isn't going to be much. Not enough to even cover fuel to get to the business. You must remember that even buying the spray can for a buck and making 89 cents on it isn't going to cut it. Not enough sales volume for it.

Agreed, brake cleaner is an ice breaker product that I wouldn't get rich off of but it does create a need for a phone call.

 

[Derek420]

If you read that thread by cornwell by at 17 pages you might change your mind my heart goes out to that pour guy it killed me to read his update posts and made me glad I don't have a single cornwell tool if I did I'm prob wipe my *** with it because of how they did him. It really changed my perception of them also there is a video on an independent tool truck on YouTube and there is a reason guy is getting out. The cornwell guy went against everything these wise men onGJ told him and dove in head first and even didn't take advice from other tool truck guys and financed a 3500 scan tool and guy skipped on him and vanished he was a Ferrari tech who was new. Personally unless you sold top tier tools I wouldn't step on your truck and it will not be easy to get a franchise for anyone when you say what all you will sell. How will you profit when you have to pay full price on new tools most people don't want old model whole sale tools marked up that they can get they're self for what you pay. And as for garage consumables usually the shop owners buy them and they buy bulk for cheaper for what you will pay and try to charge full there's no money to be made without a franchise where you can buy for 60% cost. And a Dodge splinter is not a good tool truck why not get an old Mac tools truck which are everywhere or old bread truck. And try to sell gently used tools as you can make more money when buying them in bulk and carry new whole sale industrial brands and include snacks because us mechanics are always hungry. I'd serve junk yards small shops and flea markets. Like I said read what happened to corn well dude and at least learn from his mistakes because like my grand pa says a fool and his money is soon parted. Everyone can tell you no and you will do it anyways.

 

[[memphis]]

I started reading the cornwell thread at lunch, I'm on page 5 and about to pick it back up

 

[Davefr]

Jobber parts trucks all share this same issue and are beat like a red head step child to boot. Plenty of storage at home, and JIT delivery on the truck with space for 10-12 calls a day.

That's around 40 minutes total time per call including your drive time, traffic, phone calls, etc. (assuming your customers work 8 hour days even if you don't).

I think that's very aggressive.

Why don't you follow a SO truck incognito and see how many sales calls they average per day. I bet it's not 10-12.

 

[jd_1138]

Signing up to take it up the 'Ol Hershey Highway from a co. like Cornwell or the other traditional tool truck co's seems to be a lot different from what the OP wants to do.

My stepdad is a salesman for a restaurant supply co. that distributes napkins, straws, cups, consumables, silverware, etc.. The old school method of building a relationship with a customer. He calls on them to take orders, address any concerns, show them new products, etc..

So you want to sell them consumables like oil, lubricants, filters, rags, spark plugs, etc. and tools? Might can partner up with some co's and drop off cool looking displays of products. I sometimes see a nice looking rack of Castle lubricants, for example, or other brands at shops.

 

[Corndoggeh]

Looking at it from my standpoint, your sprinter idea would be better suited for parts on production rigs where they need the part in like 2 hours because they need the machine back up and running 3 hours ago.

 

[sberry]

My point is, if you would stop trying to be difficult about everything, is one cannot buy online in Canada at any sort of discount unlike the U.S.. You may think otherwise or want to argue the point but you are wrong regardless of whether it is contacts or tools it doesn't happen.

If you cant buy discount where would he get stock at a price he could mark up enough to pay for gas? While he thinks the snap truck may not have had the socket the store would have. Maybe you don't care for my view on it as do other experienced men here but I don't see to give a big ole atta boy to something that while seems like a fun idea is more of a brain fart. You go girl, come back in 6 months or a year and be glad to be proven wrong and the first to congratulate you.
The 25$ sale for the brite and the socket would leave how much juice on this call???? Even with the brakleen? Made 5$ or 10$ on this stop before expenses?
My point is, if you would stop trying to be difficult about everything

My point is, if you would stop trying to be difficult about everything

Just out of curiosity,, how long have you been in business?

 

[[memphis]]

If you cant buy discount where would he get stock at a price he could mark up enough to pay for gas? While he thinks the snap truck may not have had the socket the store would have. Maybe you don't care for my view on it as do other experienced men here but I don't see to give a big ole atta boy to something that while seems like a fun idea is more of a brain fart. You go girl, come back in 6 months or a year and be glad to be proven wrong and the first to congratulate you.
The 25$ sale for the brite and the socket would leave how much juice on this call???? Even with the brakleen? Made 5$ or 10$ on this stop before expenses?
My point is, if you would stop trying to be difficult about everything Just out of curiosity,, how long have you been in business?

I'll take some of your advice sberry, before I make an investment in a truck I can easily go around and try to soft launch my business venture before I jump ship. Less risk for myself not having to fork out $60k for a truck + $10k in inventory. Dollars is in volume... There are +150 shops within a 40KM radius

Maybe I'd only land 50 but if they spend $200 each a month and I operate at 40% GP (extremely low) I clear $4k before expenses.

I know I need more to survive but if you think your supplies (not hard parts) aren't marked up that much, you are mistaken my friend. I'm a parts monkey,