Tool Truck Startup....

[Davefr]

go online to readoz.com look up a magazine titled Professional Distributor. It's a tool dealer magazine. There are ads for ISN and others that serve as a suppler for independent tool trucks. Perhaps you can find something there.

However, being a tool truck dealer is cash intensive. If you can't afford the start up costs, plus have a large cushion for individual tool orders and mailing warranty items back to the factory, you'll fold quickly.

Competition is fierce. Not just from other trucks, but, online retailers, ebay, etc. I mean just look at the something for nothing group that lives in these pages.

I would also watch some of those tool dealer horror stories on youtube. it's not as easy life. I would find another career. The tools don't sell themselves despite what the kool aid drinkers would have you believe.

^^^Good advise.

Selling tools isn't about the tools. Yes, you need to know your product but more important are sales, people and business management skills. If you don't have the later 3 you might want to find something different.

 

[rtole]

I have thought long and hard about this carer path. I have been offered jobs by 2 of my snap on dealers and looked at buying an established independent truck. The indy truck deal didnt go far because the guy seemed to be hiding something and would not show me numbers. This was after I talked to my banker to see if it would be possible for me to get the loan. She sent me with a certified letter saying I would be approved. I just needed to see what his p&l looked like. He flat out refused. I told him that I knew he made money on me, but I could not just take his word for it that it was a solid business. I was freinds with this guy too, but it kinda ended badly. He blew up on me for not just buying the truck! I think it was going downhill and he needed to bail. He did sell it.......but the guy disapeared after a couple months. Never to be seen again. From the research I have done its a tough gig, but it can be done. A former coworker did buy a snap on franchise, and is making great money, he even bought another truck and has a guy running it for him. He also works about 80 hours a week.....ordering, paperwork, shipping, and his garage is full of inventory. He likes it, but his kids are all grown up so he can worl those hours. He also had his house paid for and had to put that up for it too. The other snap on guy is trying to get me to come and work for him, he must be doing great as well. I dont know how this town of 80,000 supports 3 snap on trucks......but I guess. We have no mac or cornwell here. Matco is sometimes here, sometimes not. They never hang around long. The guy that was the indy dealer also was matco first, and he said he got tired of their **** of force feeding him inventory that was non moving. He was a great guy to deal with untill the truck sale ordeal. I just dont know if I have the stones to leave where I am at now, and try a new business.

 

[Skin]

With the high turn over rate for tool truck drivers, why do people support SO, Cornwell, Matco, and the like over their business practices and their treatment of their franchisees? Just a thought.

The business model may **** but that's no reason to hold it against the guy selling the tools or the tools themselves (most are made in Union run foundries/facilities).

 

[honcho]

SBA will usually not finance tool franchises, at least Snap-on.

I don't know if it has changed, but the SBA not financing Snap-On franchises was largely due to the high failure rate of those franchises and their SBA determination that the franchisees weren't really in charge of their business--Snap-On calls the shots and the franchisees don't have much flexibility to maneuver and grow their revenue stream.

A young Navy veteran bought a Snap-On franchise in my area and was renting a storage unit near one that I rent to hold inventory and park his truck. I only talked to him a couple of times but he didn't last 2 years The last time I saw his truck there were a couple of folks inspecting the vehicle and doing what appeared to be an inventory. I have no idea why he closed up shop but if you search on the web there are many unhappy former Snap-On franchisees.

Enough about Snap-On! Good luck with your endeavor.