| Author | Message | ||
     Ratyson |
Looking at the "tools" thread got me thinking. Are any of you badwebbers Snap-On franchise owners? If so, what's it like? How did you get started? Has it been profitable for you? etc. etc. etc. | ||
| Bhillberg |
I have some knowledge on this, I started to type it out but it was turning into a novel. I was also disclosing some things that I am sure Snap On dealers would rather keep out of general public knowledge. If you want you can PM me and I will give you what I know. | ||
| Teeps |
Bhillberg Posted on Thursday, January 08, 2009 - I was also disclosing some things that I am sure Snap On dealers would rather keep out of general public knowledge. Where/how did you come by this sensitive information? Who would benefit or suffer if you dished here? | ||
| Bhillberg |
I was about to become a Snap On dealer 3 separate times. I had a good dealer who trusted me and disclosed the workings of the business to me. I guess some could benefit from it by becoming a dealer. I don't guess it would really hurt to tell you guys, not like it is top secret info or anything. Like I said I was about to become a Snap On dealer 3 times. The first time I was a month away from boot camp. The second I was a few months away from Iraq. The third I decided against it until I got out of the reserves due to the fact another deployment or even the scheduled training would kill my business/income. The things I know about this come from having a good relationship with my dealer and from a friend who actually started his own route. Some of the #'s may be off a little due to memory and some of this was 5-6 years ago. There are a few different ways you can get into owning a franchise that I know of (could be more or less ways now) 1) post up about 35k and have a net worth of around 50k or better. With this way you would start with a "starter" truck. Small with not a huge array of tools. As you grow, you buy more tools and possibly a bigger truck. Snap On will not put you on a route or area with less than a certain number of potential customers (auto dealers, garages, airports, etc.) By doing this they pretty much put the ball in your court to sell or not sell the tools. 2) Get "sponsored" by an existing salesman. In this situation you would pretty much pay a portion of your profits to the sponsor until you reach a pre-determined amount or time period. He is basically your co-signer with Snap On 3) Go to their sales school and shadow drivers for an amount of time (I want to say about a year or so) and then they will set you up with a route. This way you are basically working an apprenticeship. Now once you have started your route you buy tools from Snap On. Of course at a price lower than you would sell them. If for whatever reason (retirement) you don't sell the tool, you simply sell it back to corporate for the price you paid. Kinda neat when you consider the amount of tools they have. (I was told by a dealer that at his cost he had around 500k in tools on his truck) They sell them to you and tell you a price you "should" sell them for. There is also a bottom dollar price you can't sell them below. That is where the wiggle room comes in with dealing with the dealers. They cannot sell below the set price (which is still a profit to them) because then they could ruin business for other dealers. So basically, and this is NOT actual figures, they buy a ratchet for $50 from corporate. Corporate tells them to sell it for $100 but accept no less than $70 etc. All in all you can make what I consider a good living (70-100+k a year) doing this. The thing is and I loosely quote my dealer "You can make 2k a week if you work 40hrs, but if you work 50 hrs you can make 2.5k, so you work 80 hrs and make 5k a week." What he meant is that you can easily fall into "if I work a few more hours" and live on that truck. The guy I deal/dealt with was always one of the top regional earners, worked a TON of hours. He also branched out and sold die cast models, pocket knives, flashlights, just about anything short of fire arms that a guy would want to buy. All of that was on his own, not from Snap On. Some of the other dangers you run into is that he stated he had 300k "on the street" in revolving accounts that had not been paid to him. I am a mechanic myself and realize that some of these people are not the most trustworthy people in the world. Some never pay. You are pretty much screwed at that point. You can track them down, repo tools, put them in a data base that alerts the police anytime their SSN is used (drivers license renewal, child support, etc.) But if you spend too much time tracking them down then you miss out on sales. The other one, and a very real threat is armed robbery. You have a ton of cash on you, keep a routine schedule, and are in a pretty confined space. My dealer has been held up more than once, and he DOES carry a firearm. What can you do though if someone barges in with a 12 gauge in your face? Nothing but give him all that money you were going to use to cash 100 mechanics paychecks with. If you are interested though, and I sort of still am, look into it. They have career links and such on the web and have been in the top 100, I think top 10 employers on the fortune 500 for eternity. | ||
| Rah7777777 |
When I worked for mercedes, we had a tool guy get killed in his truck by some punk trying to snag a dime! It took 4 years before that "brand" would allow someone back into his old route. (which was a money making route, since my dealer alone had 75-80 techs and the area was NOT a slum!) but on a better note just before I told that dealer to kiss my ass another tech left and started selling for Cornwell. he actually comes by my city shop every now and then and says things are the best they have been in a LONG while. You get to make your own hours. If you like selling, it might not be too bad. I just can't stand to walk into a dealer though! not anymore. | ||
| Ratyson |
Bryan, Thanks man! That was more info than I expected from one person! LOL Very useful, and informative. I live in Huntsville, AL. I cannot remember the last time I saw a Snap-on truck around here. And the crime rate is pretty low. I'll have to put some good hard thought into it, and bounce it off the wife before even considering. And the up-front money would definitely be a long way off. Thanks again! That was one of the most informative responses I have ever received on anything! | ||
| Bhillberg |
As far as the up front money goes, it really isn't that much when you consider a small business loan. Now like I said that info is a few years old so it may have gone up. May have gone down too if they are hurting for dealers. I would suggest finding a dealer locally. Find him and ask him what business is like. A lot of times they know if one of their fellow dealers are about to retire, and if they are doing well they may sponsor you. I know that seems kinda weird but really it is more like a private loan and the nice thing is they take a %, so if you don't make that much that week you don't have the same payment you would to a bank. The crime isn't that high where I am from either, just takes one though. I am not saying that to scare you just I would definitely recommend keeping it mind and probably arming yourself. The plus side to it all is with the tools being kind of like a retirement fund, and making good money (if you work the hours my dealer did you are talking closer to 200k) you shouldn't have to work long. My dealer told me that if you hit it hard there is no reason to work a day past 20 years. | ||
| Froggy |
Something about a snap on truck driving around just seems 19th century to me. I can understand something like you call and make an appointment and the truck shows up, like a giant catalogue, but I know I personally would prefer to order online. Yea it would be cool if I was interested in some $5k tool boxes I could phone a guy up and have him bring a few over to see what matches my tire machine the best. | ||
| Bhillberg |
Well the idea behind it is that the truck goes to a shop which has more than one mechanic. So the truck gets a few guys on it, and someone says "hey I have this ratchet and love it" then his buddy buys it etc. It would be a nightmare to show up at different times for different people. Where I used to work we had 80 mechanics. He showed up a few different times in a week to make it so everybody would see him at least once a week. Besides, you are going out on a truck, full of tools while at work! Also, if you make a living with your tools you usually want to look it over, feel it and see if you really like it before you buy it. I have even tried tools for a week or so to see if I really wanted to buy it from him. Sure you could just return it if you ordered it off the internet but that would be a hassle | ||
| New12r |
Something about a snap on truck driving around just seems 19th century to me. I can understand something like you call and make an appointment and the truck shows up, like a giant catalogue, but I know I personally would prefer to order online. Yea it would be cool if I was interested in some $5k tool boxes I could phone a guy up and have him bring a few over to see what matches my tire machine the best. It is not just boxes, every socket you thought you might need is on there, screwdrivers, creepers, it is a rolling catalog with a built in warranty dept. Without a tool truck I would be lost... Every monday Snap on comes and clears up my broken tools, If I need a tool for a job the "good" ones keep most everything you need in stock. Techs are mostly impulse buyers anyway so ordering online wont work. You get that brand new just released tool in your hands and never give it back. What Bill said too. (Message edited by new12r on January 12, 2009) | ||
| Bombardier |
Is there a limit to what they will replace? If bonehead X decides to use a tool in a manner not condusive to good wrenching skills will Snap-On still give him his money back or replace it? | ||
| New12r |
Well the warranty is for tools not broken in an abusive manner. My dealer will replace anything for me without question, but I have also dropped a ton of money his way. They can and will deny a claim if they choose, sometimes they get denied after the tool has been mailed in to snap on and the dealer will have to eat the warranty. |
