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looking to start tool selling business

comedyman809

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guys, I need help, I want to start a tool selling business, maybe online with ebay and amazon at first, I just need to get something in motion. I need to somehow figure out what the first baby steps are in doing so. ive been tinkering with this idea for years and never got it going. now I want to actually try, but seem to come to a halt cause I have no idea where to start.

where do I get an inventory from? how can I become a small dealer for a brand name?

I need ideas. any help will be greatly appreciated... thanks



james
 
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kd3pc

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the first question you have to answer, is "who's tools are you going to resell, and will that maker/distributor/etc allow me to resell someone else's tools"

the rest is just copious phone calls/emails and so on. There are distributors that will require a significant first "order" to stock your operation. May cost a fair amount to buy in..some distributors will only allow so many businesses like yours in a geographic area, so have some ideas on what you want/expect to do.

It will be nigh impossible to compete on amazon/ebay unless you are willing to set up a store on each and pay the premium to compete.

Most brand names are not interested in taking on a "small dealer" at all, unless you want to buy in to one of their exclusive, tool truck deals - and they are work and expensive, most drop out in 18-24 months, if not sooner.

good luck. And don't forget the local AHJ for business license, trade permit and so on.
 

Michael_in_DE

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I don't know man. I think the tool market has taken a beating. You either sell the top stuff or the bottom stuff. The middle stuff is being squeezed out, and highly competitive. I don't know that there is much money in it. your best bet is to load of a truck full of middle stuff and compete with SO etc. You gotta offer credit though, because that's what they need and where you make the most money.
 

PugetDude

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The best way to end up with a small fortune selling tools is to start with a large fortune. Seriously, it's a very crowded, competitive market, and unless you're selling highly collectible/specialty tools that the mass merchandisers don't carry, you'll be crushed in the marketplace. You can't compete with Amazon, bricks and mortar retail, and eBay has become a Chinese whorehouse dumpster sale. Too many established sources for a small player to carve out a niche, IMO.
Good luck
 

fowldarr

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If I was to do it, and I'm not going to do it because I don't think the returns are there, I would first decide what niche I'm shooting for. Am I trying to sell a lot at small margins, am I trying to sell a few at a modest margin, or very few at a high margin.

I would focus on the middle category myself, and then focus on "Made in the USA" only which still seems to carry some weight in the tool world (whether it still means anything could be debated). I would research American companies and contact them directly. The best option for you would be if they were willing to drop ship straight from the factory/warehouse and save you the hassle of storage and shipping. They may or may not do this.

Option 2 would be to use something like shopify and alibaba express, Oberlo or Volusion and try to source cheap tools with small margins that you can sell a lot of. These will be manufactured overseas (most likely), and you'll want to focus on tools with their own niche or gimmick, then you use the money you save in shipping you use for facebook and instagram ads.

Those would be the options I would consider, but proceed with caution, I don't know that the margins are there.
 

kythri

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If I were going to get into the market of selling tools online, I'd probably contact these folks:

http://www.medcocorp.com/

Can't say that they're the best, or the cheapest, but I do know that a number of my online tool purchases have been drop-shipped with MEDCO as the source.
 

Professional Tool User

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I honestly don't see much money money in it. The competition is intense. I bet if you go to Taiwan and place a large enough order, you can get just about any specialty tool that everyone else rebrands.
 

fowldarr

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Social media marketing is affordable, unfortunately, I don't think that social media marketing would send the message you want for 'quality tools' which is probably why you don't see a lot of established companies using it much. (you're not going to click on a facebook market link to buy a $400 ratchet set)
 

gdocktor3

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I don't think you'd be able to compete with the bigger names like Tooltopia.com, HJE, CPO, etc, etc. They already have the clientele and buy enough stock at one time to sell at rock bottom prices. Then most offer free shipping. I just don't think you'd be able to compete.
 

redmondjp

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As others have hinted at: what's your time worth? You're probably better off getting a $15/hour job for what you will end up making, and you'll have more free time as well.

Now if you have some inside connection - say you have buddies that work at pawn shops or at estate liquidation companies, that could be another story altogether. If you go into estates and buy up large groups of tools (at a discount) and then piece them out on Ebay/Amazon/CL/OfferUp, you might be able to eek out a living this way.

The key is buying big enough quantities (of the stuff that actually has a market, not antique stuff that is priced high in junk shops but nobody actually buys) at low enough prices in order to make it worth your time.

Again, what is your time worth?

Semi-related story: when I was regularly selling stuff at antique car swap meets (in order to get rid of it, not as a business), I watched a guy haul in 8000 lb. of rusty junk to his massive booth in old plastic milk crates, and then sit there all weekend watching it. Then on Sunday afternoon he has to load up 7995 lb. of rusty junk and drive it hundreds of miles to the next swap meet in his 7mpg truck/trailer combo. I decided right away that this wasn't the life I ever wanted to live, so I would end up just giving some of my stuff away just so I didn't come home with it.
 

Mikeske

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I got a buddy that is a retired Snap-on dealer. He made out in good shape and sold his route to another guy that was bankrupt in a year. Just how much money can you afford to lose. My buddy then opened up in a small pole building his retired job of buying and selling used tools from a existing pole building on his property. He does not have to be open much. Mainly he is open Friday’s to Sunday and then he has the rest of the week doing retiree stuff. He did trade withme a timing light for my old 66 Falcon. I traded in a extra dwell meter I had
 

bmwrd0

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If I was going to do this, I would buy a Snap-on franchise. And that is hard work, but you are getting in with a respected name, getting an area to do business in, and a huge loan. The time for starting internet businesses with tools was 20 years ago and brick and mortar stores have cratered, so unless you have really good contacts with auto repair shops and industrial accounts the business really isn't there. Homeowners go to Sears, HF or Amazon.

The alternative is to see if you can find an existing operation that is for sale. Or I guess you could find a new foreign line and then pump it up here at the journal.
 

M6erfan

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Talk to Dnschmidt and Ultgar...

Pretty simple to start really. Contact the manufacturers that you are interested in and start the conversation with them.
 
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PugetDude

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If I was going to do this, I would buy a Snap-on franchise. And that is hard work, but you are getting in with a respected name, getting an area to do business in, and a huge loan. The time for starting internet businesses with tools was 20 years ago and brick and mortar stores have cratered, so unless you have really good contacts with auto repair shops and industrial accounts the business really isn't there. Homeowners go to Sears, HF or Amazon.

The alternative is to see if you can find an existing operation that is for sale. Or I guess you could find a new foreign line and then pump it up here at the journal.

Snap on requires a huge capital outlay and a fixed-location customer base.
It wouldn't be part-time by any stretch of the imagination. Are you ready for a full-time career change?

With Amazon and the internet tool sellers turning billions in volume, you'd probably be better off driving the UPS truck that delivers for them.
 

Captain Spaulding

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The first thing to ask yourself is "Why would people buy tools from me?".

Are your prices cheapest? Good luck competing there and making enough money for your time.

Do you have great customer service? It will take a long time to establish a reputation that will benefit you.

Do you have an incredible inventory and can get a special tool in my hands really fast? Great, but that's going to take a huge investment in slow moving inventory.

Do you have an unusual tool that will sell itself? Lucky you!

You have to have a niche if you are small, but most niches are taken by people who have a lot of money and an established presence.
 

lilredex

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A guy down the road had a Store reselling Craftsman items. Everything from sockets, screwdrivers, chainsaws, and snowblowers, etc. These apparently were store returns that he bought by the truck load in the U.S. Lots of good deals while it lasted. But, it looked like it finally cost him "ten bucks to make five" and he closed after a couple of years.
 
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engineer2

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Years ago I knew some guys who did well being sales representatives for various tool companies. Not sure if it's as viable today, or if internet sales has dimisinshed the rep business.
 

Gmonkee

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Start used with CL and auction buys. Get brands that move at flipper pricing. The benefit is you can move at your own pace rather than pay up front for franchise rights or prepack orders that include stuff you cannot move.

I can sell volumes of Asain basic tools easily in metric. I cannot sell top price/top brand nor much of anything standard very fast. Specialty tools I might break even. Sets sell ok if priced low enough but the gold is in volume singles sales.

Find the magic in your market and stay focused. Special orders are reserved for few. Or you will get stuck with odd stuff few want.

I stopped whrn my inventory ran out. restocking has to be done now.
 

BDT/NWMN

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A long talk with a CPA and a Banker would be the first step.

Fifth step would be taking a good look at what is offered on the internet.

Step nine would be beating the prices that are offered.

Step 18 would be figuring how to pay the bills.

I gave You 4 pieces for the 300 piece puzzle. Kindly look at it this way, and find the missing pieces before they find You.
 

DFB

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You might laugh - but you could probably make more money reselling hf's tools on eBay..

:lol: :lol: :lol:


I do that at my Flea :D

When someone says hey I can buy that at HF I say sure go for it...the nearest store is 100mi round trip and if you take the wife you will also have to buy her lunch too as no woman going ride all that way without eating! :spit:

He says I'll pay your price :thumbup:

:beer:
 

DFB

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guys, I need help, I want to start a tool selling business, maybe online with ebay and amazon at first, I just need to get something in motion. I need to somehow figure out what the first baby steps are in doing so. ive been tinkering with this idea for years and never got it going. now I want to actually try, but seem to come to a halt cause I have no idea where to start.

where do I get an inventory from? how can I become a small dealer for a brand name?

I need ideas. any help will be greatly appreciated... thanks



james

Unless you are going to drop ship items to potential customers using Amazon or Ebay you are going to need inventory and the best prices usually come from bulk volume purchases which mean you either need financing or CASH :lol_hitti

Figure a target market and products they want. Find that wholesale price from a supplier (China?) that makes sense something that gives you a good 100%-200% markup otherwise to me it ain't really worth it making $5 bucks on $50 unless you are moving mass volume like Walmart it doesn't really add up.

I have been doing sales for years tools and other merchandise

I love it how YOU are looking for easy street here instead of doing your own homework
 

GrayFlattop

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Before the Internet - you might have had a shot. Without the brand-name recognition of Snap-on - (and being a snappy distributor is no walk in the park) everything else is for sale with pricing and shipping available at the click of a mouse.

Many moons ago and a few "careers" ago (1980's - before the internet) , I was in the wholesale tool business working for both warehouse distributors of traditional brands (like Proto, Wright, Channelock, Milwaukee, Makita, Binks, etc.) and business was difficult then. Many distributors came and went. Our markets were auto parts stores, indy hardware stores and "wagon jobbers" (which ran the gamut from snappy and Mac drivers looking for a unique item they could make money on to the guys that would buy 50 coils of air hose, load up their car trunk and drive from gas station to gas station peddling the hoses at a steep price). On the bricks and mortar side, customers demanded credit (and long terms) and the credit risk was high. We did make some margin on private label air tools we imported, but that was at the point where Japanese made quality was too expensive - and it gave Taiwan an entry into the market that reduced the street value of the fine quality Japanese tools that we brought in - and reduced it almost overnight. Well, today you have China and there is no putting that genii back in the bottle.

Maybe you have the same motivations I had back then - good tools are awesome. It's a pleasure to be surrounded by them and to share your knowledge and enthusiasm. It is just not a great path to making money.

If you can craft an angle - like buying out inventory truckloads at a time for pennies on a dollar (or buying by the ton) from the manufacturer, you might be able to flip some of it while you die with the rest.

I'd say if you want a career in tools - first land a job working for a tool manufacturer. It probably won't pay much but will provide a steady income.

Both of the wholesalers I worked for went out of business eventually - the middle distribution market disappeared when most manufacturers went direct to their retailers. The game changed. The game will always change. After that diversion, I went to work for myself - making money by USING my tools. Then I was hired by a man who was inspired by the quality of my work and he hired me to work for his companies by - wait for it - using my tools.
 

Mr_B

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ideally you want be bit of a used box flipper and tool guy before wanting go further and you want do it online all angles and locally via van to all type businesses needing tools you selling .
Plenty good midrange tools including speciality sets and air tools plus consumables that would sell from independent van if prices and approach right start up a customer base.
Will need fair bit of capital and lot of time and effort have half a chance of making it workable .
 

Alava

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Hello

You dont need ideas, you need to look and find for yourself... Years of time to Talk with companies, distributors, quality test laboratories, customs... No one is going to tell you what to do, specially when we are talking about a job or a business...

You only want a fast highway to success...

Good luck :)
 

GrayFlattop

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Hello

You dont need ideas, you need to look and find for yourself... Years of time to Talk with companies, distributors, quality test laboratories, customs... No one is going to tell you what to do, specially when we are talking about a job or a business...

You only want a fast highway to success...

Good luck :)

Look and find for yourself - fantastic advice. Genchi Genbutsu in TPS speak:
https://en.wikipedia.org/wiki/Genchi_Genbutsu

To that I would also suggest that you spend time to evaluate the market. Who do you intend to sell to and what would you have to do to gain their business? You need to look beyond the act of selling tools and more into the realm of solving a problem. If you can solve a problem for a customer - then they need you. If you are just another guy trying to make a buck, you need them.
 

dnschmidt

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Allow me to give you some free advice: DON'T DO IT. Since I scrapped the TOPTUL business I've been a lot happier.
 

victor252

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Aww shucks, Denny. I was going to ask for a price check on those midget and extra long combos!


But at least you're happy.
 

DFB

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Obviously there are plenty of professionals and other people who want and demand top quality tools and will pay the price for them for expected performance.

On the other hand there is that price oriented crowd that expects the best for less too. :lol:

You know that's HF is expanding right :lol_hitti

I really would suggest staying away from off brand name power tools though you can source loads of that stuff like through Alibaba direct. I just think its a really hard sell to make a name and go against big brand recognition. And that seems to be general consensus of HF latest offerings like Bauer and Hercules :confused:


So here is a good example would you pay the asking price for this 24T round head ratchet from either of these 2 available options :headscrat

https://www.ebay.com/itm/Powerbuilt-3-8-Inch-Drive-Flex-Head-Ratchet-Handle-641506-/282487332346

https://www.amazon.com/dp/B000FPCBJI/?tag=atomicindus08-20

Me and the young cutie I work with on the regular part of my job were pricing out my latest tool procurement for my weekend flea sales gig yesterday afternoon. She pretty adept with tools a decent wrench and rides her onw motorcycle. So she seen what we paid for these wholesale and she wanted to price it accordingly (she follows the general markup percentage I outlined before) and in her opinion thought THAT would be too much which was still considerably less than either I linked up


I told when in doubt search the net :beer:

Start high you can ALWAYS go lower right :spit:
 

NORDFORD

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I’m a salesman in the industrial and construction supply industry. Milwaukee, DeWalt, Proto, Wright, etc. You’re going to have to do some serious research on this. Everyone wants it free and now. Including warranty replacements... my business is built on relationships. I’ve been doing it 17 years and seriously, it’s still not easy. The tool companies have flooded the market with distributors. Online and brick and mortar. We have a saying, “if I had a million dollars, I’d sell tools until it was all gone”.
 

Mr_B

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^
lol
Is a hard game the tool business, I only know one guy who doing pretty well long term as an independent and that mainly as been in years and adapted as times changed and covers all angles well plus totally reliable decent chap .
 

Tennessee Cattleman

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You will have to compete with the online prices of the same brand of tools. Find out what you are going to pay for several tools from each brand versus what they sell for online and local. If you don't think you can be price competitive, just as well to forget it at this point. Doesn't take long to tie up a lot of money in quality tools.
 

ultgar

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If I were younger, I'd bring in a load of AC Hydraulic floor jacks from Denmark. These are still the best in my opinion and there's only 1 dealer in the US right now (Pelican Parts). Not sure what the impact on price will be with tariffs on steel. All tool companies will be raising their pricing due to material pricing....Stanley/Proto has their increase coming in Sept.
 

sberry

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You might laugh - but you could probably make more money reselling hf's tools on eBay..

Auctions. I saw someone buy a wire loop of beat to **** arc struck missing good sizes HF for more than they cost new. Should have got new, dumped them in a mixer with bricks, turned them loose with a high school welding class for 6 months and then taken to auction, double your money.
 
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