Ive been a tech for 27 years, seen lots of tool trucks and lots of dealers come and go, i truely believe the tool franchises and the high cost of everything is the reason tool dealers fail, and probably mostly due to dead beats racking up their bill and never paying, i own a lot of tools and the last ones i would ever give up or sell are my snap on tools!!!!!
What a lot of people don’t understand, is that the franchisee is the one that owns most of the products, they have to buy them from the company, and the. Sell them to the consumers. They have a tool bill just like the rest of us, (although theirs are much higher)
She pimps herself out social media and then expects to be treated seriously lol. There has been a big uptick on female content creators who are pretending to be mechanics or working in other trades and then dress like sluts and complain about not being respected in whatever industry/trade they are promoting on social media.
I would say shes over average but she has to sell her dignity with the tools to do it with all her thinly veiled sexual references in the videos. She has her house in background in many of her videos and it is just an average house so she definitely is not getting rich.
@pedaltheglobe419 and thus the reason she's turned to social media is to make more money because she is going for the big payday. As most tool dealers are trying to do now.
Great video CP! This is why i eased into my tool truck. I bought a couple coolers of knipex pliers, sold 100 sets of pliers. Raffled the coolers. Did the same with 50 maxxeon lights. Took that money, bought small initial inventory. Had a 7x12 trailer outfitted and for 2 years go out every other Friday while keeping my day job. Just upgraded to an MT45 old GW truck. Now i am going out every Friday. And hope to increase to Thursdays soon. Keep my job that pays the bills as long as i can. Reinvest all profit into more inventory. Now i am up to about $20,000 in inventory. Still not near the flag trucks in my area, but my overhead is low so my prices are great. And i warranty damn near anything and everything. Taking a lot longer to get there, but i am also not a couple hundred thousand in debt. And i agree the guys on the truck shooting the shit and talking bang bangs women tools and things with engines is always the best part of the day!
@@CPthetooladdict Bro you are one of the youtubers that made me want to start an independent truck on my own terms! I damn near jerk off to new tools i love the industry and the tools. I love your insight. Only regret is not listening to you about Gripedge and MTN but sometimes you got to get slapped on your own to learn LOL! Keep up the great content man you are one of the good ones.
Thank you for this informative video. It appears to me that in the future it will much financially harder for these mobile tool sales businesses to pencil out. Online competition from continually improved quality and choices from so many sources will grow. Tool Truck $$ expenses always increase, where Online sellers cost is declining and delivery improving to same day in many metropolitan areas. I will miss the tool truck option, but as an old guy I am not the target customer.
Genuinely, my snap-on rep is good he shows up gets me my tools and usually tells me the promos and bogos he’s got going on. But then randomly he doesn’t show up for 3-4 weeks I can’t get ahold of him and it’s really stupid.
Wow mine's the opposite he shows up pretty much every single week but he barely has anything on his truck he doesn't ever tell me about the deals when I get a tool catalog talking about all these deals he never has those tools in stock and then he gets them like months later when the deals no longer around
Holy crap…it seems like these trucks would be huge targets for theft. How do you even find a secure place to park one over night, or just to stop and get a bite to eat? Thieves are so prevalent now . They even break into homes during the day with residents at home. Can’t imagine even driving through someplace like Oakland, Ca. You guys are brave.
Hello CP & SUNNY: Thank you for this video sir. God I love numbers and these numbers don't add up especially during hard economic times like we are now in. Chad I really don't see where corporate is getting these numbers. It sounds like these people bailed on the Biden administration, & decided to start screwing private industry. The truck itself is over 250,000 dollars + insurance, maintenance, daily fuel bill, replacement parts, permits, & other things. CP you were smart to get rid of that white elephant cause all I see are very long hours, debt, abundance of outstanding truck account balances, broken down trucks, etc. Then we have deadbeat mechanics that don't pay then it's REPO time. I DON'T THINK SO. GOD BLESS & my love to SUNNY. TMP from N.J.
To me, I understand the generalities and partly the realities of starting a tool truck business. It will always be expensive to start a tool truck business which won't ever change in the foreseeable future. But, considering what's going on right now that we're dealing with now, it's unlikely that there's going to be a lot of people wanting to start a tool truck business right now solely because of where our economy stands right now which does have another connection to it, and that's mostly politics causing it. You can say what you want of my reasoning, but to me, it's just not ideal financially speaking to run a tool truck business right now because of what I just mentioned above. And plus, if you're going down that route, it will be harder to make money during this bad time in our economy forecast for this year. I would wait a little while until our economy is more stable again and hopefully we will have new leadership in the white house next year.
Great explanation. I like Harbor Freight, and the higher end but they have their place. Both sides of the controversy just get ridiculous sometimes and get too wrapped up in the bandwagon.
CP you are on the money I am on my 3rd Snap on dealer the first retired after a lot years on the truck he was a good man old school cash was king the next man bought his route and truck was also old school he was great I moved he finally retired no clue who has his route I went on a truck 2 years ago to get some tools warranted this dealer and his helper are great he is as old school as they come I have bought a few thing's from him he has treated me like I have been with him from day one have been on different trucks all over the country and it seem like a dealer either has it or he doesn't 👍😎👍
Tool dealers would be wise to rope techs into 3rd party financing such as SNAP so the sale is done and the dealer is not on the hook if the tech skips out.
When I was a very young mechanic, I had a old-school Mac dealer. Over a few months I noticed that his truck was getting pretty empty. Turns out he was shutting his operation down after many years of decent business. This is probably the mid 90s. He said the business was unrecognizable.
Generally any franchise is a bad idea. I have only ever seen people get wealthy on franchises with McDonalds and other types of fast food where they can scale and own many locations. The Michael Ohr football story is a good example of this where the family that adopted him owned a crapload of KFCs and Taco Bells. Paying to own a tool truck is essentially just going in debt to be a manager. I read a lawsuit awhile back where a guy is suing Snap-On as he built one of highest grossing routes in country and the district manager forced a buyback by Snap-On and gave route to his cousin. The fact that you go house money in debt and still have a corporate district manager over you tells you everything you need to know. If I loved tools enough to do this I would start an independent truck and cut out the middleman.
Good shit bro, I have an awesome snap on guy who lets me on, even though I'm not a mechanic, my buddy is and got Dave to come to my work every Tuesday and hook me up
The problem with being independent is you are basically an Amazon truck. I would have zero interest in selling gearwrench or Milwaukee as my only brand of power tools and hand tools it would honestly be the worst thing possible to have to do.
22:39 I retired in December after 52 years as a mechanic. During my career I looked at running a tool truck several times and each time came to the same conclusion that it would take 5 to 10 years recover the initial investment and only really be working long hours to creat a job that payed about the same as already made as a mechanic. I've seen Snap-on franchises build up a great route within the area they were given and then seen the company come in and take some of their stop's and make another route. Usually they only contract for 5 or ten year agreements and if the dealer is not complying with everything that they're asked to do by the district managers they don't have to renew their agreements. Alot of the guys they sign up are younger and struggling to make a descent living as a mechanic so they barrow from friends and family and think they can become a wealthy successful tool dealer. It's not very pretty when they fail.
It seems like most people starting out are at a disadvantage now since the tool companies are reducing the size of the territories and limiting the customer base. If these franchises were overall a great business, the companies wouldn't constantly be looking for new franchisees. Some people can make it work depending on the contract and location, but most are working their asses off for not much income for the amount of money they had to front and the hours worked.
Great video you probably don’t get the whole story from snap on or the dealer you probably just sift out the bs and go somewhere in the middle of both stories
Hey CP, can you go over in a bit more deal what you were talking about with isn? You just kinda glanced on it but if you could dig up some news stories or a contract or something and give some specific insights on how they push you around i would appreciate it. To my knowledge they were just a distributor and it was not much different then just buying stuff from Costco essentially so if you could go into that and really give the tea on that i would appreciate it
Snap on now a days is simply ridiculous when it comes to there battery operated devices there outrageous! You have matco wether it’s there brand or Milwaukee or even mac or dewault and both them way out preform them! And I understand when it comes to hand tools yes your going to pay more for usa made but jesus seriously how can snap on seriously market that small 1/4” ratchet set for $1,100 and think the dealers can sell that 💩! There insane! Also seriously $1,100 for there half inch drive 18v battery impact which is at the bottom of power spectrum!
Fuel, insurance, maintenance and chasing down deadbeats who owe you money.
Ive been a tech for 27 years, seen lots of tool trucks and lots of dealers come and go, i truely believe the tool franchises and the high cost of everything is the reason tool dealers fail, and probably mostly due to dead beats racking up their bill and never paying, i own a lot of tools and the last ones i would ever give up or sell are my snap on tools!!!!!
What a lot of people don’t understand, is that the franchisee is the one that owns most of the products, they have to buy them from the company, and the. Sell them to the consumers. They have a tool bill just like the rest of us, (although theirs are much higher)
I bet “Val” the snap on lady makes a killing, I mean gyatt dang🤩
That's why she's pandering on social media right? Lol
She pimps herself out social media and then expects to be treated seriously lol. There has been a big uptick on female content creators who are pretending to be mechanics or working in other trades and then dress like sluts and complain about not being respected in whatever industry/trade they are promoting on social media.
I would say shes over average but she has to sell her dignity with the tools to do it with all her thinly veiled sexual references in the videos. She has her house in background in many of her videos and it is just an average house so she definitely is not getting rich.
@pedaltheglobe419 and thus the reason she's turned to social media is to make more money because she is going for the big payday. As most tool dealers are trying to do now.
Great video CP! This is why i eased into my tool truck. I bought a couple coolers of knipex pliers, sold 100 sets of pliers. Raffled the coolers. Did the same with 50 maxxeon lights. Took that money, bought small initial inventory. Had a 7x12 trailer outfitted and for 2 years go out every other Friday while keeping my day job. Just upgraded to an MT45 old GW truck. Now i am going out every Friday. And hope to increase to Thursdays soon. Keep my job that pays the bills as long as i can. Reinvest all profit into more inventory. Now i am up to about $20,000 in inventory. Still not near the flag trucks in my area, but my overhead is low so my prices are great. And i warranty damn near anything and everything. Taking a lot longer to get there, but i am also not a couple hundred thousand in debt. And i agree the guys on the truck shooting the shit and talking bang bangs women tools and things with engines is always the best part of the day!
Absolutely low overhead is a fantastic way to keep a strong profit, man. I really enjoyed reading this. You are very wise!!
@@CPthetooladdict Bro you are one of the youtubers that made me want to start an independent truck on my own terms! I damn near jerk off to new tools i love the industry and the tools. I love your insight. Only regret is not listening to you about Gripedge and MTN but sometimes you got to get slapped on your own to learn LOL! Keep up the great content man you are one of the good ones.
Thank you for this informative video. It appears to me that in the future it will much financially harder for these mobile tool sales businesses to pencil out. Online competition from continually improved quality and choices from so many sources will grow. Tool Truck $$ expenses always increase, where Online sellers cost is declining and delivery improving to same day in many metropolitan areas. I will miss the tool truck option, but as an old guy I am not the target customer.
Very true!
Always best to remember that there is more than one side to every story. Thanks for keeping it real.
Genuinely, my snap-on rep is good he shows up gets me my tools and usually tells me the promos and bogos he’s got going on. But then randomly he doesn’t show up for 3-4 weeks I can’t get ahold of him and it’s really stupid.
Wow mine's the opposite he shows up pretty much every single week but he barely has anything on his truck he doesn't ever tell me about the deals when I get a tool catalog talking about all these deals he never has those tools in stock and then he gets them like months later when the deals no longer around
Holy crap…it seems like these trucks would be huge targets for theft. How do you even find a secure place to park one over night, or just to stop and get a bite to eat? Thieves are so prevalent now . They even break into homes during the day with residents at home. Can’t imagine even driving through someplace like Oakland, Ca. You guys are brave.
They are most guys store them in shops
Hello CP & SUNNY: Thank you for this video sir. God I love numbers and these numbers don't add up especially during hard economic times like we are now in. Chad I really don't see where corporate is getting these numbers. It sounds like these people bailed on the Biden administration, & decided to start screwing private industry. The truck itself is over 250,000 dollars + insurance, maintenance, daily fuel bill, replacement parts, permits, & other things. CP you were smart to get rid of that white elephant cause all I see are very long hours, debt, abundance of outstanding truck account balances, broken down trucks, etc. Then we have deadbeat mechanics that don't pay then it's REPO time. I DON'T THINK SO. GOD BLESS & my love to SUNNY. TMP from N.J.
Dam I'd love to check out one of those Cornwell trucks. Not any of them up this way 👎🇨🇦🔧
I imagine it will be only a matter of time until Harbor Freight tool trucks start showing up at shops....
You will never see a harbor freight tool truck ever. I will make a video and explain why you can understand it.
To me, I understand the generalities and partly the realities of starting a tool truck business. It will always be expensive to start a tool truck business which won't ever change in the foreseeable future. But, considering what's going on right now that we're dealing with now, it's unlikely that there's going to be a lot of people wanting to start a tool truck business right now solely because of where our economy stands right now which does have another connection to it, and that's mostly politics causing it.
You can say what you want of my reasoning, but to me, it's just not ideal financially speaking to run a tool truck business right now because of what I just mentioned above. And plus, if you're going down that route, it will be harder to make money during this bad time in our economy forecast for this year. I would wait a little while until our economy is more stable again and hopefully we will have new leadership in the white house next year.
Great explanation. I like Harbor Freight, and the higher end but they have their place. Both sides of the controversy just get ridiculous sometimes and get too wrapped up in the bandwagon.
When customers are deadbeats and don't pay their debts they are really an insult to your business.
CP you are on the money I am on my 3rd Snap on dealer the first retired after a lot years on the truck he was a good man old school cash was king the next man bought his route and truck was also old school he was great I moved he finally retired no clue who has his route I went on a truck 2 years ago to get some tools warranted this dealer and his helper are great he is as old school as they come I have bought a few thing's from him he has treated me like I have been with him from day one have been on different trucks all over the country and it seem like a dealer either has it or he doesn't 👍😎👍
Tool dealers would be wise to rope techs into 3rd party financing such as SNAP so the sale is done and the dealer is not on the hook if the tech skips out.
When I was a very young mechanic, I had a old-school Mac dealer. Over a few months I noticed that his truck was getting pretty empty. Turns out he was shutting his operation down after many years of decent business. This is probably the mid 90s. He said the business was unrecognizable.
Generally any franchise is a bad idea. I have only ever seen people get wealthy on franchises with McDonalds and other types of fast food where they can scale and own many locations. The Michael Ohr football story is a good example of this where the family that adopted him owned a crapload of KFCs and Taco Bells. Paying to own a tool truck is essentially just going in debt to be a manager. I read a lawsuit awhile back where a guy is suing Snap-On as he built one of highest grossing routes in country and the district manager forced a buyback by Snap-On and gave route to his cousin. The fact that you go house money in debt and still have a corporate district manager over you tells you everything you need to know. If I loved tools enough to do this I would start an independent truck and cut out the middleman.
Absolutely agree, great comment!!
like I always say, I wouldn't wish this business on my worst enemy. great video but people will never listen or believe you.
I agree with you
Very informative video brother. Thanks for sharing. Keep the content coming. Hope you have an incredible night. Much love and RESPECT
Much appreciated
Good shit bro, I have an awesome snap on guy who lets me on, even though I'm not a mechanic, my buddy is and got Dave to come to my work every Tuesday and hook me up
I’ve been all over the tool sales industry. Best off being independent.
The problem with being independent is you are basically an Amazon truck. I would have zero interest in selling gearwrench or Milwaukee as my only brand of power tools and hand tools it would honestly be the worst thing possible to have to do.
Only reason I did not get into the tool truck business is because I did not have start up money or cash flow
Ya its alot
Great video on how the tool truck franchises work CP!
Thanks 👍
Interesting information..always good listening to you..
Much appreciated
22:39 I retired in December after 52 years as a mechanic. During my career I looked at running a tool truck several times and each time came to the same conclusion that it would take 5 to 10 years recover the initial investment and only really be working long hours to creat a job that payed about the same as already made as a mechanic. I've seen Snap-on franchises build up a great route within the area they were given and then seen the company come in and take some of their stop's and make another route. Usually they only contract for 5 or ten year agreements and if the dealer is not complying with everything that they're asked to do by the district managers they don't have to renew their agreements. Alot of the guys they sign up are younger and struggling to make a descent living as a mechanic so they barrow from friends and family and think they can become a wealthy successful tool dealer. It's not very pretty when they fail.
All very accurate and very true statements . I totally agree it's a tough business and good on the people who make it work!
I enjoyed this. I was concerned you would bring in your buddy the bear. Thanks for keeping trivia out.
You bet
Very good and well researched. You talk from experience
I appreciate that!
It seems like most people starting out are at a disadvantage now since the tool companies are reducing the size of the territories and limiting the customer base. If these franchises were overall a great business, the companies wouldn't constantly be looking for new franchisees. Some people can make it work depending on the contract and location, but most are working their asses off for not much income for the amount of money they had to front and the hours worked.
I’m curious what the markup is on a tool truck? 20%? Looks like snap-on sets the prices.
20% is about accurate on average, but I do know 35% profit is the goal. However, it doesn't even ever come close to that.
As a heavy diy guy i can honestly say the biggest obstacle to purchasing tools can be the dealers themseoves. Snap on guy in my area is sad state
1000%
Sure seems like a lot of time consumed and money invested to make $80,000 a year.
The money is in selling your own snacks on the truck.
What do you think it costs to run any business? The expense is always greater than the return on initial investment.
Very good video as always thanks for the information.
No problem 👍
I’m good with my 100k as I sit watching this video
Great video you probably don’t get the whole story from snap on or the dealer you probably just sift out the bs and go somewhere in the middle of both stories
Good point I believe there's a lot more to the story and probably doesn't look great from either side.
Thank you cp.
Very welcome
Hey CP, can you go over in a bit more deal what you were talking about with isn? You just kinda glanced on it but if you could dig up some news stories or a contract or something and give some specific insights on how they push you around i would appreciate it. To my knowledge they were just a distributor and it was not much different then just buying stuff from Costco essentially so if you could go into that and really give the tea on that i would appreciate it
What I mean is they have denied dealers tools because of brand conflicts
Great video CP 👍
Glad you enjoyed it
I would like to run a tool truck but it would be a cut in pay for me
Snap on now a days is simply ridiculous when it comes to there battery operated devices there outrageous! You have matco wether it’s there brand or Milwaukee or even mac or dewault and both them way out preform them! And I understand when it comes to hand tools yes your going to pay more for usa made but jesus seriously how can snap on seriously market that small 1/4” ratchet set for $1,100 and think the dealers can sell that 💩! There insane! Also seriously $1,100 for there half inch drive 18v battery impact which is at the bottom of power spectrum!
It was a thought of mine post retirement in the next couple years but i think your video made my mind up not to do it.
That's understandable
Good video dude!!!
Glad you liked it!
Was the tool theft an inside job 😜?
I always thought about starting a used tool truck 🚚
I wonder how well that would fly
Called a pawn shopp.