Maybe this is naive: What Makes Boxes So Expensive?

[jerk_chicken]

I've often wondered what makes these big rolling boxes so expensive. I can imagine to a certain point, but after that, what are you paying for? A label? Truly better construction? I even see CM ones for much cheaper, but is there a point where diminishing returns is achieved and a SO won't really do a better job than a SO?

 

[Adam McLaughlin]

Eh....... There is a difference is that a very heavily loaded drawer won't wiggle left to right on a Snap On box like a Craftsman Box will. I also think that Snap On Boxes are very sturdy, the sheet metal flexes less and feels like they don't have much give.

I honestly think that many Snap On tools cost what they do because most people pay over time - I wish that there was a "cash price" and a "time" price difference, this would alleviate a lot of the extraordinarily high price scheme, but they don't do it this way because MOST people pay over time. Both of my Snap On dealers tell me that their clients have a high rate of being dead beats, hence the sticker shock is configured to eat some of that.

I have been telling my dealers for years that there needs to be a "Cash" price when I show up with "Cash" for something big - anything over $500 should get a break from those guys.

Adam

 

[Mike83]

Good quality, but also because it is a status symbol (at least for some). Hell, an old Civic can get you from A to B just as well as a Bimmer, but with differences in performance and style.

 

[volvo]

.
Insane... PROFIT...H

 

[Tom2]

Yea..I dont see spending big bucks on a tool box. But, thats what some people enjoy. Its a hobby at a certain point.

I bought a chest high box from HD for $39. After Xmas clearout. Works fine. If I needed more space, I could have bought a few more. Still been way under the price of one name brand box.

 

[jerk_chicken]

PS- I was advised before moving to Germany that boxes are crazy expensive. This is right. A plastic POS one can go for 30-40 or more. Metal boxes, forget about it.

I don't mind quality, but it seems sometimes that SO or others are priced beyond the quality factor.

 

[Diesel-Mech]

I think there are a few things to consider, first is the quality and cost of the subcomponents that make a good box good...things like faultless casters, high quality ball bearing slides, stainless steel trim, premium paint and all the other odds and ends that go in to a good box. Also the cost of domestic manufacture and engineering is substantial as well as the lifetime warranty that is included with the high end boxes. And for the biggest reason these company's want to make a profit just like anyone else that makes high end goods there is a premium price for a premium product.

 

[back2class]

Drawers feel flimsy ans wiggle alot, they dent easy, dont lock securly, Just play with a quality box and the durability over even a nicer craftsman product is clear. That matters when drawers will be opened 100 times a day or box has a ton of tools and needs to me rolled around alot. But truth is my Harley mechanic has a large Craftsman and it does the job. It is full of High end tools but will likley fail over a decade where the SO may not or at least will get fixed. But it has been good for him the last 6 years. For the non pro it is ALL SHOW. I owned a Snap-On box and it was nicer than a mid level Craftsman but not really all that much better. I had that box next to a Costco SS box I have and the CSPS box was nicer in that it no doubt involved more labor to build and used just as heavy steel. It does have a few design flaws though but they are a new company. It was $650 and similar SO new would be about 6 times that. I am not saying my Cheep CSPS is better than SO though in many ways it clearly was. What I am saying is your dollar is paying more for a name and product support than the labor and steel to build it. I have a Kennedy too and honestly it is once again only slightly better than a mid level craftsman box. But the Kennedy boxes are USA made and I think about 1/2 the price of snapon and in my view as good quality.

Some products have very large profit margins and some don't. Name brand toolboxes have HUGE ones.

 

[Chris Adams]

Legal thing, not quality or any other factor.
Been beat to death here before.
Numbers used in this exercise are for example only.

Boxes like Craftsman sell on sale for say 1000 dollars, cost about 600-700 wholesale from maker, who makes a nice profit. That's a US made box.
A nice truck box which is virtually never on sale, sells at about 4000.
This box IS better made, has better rollers, much better lock, better slides and is way thicker walled, has better security, including a better hull design, etc.
Costs probably about 1400 if they buy it from a vendor, much less if the truck brand actually owns the factory.
Remember, every step in the chain someone makes a profit or they wouldn't build them in the first place.

Then the truck box, costing 1400 for the company that builds it, is sold to the franchisee, another layer of profit, who, just for argument, pays 1900 for it.
Then he sells it to the end user on payments.
The interest from the payments must be factored into the cost. So assume 60-90 percent interest, and that's low, the box will now sell for 4000 bucks.
If the box was sold at a cash price of say 2500 dollars, allowing for a profit for the franchisee, the shipper, the wholesaler, the builder (if different) then that would be the LEGAL BASE PRICE of the product.
Which would make it unlawful to sell it for higher on credit.
That is usury, and very much against the law.
But if the firm (with very few exceptions) price is 4000, then the box comes with 'free financing'.
This is to skirt, avoid, loophole, take your choice, the law which say credit must be cheap, no matter what the default rates of the customers.
Or why 'finance anyone' stores have killer prices, rent-to-own stores have killer rates.
It's a way to sell on credit to people with a high default rate.
That's the whole secret of high tool truck prices.
If the law would allow it, all the truck companies would just charge 50-150% interest for the guys who are high risk, sell to everyone else at a lower price.
The system was designed to work within the legal structure.
See the dilemma? The truck guys must charge killer high prices, because the legal structure is such that if they discount for cash, then they are over charging on interest for the deadbeats or guys who just don’t have the cash but MUST have the tool right now.
The system was set up to skirt the government nanny laws, and as such the system must be maintained or the little guy gets it in the shorts.

 

[v8garage]

Good quality, but also because it is a status symbol (at least for some). Hell, an old Civic can get you from A to B just as well as a Bimmer, but with differences in performance and style.

I don't drive either one (or care to) but the Honda guys would argue with you that they are better cars than BMW's.

 

[v8garage]

Legal thing, ...........
If the box was sold at a cash price of say 2500 dollars, allowing for a profit for the franchisee, the shipper, the wholesaler, the builder (if different) then that would be the LEGAL BASE PRICE of the product.
Which would make it unlawful to sell it for higher on credit.
That is usury, and very much against the law.

Chris,
I pretty much agree with what you said here, but I have a question. When you see something advertised as "Cash Price" is that illegal? The most common example of this I can think of is truck stops that have a different price on cash or credit for fuel.
V/8

 

[Chris Adams]

Chris,
I pretty much agree with what you said here, but I have a question. When you see something advertised as "Cash Price" is that illegal? The most common example of this I can think of is truck stops that have a different price on cash or credit for fuel.
V/8

Depends on what state you live in.
The business plan for the tool trucks is 50 state and must cover a lot of local laws with a safe methodology.

But just historically, when I owned a station, in the 70's, in California you couldn't do that, they would pull your license, even arrest you.
Later, selling auto parts our attorneys were VERY FIRM on not giving cash discounts, as a policy that discriminated against credit cards, but some places have always gotten away with it.
Others have found loopholes in the law. The law is so complicated there are always exceptions and precedents.

In addition, lot depends on the amounts involved. Arguing over thee dollars gets you nowhere, arguing over 1500-50000 gets you attention and respect from the courts.

I do know there have been some small changes in the laws, mostly fuel station specific and I'm not up to date on that, as I am happily retired.

 

[fatfillup]

The difference is all about quality and longevity of use. I never owned a SO box till Aug. 08. I bought one used to get more storage and was impressed with the quality, heaviness of the steel, quality of the paint, ease of drawers opening, etc. I was replacing a old Vulcan box for the early 80's, late 70's. That box had friction slides and is still in decent shape but too small ( vulcan is a defunct truck brand so the quality of it is pretty good). I also own a cman box at home.

I say all this so you know I have a range of experiences with boxes. I was so impresseed with the SO's that I started buying and selling used boxes. I have a box made in 1990 that I can stand in the bottom drawer and it moves freely.

IMHO, if you are a professional mechanic, own a lot of tools, use your box hard, you better buy a high quality box or you will be replacing it sooner than you will like. If you are a hobbiest or part time mechanic or don't open and close the box often, than a lesser box will probably do the job.

Part of the high price of the truck brands is to give the dealer some room to offer high trade in values for your old box. Don't be afraid to negotiate and I also understand the dealers get a little better pricing for preordering several boxes ahead of time so plan ahead for a new purchase and get your dealer to work with you. That said, buy big and stay organized and you will increase your efficiency and help you from losing tools. I learned that from our fellow tool junkies on this forum.

 

[-B-]

If you want better quality and better pricing buy an equipto, lista, vidmar etc. for any given size box you will get a better box that you can have more choices on draw configuration, and better load capabilities. (500lbs per 30x30 draw) They also offer different heights and adding wheels is academic if you must have them.

Personally if i can afford it I go with the lista if I can't I go used and buy boxes from the 80's they are built so much better than today's boxes.

 

[Mike83]

I don't drive either one (or care to) but the Honda guys would argue with you that they are better cars than BMW's.

Bad example maybe

 

[john w]

Thanx for the eye-opener, Chris Adams. You put a new perspective on it for me, and it makes the truck price seem like less of a gouge.

 

[autoace]

Yeah...I had the Cornwell dealer quote me a price on a roll cab, top box, and side locker.....I told him hell...I could buy a mint Buick Grand National for that kind of money, and the tool box doesn't even have a engine or turbo, wtf gives

 

[rhandwor]

Remember the drivers have two prices cash and credit. This is a big difference in cost.

 

[Chris Adams]

Thanx for the eye-opener, Chris Adams. You put a new perspective on it for me, and it makes the truck price seem like less of a gouge.

Thanks for the kind words.
They are not really gouging as you can see, the system (financial/legal/'moral') is set up in such a way that young guys could never be mechanics in a highly technical, tool expensive field without the tool truck guys selling them things on credit.

And they would never qualify for credit, not on the terms that would let some 18-20 year old, or older guy changing careers buy the expensive things needed to do the job.

Understand, the boxes, sold at a more normal retail profit margin, would still be pretty expensive.
Out of the reach of the new guys. Same for the heavy duty tools.

The boxes in a shop environment don't just have to be more sturdy, which isn't that expensive to do but above all SECURE.
You walk away at night with thousands of dollars worth of easily sold tools in that box.
It MUST be more secure than any cheap box, or you won't have them the next morning.
So heavy gauge metal, strong locks are even more essential than the strong drawers or good bearings.
So you end up with a box that if sold would cost way too much for the starting or even moderately successful technicians if they had to pay up front.

So what does that mean to a garage junkie? Or hobbyist?
Truck boxes are way over priced.
Face it, a Sears industrial costing a third of a Matco, a fifth of a Snap-On, is strong enough to leave your grandkids.

The good, or even great, news is aftermarket prices on boxes, except for Snap-On (because of the 'cult' following) are pretty good deals. The boxes, built for a shop environment, can last many years of use, then be a real bargain for the guy with the cash.
Rule of thumb, the box depreciates 40% (the amount of the credit 'charge') the day the guy buys it.
So look for low mileage boxes for 60% off. I see them go all the time for 75% off, which is reasonable.

 

[yellowbox]

yes quality boxes are pricey i had a small c-man box at work yrs ago , worked great until you start opening and closing the drawers 30 40 times a day and load it with heavy tools.
then it starts to not be so good , drawers dont want to open and close easy , the weight makes the drawers sag .
i still have this box at home ...good for that setting
bought a snap on box 6 yrs ago , has never let me down works flawlessly , yeah it cost alot but is worth it in the long run.
you have to look for deals take your time when you buy
my box cost 3800.00 new but i paid 1800.00 for it brand new
i will never sell it but if idid i would most likley make money on the sale or at least break even , cannot say that about cheaper boxes

 

[B.K.M]

Supply and Demand. I should just leave it there, since that is pretty much the definitive answer to any pricing question. However, I will elaborate a little more.

For the US brand boxes in question, there is a short supply of labor (compared to China, India, Kazakhstan), and the big credit-fueled demand of US consumers.

If you look at imported tool boxes made with cheap overseas labor where there is no pressure on wages and benefits for the workers, then you find much lower prices -- just look at Harbor Freight, Grizzly, or whatever.

Likewise, if you went to look at tool boxes for sale in Vietnam, you would no doubt find low priced boxes because that is what the demand is for there. In the US, high wages and credit have created a relatively large supply of money and demand for extravagances like $10000 boxes. Of course you do "get what you pay for." You can pay for a US worker, and for a box made with stronger more durable materials, better construction methods, and greater precision.

 

[B.K.M]

I don't fully buy the argument that the expensive boxes handle weight better - or that it matters if they do. Probably because of heavier guage steel, box and channel features instead of just flat sheets and so on, they will be stiffer and hold weight better -- but how much weight can you put in a small drawer before it is really over filled? Very large drawers sort of defeat the organizing purpose of these boxes unless they are used for very long or wide tools, in which case the density in the drawer should not be so high. Essentially what I'm saying is, for the same price as a single 100 pound capacity drawer, you can get more than two 50 pound drawers and the extra real estate is usually better for organization. So I contend the high cost has more to do with the demand for excess performance. Saying the multi-thousand dollar boxes are needed for additional weight capacity is like saying a Porsche is needed to reduce commute times.

 

[TangoFoxTrot]

What makes these boxes so expensive? Ridiculous Profit Margins. There is no way in hell these boxes cost a manufacturer any where near their retail prices. My guess is companies like Snap On and Matco mark up these chest about 500-600% of what they cost to build.

As an example, compare a high end Snap On Master Series tool chest with the best gun safe in the world, a Fort Knox brand gun safe. For around $12,000, you can get a good sized Snap On box. For around $6,000, you can get the largest Fort Knox Gun Safe they build. Both are nearly the same dimensions, and the Fort Knox safe also has a lifetime guarantee.

Fort Knox gun safes are built in the U.S. of high quality, extremely thick hardened steel, with a ridiculous amount of insulation, out weigh a Snap On chest by a thousand pounds, and have a sophisticated locking system. The fit and finish is impeccable, and the paint has a high quality finish. A high end gun safe is much more expensive to manufacture, and costs much more in raw materials than a tool chest does. In addition, you could almost drop a nuclear bomb on it and the contents would be perfect. Yet, the price for a comparably sized gun safe is around half of what a comparably sized, high-end tool box costs, even though the safe is much more expensive to manufacture.

Don't get me wrong, the high end tool boxes from Snap On and Matco are very high quality, I'm not questioning that, but their prices they charge are way out of line for what they actually cost to manufacture. The financing system they use allows them to charge these prices, mechanics pay a small monthly fee, and never realize the true cost.

 

[Monte]

in germany you can buy this car brand new for 9762.- $ . Just for comparison

 

[Danglerb]

Slides are expensive, high quality, high load, long travel slides are real expensive, like $75 each. Big box, say 20 drawers, 40 slides thats $3k. Full extension slides are compound, a slide within a slide, and need to be twice as strong due to the extension.

What separates boxes in cost is how easy it is to use, and how efficiently the overall volume is made available as storage space.

$10k isn't unreasonable as storage for $50k in tools, and the market for full size boxes is very limited, generally controlled by truck brands. If you want a 56" box there are what, maybe 6 brands?

 

[B.K.M]

The main difference between a gun safe and a toolbox is all the drawers and slides. I agree that the materials cost on the safe would be higher, but there is a significantly higher cost to manufacture all those drawers and slides with precision. Nevertheless, I would not argue that there is room for high margins -- in an earlier message I contended that is the case because there is sufficient demand. There is, in my mind, less demand for gun safes overall and significantly less for high-end gun safes. I would speculate there are fewer people who invest a lot in guns than those who invest in tools. I don't know of any businesses where you can go there and find several gun nuts working out of their safes, each of which corresponds to their ego, and yet among wrenches this is a common sight in shops found in nearly every town.

 

[B.K.M]

I work on servers in datacenters. They use the same kind of full-extension ball bearing slides in the rack cabinets. A loaded server might weigh 65 kilograms or about 143 pounds - more than most tool drawers. The rails (slides) are expensive, like DanglerB wrote, about $75, and the logic is the same. A server sitting on those rails might be worth $10-20K (cost of hardware only), so the rails are considered worth it. Practically speaking, they hardly ever slide -- often times only when they're going in, and when they come out a couple years later to be discarded, but they still come with smooth ball bearing action as if they were going to slide daily -- just because the cost is deemed a reasonable part of the overall investment.

 

[Danglerb]

Gun safe is just a generic safe with a few interior modifications. HF has a very nice gun safe for $1k, fire and water resistant, a quality unit made I think in USA. A safe doesn't have to be convenient or easy to use, or even be space efficient. Most have more in common with a refrigerator than a tool box.

 

[garfunkle24]

Just one more point that I don't think anyone mentioned;

Even if a big Snap-on rollcab is bought merely for 'show', it's not necessarily for bragging rights from other techs etc. One consideration when I bought my KRL was the image I convey to my customers.

Whether rightly or wrongly, some customers will percieve a technician with a more 'professional' box as being more professional, period. As someone who favours function over form I think it's kinda BS, but they do say the customer is always right!

As much as I know there are some excellent techs with ratty boxes of all brands (and vise-versa) I would still rather have a tech with a neatly organized KRL work on my car than one with a Craftsman box buried under a pile of dirty tools.

Having said all this, I don't think anyone would look at Nissan_Crawler's box and deem him 'unprofessional'.

 

[B.K.M]

Those are some points worth considering. I think the overall appearance of the shop says more about professionalism than the badge on the toolbox, but a good and professional technician can certainly merit the best tools and boxes.

If we were talking about the not-for-hire professional, the wealth of his kit might indicate something about him. But if I were hiring someone and saw a few banks of KRL's, I would think, "am I going to pay for those?" -- at least as long as I wasn't expecting too much -- you know like, I needed a clutch changed as opposed to needing to win a race. In the latter case I would be thinking, "did you earn those?"

 

[SteveV]

What makes these boxes so expensive? Ridiculous Profit Margins. There is no way in hell these boxes cost a manufacturer any where near their retail prices. My guess is companies like Snap On and Matco mark up these chest about 500-600% of what they cost to build.

As an example, compare a high end Snap On Master Series tool chest with the best gun safe in the world, a Fort Knox brand gun safe. For around $12,000, you can get a good sized Snap On box. For around $6,000, you can get the largest Fort Knox Gun Safe they build. Both are nearly the same dimensions, and the Fort Knox safe also has a lifetime guarantee.

Fort Knox gun safes are built in the U.S. of high quality, extremely thick hardened steel, with a ridiculous amount of insulation, out weigh a Snap On chest by a thousand pounds, and have a sophisticated locking system. The fit and finish is impeccable, and the paint has a high quality finish. A high end gun safe is much more expensive to manufacture, and costs much more in raw materials than a tool chest does. In addition, you could almost drop a nuclear bomb on it and the contents would be perfect. Yet, the price for a comparably sized gun safe is around half of what a comparably sized, high-end tool box costs, even though the safe is much more expensive to manufacture.

Don't get me wrong, the high end tool boxes from Snap On and Matco are very high quality, I'm not questioning that, but their prices they charge are way out of line for what they actually cost to manufacture. The financing system they use allows them to charge these prices, mechanics pay a small monthly fee, and never realize the true cost.

That is a good point, about a gun safe vs a tool box. I'm sure it's not cheap to make these tool boxes, but there's just no way it cost more to build a tool chest than it does a primo 2000 pound Browning or Fort Knox gun safe.

And the other example, comparing the price of a new automobile. There's a whole lot more engineering and precision that goes into a brand new car, in addition to millions spent in Research and Development. You can buy a brand new car for less than one of the truck brand tool chests.

The numbers just don't add up to justify anywhere near the price they charge for their tool boxes.

 

[Nik]

I have to ask, where were you able to get a new one for over 50% off? Did you have incriminating evidence on the Snappy dealer or what?

yes quality boxes are pricey i had a small c-man box at work yrs ago , worked great until you start opening and closing the drawers 30 40 times a day and load it with heavy tools.
then it starts to not be so good , drawers dont want to open and close easy , the weight makes the drawers sag .
i still have this box at home ...good for that setting
bought a snap on box 6 yrs ago , has never let me down works flawlessly , yeah it cost alot but is worth it in the long run.
you have to look for deals take your time when you buy
my box cost 3800.00 new but i paid 1800.00 for it brand new
i will never sell it but if idid i would most likley make money on the sale or at least break even , cannot say that about cheaper boxes

 

[Danglerb]

In trade schools most of the truck brands do 50% deals to students.

 

[nissan_crawler]

A lot of it is markup, a lot of it is "bling".

As garfunkle mentioned, I have a C-Pro, looks fine.

Here's how I see it:

Snap-On = built well, bling, spendy

C-Pro = built decent (I've had no issues in 6 years), semi-bling, decent price

Lista = brick *********, no bling, decent price

Pick what works for you. Good price, strong, pretty...pick two, because you aren't getting all three.

If you want a top-notch box for the best price, Lista is it, IMHO. It isn't pretty, but you can use it as a second set of jackstands if you want.

 

[reversegear]

Shipping costs. Lots of wrenches fit in a container or truck. Not so many tool boxes. Same problem with inventory space.

 

[autoace]

Legal thing, not quality or any other factor.
Been beat to death here before.
Numbers used in this exercise are for example only.

Boxes like Craftsman sell on sale for say 1000 dollars, cost about 600-700 wholesale from maker, who makes a nice profit. That's a US made box.
A nice truck box which is virtually never on sale, sells at about 4000.
This box IS better made, has better rollers, much better lock, better slides and is way thicker walled, has better security, including a better hull design, etc.
Costs probably about 1400 if they buy it from a vendor, much less if the truck brand actually owns the factory.
Remember, every step in the chain someone makes a profit or they wouldn't build them in the first place.

Then the truck box, costing 1400 for the company that builds it, is sold to the franchisee, another layer of profit, who, just for argument, pays 1900 for it.
Then he sells it to the end user on payments.
The interest from the payments must be factored into the cost. So assume 60-90 percent interest, and that's low, the box will now sell for 4000 bucks.
If the box was sold at a cash price of say 2500 dollars, allowing for a profit for the franchisee, the shipper, the wholesaler, the builder (if different) then that would be the LEGAL BASE PRICE of the product.
Which would make it unlawful to sell it for higher on credit.
That is usury, and very much against the law.
But if the firm (with very few exceptions) price is 4000, then the box comes with 'free financing'.
This is to skirt, avoid, loophole, take your choice, the law which say credit must be cheap, no matter what the default rates of the customers.
Or why 'finance anyone' stores have killer prices, rent-to-own stores have killer rates.
It's a way to sell on credit to people with a high default rate.
That's the whole secret of high tool truck prices.
If the law would allow it, all the truck companies would just charge 50-150% interest for the guys who are high risk, sell to everyone else at a lower price.
The system was designed to work within the legal structure.
See the dilemma? The truck guys must charge killer high prices, because the legal structure is such that if they discount for cash, then they are over charging on interest for the deadbeats or guys who just don’t have the cash but MUST have the tool right now.
The system was set up to skirt the government nanny laws, and as such the system must be maintained or the little guy gets it in the shorts.

Chris...
Talked to my Cornwell dealer(friend) about this thread. As you said the manufacturer makes a profit selling to Cornwell, Cornwell makes a very good profit selling it to him. They give him a high retail price....say 7200.00 bucks for the 67 inch series, but to be competative, no one pays that. He said at 5800.00 bucks he is making a thousand bucks. My dealer doesn't truck finance tool boxes anymore, not sure if other companies do. You need to have tech credit, cash, or credit card, so he gets paid period! No finance...he claims he cannot make enough money on payments, to warrant the initial money out of his pocket! it makes sense, since it would take 1 to 2 years..if he is lucky to get his profit. That's if a deadbeat doesn't make off with it. How many newer boxes on ebay, do you think are actually bought and paid for??? I'm thinking not many..hence the new policy. Depending on the box cash or credit(dealer paid right away) is considerably less than any list. I'm not in disagreement with your post....just a additional perspective from a dealer.

 

[jerk_chicken]

So far I'm seeing that there is likely a difference for professionals who need well-functioning, durable boxes. Rather, it makes a tough job a bit easier as little inconveniences add up and magnify themselves greatly.

The quality is there, but the pricing is well beyond the quality.

I am still fairly convinced the cases, no matter how well made, are still massively overpriced. The scheme is there and many companies offer stuff or support equipment that gets them huge profits. Bike industry, among other things, derailleur hangers are a huge one. They almost invariably use the worst metal and then they charge $30 or more for them. Lower end bikes tend to actually have higher priced, lower quality hangers.

I also think a lot of this has been built up over time, with respect to the perceived value and what someone thinks they should pay for something. The expectation is there, and the demand is there, so no matter the actual price, the manufacturer knows they can get it. How this ingenious pricing scheme was developed is beyond me, but the person that devised it is/was a genius.

 

[nissan_crawler]

Honestly, I see no functional difference between a C-Pro and a Snap-On. I'm not saying the C-Pro is built as well, I just don't think it matters. If they were both the same price, sure I would buy the Snap-On. However my C-Pro has never failed me or left me wanting a better box. *shrug*

 

[WVU Tuba Dale]

On top of all the reasons mentioned, I think the boxes and "truck brands" are as expensive as they are because of the convenience the tool guy offers. You are also paying for them to come around every week to see how you are doing, answer your phone calls to order something a day before he comes, and my tool guy even offered to move my box within the state of WV for free for me if start at a new place.

 

[Chris Adams]

Chris...
Talked to my Cornwell dealer(friend) about this thread. As you said the manufacturer makes a profit selling to Cornwell, Cornwell makes a very good profit selling it to him. They give him a high retail price....say 7200.00 bucks for the 67 inch series, but to be competative, no one pays that. He said at 5800.00 bucks he is making a thousand bucks. My dealer doesn't truck finance tool boxes anymore, not sure if other companies do. You need to have tech credit, cash, or credit card, so he gets paid period! No finance...he claims he cannot make enough money on payments, to warrant the initial money out of his pocket! it makes sense, since it would take 1 to 2 years..if he is lucky to get his profit. That's if a deadbeat doesn't make off with it. How many newer boxes on ebay, do you think are actually bought and paid for??? I'm thinking not many..hence the new policy. Depending on the box cash or credit(dealer paid right away) is considerably less than any list. I'm not in disagreement with your post....just a additional perspective from a dealer.

You have some good points, especially on why it is changing.

Cornwell has a slightly different tool sale model than the others. And company supplied credit is another method that is gaining popularity, as the truck guys have more and more problems collecting, as you point out.

On bigger ticket items, like super big boxes and scanners, the company makes more profit and the truck doesn’t carry as much of the credit load, in that the credit is extended in a more normal fashion by the corporation, who thus makes a lot more profit.

A ‘7200’ dollar box would not go on the 50 bucks a week program normally, anywhere, because it would be hard to safely risk that much captial, hand tools are the big money maker on credit, and the lesser boxes.

Recall though, it's about the cash flow, not the sale.

About the dealer, who I suspect is a heck of a nice guy;
He says he is making a thousand bucks on a top end box.
That’s much higher than I’ve ever heard a dealer suggest he is making.

If you talk to most dealers they will assure you they are practically losing money on every transaction.
Car dealerships, even in the boom times, always lose money on every sale. Really, just ask them…
Seriously, ask any businessman and one in 100 will admit to making a profit.
This is actually the best policy, after all, do you tell everyone that asks YOU your hourly wage, salary, benefits etc.?

Especially if you are trying to sell them your products or services?

It’s a truism of human nature to not want to pay ANY profit to a business, even though we know it’s silly to think the place should sell the stuff for free.

So any businessman worth a sack of used road salt will never give you the idea he is getting rich, or even making a living, on your sale.
If he’s smart he will cry poormouth all the way to the bank.
When I worked for dealerships the owners always told us how poor they were. I would always admire their new Ferrari, or Rolls, then have to listen to the sobs about how much money they were losing that week. Part of the job.