Question for Tool Truck owner/operators

[terryo1965]

I am looking into a tool truck route in my area. I was pretty close to going with Mac Tools about a year ago but the route/territory was farther from my house than I liked and it was not serviced for several years. Well now I find out there is a open Snap On franchise fairly close to me. My questions to the truck guys:

Do you think there is solid future in this business?

With Ebay/Craigslist/other cheap tool sources, do you see your business shrinking or growing?

Do you think there is a huge difference in the brand of tool you sell, or is the sucess or failure due to the service you are offering?

I have been on ride alongs and the sales guys seem to be treated pretty well at the shops, and the techs don't seem to be afraid to spend money on expensive tools. I guess I was surprised after reading so many posts about techs who HATE their tool guy and how everyone ******* about the price of the tools and how they are overated.

I have a good job that I don't like and I am ready to make a change if the right opportunity comes along. I have enough capital to buy a decent used truck and inventory. I have experience with running a small industrial supply business doing sales, accounting, inventory management and managing receivables, so I think I have the skill set to do this job.

I am looking to the veterans to give me the real story on what it takes to be successful in the tool truck business.

Thanks,
Terry

 

[blacksporty]

Not a veteran but I have a friend that had a Snap-on Franchise, as did his Dad, I also looked into it myself. The Dad has been it it for 25 years and done well but he signed up under a whole different set of rules than the guys are signing today.

The things they did to my buddy I could go on and on, the basis is they don't care about you or your business. They want to get you in a truck, fill it with tools with at least $125,000 worth that you are taking a loan out for (plus a loan for the truck) and then try to sell you more. They want you to pay for your new orders within 4 weeks and give the techs truck credit (your money) and then you get paid over 10 weeks or so. They will keep shrinking your territoty and expect you to sell the same, or more. They don't care, the more trucks they have out there the more tools they will sell, the less each truck will sell.

My Buddy is out of the business and he did it for 7 years until the debt became too much, as his territory shrunk and they kept doing things that were not good for his business. He told me a few of his buddies switched to Mac or Matco (I don't remember which) and it was a much better program.

Good luck, your decision just do your homework.

 

[BarnFab]

I have found that I am happy to spend $$$ on Truck Tools but more often than not theguys operating the trucks are such a PITA to deal with I don't bother. Sad really as I like dealing with the smaller guys but if they want my $$$ then they have to provide the service and not have the attitude of you want what I have so you will put up with mu shiat.

Like everything in life, do it, do it well and do it as you would like to see it done and you will be fine.

 

[Stuart in MN]

The most important question is: are you a good salesman?

 

[terryo1965]

thanks for the feedback guys! I don't know if I would consider myself a "great" salesman. I am not a high pressure, smoke & mirrors kind of guy. I have been successful by presenting customers with an options to solve their problems and if I do my homework the product should sell itself. We always followed the old saying "you have to earn the right to ask for an order'.

I heard some stories of shrinking territories, but I am not sure how they can jam the inventory down your throat. I looked into the return goods policy for both Mac and Snap On and they both seem reasonable, you can return slow moving tools. Is there something I am missing regarding this policy?

 

[blacksporty]

The regional/district managers are really upselling you, they push you to buy certain packages with incentives in place where if you don't it ends up costing you but the stuff can end up on the truck for months and it you return it you lose whatever incentive they had in place to sell it to you in the first place. Basically they take some tools that are easy to move and combine them with some slugs. Also if you don't buy certain things that they are pushing or help them make their end of the month numbers they are less likely to help you with things you need to happen warranty wise, credit wise or whatever it may be.

 

[ptschram]

Two months in and I'm still having fun.

Snap-On

 

[crewchief888]

i've been wrenchig for over 25 years, and have had some really good dealers, and more than a few really crappy dealers.

seems like the dealers dont want to stop at heavy eq shops, (not just ours),
we dont need all the hitech "gadgets", latest and greatest of every tool.
for the most part, the heavy eq guys wont buy a newer, bigger, fancier, toolbox every few years.
a lot of our "special tools" are really special OEM only stuff.


just my $0.02

good luck

 

[Zeke]

Personally, I think a safety equipment business is the best thing for the future. You got laws on your side and safety equipment by and large is a set of consumables. You should easily be able to beat up the SO guy on those kinds of items.

 

[Falcon67]

The most important question is: are you a good salesman?

I have a bud that runs a Matco truck. You best be able to sell ice to Eskimos. He used to sell GM stuff and was tops in sales there, wanted to be out on his own. He is and you almost never see him unless you are at one of his stops. He got a good route with lots of stops. More or less lives in the truck, isn't married, has not kids at home.

I also know the guy had that truck before with a somewhat different route and he didn't last 24 months. If you can sell used cars of any condition and sleep at night, you're good to go. If not - better think about it, hard.

 

[camarotoolman]

Matco guy here built a nice bus, them Matco cut it in half. He retired.

 

[chris142]

Our old Snappy guy retired and has a house in the nice part of town. The new Snappy guy is 23 yrs old, has been in business 2 years and just bought a house down the street from the old Snappy guy.

Our Matco guy is doing ok. Mac is going to fold soon and the Cornwell guy lasted 1 yr.

 

[darkk]

I've known a lot of past and a few present tool truck owners. It's a tough business....there are exceptions, but not many.

 

[tskills10]

Our Matco guy is doing ok. Mac is going to fold soon and the Cornwell guy lasted 1 yr.

I haven't been in the industry for several years. But, what do you mean by "Mac is going to fold"? Is Mac tools going out of Business. or just your dealer?


I know when I was wrenching for the garages, my Mac guy was great to deal with. The SO guy was horrible. Even if SO had a nicer tool, I would buy the MAC version just to avoid the SO guy.

 

[terryo1965]

Thanks for all the feedback guys. I have to throw this out to the techs- what make a great tool guy versus a crappy one?

It seems like selling one brand of tool over another is no guarantee of success. My guess is that a lot of the failures come from guys getting into the business with not enough capital. I figure you will need $100,000 bare minimum to get started. If you have cash you are a huge step ahead of the guy who borrows it and has a $2000 note payment to meet every month.

The corporate guys tell me warranty claims are never a problem (possible BS?) but they did say a lot of guys who are struggling financially will put off a tool warranty or not give one because they don't want to give someone a tool off there truck that they might not be able to replace soon because they are on credit hold.

I was surprised to read some of the posts where guys buy tool brands they probably wouldn't have because the like the sales guy.

Soooo, what makes a great tool truck guy? I know, strippers and a beer tap on the truck would be nice but let's be reasonable....

Thanks again, I really do appreciate the feedback!
Terry

 

[lsrx101]

I was surprised to read some of the posts where guys buy tool brands they probably wouldn't have because the like the sales guy.

Soooo, what makes a great tool truck guy? I know, strippers and a beer tap on the truck would be nice but let's be reasonable....

Thanks again, I really do appreciate the feedback!
Terry

A lot of my tool buying came down to the the salesman's personality. The SO guys that I dealt with over the years seemed to be really hard sell and I never cared for that. Thus I don't have a lot of SO tools.

Speaking of strippers,
I do know of one Mac (then Matco) guy that actually did have strippers on the truck once a year. Buy a tool box or make a big tool payment, get a lap dance. I hear that the guy that took over his route did it for a while too.

 

[chris142]

I meant that our dealer is going to fold soon. he owes mac so much money that they cut him off. can't special order anything or get a broken tool warrantied through him.

 

[Roots]

Just from someone who haphazardly looked into this idea last fall. I'd really suggest you take a look at some of the lawsuits filed against the tool truck companies by former route owners. If for nothing else but to see where others failed or failed to perform enough due diligence. I'd be personally be really nervous of Mac and their past dealings with route owners.

You mention you have enough capital to buy a decent used truck. Remember to speak with an accountant, it might be far more preferable (tax wise) to lease versus buying. Than again, I thought with some of the brands you had to start off with a new truck?

I'd also really lean to Snap-On, not just because of their reputation, but they'd be easier to sell (IMO) as distinct from the other brands which are mostly contract manufactured versus in-house like Snap-On. Than again, that edge might not even be a concern for a good enough salesman.

 

[yost69]

Be nice to your people. I know it may be hard to keep everything in order but you need to at least try to remember to order the tools the techs want.

I tried giving my snapon man some business but he didnt want it I guess.

I asked him for a certain ratchet. Said he didn't have it but would order it for me. Out the door he went. I have yet to see it, that was almost a year ago. He retired last month and needless to say probably screwed it up for the guy that takes his place with me.

I have been giving all my money to the mac guy, and have yet to have a problem with their stuff.

 

[Terry454]

I am DIY and the snappy guy around here is good at getting me things, even stopping by my house to deliver them -- but then I always pay in full with cash. I don't buy from him too much (SO new stuff usually *****), and could get a much better deal from the SO Industrial guy at school, but he is a PITA to deal with. THe Snappy guy around here has had the route for a couple decades and is a real nice guy. Not pushy.

I have a friend with a legit business (tax papers, his only income and all that) out of the barn behind his house in a rural area. He does stunning Corvette restorations on some really high buck cars. The Snappy guy will not deal with him because he is "not a business." He buys his tools from the Matco guy who has no such compulsion.

I think an awful lot of the success or failure depends on your people skills.

Terry

 

[ptschram]

I think an awful lot of the success or failure depends on your people skills.

Terry

Doesn't it always?

 

[rodm1]

If you do it consider working something out with a retailer to broker transactions for you (drop off pick up point). For people that don't have a dealer.

 

[uppster]

I also considered a Snap On franchise, researched carefully. I found they also have direct accounts with large dealerships, and some of the drivers are employees, and just work for the company.