Tool Franchise help

[metalhead212121]

He said at these two times of the year he buys "several" boxes and this is the time of the year he can "wheel and deal" on them.

I often wonder where these guys store these tool boxes once they buy them... If you buy several at one time.. you're gonna need to store them somewhere. One snap on guy who I dealt with said he had a warehouse where he stored his inventory that wasnt on the truck. He said he split the cost with a couple other snap on dealers... AGAIN.. its ANOTHER expense you have to think about before you get into the business.

Hate to rain on the OP's idea of being a tool salesman.... I just would hate to see someone get in over their head and question where their head was when they signed on the dotted line.

One thing that I dont think was mentioned was taking over somebodys route and getting out of the tool truck business. To the best of my knowledge when you take over somebodys route you have to deal with guys that already owe money to the LAST tool guy. You're gonna have guys that owe $1,000's of $$$ and now its YOUR nightmare to collect. From what I understand when you leave the business you DONT get to put your two weeks notice in and leave. Someone has to pick up where you left off.. buy your inventory or sent to back to snap on. Im sure YOU'LL be on the hook for shipping charges...

At one point I wanted to be a dealer... after talking to my dealer I quickly decided it wasnt for me. One dealer I knew got in way over his head $$$$ wise.. his wife left him.. he couldnt keep the business afloat.. his personal life was in disarray.. he was addicited to drugs. Sadly he hung himself.

 

[ls1dreams]

My dad was a snap-on dealer. I can probably comment on a few things I saw happen:

1. Make sure you want to be in SALES and not just play with tools. He was not a salesman at all, but a huge tool geek and got lazy over time.

2. Expect tons of competition. Other truck dealers will try to steal customers from your route. You'll compete with other companies (matco, mac, etc).

3. Maybe 10-20% of your customers will do most of your business, while the other 80% will eat up all your time just warrantying tools. It's part of the job and the customers need it, but some of these people just never buy anything.

4. He had a lot of problem with "skips" - people that didn't qualify for credit but were taken on anyway. I'm not sure how snap-on handles this today, but basically it seemed dealers would take on the risk of someone not paying if they felt the customer was a good gamble.

5. The discounts aren't as good as you might be hoping for. I think for many of the nice products his discount was only around 30-35%. (Much bigger for others, though).

6. Self run business means health insurance, 401k, etc, are on you or your spouse to figure out.

 

[crewchief888]

Even though I love tools, I think it's a dying business model that's only going to get tougher. The internet has really changed the way we buy and sell goods. A couple of key strokes on my smart phone and I can have a product on my doorstep in the same day.

Also, the distribution channel can't be controlled like it used to, people have CraigsList, Ebay, etc. where they can sell those products, both new and used.

since i havent seen a tool truck around our shop for over 4 years, i dont know what to say. truthully, the last 15 years all the dealers have been hit and miss.

when we had some younger guys working in the shop, the dealers were pretty consistant, at least they'd show up every week. when the youngun's got fired r laid off, the dealers disappeared, and a couple new dealers showed up.
they didnt last long,
crappy attitudes, little to no inventory, bad mouthing the competition, including telling me i was a fool for buying tools and boxes of another brand.
the 2nd week he showed up, he was "escorted" to the door.

 

[aaronld]

I have never seen our Snap On guy since starting at my new place of employment. The guys in the shop told me it has been over six months since he's walk though the doors there. We do have a Matco and STS dealers. I did see a MAC Tools truck in West Plains, Missouri about a month ago. I had not seen one in real life in 10 years.

 

[Heavy Metal Doctor]

One thing that I dont think was mentioned was taking over somebodys route and getting out of the tool truck business. To the best of my knowledge when you take over somebodys route you have to deal with guys that already owe money to the LAST tool guy. You're gonna have guys that owe $1,000's of $$$ and now its YOUR nightmare to collect.

I was one of "those guys" when my last dealer left and the new guy started out. He looked at the truck account balance that got transferred to him and his eyebrows shot up to the ceiling. I told him I'd write him a check for xxxx and he gave me the "rules" spiel about paying it off in so many weeks - I should pay more. The regional manager guy was with him and I saw the 2 of them eyeing eachother like "what do we do with this guy?" He then asked what I had been paying the previous guy and I told him "every dang week - I'm rarely NOT at the shop and I don't hide when the tool truck comes through the gate."...after a little time he has gotten comfortable with the fact that I may run the bill up above the limit they'd like for the weekly payment I give 'em, but I always get it well under control before I take more stuff off the truck.

 

[Gregg33]

Around here (Niagara Peninsula) it seems like a tough gig. There are no MAC (although in the Toronto area I see them often) or Cornwell. Of the 3 or 4 SO trucks in the region, 1 is a corporate truck (read no1 can make a go of it) and the remainder are all owned by 1 guy, and he has drivers working for him. There is a Matco truck and also 2 independent trucks for the entire region. The indy trucks are affiliated but separately owned. The one indy truck guy I've been to his house before. He seems to be doing quite well. Nice new house in a high end rural setting, big heated shop etc., so that seems to be way to go.

I worked in the auto parts business for several years so I was inside almost all the local shops. Excluding the dealerships I'd say only about 20% of the mechanics have nice tools and tool boxes. The majority are cheap Mastercraft and other off-shore brands or for the older techs Beach boxes and SO tools from the 70's and 80's. In other words you will get very little business from either of those groups, although the old guys will need warranties. This area is pretty depressed (industries like GM have left or cut back), if where you are in NJ is struggling economically as well it will be very tough sledding. If you area is more prosperous (like Toronto is in ON) you will have a fighting chance. Best of luck.

 

[rbro7752]

I wish we had more truck options in north east arkansas. Only thing we got is SO and our truck guy isnt so great.

 

[TDLMOMOWERS]

As a mechanic, this is what I expect from a tool vendor.
1. American made tools.
2. Lifetime warranty, with no hassles.
3. Being able to get replacements, quick.
4. Vendor access. Being able to get a hold of the vendor, easily.
5. Price. Fair deal.
6. No BS.

 

[CWP1616L]

Of all the trucks that I've ran into over the years they've all had inventory problems except one longtime SO dealer that's been at it for 30 years or more. His inventory consists of about 7 or 8 of everything. He has the biggest route in the state because when he first started out way back when, the routes were considerably larger than they are now. At one time, SO tried to break up his route and give part of it to some other guys. He told SO that's not what's on the contract and he got a lawyer. In the end, he was able to keep his large route. This guy has so much money that he was able to go to a Las Vegas dealer convention and pay cash for a brand new truck. He said he needed a bigger truck for all his inventory.

 

[scott917]

I often wonder where these guys store these tool boxes once they buy them... If you buy several at one time.. you're gonna need to store them somewhere. One snap on guy who I dealt with said he had a warehouse where he stored his inventory that wasnt on the truck. He said he split the cost with a couple other snap on dealers... AGAIN.. its ANOTHER expense you have to think about before you get into the business.

I have not asked, because i did not want to pry. But i do get the feeling that my SO guy has a warehouse where he(and maybe others) park their trucks and keep their "extra inventory". I have seen the crates that the SO tool boxes come in, they look to be bigger than something I could keep in my garage.

As the above posted indicated you may get in a warehouse with other dealers, this will save you money and hopefully keep your truck from being a target in your own driveway. It may also give you peace of mind if/when you go on vacation to have your truck locked away inside. A SO truck in a residential drive way would be a huge target for thieves!

So yes while an extra expense, it might also offer peace of mind.

 

[CWP1616L]

A SO truck in a residential drive way would be a huge target for thieves!

If you've ever seen one of those houses, you'd know they park their truck in the back yard on a concrete pad. They have big gates to drive their truck through.

 

[Racer451]

Again, thanks guys! Can anyone explain how the independent guys work?

 

[Brownsfan]

Look into Cornwell. My Cornwell guy says they are easy to deal with because they are privately owned. He actually complains that he has more customers than he can handle because of the lack of dealers in my area. They don't limit the amount of stops in your territory. If they are in your area and want to buy tools you are free to sell to them. He is doing very well and only about 9 months in. He does have a independent shop heavy territory. He says those guys buy a lot more than his new car dealer customers.

 

[FLRover]

Independent is no different than starting a B&M tool store except on wheels. You get vendor accounts with several major tool companies (S&K, GearWrench, Ingersoll Rand, Fluke) and stock a used tool van with these tools. Instead of having franchise restrictions and other corporate BS you are completely at your own will to be successful. Get a sub-prime lending company in for doing financing on big purchases (no different than Snap On's finance department) and you float smaller purchases on a truck account that either you back or have a separate line of credit to use (think how car dealerships sell cars just your selling wrenches).

From what I have seen over my time in shops is the tool companies make far more selling franchises than tools.

Here is what the MAJORITY of techs care about:
Easy purchase terms
Fast, reliable service
Good tools at fair prices (I have never seen a tech care about COO, that's a GJ thing)
Easy warranty exchanges

 

[devilsnight]

As a mechanic, this is what I expect from a tool vendor.
1. American made tools.
2. Lifetime warranty, with no hassles.
3. Being able to get replacements, quick.
4. Vendor access. Being able to get a hold of the vendor, easily.
5. Price. Fair deal.
6. No BS.

I could maybe apply 3 of these to all the tool trucks i've ever seen. wishful thinking though!

 

[metalhead212121]

update??