Serious opinions needed

[Shocker]

Hi all. I have been considering making a career change and taking up a MAC tool truck route as one has become available.

What do you guys think? Bad idea? I spoke with another MAC tool truck distributor that works the area adjacent and he is doing well. Been in the business for 12 years in our area.

So, honest answers and please no arguing about what tools are better etc.

Thanks

 

[Diesel-Mech]

I would recommend reading this site thoroughly. http://www.mactools.net/

Also I cant speak for your area but right now is a very bad time for pro techs in most areas and if they aren't making money neither will you.

 

[nate379]

I know all the old time tools guys I have dealt with and seen there retire were very happy to be done with it.

I know a couple guys that do it on the side of their main job and that isn't so bad. My Dad's friend is a pastor and also a Cornwell tool guy.

 

[Merkava_4]

The truck lease is the worst part; you can figure in around $900-$1200 per month. They won't let buy an old truck and fix it up either.

 

[Shocker]

Well, on the truck part. When I spoke with their rep guy, he said I could do what I want on the truck. There are quite a few trucks out there fully detailed and ready to go for just a little $$$ that I should be good to go there.

I can get into the franchise for only the cost of the basic tool package.

 

[Shocker]

I did take a look at the site (Mac tools **** etc). Interesting, but I haven't heard any other things about Mac and the way they treat their dealers. It seems that Mac has a pretty fair franchise setup for their distributors. Snap On is much more expensive and restrictive. I haven't looked into Cornell or Matco. Mac is right behind Snap On as far as tool truck sales so I have concentrated on them at the moment.

I have also spoken with some other reps and everyone is pretty unanimous that business is pretty steady and picking up. It did drop off, but it appears to be turning around.

Hard to say though. I am leery, but I think it would be a fun gig.

 

[Merkava_4]

I can get into the franchise for only the cost of the basic tool package.

That would be a win win situation if you had no lease payment to make. Some of these tool manufacturers won't allow you to have a truck model that's more than 3 years old.

 

[daveblank]

for a truck look at www.tooltrucks.com

 

[fatfillup]

Plan on working long hours. Most of the tool guys start early, work late and the do paperwork and restock their truck at night. Are you a people person? Do you have a thick skin (mechanics can be brutal). ARE YOU WILLING TO COLLECT MONEY AND CHASE DOWN DEADBEATS????????

If you decide to do it, research your options. How long was the last Mac guy on the route? If he has been there a while (5 years or more) you'll probably be welcomed in the shops. If they've had many Mac guys or long gaps in coverage, rebuilding the route will take time.

Are you customer service oriented? Dave Blank gets some high praise here on this board because he goes the extra mile. That is what it takes to be successful.

Good luck and make a careful decision

 

[SpiderGearsMan]

I know 3 out of business mac guys
but maybe they didn't try hard enough
it isn't just mac to be fair

 

[SpiderGearsMan]

I would recommend reading this site thoroughly. http://www.mactools.net/

Also I cant speak for your area but right now is a very bad time for pro techs in most areas and if they aren't making money neither will you.

give this man a cigar
I don't see business coming back for years , nobody is buying stuff and trade school enrollment is your only hope for new business

 

[Fedwrench]

It's not easy being a tool truck dealer these days. There is fierce competition from ebay, online tool stores, and imported tool lines. Gone are the days when a tech's only tool purchase option was the visiting tool truck.
Despite some articles to the contrary, work is slow. Dealerships and independent shops are closing. Even a couple of auto parts stores have closed in my area. At a recent service manager conference in my area, all of the attending service managers admitted to laying off techs because there weren't enough hours to go around. Lastly, alot of my peers **** at paying their bills and keeping their personal lives together.
I would really think about it long and hard before taking the leap. It won't be easy and I don't think the problems have bottomed out yet. Good luck in your decision.

 

[Merkava_4]

Shocker, this is the link you want to read right here:
http://mactools.net/welcome/history.htm

 

[billymade]

You might want to read this link; I asked a former Mac tools rep here on the board (global72) a number of questions, about being a Mac tools franchisee. He advertises here for his new business; you probably should seriously consider contacting him and ask him questions about his experiences being a former Mac tools dealer.
This discussion should be enlightening as well...
http://www.garagejournal.com/forum/showthread.php?t=24360&highlight=paging+mac

 

[wrenchr]

Hi all. I have been considering making a career change and taking up a MAC tool truck route as one has become available.

What do you guys think? Bad idea? I spoke with another MAC tool truck distributor that works the area adjacent and he is doing well. Been in the business for 12 years in our area.

So, honest answers and please no arguing about what tools are better etc.

Thanks

I have heard with startup mac dealers that keeping supplied with inventory is a challenge.

 

[Merkava_4]

I have heard with startup mac dealers that keeping supplied with inventory is a challenge.

The link I posted above talks all about that.

 

[wrenchr]

The link I posted above talks all about that.

Hell 9 out of 10 times I need something from my mac dealer he has to order it.

 

[Merkava_4]

The Phil McNeil Case
http://www.mactools.net/casestudies/phil.htm

What a horror story that is.

 

[rhandwor]

If you have enough cash and want to try I would think about another tool company. With so many dealerships going under and mechanics moving to new jobs its going to be very hard to collect. This is the problem you have to buy the tools and sell on credit appx. 90% of sales will be credit.

 

[Adam McLaughlin]

I don't know what is worse - the story or that guy's writing ability. Woof!

Adam

 

[Diesel_Crawler]

Both the mac trucks in my zone went belly up along with the SK dealer and one snap on dealer in the last 8 months.
Come here and take one of theirs I need some tools warrenteed

 

[daveblank]

Plan on working long hours. Most of the tool guys start early, work late and the do paperwork and restock their truck at night. Are you a people person? Do you have a thick skin (mechanics can be brutal). ARE YOU WILLING TO COLLECT MONEY AND CHASE DOWN DEADBEATS????????

If you decide to do it, research your options. How long was the last Mac guy on the route? If he has been there a while (5 years or more) you'll probably be welcomed in the shops. If they've had many Mac guys or long gaps in coverage, rebuilding the route will take time.

Are you customer service oriented? Dave Blank gets some high praise here on this board because he goes the extra mile. That is what it takes to be successful.

Good luck and make a careful decision

Thanks for the kind words.

Yes the hours can be long. I make everything a family affair so that I can spend more time with them. Whenever I order a toolbox for the truck I let my daughters pick the color. They feel empowered, which helps.

 

[Shocker]

Thanks for all the input guys! I have read and re-read that one guy's story, but I take most everything in that vein with a grain of salt.

I am getting all the info on the route to review. I have also given some thought to going an independent route as well. Hard to compete with online sales.

Here in WA, there have been only a couple of dealer closures (auto that is) and none in the area that I will run.

It is a very hard decision. I am very customer oriented and think I would do well with all the guys. But you never know.

 

[35mastr]

Just be very careful with your decision. Because if it does not work out. It can be quite devistating for your family. Unless you have a pile of money to fall back on.

 

[bowtie3]

Thanks for all the input guys! I have read and re-read that one guy's story, but I take most everything in that vein with a grain of salt.

So you don't believe his story? Seems to me that would be something to pay real close attention to... that and there is still a class action suit by former dealers (a lot of former dealers) or should that be ignored too.

My Cornwell dealer used to be with Matco (7 years I think) until they wanted to split his route to make room for the new district managers buddies from Mac (he had just moved over from Mac). My dealer would not agree, so they pulled his franchise (they can find a way to do that any time they want no matter what anyone says). He switched to Cornwell.....6 months later Matco sued him over a no compete in his contract with them, seeking to stop him from doing business with customers he had while with Matco. They didn't want him anymore but they didn't want to compete with him either. I'm not sure how the case went but he never missed a beat. The 2 Matco guys they put in his spot have been gone for years and he is still here and seems to be doing fine.


Seems to me the tool business can be rough. Just remember they are trying to sell you something so I would not bank on everything they tell you. I don't think its something I would dive in right now. Do your own homework talk to dealers for Mac and other brands in your area and out. Seems to me to be lots of failures for every brand.

 

[Shocker]

It's not that I don't believe his story. We are only getting one side of that story and everyone loves the underdog. Little ol tool truck guy getting pushed around by the big, bad conglomerate.

Large companies get sued all the time. They are an easy target with deep pockets. Many of those suits have no merit, but need to be looked at. His troubles seem real, but he has exacerbated them in my opinion.

All of his troubles appear to have come about during the switchover to Stanley ownership. Lots of guys had some trouble during that time, but most made it through just fine with a little planning etc.

I read all of Global72's post and I agree with his assessment. If the guy had spent as much time working his route as he did fighting with MAC, he might have done better.

I work for a large corporation in a very visible position. I am in front of media, customers, company execs (both mine and others) all the time. I am very cognizant that what I say and do is under a microscope all the time and can result in serious repercussions if I screw up. So I can see things from the perspective of the big guy.

I am in research mode right now. It is a very big decision and I want to do it right, if I do it at all. I don't have a pile of money to fall back on (bummer!!), but everything in life worth doing is a risk.

Thanks for all the opinions and info!

Mike

 

[35mastr]

I was not going to get involved on this. But I just needed to let you know some real numbers.


With Mac you must grow your busness 10% every year. Regardless of economy.

You must keep a certain percentage of your bussiness on the Mac Card

You must purchase a truck that is approved by them. Last I recall could not be more than 10 years old.

You must attend Tool Fair No matter how ****** Business has been.

Min. Inventory must be kept on the truck at all times. Last I recall was 45K.

You must be at 80% at the end of every year. Every year your quota will go up on the total avarage of all distributors.

You will need to have health benifits on your own unless your spouse has them for you family. Kaiser was 900.00 a month.

Insurance through Mac for the truck and inventory is close to 400.00 a month.

Sales tax due at the end of every quarter that number can be huge if you are real busy.

Trade account due at the end of every week if you want to stay at 10%. It was close to 10,000 some weeks.5,000 on an average week.

A certain percentage of sales must be shop equipment,Diagnostic equipment Etc.

They will tell you you will be your own boss. Your DM will send you stuff that he thinks you can sell without notice and it will be charged to your trade account without notice.

You will be sent items that you have already many stocked and expect to sell them. Just after you flooded the market 6 months before.

These are just a few items to think about before you go jumping into something that is a dying breed.

All items listed are just to keep your franchise renewd for the following year.

Been there,Done that,Good Riddons.

Pm me if you have any questions.

 

[bowtie3]

Thanks for all the input guys! I have read and re-read that one guy's story, but I take most everything in that vein with a grain of salt.

I am getting all the info on the route to review. I have also given some thought to going an independent route as well. Hard to compete with online sales.

Here in WA, there have been only a couple of dealer closures (auto that is) and none in the area that I will run.

It is a very hard decision. I am very customer oriented and think I would do well with all the guys. But you never know.

It's not that I don't believe his story. We are only getting one side of that story and everyone loves the underdog. Little ol tool truck guy getting pushed around by the big, bad conglomerate.

Large companies get sued all the time. They are an easy target with deep pockets. Many of those suits have no merit, but need to be looked at. His troubles seem real, but he has exacerbated them in my opinion.

All of his troubles appear to have come about during the switchover to Stanley ownership. Lots of guys had some trouble during that time, but most made it through just fine with a little planning etc.

I read all of Global72's post and I agree with his assessment. If the guy had spent as much time working his route as he did fighting with MAC, he might have done better.

I work for a large corporation in a very visible position. I am in front of media, customers, company execs (both mine and others) all the time. I am very cognizant that what I say and do is under a microscope all the time and can result in serious repercussions if I screw up. So I can see things from the perspective of the big guy.

I am in research mode right now. It is a very big decision and I want to do it right, if I do it at all. I don't have a pile of money to fall back on (bummer!!), but everything in life worth doing is a risk.

Thanks for all the opinions and info!

Mike

Sounds like you should know what you would be getting into. Good luck with your decision.

 

[Danglerb]

A route is available, means the last guy went belly up, yeah sweet, good opportunity.

 

[Merkava_4]

35mastr,

Did you experience any supply disruptions during your time as a MAC distributor? Were you able to get everything you sent in on order within a timely manner? Aren't you suppose to get an item delivered to you within 1 week from the time you placed the order?

 

[jay50]

A route is available, means the last guy went belly up, yeah sweet, good opportunity.

Yeah, like interviewing for a new job and found out the last two guys before you quit within 6 months.

 

[35mastr]

Back orders with them are an ongoing issue. The flyer is printed and distributed to the dealers and the consumer before the tools are avalible at times. Lots of stuff ends up being on future order. With backorder dates changing as soon as the first date nears.

The real heavy hitters order up big on real good sellers in the flyer and it will leave pretty slim pickens for new distibutors. Not to mention new guys just dont have that kind of capital to buy up big when the stuff becomes availible. So they end up missing out.

 

[Merkava_4]

I'm thinking if a guy had to make a truck lease payment along with that monthly tool insurance bill that 35mastr mentioned, there'd be know way to come out ahead with that much overhead. Then if you add a supply disruption on top of that, you might as well forget it.

 

[35mastr]

I'm thinking if a guy had to make a truck lease payment along with that monthly tool insurance bill that 35mastr mentioned, there'd be know way to come out ahead with that much overhead. Then if you add a supply disruption on top of that, you might as well forget it.

My Freightliner was 1700.00 a month. Just the truck itself.

 

[Merkava_4]

My Freightliner was 1700.00 a month. Just the truck itself.

Good Lord!!

 

[caper]

I was not going to get involved on this. But I just needed to let you know some real numbers.


With Mac you must grow your busness 10% every year. Regardless of economy.

You must keep a certain percentage of your bussiness on the Mac Card

You must purchase a truck that is approved by them. Last I recall could not be more than 10 years old.

You must attend Tool Fair No matter how ****** Business has been.

Min. Inventory must be kept on the truck at all times. Last I recall was 45K.

You must be at 80% at the end of every year. Every year your quota will go up on the total avarage of all distributors.

You will need to have health benifits on your own unless your spouse has them for you family. Kaiser was 900.00 a month.

Insurance through Mac for the truck and inventory is close to 400.00 a month.

Sales tax due at the end of every quarter that number can be huge if you are real busy.

Trade account due at the end of every week if you want to stay at 10%. It was close to 10,000 some weeks.5,000 on an average week.

A certain percentage of sales must be shop equipment,Diagnostic equipment Etc.

They will tell you you will be your own boss. Your DM will send you stuff that he thinks you can sell without notice and it will be charged to your trade account without notice.

You will be sent items that you have already many stocked and expect to sell them. Just after you flooded the market 6 months before.

These are just a few items to think about before you go jumping into something that is a dying breed.

All items listed are just to keep your franchise renewd for the following year.

Been there,Done that,Good Riddons.

Pm me if you have any questions.

Makes me wonder how our local mac guy keeps his franchise.He has zero inventory on the truck(well not zero,but can't be more than a grand or two of stuff he had when he first started 15 yrs ago that will never sell).His business never increases year to year.ANYTHING you want must be ordered and it's usually six weeks if it ever does show up.He will not come to our shop despite being asked several times.Seven techs here plus the shop would buy from him but he still won't show up.Shop pays invoices in full within a week,no long term payouts.I stopped buying from him several years ago becuase the only thing he ever had on the truck was hats and jackets.He once told me his wife had a decent job and he was happy if he took home a few hundred a week.

 

[35mastr]

You can make it in the business.But your business will need to be paid for up front. I mean the whole shabang.

If you are single it will likley not be a real issue.

But if your spouse is not a real big bread winner and you got home expenses to boot. Its going to be a real struggle in the first five years.

Plus you have no money to collect for the first month. You are just selling your *** off to get some money on the street so you can collect it next week.

Its not all that easy. Its hard work with long hours.

 

[larryv]

I was curious how these guys made a living in the times that we are in now. I noticed a lot of Distributors for sale on Craigs List.

 

[35mastr]

I was curious how these guys made a living in the times that we are in now. I noticed a lot of Distributors for sale on Craigs List.

What do you mean by Distributors fore sale?

Mac owns all the routes.

 

[35mastr]

Makes me wonder how our local mac guy keeps his franchise.He has zero inventory on the truck(well not zero,but can't be more than a grand or two of stuff he had when he first started 15 yrs ago that will never sell).His business never increases year to year.ANYTHING you want must be ordered and it's usually six weeks if it ever does show up.He will not come to our shop despite being asked several times.Seven techs here plus the shop would buy from him but he still won't show up.Shop pays invoices in full within a week,no long term payouts.I stopped buying from him several years ago becuase the only thing he ever had on the truck was hats and jackets.He once told me his wife had a decent job and he was happy if he took home a few hundred a week.

I know quite a few of those guys. They do it for the tax write off.

The wife makes good bucks and they own rental and summer property just about anywhere.

Most of the older guys have really no contract. Their contract was only just a sheeat of paper with there name on it and very few goals that they had to meet.

Contracts now are like half the telephone books.