Tool truck 5 week program?

[ianguilly]

So we just got a new Mac guy at my work place. Nice young guy shows me everything goes through the flier and even gives me a catalog. So I buy about $170 worth of stuff from him. I usually pay $20-$50 for a tool bill. He then tells me that Mac does a 5 week payment plan. I was a bit thrown off, I've never had a tool guy say that they prefer the bill paid off each month. I don't mind that and I'll pay him off quickly (I already owe SO and cornwell) and probably only use him to buy small purchases. I just don't get how you can expect someone to pay a $500 bill or so off each month. Is this a common truck thing?

 

[FOCUS.FREAK]

I've never heard of that. i have always done just cash every week. Unless this guy is NEW. Even with my Snap on and Matco guy never have done that.

Jordan

 

[WhiffySpark]

100% depends on the driver. One driver wants 10% of your original purchase price a week. He's not bad, if you're a good customer he doesn't care.

One driver wanted more than that. He got kicked out haven't seen him in a few years. Always had an attitude too

Snapon doesn't care as long as you give him something. I know people with 5-6k on their truck accounts

 

[lakebrooks10]

That's the reason I use Mac credit. Interest is there but cheaper per month to get what I need starting out on my own.

 

[warmpancakes]

snap on is a 5 week program too, if you read the older bill of sales it was printed on it,

 

[jonjon1]

My brother had 18K on snap-on account, then figured out he didn't want to be a mechanic

 

[joseph.a.owens.9]

My brother had 18K on snap-on account, then figured out he didn't want to be a mechanic

That's a lot of money to find out you didn't want to be a mechanic.

 

[Jwych]

All of my trucks will take whatever you can give and are more than willing to work with us, I normally don't carry much of a balance, and always pay when I owe so maybe they know this and don't hassle me.

 

[ianguilly]

In my 4 years of buying from tool trucks ive never missed a payment. I pay what I can and usually keep some kind of balance with my tool guy. I just dont see how someone could ever buy big items that dont qualify for credit amounts, and pay off that quick.

 

[hayhauler71]

Most likely your new guy had to take a loan to buy and fill his truck and that is why short payment time. Give him a year to clear some debt then payments will be less strict. This was told to me by my new cornwell dealer

 

[justanengineer]

I just don't get how you can expect someone to pay a $500 bill or so off each month. Is this a common truck thing?

$500 might be too much for a hobbyist, but not for a pro who needs to keep up with technology and replace consumables, thats only $6k/year. JME, but I was getting $300/month employer tool allowance 15 years ago.

That being said, I can understand him not wanting to cover a few hundred $$$ for every mechanic/wannabe, but good customers and/or large purchases I'd bet he'll extend the payments.

 

[Fedwrench]

The five week plan is the foundation all tool trucks were built on. A new dealer is taught the plan in dealer training and sticking to it will probably give him a better chance at staying afloat. It's the whole earn with the tools while you pay them off. In reality many drivers are happy just to get a payment so, they stretch their neck out letting kids carry a large balance and only pay $20 a week which isn't good for the bottom line.

 

[Hiball]

Curious? I always hear these Crazy numbers in regards to truck credit, I've always assumed these numbers where from secondary lending avenues versus truck/driver credit. What does a tool dealer normally allow for a regular customer? $500? $1000?

 

[gsingh]

Curious? I always hear these Crazy numbers in regards to truck credit, I've always assumed these numbers where from secondary lending avenues versus truck/driver credit. What does a tool dealer normally allow for a regular customer? $500? $1000?

Maximum I went to was $1800 and still paid $50 or $30 per week. He didnt mind.

 

[WhiffySpark]

Curious? I always hear these Crazy numbers in regards to truck credit, I've always assumed these numbers where from secondary lending avenues versus truck/driver credit. What does a tool dealer normally allow for a regular customer? $500? $1000?

Depends on the driver. I know one guy that put a box on truck account. Plus other stuff is 11k or so. He pays 100 a week. One guy is at 5k he pays 300 a week. He offered to put a hutch on mine but I'm probably going to get a solus

 

[devoncoolman]

Curious? I always hear these Crazy numbers in regards to truck credit, I've always assumed these numbers where from secondary lending avenues versus truck/driver credit. What does a tool dealer normally allow for a regular customer? $500? $1000?

Ive had over $5000 out on truck accounts before and over $20,000 on snap-on credit before. It depends on the driver and your relationship. Also if you actually have the coin to pay.

The 5 week plan has been around forever but ive never had to stick to it because i have good relationships with my dealers and buy lots from them.

 

[JMLangford]

I was a Matco distributor from '95 to 2000 and my DM told me as a new upstart I should try for a 7 week turn.....
.....Also being new (with lots of debt...tools,truck,etc.) and the tech being new (not knowing their payment habits) I was told not to let guys get to heavy in debt at first until you established a relation.....back then $100 - $120 for an initial purchase was considered high (down payment/weekly pay plan considered)

As I got to know my customers and their buying habits, weekly turns were adjusted up or down.....

 

[Hiball]

Ive had over $5000 out on truck accounts before and over $20,000 on snap-on credit before. It depends on the driver and your relationship. Also if you actually have the coin to pay.

The 5 week plan has been around forever but ive never had to stick to it because i have good relationships with my dealers and buy lots from them.

Definitely not Picking on you, but 5k seems like a awful lot of essentially unsecured debt for a dealer to carry. I realize it's definitely a cash flow business, so there is a fine line between sales/credit, but I would think a dealer would push amounts like that towards Snap on credit etc.

Depends on the driver. I know one guy that put a box on truck account. Plus other stuff is 11k or so. He pays 100 a week. One guy is at 5k he pays 300 a week. He offered to put a hutch on mine but I'm probably going to get a solus

11k I never would have thunk it, just doesn't seem like good business to me, when you set up truck accounts do you have to pay your weekly payment personally, or do you simply allow the dealer to run a card every week automatically?

 

[devoncoolman]

Definitely not Picking on you, but 5k seems like a awful lot of essentially unsecured debt for a dealer to carry. I realize it's definitely a cash flow business, so there is a fine line between sales/credit, but I would think a dealer would push amounts like that towards Snap on credit etc.



11k I never would have thunk it, just doesn't seem like good business to me, when you set up truck accounts do you have to pay your weekly payment personally, or do you simply allow the dealer to run a card every week automatically?

For a newer dealer that has no capital you are correct its bad buisness. But my dealers are well established and they are there for the long term. In the long run their making more money buy selling me more. But i pay thats the difference im not paying $20 a week. I was still making a 10-12 week turn around on $2500 sale.

 

[Hiball]

For a newer dealer that has no capital you are correct its bad buisness. But my dealers are well established and they are there for the long term. In the long run their making more money buy selling me more. But i pay thats the difference im not paying $20 a week. I was still making a 10-12 week turn around on $2500 sale.

Makes sense, It would still make me nervous as a dealer, I guess as you get seasoned you learn to read guys, but would hate to have to eat too many bad transactions in that neighborhood. Do you see a lot of repossessions in the shop? I would think guys who are on the way out of the trade would just try and get out and sell the tools for some quick cash.

 

[amlv20]

Yea it's a Mac thing,the old dealer I had his recipts would print out with the next weeks expected payment on it.it was usually $80 but I would only pay him $35-$50 weekly.he said the same thing,it's a Mac thing and they want it printed on the reciepts.but what ever Mac can pound sand!

 

[bobbycos]

The max I ever got to with my Mac guy was $500 and paid that off super fast now my current balance is @$120

I currently am at @$500 with Snap-on with a high of $900 but I have him run my cc every week for $50

HF I don't owe a penny to

 

[JeepsAreBuilt]

Where is that damn Mac guy ? I got a ton of broken Mac **** ! He better not come to my shop.. or we would probably hang him to dry.

 

[stikman56]

Where is that damn Mac guy ? I got a ton of broken Mac **** ! He better not come to my shop.. or we would probably hang him to dry.

We don't have any tool trucks that come to our shop. Maybe after we move, that'll change, I dunno

 

[tank4114]

just this month i bought $1000 on the snapon truck gave him $200 that day and i normaly put 100 on my acount each week
and my new dealer has only been going for less then 6 months now

 

[bobbycos]

Where is that damn Mac guy ? I got a ton of broken Mac **** ! He better not come to my shop.. or we would probably hang him to dry.

Contact the 800 number

I did that first before I found my local dealer

They warranted all my broken stuff

Same with Snap-on, Matco and Cornwell and SK

 

[WhiffySpark]

Definitely not Picking on you, but 5k seems like a awful lot of essentially unsecured debt for a dealer to carry. I realize it's definitely a cash flow business, so there is a fine line between sales/credit, but I would think a dealer would push amounts like that towards Snap on credit etc.



11k I never would have thunk it, just doesn't seem like good business to me, when you set up truck accounts do you have to pay your weekly payment personally, or do you simply allow the dealer to run a card every week automatically?

He has most people's card on file. some still pay cash. I tell him how much and he runs the card on payday. It's all about cash flow. For instance my shop of 3 techs plus the owner pay around $800 a week to him. mutiply that by 50 -75shops a week times 6 trucks.. you're talking some serious cash flow

He has 6 trucks, he's been around for a long time. He used to have the biggest truck on the east coast, but it's been surpassed by the tandem axle trucks. Those tandem axles are $250k

He does have repossessions once in a while. I know some techs that are in deep will just give him all their tools if something happens.

 

[joel63]

snap on is a 5 week program too, if you read the older bill of sales it was printed on it,

I thought it was 10 weeks.

 

[Flivver250]

The five week plan is the foundation all tool trucks were built on. A new dealer is taught the plan in dealer training and sticking to it will probably give him a better chance at staying afloat. It's the whole earn with the tools while you pay them off. In reality many drivers are happy just to get a payment so, they stretch their neck out letting kids carry a large balance and only pay $20 a week which isn't good for the bottom line.

This is correct. It gives them a chance to get to know which mechanics are reliable debt payers also. New drivers do not want to get in too deep with customers new to them. They get stiffed regularly.

 

[pi_guy]

The snap on system seems to use 8 weeks as the time frame.
But enforcement is dependent on the driver.
My driver writes very little snap on credit, he out lays for tool boxes for regulars and sets an agreeable payment schedule.
In May my balance will jump to 2600, as he will charge me for the modis and low amp probe that I have had for two months. But he will let my balance go as high as I want. As I am very diligent about working it down. & I regularly give him a spread sheet of what I want next.

 

[stikman56]

Seems a little low on time for the price of some of their tools. I worked with guys who had $900.00 a month in tool bills, each and every month,so maybe they weren't buying as much as I thought they were. I had no idea how long they'd string it out, as I've always paid cash for anything I bought off the trucks.

 

[MattPersman]

The five week thing is a Mac thing for sure they want 25% down for the initial purchase too..he told me his money was due to Mac in 30 days so that way he would at least get it back in that time frame doing the 5 week turn. Once money started flowing better in the long run he could extend it out to regulars more. He is new, although the last guy jumped ship cause too many dead beats not paying enough weekly.

 

[Dust Devil]

I thought this thread was going to be about dealing with tool truck addiction.......