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Matco tools class action law suit.

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jeep450

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May 24, 2012
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166
All any tool company cares about is putting new dealers in business. Plain and simple. Don't believe me, do a little research and see for yourself just how many dealers a company starts every year and how many go out of business.
 

woody 73

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Apr 14, 2009
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Very sad I watched it happen to Mac years ago; I don't get understand why the companies are abusing the system at the expense of their hard working Men/Women.

Now I see why I get bombarded daily with become a tool truck driver and be rich overnight type ads...
 

cascivic

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Apr 17, 2012
Messages
245
Very sad I watched it happen to Mac years ago; I don't get understand why the companies are abusing the system at the expense of their hard working Men/Women.

Now I see why I get bombarded daily with become a tool truck driver and be rich overnight type ads...

its because its costs them nothing and makes them everything. you pay for truck training etc. then you buy the tools from them to fill the truck... i mean im sure theres some buy backs or pay when it sells type of things they have going on with the drivers but in reality they dont get any "money" from the end user buying the tool they get it when the driver orders it (obviously internet orders are a different animal) if your talking about snap on and matco or mac..cornwell you cant even buy direct i dont think
 

Skin

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Boston
no but it wouldnt surprise me after watching all this lady has to say

http://www.unhappyfranchisee.com/matco-tools-lady-matco/

if thats the woman i think it is i had no sympathy for her. Whining about how she wasnt handed success. I dont know of one franchise thats instant success and its absolutely going to take some work in a mobile business to make a name and get customers. She just sounded like she wanted it handed to her. Im sure it also didnt help that her route was in the boonies (rural Colorado or something?). I think truck tool success is 60% route 40% customer service and personality. Everything else is a **** shoot regardless of product/brand.
 

LSU

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Dec 4, 2011
Messages
703
Going into a tool truck business requires a lot of work and a lot of business smarts.

Some of the bueiness smarts will be learned on the job, some of it will be based on previous "school of hard knocks diploma" and some of it will never be learned.

There are a few tool truck guys on this site who could comment on this topic but having a tool truck is like having a small (or maybe not so small business).

I've seen lots of folks pour their retirement money into "a great business opporturnity - I'm going to work for myself" - and, sometimes, not always, I've thought that it was going to be a disaster. I hate to see folks pour their savings into business ventures and lose their money.

I also like to see small business owners proposer but it isn't easy.
 

battlegraduate09

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Feb 25, 2012
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562
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abingdon va
I prefer Snap on :rocker:

In what way does that have to do with anything on this thread ?

Snap on dealer at blue ridge kenworth about 12 years ago, said he had to take $24,000 out of HIS bank account to pay the bills and if he had to do it again, hed sit at the house. Snap on said they would work with him blah blah whatever, and conned the guy into signing his house over to them for collateral and they would help him out....8 months later, dealers gone and snap on has his house.

About 7 years ago, snap on dealer was making to much money apparently, snap on told him he had to buy the franchise for about 250,000 or he had a month to quit.

He quit.

So, if a lawsuit involving matco made you post "i prefer snap on" is this little story gonna make you post "i prefer mac"
 

DEMAYO

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May 8, 2008
Messages
261
I always go back and forth as to whether the tooltruck business is a dream job or you're selling your soul to the devil.

What goes through my head:

Is the tooltruck model still viable in the world of globalization and the internet? Is the convenience and service angle enough in 2012? Can a mechanic's wage cover the cost of tools and living expenses, or are the tools priced to not be affordable and hook the customer into payments forever?

I don't know.

Seems like the tooltruck owners have an uphill battle, and anyone taking the venture has to be realistic about the work involved.
 

wornoutoldman

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Sep 9, 2010
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If you took the initial investment that Matco/Snap on/Mac wants for their franchise and purchased outright a cache of commonly used tools from say Toptul (or some other manufacturer) plus a van to haul your wares around in I believe you could outsell the other tool trucks 10 to 1! All while getting 100 percent or more mark up on the sales without franchise fees.
 

warmpancakes

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4th letter of the alphabet
My local snap on guy retired he owned a few routes and hired guys to work for him, all of the drivers bought the route they worked from him when he retired, On guy spends an entire day at one stop (gm proving grounds)
 

woody 73

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If you took the initial investment that Matco/Snap on/Mac wants for their franchise and purchased outright a cache of commonly used tools from say Toptul (or some other manufacturer) plus a van to haul your wares around in I believe you could outsell the other tool trucks 10 to 1! All while getting 100 percent or more mark up on the sales without franchise fees.

Interesting I wonder if the guys working in the shops would buy the Toptul ,I am sure they would buy the Grey and sunex channellock and vaughn for a start. So how come more guys don't start doing this approach
for themselves?
 
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woody 73

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Although that got me thinking I am sure that most men/women (maybe all) could not give out credit like the big tool truck companies; But still interesting!
 

wornoutoldman

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Interesting I wonder if the guys working in the shops would buy the Toptul I know I would. The cost is less than half closer to 25 or 30 percent of a truck brand at retail. It would likely be a pretty easy sale given the price point. And they are damn nice tools! ,I am sure they would buy the Grey and sunex channellock and vaughn for a start. So how come more guys don't start doing this approach
for themselves? Likely because it would involve an initial capitol investment, business acumen and a desire to build a business for oneself.[/QUOTE]

I was at the SEMA show this past year and the number of Taiwan/Chinese tool manufacturers was unbelievable. Anyone of them are ready willing and able to produce tools in quantity for you as their brand or they will design your own custom branded tools.

Toptul has an amazing tool catalog and the pricing at wholesale will make you want three of everything they make just for your personal collection.

If I were a younger man with different priorities this would certainly be on my radar.
 

Brownsfan

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Apr 16, 2012
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I have a independant guy around me that does this. He has all the above plus SK VIM and a few others. Things like OTC for less because the are not re-badged for Snap-on etc. He is a cool guy but does not have a lot in stock, I have bought a few things from him
 

woody 73

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All very interesting I wonder how a person would handle all the warranties? It could be done but again I bet it would take buckets of money up front and the energy of a younger man!:lol:
 

scott917

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May 1, 2012
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SE Texas
I think that driving a tool truck sounds like a cool job. But I know better, I know it would be a lot of work.

I have been on several Snap On trucks over the years and have seen several different ways guys have run the trucks. A couple of the first trucks I ever got on were VERY well stocked(1990, 1995, 1998-200). Anything you wanted these guys had several of. If you wanted a special color or some obscure tool they would have to order it. But if you wanted a basic ratchet, wrench, screwdriver, socket etc. they had it. To me these guys had the right idea. They had what you needed when you needed it. They would even make a special trip if you needed something and you just missed them.

Fast forward to the present. I recently wanted to finish out my collection and ran down a guy that stops at a place near my house. I got on his truck and noticed right away he was not very well stocked. The headliner had very little in it, maybe about 1/4 to 1/3 full if that.

My first order was two Snap On ratcheting screwdrivers the stubby and the long shank both in orange with the hard classic handle. He did not have either and would have to order them.

The next week, I asked for a set of Snap On Flank Drive Plus in metric, 8-19mm, he had to order it. Some of the other stuff, I knew he would have to order and I guess the screwdrivers I could kinda see. I am old school and I wanted the hard classic handles, but the wrenches kinda got me. I mean who would not have a set of wrenches in metric. So it made me wonder if I were a mechanic and needed some wrenches and had to wait a week or two for this guy to get them, would I wait a week or would I go to one of the other guys that also drove a tool truck. Hummm....

To me if you are not well stocked and miss a sale b/c you don't have it then you are taking a chance that next week that guy will have got what he needed somewhere else. I mean if you are driving a tool truck having the stock today is part of what you provide. I am not saying that you have to have every little thing in the catalog, but you should have a decent amount of stuff(basic stuff, metric wrenches for instance). Having the stuff in stock for sale right then is kinda what you are there for. I get the impression that my guy has taken the, I will take your order and see you next week if it comes in approach. In the week or two that it takes him to get it in I could order it direct from Snap On. It is his franchise, and he his money, but I have to wonder if he is missing something.

How are your dealers stocked?

S
 

Brownsfan

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Snap on guy is VERY well stocked. Cornwell guy is EXACTLY how you described. He only had 5 ratchets on the truck last time I was on it. And I bought 2. I was his second stop. So the other stops were SOL. My Snap-on guy has like 5 of EVERY ratchet.
 

Brad54

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Jun 13, 2006
Messages
4,646
The inventory situation you just described is not limited to tool trucks!
EVERY business that sells inventory items has to make those decisions.

For instance, let's look at Summit Racing: You call, you place your order, they take your credit card number, a couple days later your parts show up at the door.

Let's look at any number of other smaller companies: You call, you place your order, the operator says half the items are back-ordered and they should get them in two to four weeks, they take your credit card and you get half your stuff later that week, the rest dribbles in over the next month.

Or, more likely, you say "screw that. I saved up the money, I have a time I want to install them, I want my parts, I don't want to pay for shipping on three packages when it'd be just one if you had them all in stock; I'll call someone who has them in stock."

Good businesses realize they are losing sales by not having inventory in-stock, ready to ship.
Poor businesses think inventory is "money that's *******," and customers will gladly wait for the back-ordered parts to ship when the company gets them in... which is usually when enough other customers order the same part, so they are buying several of one item from their supplier.

I've seen countless orders canceled because someone wanted to buy an intake, carb, air cleaner, hardware kit and gaskets, but one of the items wasn't in stock, so the customer canceled it all and bought elsewhere.

Short-sighted on the part of the business owners.

-Brad
 

Skin

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Interesting I wonder if the guys working in the shops would buy the Toptul ,I am sure they would buy the Grey and sunex channellock and vaughn for a start. So how come more guys don't start doing this approach
for themselves?

There are independants out there, just harder to find. I saw a "MOC Tools" truck the other day going to work. Made me chuckle. Im assuming thats his name as opposed to it being a pissed off MAC driver.
 

smalltruck

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Jan 4, 2011
Messages
333
Why aren't some trucks well stocked? I asked this question of the tool trucks that stop by and the answers weren't what I expected. But it really boils down to demand. Techs coming out of school have the basic socket hardline stuff. They need more certainly but they have a basic start. So why don't the trucks have all this stuff?

What I've been told is that depending on the brand, (Snap-on and Matco) push you to have more on the truck and will drop ship more unordered stuff to the dealers. Supposedly Cornwell and Mac are less insistent on this. What I have sen is a couple of dealers who have a garage full of stuff they can't return to corporate for credit because they didn't order it, the automatic drop ship was part of the contract, so no returns allowed.

So for many items the dealers might have a bunch on the truck if its on special or they may only have one.
 

bm5bullit

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Aug 28, 2011
Messages
19
I felt the need to chime in on the Matco lawsuit as my good friend of 25 plus years is also my SO dealer. Snap-On changed their franchise agreement with their dealers about 12-15 years ago. They came back on my friend, who has had his truck and route for about 20 + years. He had taken over an existing route and bought the truck/tools/route ready to go. Snap-On's regional boss came by to tell him to sign the new agreement and everything would be back to normal. He didn't do it. They bugged the hell out of him and told him that they were going to quit selling tools to him, re-assign his route, split his route and all kinds of threats. He started talking with all of the older guys with routes in the state and found out they were trying to do the same with them. His original franchise agreement was pretty liberal and had no penalty sanctions other than for not paying his tool bills and a progressive sanctions if he just quit seeing his customers. SO would not let up. He got a lawyer and planned to take out a loan on his very well stocked truck. Then when he passed on this information, they quit.
 

UncleJoe

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Dec 2, 2008
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New Bern NC
Franchises do not guarantee success and Companies other than Matco have been sued. Sometimes it is the companies fault and sometimes it is the franchisee.

This is a business. Did the franchisee put up a lot of their own cash or did they borrow? Big difference, had they been in sales before? What is their background and experience. Were they a line mechanic that wanted to be a business owner or were they a manager at a service business that had worked their way up and now that they have had experience running someone else's business they want to run their own. All these factors make a huge difference as to whether someone is successful as a Snap-op or Matco dealer.

Not all franchises are equal. A nationally know donut shop use to actually make more money selling franchises than donuts. They had an impossible sales quota in the contract and when you could not meet it they said don't worry, until they found someone who wanted a franchise in your area and then they forced you out for not meeting the quota. They got sued and I understand the judge was not too happy when he saw they were making more money foreclosing on franchises than selling the product. I believe that business practice has changed but the lesson is still there.

The thing about the Matco suit is I would figure there are Matco dealers out there making it work, so how do the plaintiff make a case that Matco is out to screw all franchises?

Life goes on.
 

Rob Cornwell

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Nov 17, 2011
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44
Location
Naptown
As a Cornwell dealer, knowing too many other dealers from all companies, including independants, it really boils down to supply and demand. There is no way any dealer can stock one of everything, let alone multiples. Cornwell, being the smallest (and only private owned) company still has over 350,000 tools, parts and accessories. Buying off a tool truck is not all about price and availability, but about service and time payments. You might be willing to wait a week if your favorite dealer helped you out with a special tool one day, or took care of an iffy warranty item. You want price, buy on ebay, you want it now, go to home depot. You want good service, advice and options, look to your local dealer.


Why aren't some trucks well stocked? I asked this question of the tool trucks that stop by and the answers weren't what I expected. But it really boils down to demand. Techs coming out of school have the basic socket hardline stuff. They need more certainly but they have a basic start. So why don't the trucks have all this stuff?

What I've been told is that depending on the brand, (Snap-on and Matco) push you to have more on the truck and will drop ship more unordered stuff to the dealers. Supposedly Cornwell and Mac are less insistent on this. What I have sen is a couple of dealers who have a garage full of stuff they can't return to corporate for credit because they didn't order it, the automatic drop ship was part of the contract, so no returns allowed.

So for many items the dealers might have a bunch on the truck if its on special or they may only have one.
 
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