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MAC TOOLS Dealer video

dsimatt

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In my 11 years wrenching i've ssen that Snap-on is the most stable franchise to get into but is the most expensive while Matco isn't to far behind. Mac and Cornwell the dealers usually last maybe 2 years max. The new Mac guy is pissed because the rep screwed him over on the route he has because the old guy seriously F-ed guys over left and right. Cornwell no one buys because why buy them when a little more gets you snap-on stuff.
 
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Rezeppa

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I have herd many tool truck horror stories but the bottom line is this is like any business. I feel terrible about non exclusive tools more than any other part. I'm sure one of the largest factors here is exclusivity. Tool trucks average a 30% mark up. That not an impossible margin especially when selling a specialty items with suppliers low. Now when these companies sell tools like LED lights and power tools at a 80% mark up then 30% for the driver it makes it almost impossible to make sales. My ex fiancé's Grandfather owned a company called STC international. He was the US distributer for K-Tool he also rebranded all car quest tools and Ingersoll Rand mechanic line Air Tools. He owned a portion of IR independent of that and also dabbled in manufacturing of Taiwan tools he sold all over the automotive industry. He used to give me samples of all sorts of things before they were purchased and branded. The largest example was the magnetic Led Light that had lights on the side and bottom. He sold a million of them to many companies 400,000 went to Mac Tools. Mac wanted 19.95 while almost every gas station wanted 4.99 how do you compete with that? He also made the small cordless grease guns that had the internal rechargeable battery. It wasn't junk but only good for front end stuff he sold them to Matco, Carquest and some bargain brands. Why would you pay the premium for Matco when you could buy it at your parts store for almost half as much. I do feel for the driver but they need to educate them selves if they want to succeed.
 

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dsimatt

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The largest example was the magnetic Led Light that had lights on the side and bottom. He sold a million of them to many companies 400,000 went to Mac Tools. Mac wanted 19.95 while almost every gas station wanted 4.99 how do you compete with that? He also made the small cordless grease guns that had the internal rechargeable battery. It wasn't junk but only good for front end stuff he sold them to Matco, Carquest and some bargain brands. Why would you pay the premium for Matco when you could buy it at your parts store for almost half as much. I do feel for the driver but they need to educate them selves if they want to succeed.

One of the bosses at work his buddy brought in a decent sized box of those lights for free because they were just gonna get thrown out.

I feel for these tool guys but at the same time if the investment is that big i'd be doing my home work like visit the shops on the route to see if they even buy the brand, talk with as many tool dealers as possbile to know what your getting into. Also you can sell all the tools you want but till the people actually pay you didn't make a penny and i'm sure they have plenty of people they have to fight to get paid from.
 

Hawk321

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I could you guys tell you stories about Snap-on germany too...totally fucked up!

But actually it's not allowed to me...hmm...perhaps in some month when my limitation has ended.

Spoken for my own...I will never do a franchise here in germany !!!!!!!!!!!
 

Hafen_Kafer

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original.jpg
 

Rob Cornwell

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Can someone enlighten me on how the whole tool truck credit thing works? This guy said that MAC wanted their money in 5 weeks, and mechanics often couldn't afford to pay off expensive tools that quickly. So is the truck guy left doing the financing? Also, if the mechanic skips out, who's left holding the bag? I can't believe there's any truck guy anywhere that can afford that.

Basically its an agreement between the dealer and the mechanic, can really be as many weeks as the dealer is willing to let it ride. It's a relationship between the two. When people skip, its the dealer holding the bag. There are collection agency's and courts to process people, but again that's at the dealers discretion.
The whole of it really rests on the shoulders of the dealer. The companies are not responsible for making you successful. Its your business, make it work!
 

CWP1616L

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It helps to have a product that's in high demand with very little to no competition. And if you have competition, you'd better have a product that's better. With most guys, if they're gonna pay top dollar for high end tools, they'll just as soon buy Snap-on.
 

Skin

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Can someone enlighten me on how the whole tool truck credit thing works? This guy said that MAC wanted their money in 5 weeks, and mechanics often couldn't afford to pay off expensive tools that quickly. So is the truck guy left doing the financing?

Yep, strangely you have to pay for your products whether you sell them or not like any other store. This joker is basically insinuating he wanted to pay MAC as he sold their product which is asinine. Point being it doesn't matter if they're sold or stocked on his truck, the guy purchased them from MAC, and apparently didn't want to pay them until the products had already sold meaning he takes no risk. Stupid. For smaller items they ask you to offer "truck credit" which is basically a form of paying over time. This is the area that makes or breaks most dealers, if you let loads of product go this way to unknown customers who stiff you you'll go broke in short order.


All this talk of lights is a bit ridiculous as well. Lights off the truck fall under the "swag" category for me right up there with gloves, knives, safety glasses, hand soaps, oils, greases, roloc pads etc... Unless your truck guy is getting this stuff from somewhere other than MAC, Snap-On, Matco etc.. you're getting reamed hard and should know that.


Whats your point? They all do it.

http://buy1.snapon.com/catalog/item...roup_ID=674837&store=snapon-store&dir=catalog

vs

http://www.ebay.com/itm/Williams-MS...et-6-Point-12-Pieces-/271152107401#vi-content

Same socket set except one says Williams on it
 
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bsaint

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Really? I gotta spell it out for you? My point is there's gotta be a better reason than a guy in a truck comes to your shop to sell you something that is 100% more expensive than elsewhere. It doesn't seem Mac is giving the distributors the reason(s.)
 

Rezeppa

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I am not saying these companies just sit around and discuss how to **** there dealers but, some of their decisions hurt everyone badly. I have warrantied items through Snap-On and the customer service rep has tried to stir the idea of becoming a franchisee around in my head. I just really dislike it when these companies don't have items with anything proprietary to the product. Mac is the worst at this. I don't hate rebranding because it brings innovation to the work place but, it has to be within reason. My favorite brands are Cornwell and Snap-On but I have tools made by all the trucks. I try to buy things exclusive to that company. I was extremely disappointed by Matco when I found out I could have purchased my 3/8 torque wrench through a few different company for less (It is still my favorite torque wrench). I understand if I did more research I could have figured that out on my own but when purchasing products off of the truck I should have some faith in my driver who is telling me why his products are the best that there is some actual truth to the fact his product is superior to the competition not the same.
 

Hyster Gareth

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I think as always there are two sides to the story. I have heard that a few years ago Mac Tools had to settle a number of lawsuits with former dealers.

The sad thing is so much is rebranded by all the major tool trucks you just have to have your wits about you and purchase diligently!

I used to really like MAC when they first came to the UK in the early 90s and I have some items of theirs that are great including extensions.

It seems MAC now more than the other tool brands so much that is made in Asia. I think most people object paying top prices for stuff made in Asia?
 

atwageman

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I think as always there are two sides to the story. I have heard that a few years ago Mac Tools had to settle a number of lawsuits with former dealers.

The sad thing is so much is rebranded by all the major tool trucks you just have to have your wits about you and purchase diligently!

I used to really like MAC when they first came to the UK in the early 90s and I have some items of theirs that are great including extensions.

It seems MAC now more than the other tool brands so much that is made in Asia. I think most people object paying top prices for stuff made in Asia?

That's one of the biggest gripes.
 

Skin

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Really? I gotta spell it out for you? My point is there's gotta be a better reason than a guy in a truck comes to your shop to sell you something that is 100% more expensive than elsewhere. It doesn't seem Mac is giving the distributors the reason(s.)

Are you intentionally ignoring the fact that I've posted that Snap-On does it also or is that the koolaid pumping through your brain?
 

Gotmayhem

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That's one of the biggest gripes.
No doubt. MAC trucks might as well be called Stanley trucks now. They really don't have COO labeled on anything either, including their website. Not only does SO have a far superior website to navigate, but they openly list the COO of their tools, whether it be USA, China, or Spain. MAC tools aren't cheap enough for the most part to make me buy them over Snap or Matco. It has to be difficult to be a MAC dealer when the tools you're trying to sell aren't "MAC".

The only thing that sells MAC tools where I work are the weekly sales and even then it's rare a deal is made. The only MAC in my collection is the 26 piece torx socket deal for $99 they had this month. For all I know they're Stanley or whatever :willy_nil
 

Skin

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the cheap torx and hex bit sockets from MAC and Cornwell are pretty much the same as VIM, just with a far more convenient warranty. MAC does sell USA bit sockets (metal storage containers) and they're also priced much more than the VIM copies too.
 

Gotmayhem

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the cheap torx and hex bit sockets from MAC and Cornwell are pretty much the same as VIM, just with a far more convenient warranty. MAC does sell USA bit sockets (metal storage containers) and they're also priced much more than the VIM copies too.

Good to know. VIM seems to be a pretty good company from my previous experience. The MAC labeled set seems nice so far and as you mentioned if they fail the warranty is no big deal.
 

MechanicNamedJohn

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Anyone know the price difference on items that all big 3 sell on their trucks?

EXAMPLE: MasterCool hydraulic flaring tool, Power Probe3, etc.
 

vssjim

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Again i'll bet you they aren't stuck to a supplied list. Minimum amount of stops? Maybe. But forced to stop only at locations some manager hours away told you to? Makes no sense. No idea what your Matco guy told you or what he thinks is going on but it sounds like BS or you're on the territory line of another dealer and they've squabbled. The better reason to go Cornwell is for what you said below.







pay has not gone down, the real problem is its been pretty stagnant for about 15+ years.



What happened down here was S-O and Mac made the numbers of stops too few and had too many dealers in too small of an area so a new dealer was running out of money with in the first year. They finally let the area get absobered in to the other local areas and it was better but no more Mac and Snap on is new and already on way out because of not enough money. Only lone timer at our shop is Cornwell because he has been around for about fifteen years and has low over head so he keeps truck full and can weather storms. He was a Mac dealer for five years then switched to Cornwel and never looked back.
 
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Spudland_Dave

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Not to get too far off topic here...but one thing thats not helping ANY of the tool trucks is smartphones... Lemme give you an Example of what I'm getting at..

March MAC Flyer had the Pro-Logix Battery Maintainer in it for 89.99, I know full well its a Solar PL2135 which I can get for $50.00 on Amazon. My thought is I rather shop & support a local guy who actually "cares" about me...so I ask him to do better on his price...he does a bit, but not enough to make me bite...All things being equal, I wasnt expecting him to match Amazon, but I would have paid him $65.00 for it just because... Lets put the money thing aside now... if I were a Technician I could have ordered it off Amazon, gotten it in 2 days (I'm a prime member) AND Paid less.
I wonder how much longer Tool Trucks really have in the current form...gone are the days when A tech "couldnt shop" during the week...now if he/she needs something, whip out your phone, find it and order it all within 15 minutes.
 

bsaint

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Are you intentionally ignoring the fact that I've posted that Snap-On does it also or is that the koolaid pumping through your brain?

So you're saying its ok for Mac to do it because Snap-On does it too?

I don't know this "koolaid" expression (must've been invented by hipsters) but I think you've gone full retard.
 

braol

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Not to get too far off topic here...but one thing thats not helping ANY of the tool trucks is smartphones... Lemme give you an Example of what I'm getting at..

March MAC Flyer had the Pro-Logix Battery Maintainer in it for 89.99, I know full well its a Solar PL2135 which I can get for $50.00 on Amazon. My thought is I rather shop & support a local guy who actually "cares" about me...so I ask him to do better on his price...he does a bit, but not enough to make me bite...All things being equal, I wasnt expecting him to match Amazon, but I would have paid him $65.00 for it just because... Lets put the money thing aside now... if I were a Technician I could have ordered it off Amazon, gotten it in 2 days (I'm a prime member) AND Paid less.
I wonder how much longer Tool Trucks really have in the current form...gone are the days when A tech "couldnt shop" during the week...now if he/she needs something, whip out your phone, find it and order it all within 15 minutes.
I dont think the tool guys make as much as some people think they do on tools, he probly had $65 or more in it.
 

Automatic Slim

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if you are still buying tools off a truck then you are an idiot. Times have changed from the 80's, and the internet makes things much simplier.

"Why pay more?"

If I was a franchisee truck driver for one of these tool companies, I would be looking to unload. Bad investment. Mac has gone down the ******* and their only hope is a buyout - which at this stage of the game is unlikely.
 

kapster

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Yes they all do that stuff, but by comparison I think snap on is the least offender. If it is something rebadged with snap on, it's usually still a quality product. Their utility lights are made in usa by national electric. Snap ons ball joint press is their own, well thought out design. Everyone else sells otc rebadged, and when otc went overseas they followed suit. When I look in a cornwell, matco or Mac sales flyer, half of it looks like harbor freight stuff.

But I try not to but rebadged stuff anyway, stick with the main tools and your good. My snap on guy actually sells a lot of other brands for this reason, he knows they do stuff like that.
 

atwageman

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The internet has changed business dynamics on so many levels. Those without internet access will take it in the *** and pay more for many goods and services.

A house I used to live in had a well. The well pump died. I got quotes from company's that dig wells for a living. While observing the installation of the new pump, the guy installing it complains about the internet forcing him to lower his prices on new pumps. Before the internet I could always charge full MSRP..............

Same principal applies to tools, and just about anything else you can think of.
 

X1 Mike

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Interesting thread, couple of points.

The tool truck driver usually can't compete on price. He is selling the financing.


How many of the people on this thread ***** about outsourcing the making of tools then turn around and outsource the purchase of their tools?


Keep beating up the little guy and soon we run out of little guys.
 

Nocturnal-G

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Interesting thread, couple of points.

The tool truck driver usually can't compete on price. He is selling the financing.


How many of the people on this thread ***** about outsourcing the making of tools then turn around and outsource the purchase of their tools?


Keep beating up the little guy and soon we run out of little guys.

Outsourcing purchases and companies that outsource tools have nothing to do with each other. Regardless, the franchisee sells the tool for a corporation. These are all corporations... unless the franchisee starts forging tools in his/her backyard... we are all feeding the giant corporations.
 

chadster1

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If I was a franchisee truck driver for one of these tool companies, I would be looking to unload. Bad investment. Mac has gone down the ******* and their only hope is a buyout - which at this stage of the game is unlikely.

I laugh at statements like this.

2012 was a record year for me. I had about a 15% increase over 2011. 1st quarter 2013, I am on pace for another double digit increase in sales.

I think I am going to stay in the business .
 

Automatic Slim

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The tool truck driver usually can't compete on price.


Thus the writing is on the wall. There was a place and time for alot of things (pay phone, etc..) back in the 80's that have gone by the wayside and most printed newspapers are hanging off the cliff.

This is not an issue of american economics, but worldwide economics and the days of the tool truck are anitquated and will soon be obsolete. American tools can be purchased and shipped from distrubution to user, instead of middle men jacking up the price.

They will all fall like domino's, snapon probably last in the chain due to their ability to ***** their name out on everything, like Phil Knight (Nike). But their fleet will probably be dead in the next 10 years or sooner, imo.

The world is moving faster, and things therefore are dying faster. The technology purchased today is already obsolete and the next big thing is soon to arrive.

Hard line tools have been around awhile and alot of brands are starting to look alike - I saw a damn husky at the the big orange store and thought it was a snap on wrench. Patents have expired and the quality threshold is drawing more near - again mo.


Tool trucks will perish by 2023, by my accounts and maybe sooner. They are still operating like 1980's - 1990 and have not adjusted to the change. They prey on new grad's that want to look big, but for the seasoned professional there is little money to be made when eyes are forward thinking about (dreaming...........) retirement.
 

MJB24

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Even if one went out of business I would imagine it would help the other 3 tremendously. Each stop would be more profitable. I think MAC gets a bad rap around here but I do see a lot of there trucks around here. I see the Snap On guy a lot on the road. I dont see a Matco or Cornwell truck around here but I did see a huge Matco box at the service station now that the doors are open. By looking at the house the MAC guy is living in just down the road from me I would say he is doing alright. Being a business owner isn't easy. That to me explains the fail rate on being a franchisee.

I wish the trucks would all park at the same time in a empty parking lot so I can go shop them all at once. Even once a month would be fine with me. I just got in a Cornwell catalog today and wishing I could find a truck.

I poked into Sears on Saturday morning after a movie at the mall. Nearest Sears is 20 minutes from me. Lowes, HD and Menards are all within 10 minutes. Lowes has become my go to for a tool fast. After looking at the new Craftsman I don't see going back to Sears. But if I had easy access to the tool trucks that is where I would be shopping. If I am going to go online and buy tools I will order an industrial line, or shop the classifieds here for some good deals.

The trucks may just have to adapt at marketing to include more small shops and homeowners. Maybe park at the farmers market or something.
 

Automatic Slim

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Glad to hear Chadster, snapon did have a good year last year and glad you did as well. The local driver here is reporting a different story (although hadn't talked w/ him in a while) and haven't seen a mac truck in years, and distantly recall seeing one cornwell truck in the past year.


What is your timeline for the truck distrubition method? Does it last forever?


While you state success, I would venture there are 10 fold more that do not share that statement.
 

Spudland_Dave

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I laugh at statements like this.

2012 was a record year for me. I had about a 15% increase over 2011. 1st quarter 2013, I am on pace for another double digit increase in sales.

I think I am going to stay in the business .

Good For You!...And I mean that seriously. I really enjoy doing business with both my MAC guy and SnapOn guy, I hope they both do well, and I will continue to support both of them. My MAC Guy I know is doing real good for himself, I just met my new Snappy Guy Friday, Spoke to him via phone this morning and we'll do a meet & greet this coming friday.

Gotta love the irony really...some of the biggest "Dont Outsource" bible thumpers are the ones who rather buy tools from a nameless/faceless organizations like Amazon or Tool whatever dot com because its cheaper...hey dont get me wrong, I do business there too, but with tools I prefer to do it like my Dad did...with a handshake and a smile.
 

chadster1

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Glad to hear Chadster, snapon did have a good year last year and glad you did as well. The local driver here is reporting a different story (although hadn't talked w/ him in a while) and haven't seen a mac truck in years, and distantly recall seeing one cornwell truck in the past year.


What is your timeline for the truck distrubition method? Does it last forever?


While you state success, I would venture there are 10 fold more that do not share that statement.

I am actually about in the middle of the pack when it comes to sales volume in my area.

You stated that the business is still acting like its in the 1980's. I wholeheartedly disagree. Last year, 25% of my business was diagnostics sales and I only see that increasing. Hard line tool sales are not as big as they used to be but specialty tools and diagnostics are growing. There is also new specialty tools required to work on the hybrid cars. Information products like Shopkey are also a growing part of the business.

Just because you talked to one dealer who was struggling does not mean that the entire business model is struggling.

I dont have a crystal ball as to how long the tool truck model will last but I will tell you that I plan on renewing my franchise for another 5 years this December. I would sign for another 10 years but they only offer a 5 year renewal. The renewal will cost me $7500 so I am putting my money behind my opinion that the tool truck business is not going anywhere any time soon.
 

Hiball

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I am actually about in the middle of the pack when it comes to sales volume in my area.

You stated that the business is still acting like its in the 1980's. I wholeheartedly disagree. Last year, 25% of my business was diagnostics sales and I only see that increasing. Hard line tool sales are not as big as they used to be but specialty tools and diagnostics are growing. There is also new specialty tools required to work on the hybrid cars. Information products like Shopkey are also a growing part of the business.

Just because you talked to one dealer who was struggling does not mean that the entire business model is struggling.

I dont have a crystal ball as to how long the tool truck model will last but I will tell you that I plan on renewing my franchise for another 5 years this December. I would sign for another 10 years but they only offer a 5 year renewal. The renewal will cost me $7500 so I am putting my money behind my opinion that the tool truck business is not going anywhere any time soon.

Listen.. Dont be trying to clutter this thread up with your Big fancy words and Numbers.. Lets just get back to the Regular programming consisting of Chinese Dual 80's and Kool-aid Drinking.. K.?

:lol_hitti



(On a Side note)

Thanks for Chiming in, Ive always found that you have presented yourself with a Very Unbiased Point of View, Only offering to Help others with Questions and "Never" trying to push a Product or a Brand down anyone's throat. I can only Imagine how difficult it must be to refrain from Keyboard mashing here at GJ. I suspect thats partly because you are doing well with your franchise and based off the Turnover ive seen Locally, its only because you put the time in, and treat your customers fairly.

Btw.. Thanks for the Info the other day on the breaker bar pin, I ordered that Kit from Snap on and had it within 2 days.
 
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chadster1

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Listen.. Dont be trying to clutter this thread up with your Big fancy words and Numbers.. Lets just get back to the Regular programming consisting of Chinese Dual 80's and Kool-aid Drinking.. K.?

Forgive me, what was I thinking. You are right, I dont have a clue about the tool business even though I have been doing it for almost 10 years.

I wonder if Harbor Freight is accepting applications.
 
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