Used tool stores.

[phil du jour]

So, in my never-ending adventures of the mind (where I constantly am thinking about things to do) and in the interest of someday being a business owner (which has been a dream of mine for a while) I have recently come across the idea of used tool stores.

The problems I can think of that would make this type of operation difficult would be supply and buying low/selling low. It might turn out that such a store would have very large inventory at the beginning of the month, while struggling near the end, depending on how things work out. I feel that anyone running such a business would need to keep on the constant lookout for garage sales, estate auctions, storage auctions, etc. for deals.

Especially where I live, in small-town Michigan full of people like my father-in-law who are constantly looking for deals... I feel like it would work out with the right attitude and customer service.

Opinions? Thoughts?

 

[warmpancakes]

Buddy has one in Howell mi he's pretty busy

 

[southalabama]

I would think finding inventory would be a problem.

 

[Bigblue&Goldie]

I personally don't know how they survive. The problem I see with them is that you need to be selling professional grade contractor's specialty tools to make any kind of money. There is a used tool store not to far from me that baffles me on how they stay in business. Literally, everything they sell is at "new" prices and they don't even bother to clean things up before they put it on the shelf. With places like Sears and Harbor Freight selling stuff so cheap, most people aren't going to want to buy used when they can buy new (even though it might be ****) for the same money. I think the shop near me stays afloat by doing accessories for work trucks and vans as their inventory didn't appear to be moving anytime soon.

 

[Nick Danger]

The used-tool guy here goes to a lot of auctions and estate sales. Are there enough of those in your area to support a retail shop?

 

[Matt_C]

The other big problem is eBay - it's today's go-to place for used anything...

 

[Wi Fire 10]

My local resale shop, that had a large tool section, just closed down last week. They couldn't make enough profit consistently to pay the rent and put food on the table. The inventory came in waves, lots of tools one day, then nothing new for weeks.

 

[jakemac]

The used tool shops that I've been to get their inventory from Estate sales, Flea Markets, Craigs List, Private Sales, Walk-ins, and Auctions. Two of them are only open 4 days from 1pm to 5pm. The rest of the time they're looking for inventory. If you want to run a used tool store, expect to work 7 days a week for long hours. You'll either be selling tools, searching for tools, or trying to buy tools at a price that will allow you to sell at reasonable prices. Don't expect to be able to live off of it as a part time thing.

 

[G_P]

There used to be a great used tool shop in Cromwell CT. Small store but they always had a good inventory of used tools and surplus industrial equipment. Very competitive prices.

Not sure where they got their inventory but at times they would have literally tons of Craftsman tools on the sales floor. All of it appeared brand new. I think they were somehow buying up stuff that was returned to sears. They would often have full socket sets with one socket missing or a set of wrenches with one wrench missing.

It sucked when they went out of buisness but I bought about a dozen 500' spools of various wire for a buck each! All of their tools vanished before they had their closing sale so I think they sold the whole inventory to someone else.

 

[djb2]

I knew a guy that was approximately in the business. He acted more as a broker, with inventory (more like his private stash of tools) tightly packed in a small barn.

There must not have been enough money in it, as he drifted into being a commercial real estate appraiser. Which is roughly similar, except that you get paid for your evaluation, even if there isn't a sale.

There is a big economic problem doing a retail-space version of the business. With new tools, one display model fronts for dozens of boxed tools stacked in the back or delivered the next day. With used tools, each one is a special snowflake, unique in its condition and completeness. You pretty much have to show every one on prime shelf or floor space.

 

[BDT/NWMN]

Hanging a shingle would-could eat into any profit...( insurance, license, bookwork and taxes)
I would be more inclined to run a "front porch operation", and set up a table at a flea market a couple times a year... Craig's list and the local shopper ads will be your best friends.

Stick a toe in the water before diving in.....

 

[davethorik]

If you are retired, if you already own property that could be used as a storefront, if you just need a hobby to occupy your time, it would be ideal.

 

[bonneyman]

The used tool shops that I've been to get their inventory from Estate sales, Flea Markets, Craigs List, Private Sales, Walk-ins, and Auctions. Two of them are only open 4 days from 1pm to 5pm. The rest of the time they're looking for inventory. If you want to run a used tool store, expect to work 7 days a week for long hours. You'll either be selling tools, searching for tools, or trying to buy tools at a price that will allow you to sell at reasonable prices. Don't expect to be able to live off of it as a part time thing.

ditto
But, if you really love tools - and getting them into the hands of others like yourself - than selling used tools would be a great way to live. IMHO

 

[Jim C.]

There was a store in the Chicago area about a dozen years ago called "ReTool." The guy running the place had some good stuff in his inventory, but he wanted full retail for everything. I went in there several times, but I never bought anything because he wouldn't budge on his prices and they were just way too high for used stuff. It was almost like he didn't want to sell the tools in his store. I think he went out of business in less than a year. Since then, I've never seen another store that's fully dedicated to selling used tools.

Jim C.

 

[fiv216]

There's one in Hartville OH, about 15 minutes from me. I don't know how the man manages to stay in business, he beats garage sale prices most of the time, but I do feel like its more of hobby since you can buy, sell and trade there.

 

[Brians VWss]

There are 3 stores within a 30 mile radius from my house. Depending on what area Iam in for the day, I might hit one to see if there are any new items. It is hit or mis, as thes stores sell everthing used. Most of the items come from storage units, estate sales, etc. Tools only would be tough, unless you had new lines that brough people in to purchase. But like other people stated it would be a full time job going out and scouting fresh buys. One of the local stores is only open 4 days a week. Maybe you could rebuild/ recon tools and small equiptment to attract business.

 

[Forest Road]

We had a couple of them here in NJ. They've all basically dried up. eBay and CL are killing them.

One business I've been a bit surprised by is sharpening services. Restaurants and delis swap out knives on a biweekly and monthly basis. Homeowners have their knives done annually. Chainsaws, circular saws, large drill bits, scissors list goes on....

I'm years away from retirement. I keep thinking about starting a service here. Only downside I see is the fact that I've gotta be there grinding weekly.

 

[4x4gearhead]

We have a couple used tool stores in NH, they seem to do pretty well if you are in the right area. It seems like the ones that have the lowest prices/fastest turn over do the best. We have some that try to charge 75% of new snap on price, you see a lot of that **** sit in there for months. I am a believer in buying low and selling as low as you can without starving. When I walk into a used tool place and theyre asking crazy prices for snap on I have a hard time justifying purchases from them when they arent the ones coming where I work every week, no one there is going to give me a new ratchet kit when I bust mine. This is how I look at it anyways.

 

[sonvolt]

We had a couple of them here in NJ. They've all basically dried up. eBay and CL are killing them.

One business I've been a bit surprised by is sharpening services. Restaurants and delis swap out knives on a biweekly and monthly basis. Homeowners have their knives done annually. Chainsaws, circular saws, large drill bits, scissors list goes on....

I'm years away from retirement. I keep thinking about starting a service here. Only downside I see is the fact that I've gotta be there grinding weekly.

There was one in Emerson that is long gone and he was expensive. I just hit pawn shops when I travel for work, some hit and some miss !

 

[DenisG]

There's one in Waltham, MA and one in Worchester, MA (The Tool Shed). I used to frequently visit them when I lived in that area. The Worchester store has a website: http://used-tools.com/
They were both started by the same guy. He sell them off and moves on. Last I know, he (Al Davis) moved to Florida.

 

[sberry]

There is a retool here, don't go in it much. This would have made more sense 20 yrs ago but the new cheap tool market has hurt it, can buy new Cman so cheap its not worth the search.

I was at a flea the other day and there is a huge used tool trailer, some new but a lot of stock. Bought a few things there a year ago, didn't cash up before I went this year but you could spend endless although I would like a couple more nimber 9 side cutters, some dykes and a couple more 440,, bought a pair in great shape last year for 6.50. Most of the cutters are worn though, its a toss up there.

 

[jjjrmx5]

There is a big economic problem doing a retail-space version of the business. With new tools, one display model fronts for dozens of boxed tools stacked in the back or delivered the next day. With used tools, each one is a special snowflake, unique in its condition and completeness. You pretty much have to show every one on prime shelf or floor space.

^^^^^^^^^^^
Yep. This.

Tools are not like cell phones or even computers where everyone is constantly upgrading and the former device is very usable but has lost residual value.

Most tools are seldonm upgraded thus what used you see out there are either part of a financial needs sell-off, estate sale due to age or death, and , in the case of many power tools, heavily used and upgraded but many times worn out.

With new tools you can keep and inventory and re-order or quick ship as the customer warrants. If I;m a Pro spending big bucks, I need it now and cost is second usually.

Finding used tools in complete sets is not something I see a lot either unless you are buying a full toolbox from a liquidation or estate sale. Lots of bits and pieces out there.

Big buck used tools like welders, machine shop tools, mfg tools, etc, sure. Good money in that.

Since a LOT of mfg. has left this country, there are not thousands upon thousands of laborers looking for fairly priced assembly tools.

A brick and mortar tool store next to a GM assembly plant. Awesome idea.
But for you daily home wrencher, pro technician, plumber, HVAC guy, etc., driving cross town, not knowing the inventory (and a constantly changing inventory) makes the interwebz or Grainger look like a giant time saver. Add Craigslist in there which is a phone call, show up , buy, pick up, and done, I just don;t see it as a viable model if not selling both new and used tools.

But hey, I;ve been wrong before.

 

[sberry]

I agree, lots of work. I don't go there, drive right past the door to HD.

 

[fatfillup]

I happen to have a used tool store that I run in conjunction with my industrial pressure washer sales and service business. Many of the above stated facts are quite true.

Having enough inventory to sell for a full time store and selling enough to make a real living would be tough. You would need to sell about $5000 a week to cover overhead and take a decent paycheck home. And that would be keeping your overhead low, real low. Finding that much to sell is quite time consuming.

Ebay and CL don't bother me as far as competition. I have a large inventory and I am the go to first stop when someone needs something odd. Just sold a 2 3/4 inch proto socket to a local contractor. I have a lot of loyal customers who like to come in and shop and could easily increase that with some marketing. I don't advertise at all. If I wanted to really jump the business, all I would have to do is invite one shop a week to have lunch at my store and provide some food and they would become customers quickly. My main business prevents me from doing that now.

My plan is for this to be my retirement business and I will relocate to a busy highway a little closer to my grandkids. With good exposure, I think I will sell all I need to. Note, I will have some income from other sources, so this will be a fun business that will make money, just not big money.

My inventory is cleaned, priced and organized (well decently organized, its a never ending battle). My prices are about half of retail depending on condition, popularity and relevance.

I spend a ton of time on CL, auctionzip and some on ebay looking for product. I sell exclusively through my store for now. Ebay will become a factor at some point.

A few members here have been to my store, skfarmer, conductor, K5blazer, ranger and a few others that escape my mind at the moment.

I love going to auctions and that is where I get the majority of my inventory. Fortunately, I live near the auction capital of the country.

 

[thebeekeeper1]

The biggest problem I see is having to constantly scour for new inventory. On top of that your potential customers are at the same places buying the same things. Most tool guys are on a never ending quest for additions.

 

[fatfillup]

The biggest problem I see is having to constantly scour for new inventory. On top of that your potential customers are at the same places buying the same things.

First statement is very true. Second, not so much. I rarely see my customers at the sales I go to. It does happen, but I'm there to drop thousands and they are there to spend a hundred or so. Note, I only go to sales where I have the potential to spend at least a thousand unless it is local.

 

[thebeekeeper1]

First statement is very true. Second, not so much. I rarely see my customers at the sales I go to. It does happen, but I'm there to drop thousands and they are there to spend a hundred or so. Note, I only go to sales where I have the potential to spend at least a thousand unless it is local.

That makes sense. Thanks for the insight.

 

[PFSard]

There's one in Waltham, MA and one in Worchester, MA (The Tool Shed). I used to frequently visit them when I lived in that area. The Worchester store has a website: http://used-tools.com/
They were both started by the same guy. He sell them off and moves on. Last I know, he (Al Davis) moved to Florida.

I went to school at Bentley College (in Waltham), and lived in East Douglas and Worcester for a spell. On my next trip back east, I'd like to visit both stores. Do you happen to have the name/location of the one in Waltham?

TIA
Paul

 

[jjjrmx5]

First statement is very true. Second, not so much. I rarely see my customers at the sales I go to. It does happen, but I'm there to drop thousands and they are there to spend a hundred or so. Note, I only go to sales where I have the potential to spend at least a thousand unless it is local.

Really remdinds me of the car business. Large car dealers really care about new sales and CPO trade-ins /leases.
Smaller new car dealers love trade-ins.
Soley used car only dealers work the auctions where unwanted used car trade-ins , repo's etc. from the larger dealers are sold.

But tools do have a very focused customer, but find that source, and money can be made. No different than the 80/20 rule of Snap-On and the other tool trucks, but of course, the trucks come to the customer.

Location, location, location.

 

[Davefr]

I've been to a few used tool stores and have been underwhelmed. The problem is that the good stuff is all picked over and what remains is 99% Chinese or other generic ****.

It would be tough to consistently keep enough inventory of good stuff at competitive prices.

It seems like most of the inventory would go stale and just sit there.

The good stuff could sell quickly but it would be tough to keep getting it in at costs to ensure there's enough "meet on the bone" for the reseller.

 

[fatfillup]

Very little Chicrap in my store.

And yes, getting good inventory takes a lot of work.

 

[Hpozzuoli]

There are 2 used tool stores near me. I go to both regularly. They both have a great inventory full of truck brand tools. Some stuff is well used and some is brand new. The prices are good and negotiable. Both owners hustle to get inventory in. I understand it's hard for these small businesses to dump tons of capital in inventory, but the sacrifices made at the start are paying off for them. It's a great concept and I hope they stay around.

 

[Davefr]

Very little Chicrap in my store.

And yes, getting good inventory takes a lot of work.

I'm curious. It seems like buying could be a full time job. Do you have a separate store sales staff to maintain regular store hours while you're off buying??

 

[PFSard]

There are 2 used tool stores near me. I go to both regularly. They both have a great inventory full of truck brand tools. Some stuff is well used and some is brand new. The prices are good and negotiable. Both owners hustle to get inventory in. I understand it's hard for these small businesses to dump tons of capital in inventory, but the sacrifices made at the start are paying off for them. It's a great concept and I hope they stay around.

I have friends in Fall River, MA. Next trip back east, I'd like to visit these two stores in Rhode Island. If you could provide Store Names and Locations, I'd greatly appreciate it.

TIA
Paul

 

[phil du jour]

I'm curious. It seems like buying could be a full time job. Do you have a separate store sales staff to maintain regular store hours while you're off buying??

Id like to know this too. My father in law opened his own machine shop with a few partners a long time ago and they do very well. He has great business sense and acumen and I want to run the idea by him. He has been looking for a small 'fun' business to start in his old age as he prepares to retire from machining and I think this idea might be doable in our area.


Sent from my iPhone using Tapatalk

 

[Hpozzuoli]

The Tool Consignment Store on GAR Highway in Swansea, MA is one. East Coast Tools on York St in Pawtucket, RI is the other. They both have great stuff. East Coast has a website.

Www.Eastcoasttoolsma.com

 

[fatfillup]

I'm curious. It seems like buying could be a full time job. Do you have a separate store sales staff to maintain regular store hours while you're off buying??

****, that about made me choke The sales staff part Very legitimate question. First, as I stated, my main business is sales and service of industrial pressure washers. I am much more a shop with a showroom than a retail store, located in a small industrial park. Second, there are only 3 of us in the business. Myself, my wife and my shop guy. Shop guy doesn't wait on customers. If I am not there, which is most afternoons, she will help customers and call me if she needs help. I am here most evenings till 6 or so and many guys will stop in after work.

As far as buying tools, I try to go to only large tool auctions. Most are on Saturday. Some are in the evening and I will leave work early to go and about once a month I'll hit a weekday auction.

So yes I have coverage in the store from 8 to 4:30 M-F and then whenever else I am there.

I actually, buy, clean, price and display all the tools and sell most of them myself. In other words, I have no life but I enjoy the buying and selling parts a lot.

 

[panknuckshovel]

You would also have to deal with the people walking in looking to sell to you, even if you werent buying from the street.

 

[jakemac]

I went to school at Bentley College (in Waltham), and lived in East Douglas and Worcester for a spell. On my next trip back east, I'd like to visit both stores. Do you happen to have the name/location of the one in Waltham?

TIA
Paul

Both have the same name, but are now owned by different people. The Worcester shop is slightly bigger, and I usually have better luck there when I make the trip. The new inventory is put out on Wednesday, so getting there early and waiting in line to get in can be a bit of a circus (but a fun experience, at least once). The shelves can be sparse by Saturday.

If you're trying to fill out sets, bring a list with you. I guarantee that once you get in the door, you'll forget what you were looking for.

The Tool Shed
471 Main St
Waltham, MA 02452
(781) 647-7970
Hours:
Wed-Fri 1 pm - 5 pm
Sat 12 pm - 4 pm


The Tool Shed
578 W Boylston St
Worcester, MA 01606
(508) 853-0590
http://used-tools.com//
Hours:
Wed-Fri 1 pm - 5 pm
Thurs 1 - 7 pm
Saturday 1 pm- 5 pm

 

[skruft]

There was one in NJ years ago but it went out of business. I think part of the problem was that he had to charge too much on order to pay the rent, while there are flea markets, etc. where prices are far lower. Then you have eBay and CL.

In my area there are not even any new tool stores any more.

There are many people who sell used machinery, and others who sell antique woodworking tools to collectors by mail, though.