The Mac Tools Story

[ClineWrench]

So I stumbled upon the Mac tools story, as told by the actual distributors point of view and all I can say is HO LEE SHEET!

Talk about bringing back some bad memories of dealing with the Mac guy back in the day. Now I completely understand and worse yet...I feel bad for the guy.

Sadly, I don't think much has changed at Mac tools (Stanley).

http://www.unhappyfranchisee.com/mac-tools-bitter-history/

 

[Askme42]

Gonn link the story or something?

 

[wafrederick]

My father remembers the split in 1979 when Mac Allied Tools Corperation and Mac Tools Inc. went their seperate ways.He started working at a Chrysler dealership at the time when the split happened.

 

[NorCalWrenchin]

Gonn link the story or something?

 

[justme-]

 

[Jarhead0408]

Ahh come-on man! Can't leave us hanging like that!

 

[Fedwrench]

I'm purely guessing but, I think this may be what he's talking about

it resurfaces every so often here when someone asks about being a mobile tool distributor.

 

[Big Gus]

I'm purely guessing but, I think this may be what he's talking about

it resurfaces every so often here when someone asks about being a mobile tool distributor.

Sounds like the guy didn't do his homework before jumping in head first.

 

[ClineWrench]

http://www.unhappyfranchisee.com/mac-tools-bitter-history/

Sorry about that guys. Was watching a movie and didn't realize I forgot post the link!

Link above.

 

[SASORacing]

Cliffs?

I like Mac tools....

 

[sumner52000]

Is it still that bad for the dealers or have they got the problems fixed?

 

[Zeroek]

I haven't seen a Mac distributor in a while. I actually like some of Mac's stuff. Their USA sockets I like. And their wrenches but it's hard to buy some of the Taiwan stuff that I can get off tooltopia for cheaper. Same with Matco.

 

[Spudland_Dave]

Is it still that bad for the dealers or have they got the problems fixed?

Cant honestly answer if its better or not but...my normal guy is always very happy & pleasant about being a MAC Guy...also a new one in town which I havent met yet..

IMHO as with ANY Franchise, if you look around you'll find people who think its Corporate's fault....

 

[carterbeauford]

I've never seen a tool truck story that didn't read like a soap opera. they're all full of politics. I couldn't run fast enough from that sort of business model.

 

[woody 73]

I remember the split very well back in the late 70's and all the **** coming from Mac about the horrible tactics they used on their employees. Once the borg took over that was the end for a great company.

Funny about the recent post about what is he best company to work for as this story and others are still in the back of my mind.

 

[e30bradley]

Yep, Mac *****. I will never buy from them. My SO dealer takes good care of me, so I am happy to give him my hard earned money.

 

[David W]

I'm sure some or maybe all the products are great but I would avoid buying new Mac's just because of the dealer instability issues.
What good is the product or so called lifetime warranty if it's always on back order? Even at yard sales or CL, I would not pay the same premium for Mac that I would Snap On.

 

[Fcvapor05]

I know a ton of people love Mac tools, think they are the best truck brand, etc etc. I have 2 total Mac tools in my box- a pair of terminal crimpers where I'm about 90% sure are rebranded Klein or something and have served me well, and a razor blade scraper, which is pretty impossible to screw up. The rest of the Mac stuff that I used to own has slowly been sold off over the last few years.

I was soured on Mac about 10 years ago when I needed a leakdown tester. Snap-On truck didn't have one, but the Mac guy had one on his truck and I needed it that day. I bought the Mac one, which was an actual Mac tool. Went to use it and none of the spark plug thread adapters were long enough to engage the spark plug thread and seat against the sealing bore to make the tool actually usable. And this was for a GM LSX engine- not something rare or exotic. Went to return the tool to the driver the next week, since it couldn't function. Just so happened that the regional manager was riding along with the driver that day. The driver seemed totally cool about the return, but the manager guy wouldn't let him take my return- not even for truck credit, on an unused tool. The manager went as far as walking through the shop to the exact engine I had needed to test, to try and 'show me how I was misusing the tool'. When he finally figure out I was right, his response was 'Well, our adapters are the same dimensions as everyone else's, you're just going to have to deal with it'. When I explained that I had borrowed a Matco tester from a buddy to do the job, and it functioned perfectly, he scoffed and had nothing to say.

Thankfully the driver was a good guy- he made it right the next week when the manager wasn't around. Gave my a full refund. But, after seeing how the driver was managed, and hearing from someone higher up the food chain that seemed to be completely clueless, not to mention a tool that's needed in every race engine shop in the world not being designed well enough to be compatible with one of the most common engines in the US for racers, I lost all interest in spending money with them.

I would have loved to have dealt with that driver- he was excellent. Unfortunately for him, the product he was trying to push was substandard. I have seen nothing to indicate Mac has gotten any better in the last 10 years, so I'll take my money elsewhere.

 

[colin39]

My uk mac guy was telling me that they now want to put a 10k lean on his house in case he decides to do the off, hes been with mac some 10 years and has a loyal following of good customers, if he doesnt buy into this they will stop his credit.

 

[David W]

My uk mac guy was telling me that they now want to put a 10k lean on his house in case he decides to do the off, hes been with mac some 10 years and has a loyal following of good customers, if he doesnt buy into this they will stop his credit.

In case he decides to do the off? As In quit?

 

[Hpozzuoli]

Eventually Mac and Matco will terminate their mobile franchises. Snap On has become a giant and will be the only truck around within 10yrs. The big question is how will Mac and Matco get their products to market. My guess is via their own website sales and thru auto parts stores. The time will come when Matco and Mac can be bought next to Carlyle and Duralast. Most Mac and Matco is already being sold under other names at these stores currently.

I have read thru the snap on franchise agreement a few times. I can't imagine Mac and Matco are even close to being as safe guarded for the prospective franchisee. It's a shame because there is room in the sand box for everyone.

 

[jacob_coulter]

Eventually Mac and Matco will terminate their mobile franchises. Snap On has become a giant and will be the only truck around within 10yrs. The big question is how will Mac and Matco get their products to market. My guess is via their own website sales and thru auto parts stores. The time will come when Matco and Mac can be bought next to Carlyle and Duralast. Most Mac and Matco is already being sold under other names at these stores currently.

I have read thru the snap on franchise agreement a few times. I can't imagine Mac and Matco are even close to being as safe guarded for the prospective franchisee. It's a shame because there is room in the sand box for everyone.

I think is probably what's going to happen, both Mac and Matco sort of shot themselves in the foot because they were basically just slapping their name on anything and putting a huge markup on it. People got wise.

They still make some quality items, but by in large I don't think it's worth the premium.

I personally wouldn't want anything to do with the mobile tool business with the internet being where so many people now shop. It will probably always be around but it's not going to be a big growth industry.

 

[ClineWrench]

I was kinda thinking the same thing. Who would want to be a Mac tool dealer when they now how to compete against corporate who sells,direct to the end user.

 

[colin39]

In case he decides to do the off? As In quit?

Yea sorry poor english

 

[wafrederick]

There is a rumor spreading around my area about the Snap On dealers.The rumor is Snap On wants to replace them with younger guys.One dealer has 30 years as a dealer.One dealer down the road in my area has been forced out already,he is not too happy with Snap On has done to him after 21 years.Told them **** you doing a repo,the customer has been through a lot medical problem wise and owes $5,000.00.Told the customer make the payments instead.Snap On has had to pay ex dealers in the past,franchise fraud.Snap On owns half of OTC and they have been spending money buying more companies.Plus 11 dealers killing themselves because they owe money to Snap On.

 

[David W]

There is a rumor spreading around my area about the Snap On dealers.The rumor is Snap On wants to replace them with younger guys.One dealer has 30 years as a dealer.One dealer down the road in my area has been forced out already,he is not too happy with Snap On has done to him after 21 years.Told them **** you doing a repo,the customer has been through a lot medical problem wise and owes $5,000.00.Told the customer make the payments instead.Snap On has had to pay ex dealers in the past,franchise fraud.Snap On owns half of OTC and they have been spending money buying more companies.Plus 11 dealers killing themselves because they owe money to Snap On.

Does it really make a difference how old the dealers really are? The commission a young dealer makes is the same as one 20+ years is it not?

 

[AndrewV]

Love my Mac guy. Love there hardline tools. Want more of them.
But 90% of my stuff is S-O. So if i buy new(mainly there deals) of stuff i need, it'll be Mac.

But my Mac guy is put on minimum order limits now, and my S-O guy is in the same boat. There making money, so no clue why the restrictions on them all the sudden.

Rarely buy Matco, im off on fridays, and my Indy guy fills that gap.

 

[justme-]

Eventually Mac and Matco will terminate their mobile franchises. Snap On has become a giant and will be the only truck around within 10yrs. The big question is how will Mac and Matco get their products to market. My guess is via their own website sales and thru auto parts stores. The time will come when Matco and Mac can be bought next to Carlyle and Duralast. Most Mac and Matco is already being sold under other names at these stores currently.

I have read thru the snap on franchise agreement a few times. I can't imagine Mac and Matco are even close to being as safe guarded for the prospective franchisee. It's a shame because there is room in the sand box for everyone.

there was a time when those brands were sold through parts houses already - and it did well for them. Back in the 60's - early70's my old man was a full time mechanic with 2 gas/service stations (had 3 different ones but only ran 2 at one time). He used to buy tools he needed when he needed them from who had them... as in when he needed a puller and happened to be getting parts from such-and-such parts house he bought the puller they had, be it SK, Mac, Bonney...etc. I've been handed down tools from all the major brands, and he used and broke tools from them all. I welcome Major US brands being available in parts stores providing the quality doesn't tank to get them there.
I'd love to be able to buy SK tools locally, but the only dealer I have for 200 miles is Grainger, which is overpriced and only sells to verified companies. Might as well be a tool truck that doesn't come to me.

My personal opinion is tool trucks are overpriced in general, Snap-on more than the rest, but if they have customers willing to spend that much (and they surely do), and they have happy employees in the US, good for them and have at it.
I preferred Craftsman growing up for the simple reason that when something broke I knew exactly where to get it replaced without mailing anything or chasing down a truck. Now I'm SOL for local sources to walk in and walk out with a US tool.

 

[wafrederick]

Does it really make a difference how old the dealers really are? The commission a young dealer makes is the same as one 20+ years is it not?

Snap On wants to get rid of the dealers with experiance.The Snap On dealer that has a route in the Big Rapids,Mi is a ****.I talked to a shop owner from this area 2 years ago,friends with my father and this dealer stops at his shop.Took care of a problem himself,it was with an employee's ratchet that was slipping.This dealer refused to fix it 3 times,said there is nothing wrong with it.This shop owner witnessed it slip 5 times giving this employee busted knuckles twice.Finally walked in the tool truck and threw the ratchet on the counter with an ultimatuim: fix the ratchet or he was done stopping at.Fixed the ratchet and no more problems with this.This same shop has a Mac dealer stop at this shop,better service than Snap On.

 

[1950mercury]

There is a rumor spreading around my area about the Snap On dealers.The rumor is Snap On wants to replace them with younger guys.One dealer has 30 years as a dealer.One dealer down the road in my area has been forced out already,he is not too happy with Snap On has done to him after 21 years.Told them **** you doing a repo,the customer has been through a lot medical problem wise and owes $5,000.00.Told the customer make the payments instead.Snap On has had to pay ex dealers in the past,franchise fraud.Snap On owns half of OTC and they have been spending money buying more companies.Plus 11 dealers killing themselves because they owe money to Snap On.

Do you believe everything you hear? That makes no sense..

 

[WWIIjeep]

Snap On owns half of OTC and they have been spending money buying more companies.

Half of that is true. Snap-On has been spending money buying more companies. Their most recent acquisition was Pro-Cut International, Inc., this past May, for approximately $42 million in cash.

Snap-On does not, however, own half of OTC.

OTC, formerly owned by SPX Corporation, has been wholly-owned by The Bosch Group (Robert Bosch GmbH and subsidiary companies) since 2012.

 

[Skin]

Does it really make a difference how old the dealers really are? The commission a young dealer makes is the same as one 20+ years is it not?

Yes and no. They make money off the finance. It costs around 200-250k for a new guy to fire up a Snap-On truck and no that isn't a typo. You cant get small business loan assistance either because Snap-On controls their dealers so thoroughly they don't see it as an independent business. Point being dealer turn-over rate for them is actually a good thing for their profits since it renews a fairly substantial amount of loan interest.


Its pretty much the same for all the truck brands. Calling MAC the devil and trying to make Snap-On into the good guys is a joke. Matco and Cornwell seem to be slightly less stressful to start up for but the business models across all four brands are primarily the same. Its sad but you're a faceless profit generator to any of them.

I was kinda thinking the same thing. Who would want to be a Mac tool dealer when they now how to compete against corporate who sells,direct to the end user.

Because that's unique to MAC? You do realize Snap-On sells direct and has their Williams, Sioux, CDI, and Bahco brands also right?

I have read thru the snap on franchise agreement a few times. I can't imagine Mac and Matco are even close to being as safe guarded for the prospective franchisee.

Then you and I have read entirely different FDDs. Snap-On is very strict, if not the most strict, when it comes to how and where their franchises operate.

 

[Toolhorder]

I stopped buying from Mac when I read they shut down the Sabina factory and put a bunch of American factory workers out of a job. Some of them had been there 15-20 years making Mac tools. The article said they would outsource the jobs to a factory overseas.
They also flooded their sales ads and trucks with Taiwan made tools as well. The screwdrivers went eastern european.
I then started going to Matco (and Snap-on I was always using) I liked Matco's screwdriver's since they were made by Witte. I bought quite a bit of the US made stuff they made. I bought quite a bit of 88 ratchets too. Then I bought a 3/8 and 1/2 impact and a 1/4 drill driver and a 1/4 cordless ratchet. Everything worked good except that 3/8 gun. It was a POS with no power. I had changed shops somewhere in between and the new driver was usually cool but didn't want to deal with the problem gun. Finally after showing and giving a copy of the original receipt he sent it in for repair. After about 4-6 weeks he had no ETA on the gun return and I was getting a little annoyed since I was making payments for the tool and paying finance charges on a tool I didn't have to make the money to pay the payments.
I called up Matco directly a little after that and was told same thing no ETA. I asked the driver for a loaner 3/8 gun and was denied.
Another bit of time goes by and I just complained to Matco and asked for a refund to my credit account and I would just buy replacement from another tool truck. It got pretty crappy after that. The dealer rep got called from corp. and was mad I never called him (like I have his number?!?) then the driver came into the shop and started bitching so I told him to figure out how much I owed him and I paid my account off in cash right then and there and told him I'm not buying anything anymore. Then he "cut off" our shop and the rest of the techs by not stopping anymore which made me a lot of friends..
I finally emailed the CEO of Matco and told him what was going on and they replaced it. Only they sent it to the old tool guy instead of me and he repacked it into another box and reshipped it making me wait another week.
That whole experience turned me off almost completely from Matco. I think total I waited almost 3 months for that whole 3/8 gun incident. Way more aggravation then it was worth. Since got a Snappy 14V gun and I'm running an 18V battery on it and couldn't be happier.

 

[SASORacing]

That's a good story, ***** for you.

 

[softailgarage]

Well, this throws a monkey wrench into everything I've had planned. I thought I had done my homework regarding buying into the tool truck biz, but after reading the stories on unhappyfranchisee.com I'm glad I didn't jump right in. It's strange though, all the tool guys I know seem to be happy, weather it's Snap On, Matco or Cornwell. Only 1 guy, the independent german tool guy told me the companies were in the business of selling franchises not tools, I didn't believe him. Looks like I owe him a german beer.

 

[espyking83]

I'd like to get into an SK truck.

 

[BJ42LX]

They make money off the finance. It costs around 200-250k for a new guy to fire up a Snap-On truck and no that isn't a typo.

Good point on the financing.

A quick Google turns up a 2011 copy of the doc here:

http://www.unhappyfranchisee.com/wp-content/uploads/2012/01/SnapOnFDD2011.pdf

Estimated total investment range (p. 21): $150,614-$289,080

Minimum Down Payment with Franchise Finance Loan: $25,000

There are some exceptions to that.

Browse the doc - some good reading there.

 

[skife]

Snap On wants to get rid of the dealers with experiance.The Snap On dealer that has a route in the Big Rapids,Mi is a ****.I talked to a shop owner from this area 2 years ago,friends with my father and this dealer stops at his shop.Took care of a problem himself,it was with an employee's ratchet that was slipping.This dealer refused to fix it 3 times,said there is nothing wrong with it.This shop owner witnessed it slip 5 times giving this employee busted knuckles twice.Finally walked in the tool truck and threw the ratchet on the counter with an ultimatuim: fix the ratchet or he was done stopping at.Fixed the ratchet and no more problems with this.This same shop has a Mac dealer stop at this shop,better service than Snap On.

who's the S-O dealer in big rapids?
We're supposed to have a dealer here in kent city but neither of the shops can get one to come by (my boss owns 20-30k in snap on tools)

our matco guy is awesome though, he gets my money right now.

 

[wafrederick]

Do you believe everything you hear? That makes no sense..

That dealer forced out,he is now collecting money from customers that owe money to him and not selling anything.Tim Farrell was the dealer that shot himself in the head in my area,was not well liked.My brother Scott dealt with him and said he was good to him.It is getting harder to get OTC stuff now through the tool trucks thanks to Snap On,My Matco tool dealer has been going through this.

 

[Zeroek]

We just got a Cornwell dealer. And out of all the shops around almost no one buys from the Matco guy. I kinda wonder how long it will be until the only truck driving around will be Snap on. I actually love the Cornwell truck. Seems like his prices are better and the hardline stuff is actually US made. But his specialty stuff is rebranded too.