Snap-on Tool Box Truck

[AgencyLife]

Anyone know of South Florida events?

 

[Skyline]

>XJ31--That's a smoking deal. Good for you! Somebody mentioned that they were working around the clock to keep up with supply...I say BS.

Perhaps they need to keep that particular factory running 3 shifts just to keep the efficiency high. Many factories are like that; it's not so easy to shut them down and start them up; better to just keep them running 24/7.

And I'm SURE this economy is eating into toolbox sales in a big way. Why else would Snap-on errode the value of their list prices of their boxes??? If they could get list price, believe me, they would. Clearly this is an effort to keep the factory humming in slow times. But there is a serious downside to this. It creates ill-will amongst customers who didn't get these kind of deals.

Imagine if you recently purchased a new KRL and paid quite a bit more. Then you see your co-worker bragging about this brand new box he got of the Special Tool Box Truck for a small fraction of that price. It would be enough to get a lot of customers to start buying MAC.

Seems to me, a stupid strategy on Snap-on's part. It's one thing to shave prices a bit to make people feel like they got a great deal...but 60% off list is ridiculous. That's like going-out-of-business price levels; and there's certainly no sign that's happening to Snap-on. You'd think they were trying to sell leftover Saabs, (BTW, you can find brand new 9.3s for under $13k around here).

 

[noahsarcade]

Been reading a lot of different posts on here. Looks like there is all sorts of mixed information floating around this forum. Maybe I can provide some insight.

First off great deal! A large part of this deal is the customer took advantage of some great incentives that Snap On is now offering. Another thing is did anyone actually read his quote before posting comments? I mean lets break this thing down.

A large part of the discount was the customers trade in. Believe it or not there is a large market for used boxes. As most of us know Snap On carries a pretty large resale value. It appears the customer got the actual value of his trade in. I am also willing to bet the free workstation was part of Snap On's monthly tool storage promotion. Anyone ever read those hot tool flyers the snap on guy passes around? About once every few months they offer a box that comes with a free workstation, cart or a SS top. I know Matco has offered boxes with free lockers or end cabinets. Another part of the deal was an EC rebate. It was for $1000. Snap On Credit runs different promotions every few months. I know there latest promotion is instant rebates. For example right now if you finance at least 2500 you get a 250 instant rebate. 5000=500, 7500=750, 10,000=1000, and 12,500=1,250. However Snap On Credit is offering the DOUBLER rebate on certain master series boxes, Epiqs, Verdicts and Versus's. The next thing is the Rock and Roll Cab is something that is a once maybe twice a year even for a franchise. Its not even offered in every Snap On region yet. These are once in a life time deals where a corporate snap on rep can offer deals to the franchisee who then in turn can offer to the customer at amazing dealers. Hence the customer loyalty discount. Which makes me lead to this...

Does anyone ever think of the big picture? Think of the business aspect of these deals? The Snap On Rock and Roll Reps are able to process these deals for a couple of different reasons. One they inform the customer of EVERY possible incentive available. Depending on your dealer you as the customer might not know what the box of the month is or what sort of incentives Snap On Credit is offering when you finance. Second think of the production aspect. The box of the month or promotional boxes that Snap On offers are mass produced. These are boxes the franchisee or the franchisees region will order months in advance. When Snap On is able to forecast on box sales they can be mass produced more efficiently. Meaning they can then offer a promotion discount to the dealer in which they can offer to the customer. The Rock N Roll Reps do the same thing. All of the boxes they sell are on order. Meaning the sale didnt exist until they made it. Since this is a box that is already sold it cuts on distribution costs. Box is sent directly to customer. Snap On is carrying warehousing on this box or extra distribution from sending it from there box plant to one of there distribution centers where is may sit for X amount of time before being purchased by a Snap On dealer.

Another thing that I don't understand is when people complain about the mark up of these items. I know plenty of people in the tool business and their mark up isn't anything different from any other retail outlet. 30-33% and surprisingly a little less on diagnostics. You need to remember Snap On Tools makes money by selling Snap On Tools to the dealer. The dealer then makes money on selling tools to you! No different than ANY other franchise business model. I think people often forget that the dealer isn't Snap On Inc. Its his own franchise.

Snap On Credit 101. Ever have a Snap On contract? Read the fine print. You might be surprised on what you read. Snap On credit offers a 9.9 rate (really good credit applicants), a standard rate (19.8 for most approved applicants), and a 22.9-27.9 (depending on state for either credit start applicants which are guys with no credit history or applicants with less than perfect credit) There are also a few different special rates for shop owners and a 0 percent rate on low $$$ purchases but I wont get into those rates since they rarely apply to most standard customers. Snap On interest rate is based on a SIMPLE interest rate. NOT A COMPOUND DAILY like a credit card. Compound daily means every day interest is applied. A simple interest in the case of Snap On contracts is applied monthly however they ask that you pay weekly, hence your weekly payment amount. So lets say your payment is 36.95 a week and you pay 40 a week. You are paying ahead by 3.05 a week. Making 4 payments a month lowering your principal which in return lowers the total amount in financing you are paying. If you will notice if you ever got a SO contract or quote you will see the amount it says in TOTAL financing is always less than the stated rate. Because by law SOC has to write a contract in a monthly terms however making a weekly payment rate changes the actual cost of the contract. This is also a secured loan which is pretty typical of a simple interest rate. As long as you pay your contract on time you will NEVER pay anything close to the stated interest rate. If you were to pay the bare minimum each week on a standard 19.8 contract you would be paying closer to a 11% rate. SOC doesn't charge any penalty if you pay the contract off early. I know in some cases they offer it interest free the first 90 days.

I know this is all information you can take with a grain of salt. After all this is an internet forum. I know a lot of behind the scenes information on how the tool truck business models work. Just drives me crazy to see so much misinformation posted.

My suggestion is to do your homework. Don't take my word for it. IF you are looking into financing tool purchases or making a big purchase like a new tool box ask questions. Not just with your Snap On dealer but with any of them. Then do your homework. Snap On Credit is owned by Snap On. Based out of the good ol USA. Give them a call. Ask them how the interest rate works. How long has your dealer been around. Is is truck well stocked? Is he pretty consistent? If so I am willing to bet he is running a good business. I am also willing to bet he is a pretty honest guy. So just be upfront and ask him. Why is this deal so good?

If you already purchased a box and you feel slighted let your dealer know. If you are looking to buy a box keep this information in mind. Maybe there will be a deal coming up that he can keep you posted on?

Whew... glad I got that out of my system. Now trade that KRL in for an EPIQ!

 

[jeep450]

Been reading a lot of different posts on here. Looks like there is all sorts of mixed information floating around this forum. Maybe I can provide some insight.

First off great deal! A large part of this deal is the customer took advantage of some great incentives that Snap On is now offering. Another thing is did anyone actually read his quote before posting comments? I mean lets break this thing down.

A large part of the discount was the customers trade in. Believe it or not there is a large market for used boxes. As most of us know Snap On carries a pretty large resale value. It appears the customer got the actual value of his trade in. I am also willing to bet the free workstation was part of Snap On's monthly tool storage promotion. Anyone ever read those hot tool flyers the snap on guy passes around? About once every few months they offer a box that comes with a free workstation, cart or a SS top. I know Matco has offered boxes with free lockers or end cabinets. Another part of the deal was an EC rebate. It was for $1000. Snap On Credit runs different promotions every few months. I know there latest promotion is instant rebates. For example right now if you finance at least 2500 you get a 250 instant rebate. 5000=500, 7500=750, 10,000=1000, and 12,500=1,250. However Snap On Credit is offering the DOUBLER rebate on certain master series boxes, Epiqs, Verdicts and Versus's. The next thing is the Rock and Roll Cab is something that is a once maybe twice a year even for a franchise. Its not even offered in every Snap On region yet. These are once in a life time deals where a corporate snap on rep can offer deals to the franchisee who then in turn can offer to the customer at amazing dealers. Hence the customer loyalty discount. Which makes me lead to this...

Does anyone ever think of the big picture? Think of the business aspect of these deals? The Snap On Rock and Roll Reps are able to process these deals for a couple of different reasons. One they inform the customer of EVERY possible incentive available. Depending on your dealer you as the customer might not know what the box of the month is or what sort of incentives Snap On Credit is offering when you finance. Second think of the production aspect. The box of the month or promotional boxes that Snap On offers are mass produced. These are boxes the franchisee or the franchisees region will order months in advance. When Snap On is able to forecast on box sales they can be mass produced more efficiently. Meaning they can then offer a promotion discount to the dealer in which they can offer to the customer. The Rock N Roll Reps do the same thing. All of the boxes they sell are on order. Meaning the sale didnt exist until they made it. Since this is a box that is already sold it cuts on distribution costs. Box is sent directly to customer. Snap On is carrying warehousing on this box or extra distribution from sending it from there box plant to one of there distribution centers where is may sit for X amount of time before being purchased by a Snap On dealer.

Another thing that I don't understand is when people complain about the mark up of these items. I know plenty of people in the tool business and their mark up isn't anything different from any other retail outlet. 30-33% and surprisingly a little less on diagnostics. You need to remember Snap On Tools makes money by selling Snap On Tools to the dealer. The dealer then makes money on selling tools to you! No different than ANY other franchise business model. I think people often forget that the dealer isn't Snap On Inc. Its his own franchise.

Snap On Credit 101. Ever have a Snap On contract? Read the fine print. You might be surprised on what you read. Snap On credit offers a 9.9 rate (really good credit applicants), a standard rate (19.8 for most approved applicants), and a 22.9-27.9 (depending on state for either credit start applicants which are guys with no credit history or applicants with less than perfect credit) There are also a few different special rates for shop owners and a 0 percent rate on low $$$ purchases but I wont get into those rates since they rarely apply to most standard customers. Snap On interest rate is based on a SIMPLE interest rate. NOT A COMPOUND DAILY like a credit card. Compound daily means every day interest is applied. A simple interest in the case of Snap On contracts is applied monthly however they ask that you pay weekly, hence your weekly payment amount. So lets say your payment is 36.95 a week and you pay 40 a week. You are paying ahead by 3.05 a week. Making 4 payments a month lowering your principal which in return lowers the total amount in financing you are paying. If you will notice if you ever got a SO contract or quote you will see the amount it says in TOTAL financing is always less than the stated rate. Because by law SOC has to write a contract in a monthly terms however making a weekly payment rate changes the actual cost of the contract. This is also a secured loan which is pretty typical of a simple interest rate. As long as you pay your contract on time you will NEVER pay anything close to the stated interest rate. If you were to pay the bare minimum each week on a standard 19.8 contract you would be paying closer to a 11% rate. SOC doesn't charge any penalty if you pay the contract off early. I know in some cases they offer it interest free the first 90 days.

I know this is all information you can take with a grain of salt. After all this is an internet forum. I know a lot of behind the scenes information on how the tool truck business models work. Just drives me crazy to see so much misinformation posted.

My suggestion is to do your homework. Don't take my word for it. IF you are looking into financing tool purchases or making a big purchase like a new tool box ask questions. Not just with your Snap On dealer but with any of them. Then do your homework. Snap On Credit is owned by Snap On. Based out of the good ol USA. Give them a call. Ask them how the interest rate works. How long has your dealer been around. Is is truck well stocked? Is he pretty consistent? If so I am willing to bet he is running a good business. I am also willing to bet he is a pretty honest guy. So just be upfront and ask him. Why is this deal so good?

If you already purchased a box and you feel slighted let your dealer know. If you are looking to buy a box keep this information in mind. Maybe there will be a deal coming up that he can keep you posted on?

Whew... glad I got that out of my system. Now trade that KRL in for an EPIQ!

Wow, hell of a first post. How long have you worked for them?

 

[cundifc]

Wow, hell of a first post. How long have you worked for them?

You took the words out of my mouth.

 

[DFW-LSX]

^^^^Not even close to bored enough to read all that. But in other news, where was the last Rock n Roll Cab Express sighted?

 

[Rocket1]

I've seen a Snap On truck twice in the past few weeks that has graphics of boxes all over it. Before now I've never seen one done like this and after reading this post is it possible that's what these trucks are doing? All the other Snap On trucks are the normal with with the red logo

 

[VolvoMan]

one more point... their cost of goods sold... or in other words.... the hard costs associated with the manufacture of product is 53.1%

so roughly to manufacture anything costs them a little over half the price... then add to it all the other operating expenses account for 33.4%, i.e. general, selling & admin, r&d etc


so when they offer the votech discount... it's a damn good discount... pretty much their direct product cost

Couple of simple Econ 101 things to remember here, those figures I assume are from the SnapOn Tools Inc financial report. This means those percentage figures refer only to what snap on receives from their dealers and other direct income, such as from the industrial and equipment divisions. So, that 53% cost is not 53% of the list price you see in your price list, rather 53% of what they receive from the dealer for it, then he gets his margin too, as he is an independent franchisee.

In some countries where it is legal, the area managers are also self employed, so their part of the sales is removed before the 53% calculation too. When you factor in various special offers, the various discounts to dealers etc, the 53% turns into around 25-30% of the list you see. don't forget, the dealer doesn't necessarily get the best discount because they are by no means the largest volume purchasers of snap on products (at least on an individual purchaser basis. any way you look at it, Snap on's gross margin is 47%, that's pretty good for any manufacturer.

Certain products will have a higher mark up to allow wiggle room for discounting. very few people will ever pay list for a box, but most will pay list for what goes into it. What they're doing is ramping up production and pushing out product at discounts to improve the bottom line through economies of scale. if they make 1000 boxes a week normally, then ramp up to 3000 a week, everything gets cheaper to make. Raw materials get cheaper as they're buying in more bulk, labour becomes more efficient and productive per dollar cost as whilst they're paying overtime rates, the fixed costs of employment remain the same and therefore become a smaller percentage of the labor cost, which outweighs the extra hourly pay. there's also a lot less time lost to tooling changes for production runs, as each run will be many times more units per run.

On top of this, they are no longer paying to light, heat and secure an empty quiet factory at night, so the energy cost per unit produced drops accordingly. Don't be fooled either by the lead times, there's likely plenty of units being pumped out of the factory or already made in storage, they're consolidating loads to ensure transport costs are at their most efficient, with every truck leaving full and able to take a more direct route to drop its cargo.

Put it all together and I'd estimate the "sale" is actually boosting profits per sale on boxes by around 10% over the normal dealer sales. Plus the extra volume they're doing and it's a great way to make some money.

Anything extra they get from the finance is just cream for the cake.

But the absolute bottom line simple fact is that we all seem to forget too often that the contents of the box cost a hell of a lot more than the box. I'd put my own kit at around 10:1 ratio of cost of tools to box. Deny it all you like, the bigger the box, the more likely you are to buy stuff to fill it.

At the end of the day, the deals they are doing have one further benefit for Snap On that is worth more than everything else put together, and that is brand loyalty. those deals are going to make you feel real good about buying Snap on every time you look at that shiny new tool palace you just got for 60+% off. That kind of customer loyalty is truly priceless and ensures their continued brand dominance in their market.

Having said all this, I absolutely don't blame Snap on for doing it, the better their bottom line, the better for all of us to ensure they never disappear and keep that warranty going. So all in all, sounds like a win win to me.

Oh, and those trade-ins - a lot of those will be great deals for new mechanics and technicians just starting out on their tool addictions, what better way to start that brand loyalty off.

 

[SpiderGearsMan]

I ignored that truck 2 weeks ago

 

[Badger 13]

So, how would a back yard mechanic go about finding this Rock&Roll Express truck in SE New Mexico ??? Is there anyway to contact one ?

Thanks

 

[DFW-LSX]

So, how would a back yard mechanic go about finding this Rock&Roll Express truck in SE New Mexico ??? Is there anyway to contact one ?

Thanks

Go to snapon.com and put in your info for a dealer to contact you and when they call ask them when it will be around.

 

[Badger 13]

Thank you sir, I will give that a try.

 

[4x4gearhead]

I got my KRL1023 through a similar deal, though you got a little better deal with the free hutch, I paid what you are for just the box with conventional lined top. Nice score.

 

[Snapped-off]

The best my dealer is willing to do for me on a new box is ~20% off list. No thanks I'm ready to buy a new box, but I don't think I'll be seeing any good deals.

 

[chris142]

i asked my snap on dealer and he called them to my shop for following week, unfortunately the deal they gave me was nowhere near what OP got

x2. Same thing happened to me. I inquired about a box and a week later the SO toolbox truck rolls up. They were not dealing thats for sure.

Offered pretty much list price with a $500 rebate. No thx.

 

[johnnysmoker]

Hi all,

I joined the journal just to make this post.

There are some very good deals if your dealer is will to find them.

With a little effort on my SO dealers part he found me this deal. Here is what I bought on 8/28/12 with no trade in: KRL7023CPC, retail price $9460.00, less $4032.00 discount, less $1,000.00 EC Instant Rebate = my purchase price of $4,428.00 plus sales tax. There might be better deals to be had, but I got exactly what I wanted and am verry happy with the price.

In order to get the $1,000.00 rebate ($500.00 plus double rebate because this is a 3 bank box) I had to finance through Snap On Credit. I received 9.9 % interest with 90 days same as cash. I will pay the box in full by the end of the 90 days so I will pay no interest.

Good luck to you all.

 

[pacsguy]

Hi all,

I joined the journal just to make this post.

There are some very good deals if your dealer is will to find them.

With a little effort on my SO dealers part he found me this deal. Here is what I bought on 8/28/12 with no trade in: KRL7023CPC, retail price $9460.00, less $4032.00 discount, less $1,000.00 EC Instant Rebate = my purchase price of $4,428.00 plus sales tax. There might be better deals to be had, but I got exactly what I wanted and am verry happy with the price.

In order to get the $1,000.00 rebate ($500.00 plus double rebate because this is a 3 bank box) I had to finance through Snap On Credit. I received 9.9 % interest with 90 days same as cash. I will pay the box in full by the end of the 90 days so I will pay no interest.

Good luck to you all.

Why can't I find a dealer like this?

 

[tank4114]

i know this is a huge bump but are people still getting these kinder crazy cheap deals these days

 

[bry@n]

I'm pretty cool with my dealer and He offered me an epic 68" for 7 grand. Not sure if that's good or not.

 

[Pipe]

Ya they are still all about making the sale while you are on the truck. That includes using whatever current incentives and a valuable trade in price. In April he said 25 percent off a side locker or 10k for my red Krl1001 and top chest with the incentives towards an epiq.

Sent from my 0PJA2 using Tapatalk

 

[scooterGA]

Rock and Roll truck was at our shop two weeks ago. Everyone in the shop traded for new boxes. I personally traded what we call the Taj Mahal for an epic top bottom and locker set in Black with Titanium trim. The trade in and incentives are what made the deal for me. I got 10K in trade and another 4500 in loyalty discounts and gift cards etc so I did the deal, figure I am buying the last box I will own so I went ahead and did the deal. R&R guy told me he has authority to do things truck guys can't and that is why the deals. Will take about a month to get he said due to the color combo I ordered. Will post when it arrives

 

[Eurotech67]

I picked up a new 68 inch epic around Xmas time for 5200, got to keep my old classic 78 and sell it to one of the youngsters in the shop. I feel like my SO guy takes care of me pretty well.