sberry
Banned
We see the pic of the 3/4 impact socket that is listed for 40$, I dont expect a dealer to answer this but i am sure someone knows, what does a dealer pay for this socket?
Markup ?
- Thread starter sberry
- Start date
krusty the clown
Member Emeritus
ok i'll play..........what pic? what socket? what brand?
jsaw
Well-known member
Usually the tool dealer pays around 40% of list. But, you have to realize what it costs the dealer to sell you that socket. He has lots of overhead running the tool truck, buying fuel, business expenses, taxes, & other costs of doing business.
krusty the clown
Member Emeritus
they wish.........when i was a matco dealer we paid 60% of list and i'm sure that snap on only gives the dealer 33% markup so at $40 the dealer payed $26.64.
Cha Ching, that is alot more acurrate. From experience also.
Joe69
Well-known member
We would all be a lot wealthier if it wasn't for overhead, but it's a necessary evil, just like a food chain.
Joe
Joe
jsaw
Well-known member
I stand corrected!
Moose-LandTran
Well-known member
Yeah, i remember reading that it was something like 30% or 33%.
Wouldn't 33% markup on $26.64 be $35.43?
$40 down to $26.64 is a 33% markdown, which is different.
Thanks
krusty the clown
Member Emeritus
maybe i didn't use the proper terminology, i didn't think it really mattered since i did the math and you knew what i meant. i think the proper term is "percentage of profit". you will have to forgive me, i forgot how people pick at the little things around here. perhaps i should have kept my damn mouth shut and let everyone keep guessing at how much the dealer makes (wrongly i might add).
boogerboy72
Well-known member
- Joined
- Aug 30, 2009
- Messages
- 212
ive been told through the grapevine that snap on is right at 30%. give or take the product.
chadster1
Well-known member
I wish I made as much money as some people thought I did.
krusty the clown
Member Emeritus
yep.....33% isn't enough to buy the gas it takes to chase deadbeats
Krusty was clearing it up for us and like he said wrong terminology but he had the math correct.
You should calm down.
krusty the clown
Member Emeritus
eehhhh......it's ok jason. i am a little grumpy.
warpedredneck
Well-known member
if its really as bad as some of the SO dealers say?
why has my local SO dealer bought two more trucks for a total of 4 areas, 4 trucks and 3 additional employee's to run them?
Im not trying to start anything just commenting on what i've seen going on here.
krusty the clown
Member Emeritus
it's easier to make money when you have money...
chadster1
Well-known member
I did not say it was bad. I just said that it is not as good as some seem to think
Jared
Well-known member
skipskip
Well-known member
dont assume it's a fixed percentage across the board.
on a 3/4 drive socket it may be 30ish %, but on a $10,000 alignment machine it may be more like 5%.
Also , this weeks ratchet special is cheaper to you, but the margin has been cut to sell more of them, again no 30%.
there are promo's and spiffs to enhance the overall picture, but most retailers are happy with a 5% net profit at the years end.
Skip
on a 3/4 drive socket it may be 30ish %, but on a $10,000 alignment machine it may be more like 5%.
Also , this weeks ratchet special is cheaper to you, but the margin has been cut to sell more of them, again no 30%.
there are promo's and spiffs to enhance the overall picture, but most retailers are happy with a 5% net profit at the years end.
Skip
GBNZ
Well-known member
Guys across the pond here a pulling out left right and centre $300k investment average 35% return on sales id never do it and still be dictated by Snap On
BanjoSavesTheDay
Well-known member
tonydanzah
Well-known member
The dealers write off their fuel as a business expense, correct?
GBNZ
Well-known member
Yes they would cost of running
Adam McLaughlin
Well-known member
Something must have happened in the last 10 years; I can recall back when I was a teenager that the local tool truck dealers did very well for themselves. At one time this must have been a very lucrative and enticing business.
MY current snap on dealer tells me that she has a dead beat chasing problem AND the concern that if she doesn't sell to a particular mechanic that the other dealers will readily extend credit and do so.
I also think that the current economic situation in the mechanic and auto business does cool down the sales a bit, but there seems to be more to the picture than just regional economic growth rates.
Adam
MY current snap on dealer tells me that she has a dead beat chasing problem AND the concern that if she doesn't sell to a particular mechanic that the other dealers will readily extend credit and do so.
I also think that the current economic situation in the mechanic and auto business does cool down the sales a bit, but there seems to be more to the picture than just regional economic growth rates.
Adam
Vinko
Well-known member
As I think I've mentioned a while ago, when I asked my dealer about this, he said the final cost of a tool "was supposed to be 33% for SO, 33% for the distributor and 33% or so for the truck guy".
Other ways to pick up the profit is to find the OEM items that SO is rebranding and sell those direct. My guy does that sometimes to his and his customers' advantage. Though I imagine that, on some items, it's just one more PITA if it comes to paperwork, warranty issues, etc.
I'd like to know, if we say, pick a socket or a wrench, how much it costs SO to make, how much they sell it to the distributor for, and then what the distributor's costs are, and so on.
These days, with overhead, you've got to be efficient on the manufacturing and distribution side, and the same probably goes for the truck side too. It all adds up quick.
I had my eye on the 1/4 and 3/8 2 for 1 socket/ratchet sets from SO. Maybe should've gotten it and resold the 3/8's, which I didn't need. The 1/4 set goes for so much, that it makes me curious how much it costs to manufacture that set v., say, an Armstrong set (or the components to make that set).
Other ways to pick up the profit is to find the OEM items that SO is rebranding and sell those direct. My guy does that sometimes to his and his customers' advantage. Though I imagine that, on some items, it's just one more PITA if it comes to paperwork, warranty issues, etc.
I'd like to know, if we say, pick a socket or a wrench, how much it costs SO to make, how much they sell it to the distributor for, and then what the distributor's costs are, and so on.
These days, with overhead, you've got to be efficient on the manufacturing and distribution side, and the same probably goes for the truck side too. It all adds up quick.
I had my eye on the 1/4 and 3/8 2 for 1 socket/ratchet sets from SO. Maybe should've gotten it and resold the 3/8's, which I didn't need. The 1/4 set goes for so much, that it makes me curious how much it costs to manufacture that set v., say, an Armstrong set (or the components to make that set).
Vinko
Well-known member
I remember thinking to myself in the 70's and 80's that the tool truck guys were doing pretty well too.
quattrojon
Well-known member
I usually make around 25-30% on most items. Some things can be as high as 40% (consumables), and other items may be as low as 15%.
Jon
Jon
Joe69
Well-known member
My SO dealer is still driving the same truck that he drove in the mid 80's, where my Matco dealer buys a new truck every 3 or 4 years. The SO truck really shows it's age.
Joe
Joe
Merkava_4
Banned
Merkava_4
Banned
Merkava_4
Banned
When I see those plain white painted wheels on that truck, I think of a dealer that's barely scraping by. All the rich dealers out here have polished Alcoa's on their trucks. Bling Bling.
chadster1
Well-known member
When I see those plain white painted wheels on that truck, I think of a dealer that's barely scraping by. All the rich dealers out here have polished Alcoa's on their trucks. Bling Bling.
I just did some trading for a set of used wheels. I should have them on the truck in a couple of weeks
Pretty obvious what has changed... The Internet and a global economy.
I would so not want to be a retail route salesmen selling ANYTHING in this decade.... Or retail B&M for that matter.
While I still try very hard to support locally owned business, I rarely will buy a tool, electronics, motorcycle stuff, car parts, books, whatever without at least checking the on-line price first.
Vinko
Well-known member
One thing it comes down to for me is relationships. I know the SO guy for years, and he's good people, so I'm often willing to give him a shot at my business.
I bought a Hein-Warner jack from him and he met the price I could get it on-line. I'm willing to pay a bit more to buy local.
The thing some don't like about local is that a lot of independents are weirdos. At least that's my experience. I like weirdos most of the time.
That said, for some stuff, ordering online is a huge time saver. I can order a product at 11.00pm and get it next week if I'm not in a hurry (or next day for the shop) if I need it.
I feel that we've lost out in many ways with the demise of indy plumbing, electrical, lumber yards. I'm finding I have often have to go on-line for quality purchases.
TireTracks
Well-known member
I also think the demise of the quality stuff is people wanting to buy the absolute cheapest.I will admit i look for the best deals on alot of stuff, but i dont buy the cheapest of the cheap.
I'll use screwdrivers as an example, I could buy the super cheap .50cent screwdrivers sears has in tubs in the isle( they must cost pennies to make), but insted i buy the standard Craftsmans, a great deal, and pretty good quality.
spencerian
Well-known member
You say tomaaayto I say tomaaahto.
I say school me on percentages.
$40...
10% is $4
20% is $8
.....
.....
.....
60% is $24
I'll have to go with Krusty on this one.
At johnwills statement the dealer pays 88.575% of the list price.
Ok, someone, be the bus driver and take me to school.