What would be the best mobile tool franchise?

	What would be the best mobile tool franchise? I'm thinking about going into business for myself. I'm a mechanic and own my own shop but thinking of selling it and starting a mobile tool franchise. I know what my tool guys tell me but want the unbiased story. Asked By: Phya - 2/10/2008

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Wow, where do I start... I've had my Mac Tool franchise for just over 5 years. It started off doing very well but has been on a steady decline and preparing to make this my final year to get out from under with a clean slate. I don’t know what you’re local tool guys are telling you but look at their history. How long have you had a Mac Man, Snappy, Cornwell, or Matco guy or gal? The average tenure for a Mac distributor is three years. Most will fail in their first year, the remainder in their second year. If you can make it past three years, you’re breaking the record. Mac has a tool school that teaches you the basics but is not really in tune with today’s industry. There is a 16 week mentor program that is nothing more than a pass of fail grace period. Of the 28 classmates in my tool school class, over half failed the first year and the remainder the second. I’m the only sole survivor of my graduating class. Similar Mac Men in my territory have experienced the same statistics. Mac is consistant in keeping up with their "Here Today, Gone Tomorrow" image. Even their District Managers have a high turnover and are more focused, and paid, by their recruitment, not your long term existence. I’ve had three District Managers in five years and hear stories that make me worry about how long Mac will remain in business. Be prepared to spend 14-16 hours per day on the road, restocking the truck, researching parts, and keeping your finances in order. That is really important because if you get put on credit hold at Mac, it’s a downward spiral to bankruptcy from there. It's a thankless job that will also take up your weekends and you'll get more complaints, returns (that they buy off eBay) and late night calls over silly stuff. Most mechanics will whine about the Made in China, India, Pakistan, Taiwan labels found on the majority of the Mac products today. Yet they have no problems paying high dollar for iPods, cell phones, and video games made from these same countries. The bottom line, there has been a steady decline in the mobile tool industry over the past ten years as newer techs are coming out with a better education, more knowledgeable on internet purchasing and have a better reality of their finances. They see truck accounts as a long term leash; prefer to barter their prices and willing to spend their weekends taking their broken tools to Sears or Lowes for replacements while browsing the latest and greatest on their own time. Some of my larger dealerships are cracking down on their employee’s time on the trucks limiting them only to before and after hours. Many prefer to actually eat lunch, not shop - making it tougher to reach them. I also have two GM dealerships that just entered a corporate agreement with Proto to outfit their shop with tools and tool boxes. Foamed and etched, the techs take before and after inventory and anything missing they can purchase on the company’s agreement price which has all of our trucks just driving by. Any specialty tools needed are provided by the dealership. Apparently this was brought on by insurance liability issues with tool guys waking through their shops, inferior tools in the hands of mechanics which could cause injury, (Techs buying from Harbor Freight), customers who have accidents because of improper repairs due to incorrect tools…etc. I also know Snap-On is about to do the same with the local Ford dealership which will fall under their industrial program cutting the local Snappy off at the knees. It’s a trend of the times brought on by insurance liabilities, and saving costs. So to answer your question, I’d look very hard and long and research every nook and cranny before I’d commit. Also look at your time off, how valuable is it and lastly, how much you’re currently making. The pay keeps you going and there are no medical or dental benefits with Mac, if your truck breaks down, that’s time off the streets and more money out of your pocket to get you running and honestly, Mac is not really there to help. If you do go forward, Don't...Do Not...Never finance your truck though Mac's finance program. That in itself will put you under. I think that was why I lasted so long, because I had some funds set aside and I financed through my local credit union. Frankly, I’m looking forward to returning to an 8-5 job that has my time and weekends built in for me. Answered By: MacManBill - 2/10/2008

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I have to agree with Macmanbill. I've been around for about the same time and found that most of my day and weekends is all about the tools. I eat, breath, and sleep Mac Tools and hardly have time for my family. I know I provide excellent service to my customers who are always concerned about my well being. I've taken the bulk of the business away from my competition but see the same decline in the industry.

I get up about 5 and on the road by 6 to catch a few dealerships before they open. I usually roll back to my home about 7pm and spend the next two or three hours cleaning and restocking my truck. I'm considered a "Gold Distributor" but that comes at an incredible cost of time and stress. Saturday's and Sundays are usually spent taking a weeks worth of boxes and trash to the dump, labeling broke tools to send back to Mac, cleaning the truck and doing routine maintenance. My oldest son is now 5 and wants’ to ride with me all day - "so I can spend time with my Daddy." I think that says more than enough that there are more important things in life than selling tools.

The tool truck business is both sales and collections. It's all about putting money on the streets to collect your income, hoping the techs can keep up their end of the bargain. In the end, it's not a huge money maker dispite the mark up we charge and the ever rising price of gas and other expenses.

I too plan to sell my route after this year and look for something that pays the bills, has steady hours and having insurance would be nice.

I will say that Mac has been so-so to me. I've been without a district manager for over 2 years and seen two other mac men come and go in nearby routes. The folks at Mac pretty much leave me alone as long as I make my payments. It's a tough business and I too am the only survivor of a class of 21. I would agree, over half of my class was bankrupt or gave up in the first year. The rest hung on for the ride and finally gave in. This business is not for everyone.

Bill is absolutely right, if you need a truck, don't finance though the company Mac uses. They're a rip off! I too used my local bank.

The internet is also taking a big chunk of business and I have to admit, Lowes with the Kobalt brand has some pretty good stuff at great prices. Craftsman have been around for a long time and even some of the Stanley tools are just as tough as what I carry. The new guys are not as interested in service and frankly, I can't blame them. They're on to the truck accounts and don't want to be tied down to long term payments.

I'm somewhat surprised to hear that Bill has a Ford dealership that is outfitting their mechanics with tools. One of my GM shops is also going to do the same which will take a huge chunk of my business away. A Ford dealership outside of my route is also going with Snap-On and they're able to purchase the tool boxes and tools at a fraction of what Snappy charges off his truck. The local Snappy is very unhappy because he loses his client to the Industrial Rep. The techs can then buy replacement Snap-On tools using the dealerships employee discount.

It's definitely a changing time and I too fear the demise of the tool man just like there was once someone who delivered your milk, a paperboy who dropped the paper off at your door step and doctors who would make house calls.

As for you, it all depends on your life style and where you are located. Mac tools has an intranet forum and I note that some of them have been around a lot longer but they also have a very local route. But on the most part, I think only one in every 10 are successful. Mac likes to toss statistics around about how many distributors they keep adding every year but it's usually less than the number that keep leaving Mac.

I'd ask serious questions if considering any tool distributor. It's an expensive undertaking and the risks are much higher than any recruiter will admit.

Answered By: Tiny Tool Tim - 2/10/2008

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