Top

MATCO TOOLS Franchise Defenders Speak Out

December 7, 2011

Matco Tools franchise – distributor program is under fire.  Failed & failing Matco Tools mobile distributors claim that they are victims of a callous and unethical investment scheme that sets them up for failure.  Yet Matco Tools also has its defenders.  The comment section below is for Matco Tools and its supporters to share their opposing views, and show their support for the Matco Tools franchise opportunity.


Our post MATCO TOOLS Franchise Complaints sparked more than 1000 spirited, often angry, comments in less than a month, an UnhappyFranchisee.com record.

Central among the criticisms of the Matco Tool franchise is a high failure rate and allegations that Matco intentionally “churns” up to half of its distributor population in order to replace them with the fresh investments of new distributors (See MATCO TOOLS Franchise Report Alleges Distributor Churning).

Complaints also include a frighteningly high SBA default rate for Matco Tools franchise loans (see Failure Rates of the 10 Most Popular Franchises) and allegations that Matco colluded with TD Bank to fraudulently get distributor loans they knew were doomed to fail (see FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud ).

Matco Tools Defenders Vehemently Deny Allegations

Both on UnhappyFranchisee.com and a Matco franchisee Facebook page, Matco defenders have shared a different view than the angry detractors.

Veteran Matco distributor Kevin writes:  “Matco is not a perfect company. None are. You must use your own common sense in any business dealing. I have been a distributor for 22 years, and have experienced none of the above problems. I am self employed, and I buy what I want from Matco, nothing more. They do not run my business, nor force me to buy anything.”

Another distributor Scott writes:  “Matco is not the evil empire that so many are making it out to be, but they are definitely out of touch with what we go through… the complaints you and others are voicing are nothing new. If you do a little research you will find the exact same thing happening in Mac and Snap On throughout the years and it’s almost word for word. This business is damn tough…”

None of the supporters thus far have provided unqualified praise for Matco Tools, but many say Matco is the best choice in a tough business segment.

Jay writes:  “I have been with another tool company before that would make all these complaints seem very trivial and chose to switch to Matco over 11 plus years ago all as a distributor. I am not saying they are perfect but they are the best choice out of the 4 major tool companies…”

Some object to the characterization of “terminated distributors” (a term used in Matco’s Franchise Disclosure Document) as being synonymous with “failed distributors.” Some point out that Matco Tools franchisees leave the system for a variety of reasons

Jason writes: “What I saw as a district manager was guys would become matco distributors because they thought it was easy, and matco would set up a route for them and they thought it was instant success. It wasn’t I saw high performing distributors succeed and fail. I had distributors get divorced and fail, I had 2 distrbutors in 1 year die, I had distributors become district managers, all of these are examples of terminated distributors, so the 36% fail rate is inaccurate.”

ARE YOU FAMILIAR WITH THE MATCO TOOLS FRANCHISE DISTRIBUTOR PROGRAM?  DO YOU DISAGREE WITH THE MATCO TOOLS CRITICS WHO ALLEGE IT’S A SCAM?  SHARE A COMMENT BELOW!

Also, feel free to read & comment on these related posts:

MATCO TOOLS Franchise Complaints  June 8, 2011

MATCO TOOLS Franchise Report Alleges Distributor Churning  November 29, 2011

MATCO TOOLS 2011 Franchise Disclosure Document (FDD) & Other Resources  November 22, 2011

MATCO TOOLS Class Action Lawsuit, “Secret” Sales Projections  November 22, 2011

FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud  November 15, 2011

Failure Rates of the 10 Most Popular Franchises  April 26, 2010

To contact the author and site admin, email UnhappyFranchisee[at]gmail.com

Comments

Subscribe without commenting

172 Responses to “MATCO TOOLS Franchise Defenders Speak Out”

  1. MATCO#1 on December 7th, 2011 12:59 pm

    Greetings,
    Soon there should be numerous posts where hopefully if you are looking into a Matco franchise you can make an informed decision. Matco tools is the #1 mobile tool franchise. If you are a current distributor hopefully we can use this blog as a tool to help make Matco better than they already are.

  2. Tommy Cheung on December 7th, 2011 1:47 pm
  3. guest2 on December 7th, 2011 2:36 pm

    The Matco Franchise is the only way in todays society I have found to allow my wife to stay home with my children. I hope that we can provide the more positive side of the Matco franchisee, and some tips to share.

  4. Cary Devitt on December 7th, 2011 3:46 pm

    guest #2

    I agree 100%, I have been a distributor for 13 years and thru the up’s and down’s of our economy Matco Tools has provided a strong backbone for me to be a sucessfull distributor.

    Anybody looking to become a distributor must know up front that success in this business is not given, it must be earned. It takes alot of hours and alot of hard work.

  5. MATCO TOOLS Distributor Franchise : Unhappy Franchisee on December 7th, 2011 5:21 pm

    [...] Yet, other long-time Matco Tools distributors are strongly defending the company and its practices (MATCO TOOLS Franchise Defenders Speak Out) [...]

  6. MATCO#1 on December 7th, 2011 6:40 pm

    It’s funny you facts and stats vs. People that failed in the business,.
    Former distributor who didn’t get renewed after 10 years because he was half the purchase avg and didn’t want to call in all of his customers, Debbie who can’t figure out why she is failing but refuses to work full time. Most small business owners work 6 days, but not her she works 4 days.
    Tommy cheung who claims he was a top 50 dbr, then top 2, then top 5 of his district, says he can prove it, but when asked doesn’t provide facts…funny can’t find a Tommy cheung on my list of top 200 for Matco in the years he speaks of.

  7. Lenny on December 8th, 2011 12:00 am

    Looking at the information on a potential franchise, with 325 customers, how do you see all of them ?

    I live in a rural area and I know the general area, I would think my driving time each day would be as much as 2 hours somedays, maybe more.

    I think most shops have 3-5 people,some have 1 or 2, and i think one dealership has 12. but how much time do you spend with each person? I was told (and seen) that distributors show and demonstrate tools each visit.

    Is this manageble? With kids, I wouldn’t leave till 8:30am.

  8. matcoman on December 8th, 2011 12:14 am

    I have been a dist for almost 2 years, im also a mdac member. i have been in the auto busness for more then 30 years.This is by far the best job i have ever had. People need to understand. to make it in this or any other busness it takes hard work and commitment. I have made it as a master tech,service advisor and manager. I did very well at all of them. It takes hard work to make it. Nothing is given to anyone for just showing up. You have to get out there and work hard,and you may make it. But do not blame anyone, but yourself, if you do not make it. It’s up to you and only you.Not everyone can or should run a business. It takes strong money management skills,good business plan, hard work,commitment,common sense and lots of LUCK,

  9. guest2 on December 8th, 2011 2:42 am

    Lenny, to answer your question have been a dbr for 11 years in a rural area. If you are going to leave at that time you would need to work a lil late to accomplish that. You need to plan a minimum of 6 min per customer to do a quick but thorough job. That does not count driving. The best way would be to drive the prospective route for drive time and then plan on how many techs are at which shops. It is a challenging but very rewarding job and could not see myself doing anything else. Hard work, good management(time and money) will reward you greatly.

    I hope this info helps, please post any other questions you have and I will be glad to answer them.

    Have a Great night

  10. Tommy Cheung on December 8th, 2011 8:25 am

    Lenny, check the other site first, matcoboy , never said top 50,it was top 200.yes I have my cheap looking gold medallions.I made it in the top 50 for several weeks throughout my time , go back and check, matcoboy, if you know how.Don’t forget to call Jerry, you will fail soon.

  11. Lenny on December 8th, 2011 11:23 am

    Thanks Guest2,

    I am reading all I can about the franchises, I used to be a mechanic years ago. ANd I’m trying to make sense of the business. (always wanted to be a tool guy, just couldn’t afford it till now)

    I remember both Mac adn Snapon coming in to the shop, we had 8 guys. but snapon would spend about 15 min then leave, I never had time to business with him. The MAC guy would be there sometimes an hour, he would wait for you if you were busy.

    So I’m trying to understand the profitability? of the tool business. I know everyone in my shop usually owed the MAC guy. All i Could budget was $20 a week for tools.(and sometimes Icouldn’t do that) so I’m trying to understand howmuch you make in aday.

    I saw on the other site, that purchases are $3400 (I assume a week), correct me if my maths wrong. So if like me everybody pays $20, and average $100 an hour, work 9 hours for 5 days thats $4500. So profit is $1100 a week.

    Am i on track?

  12. Cary Devitt on December 8th, 2011 11:29 am

    Wow Tommyboy several weeks in the top 50 must have been when Pam took you off tool hold and released your orders….for those of you that dont know tommy boy he has been beating a dead horse for going on what 4 years. Again move on to your next failure

  13. Tommy Cheung on December 8th, 2011 12:41 pm

    Cary boy, does the truth hurt? Pam was not my credit analyst either.I will continue to bash and attempt to destroy their reputation, just as they have many of us. Cary, you can reach Jerry at MarksandKlein.com. When matco kicks you out,which it is coming, numbers show, we can help you too.

  14. MATCO#1 on December 8th, 2011 12:44 pm

    Hi Lenny,

    I would suggest driving your route prior to becoming s dbr. I would also talk to the district manager and go to a couple sales meetings.

    People always think you need more customers, but as a former tech you probably know that this is a relationship business. So you spend as much time with each guy as possible, some will warm up right a way, others take longer before they trust you.

    This for me has been the best move/career I have had, but some people do fail, it’s small business and all small business is a risk.

    Matco gives you a great foundation, it’s up to you to build the rest of the house.

    Good luck.

  15. MATCO#1 on December 8th, 2011 12:47 pm

    Tommy you have no credibility for Matco to destroy you have done nothing but lie on the other sight and now Matco gets to prove to the court you are a liar….Tommy cheung credibility R.I.P.

  16. Guest on December 8th, 2011 1:28 pm

    Lenny:

    A few questions you should ask MATCO#1, Cary, guest2, etc.

    What can happen if you fall below 80% of the weekly required purchase average? Is it true that Matco can simply terminate your franchise and resell your route to someone new and get a new initial inventory sale, new leases and financing?

    Has anyone ever been a successful Matco distributor, had their route cut and customers reassigned by Matco, and then been terminated because they could no longer make the minimum weekly purchases?

    Is it true that more than 200 dbrs leave the system each year only to be replaced by “fresh meat” despite the fact that only 7% were able to sell or give away their franchises?

    Is it true that a class action has been filed and more lawsuits are being put together by Matco distributors against the parent company?

    I’m sure MATCO#1, Cary, guest2, etc.would recommend that you dig deep into these allegations before you put your savings, credit score and family’s well-being at jeopardy. Right guys?

  17. MATCO TOOLS Franchise Complaints : Unhappy Franchisee on December 8th, 2011 2:44 pm

    [...] MATCO TOOLS Franchise Defenders Speak Out December 7, 2011 (Comments defending Matco invited) [...]

  18. MATCO#1 on December 8th, 2011 3:18 pm

    Lenny to answer guests question, Matco has a rule that is clearly posted in the franchise agreement that you must be at 80% national average. Unlike what guest would like you to believe they don’t kick you to the curb and sell your route. You will be notified by your dm, in person, then in writing, then another letter by the regional manager, and another by Matco, but it’s about a 4 to 6 month process. So the idea that a week after you fall below the average they kick you out is non sense.
    If Matco has a distributor with a 800 headcount route like some older distributors they will ask for some customers, but like any profession they can’t force anybody to do anything thing.
    And yes, guest currently is suing Matco and a company called TD bank over an sba loan, guest apparently bought his son a franchise and their business failed, which a lot of small businesses do.
    And as I stated before everybody should do as much research on any business before starting. This business has been very good to me, but doesn’t mean it will be for you, and for the record I am a franchisee, with a 325 headcount route too.

  19. Guest on December 8th, 2011 3:56 pm

    I agree with MATCO#1 that “everybody should do as much research on any business before starting”

    A great place to start would be the 1100+ comments of actual Matco distributors who share their experiences here:
    http://www.unhappyfranchisee.com/matco-tools-franchise-complaints/

    After all, they were in the same position as you not that long ago and can help you envision how things might be for you in a few years!

    I’m sure MATCO#1 calmed any fears of Matco “kicking you to the curb” and taking your business suddenly. He assures you “it’s about a 4 to 6 month process,” which must be a very comforting thought. I believe it was he or one of his cronies who also said not to worry about the 37% loan failure rate, but just look at it as a 63% survival rate!

    The only disagreement we have is about the lawsuit. You can check here. I haven’t been able to find a plaintiff named “Guest”: http://www.unhappyfranchisee.com/matco-tools-class-action-lawsuit/

    Lenny, best of luck with your future endeavors, whichever way you decide to go!

  20. MATCO#1 on December 8th, 2011 6:29 pm

    Yep guest you are right about one thing no positive named guest, on that document you had to say who you were….and don’t take that like I care, I don’t

    Yep 4 to 6 months they give you plenty of time to seek help from other distributors or your DM. But unfortunately some don’t seek the help. Or they don’t go back to 5 day work weeks, or they refuse to go to all of their shops. I guess we will figure out what III’s excuse was later…lol

  21. Lenny on December 8th, 2011 11:04 pm

    How long do you get to review the route? I agree not a bad idea to check it out prior. I would want to like do a dry run. Will I have a week or two to check it out? I could like run the route each day to see if it works, introduce myself and get a feel for it.

    I assume they let you have that time to know who your customers are before signing anything.

  22. Gary on December 8th, 2011 11:35 pm

    Lenny,

    Be sure to find out the most important facts before you decide to take the plunge.

    1. Why do they need a new distributor in this area ?

    2. Find out who the previous distributor was, why did he rotate out of the system ? (Speak with him/her if possible)

    3. How long has the route been without Matco service ?

    4. How many Matco distributors have come and gone in the last 10-15 years ?

    5. Talk with as many past and present distributors as possible about the business.

    6. Get a copy of your list of calls BEFORE signing and visit all the shops and speak with the techs by yourself in your own personal vehicle.

    7. Insist that you be given time to survey the territory for as long as you need, 1 2 or 3 weeks if needed (from your question above)

    If you feel ANY pressure from the District Manager during this time to get the ball rolling take it as a WARNING SIGN and proceed with caution.

  23. MATCO#1 on December 9th, 2011 12:42 am

    Lenny,

    Back when I started on the late 90′s I attended 3 sales meetings and drove the route prior to signing any paperwork. I did not talk to any customers and back then we did not have a week where you go out and introduce yourself to your potential customers, now you do it’s you and your dm.

    My route had been vacant for several years with a couple distributors cherry picking a few shops , which only made it worse. I was told by a lot a would not succeed even the Cornwell guy who had been there 8 years. Within a year he was out of business.

    Now the Down side to talking tp customers prior if the gut before you wad s jerk you are going to hear every complaint in the book and it could be discouraging. But if you are motivated strong willed person you should be able to over come that. If the person before you wad great , you know you have some big shoes to fill.

    But hearing both sides is good, because you know what and what not to do.

    Gary is right, there is no hurry, typically they have two classes a month so you will have plenty of time.

    I would recommend less than a 45 minute commute to my route. My first route was over an hour a away and I hated driving that far.

    Good post Gary

  24. Matco2 on December 9th, 2011 1:33 am

    Lenny,

    I have been a dist with Matco for about 2 1/2 years. Take your time. This is a great way to make a living. The hours are long but it is fun.

    When you get the list of past and curant dist call a few in the district that you will be in. Ask them who is the top performer? Who sells the most tool boxes? Who sells the most hardlines? They will know. Ride with the dist per their answers. Ask questions and ask your self ” Can I see my self in their shoes. Ask them if they would be willing to “mentor you”. Have a guy that you can call and say “what would you do?” I think you will be suprised on who many will say “give me a call” they want you to do well. The more Dist we have on the road the more tools we all sell. If a tech has a Matco guy as he moves around he will be more inclined to buy Matco.

    When your rout is set up make sure you have truck and equipment shops on it. They will be more consistant and will produce sales likewise.

    Don’t reinvent the wheel. follow the model and have fun. You will do well and be proud of what YOU built.

    Know that YOU make or break this business. Be there every week on time and treat everyone with respect and if you make a mistake own up to it and take care of YOUR customers.

  25. Lenny on December 9th, 2011 10:18 am

    I have talked with several tool guys from differernt snapon,Mac,Matco and cornwell companies and one independant tool truck(my buddy knows).

    Mixed reviews, good and bad…One main theme was ;all tools are the same, doesn’t matter what company you choose, just give good service.

    I always asked about number of customers people have almost everybody say you cannot call on all of them, that you’ll know who are the good ones. This is my biggest concern How many ‘good’customers there are.

    I tried to get a handle on income from my calls but no one gives numbers, though they all seem to feel its not as good as it used to be. SOme were distributors for over 20 yrs but with multiple companies, One guy honestly recommend not to do the tool business. The independant guy is about to retire and even offered his truck and inventory. He is the one getting me thinking more since he talked about all the ‘rules’ the companies play by. HE also shared more about how customers we like and becareful because of low incomes in the mechanic business(believe me I know).

    I read all the comments about negatives, but I cant believe any of the Companies would want you to fail. though, I understand the comments about managers, I’m not impressed with the Snapon Rep and the Matco manager, both are pretty pushy. I’m only leaning toward Matco because they say they have the best tool boxes. And searching the internet that seems to be the case.(though a lot for sales on Craigs list.)

    My biggest concern was the route they give you and Matco says it not finalized yet, we looked at the map, but no specifics, the distributors around here didn’t know what was available, but said make sure you know the shops they give.

    I also asked on my calls about inventory and the starter inventory, they all recommend to have extra money for inventory because you’ll find it missing alot of stuff. Matco didn’t talk about inventory, just gave the cost and they help you set it up. Snapon said they would customize it to the route.

    I think i want to see the territory they assign before going any further, I’m meeting the independant dealer this weekend. He also offered to allow me to ride with him, none of the others offered and three were in town.

  26. MATCO#1 on December 9th, 2011 10:57 am

    If you have never been a business owner or a tool guy before I would NEVER start as an independent, no support, no training, no help from other distributors, nobody to collect your money for you when s guy skips, no way to sell large ticket items, or large amounts of tools on contracts, independents run small numbers compared to franchise guys,

    I personally would go with Matco obviously, but the next choice would be snap on, Mac I’d basically done, and Cornwell are basically independents with a big name on the side, but their tool boxes suck. I would definately want to see the list of calls before making a decision, and Judy tell the dm that, and also tell him not to be so pushy it bothers you, what part of the country you looking in?

  27. matco2 on December 9th, 2011 12:50 pm

    Cornwell would be tough same with independent. Matco for better management snap on has the name but harder to deal with on the company side. Snap on has smaller routes and it make it harder when you are trying to see more people. There have been a lot of snap on coming over to Matco. I would say for a reason.

  28. Guest on December 9th, 2011 1:32 pm

    matco2:

    sounds like you’re saying that Matco is simply not as bad as the other worse alternatives… hardly a ringing endorsement. Hardly a business to get excited about.

    With fuel prices and unemployment (of mechanics like everyone else) at an all-time high, and everyone looking for cheap alternatives, is burning tons of expensive fuel and selling a premium product at a premium price really the best way to go into business at this time?

    If Lenny’s determined to sell tools, wouldn’t he be better off buying up used tools from bankrupt shops, foreclosed mechanics, estate sales, swap meets, auctions, etc. and selling them at lower prices for a greater profit? For a few thousand bucks he could set up a webpage, open an ebay account, advertise on Craig’s list, advertise on Google, run some newspaper and autotrader ads, and do some email campaigns. Seems like a lot more fun than driving 60-80 hours a week and having your fate controlled by Snap-on, Matco, Cornwell or MAC.

    Plus, if it fails, Lenny doesn’t lose everything.

    The big question for Lenny to consider first is whether a mobile tool business is really the BEST business to start in this economy… or not?

  29. Matco2 on December 9th, 2011 2:47 pm

    You have finacing available and able to handle his warenty issues. How maney tools would you sell if you just drove around with a clip board. And if a tech is unemployed hes not your customer. We call on working techs. If you were to do the warehouse idea this would all be cash out of pocket no real business plan and a hope and a prayer. Being able to keep payments low is more important in bad times than in good. Puting the tool in their hands makes all the diferance. Seeing the reaction and maybe finding the beter answer to what they need keeps interest with you not just another click on the internet.

  30. MATCO#1 on December 9th, 2011 5:50 pm

    Guest, I think your idea for a store has already been thought up, it’s called a second hand store. I am not trying to criticize you, it appears based upon your posts you have never been a technician and never were a tool guy. Most technicians invest over $50,000 in tools, the idea of buying them at a garage sale, is not feasible.
    People always blame the economy, thats a poor excuse at best!

  31. Guest on December 9th, 2011 8:50 pm

    You’re right. No one buys tools on Amazon or eBay. Those ideas will never work either.

  32. Doug Rauco on December 9th, 2011 9:28 pm

    For those interested, I have been a Matco Distributor for 11 years (20 years total including Mac tools). I have had no real issues other than “normal problems” with Matco.

    Understand that most Matco Distributors were auto techs before joining the Matco Tools team. Most have had no previous business experience. This is a difficult business at best, even if you follow the business program set forth by Matco. Most tend to “blow off” recommendations from their trainer and/or district business manager. Big mistake.

    Most of us do not understand the cost of doing business, the expense of discounting to customers, and the amount of time and dedication it takes to become a successful tool distributor. You don’t just sign up and have money coming at you from all angles. You need to go out and WORK, day after day, week after week to gain the trust and respect of your customers. Your business is built slowly, over time.

    You also need to be able to manage money properly, which is another difficult task. As a distributor, you need to realize that 60-65% of the money you collect is not yours (more if you want to grow). It is needed to re-stock your truck to maintain inventory levels which are critical to sales.

    Those that fail always want to point the finger at someone else when maybe, just maybe, you should be looking in the mirror. This is a rewarding business for some, but it is not for everybody. Do your resaerch into your territory before you sign on and be sure you know what you are getting into.

  33. TLMAN on December 9th, 2011 10:23 pm

    I am matco dist of 5 yrs my complaint is price and for those of you defending matco so much why were you at the ISN EXPO.

  34. Lenny on December 10th, 2011 9:30 am

    Doing some math, again… after making a bunch of calls…

    Purchase ave 3400xmargin, my guess on weekly profit (1,800) or 7,200 / month

    Monthly expenses(taken from Matco Goal worksheet):
    Personal 4,000
    Business loan 700
    Truck payment 1300
    insurance 200
    Fuel (still guessing)750
    Maintenance 100
    Utilities 100
    Computer/software 100
    office supplies 100
    bank charges/credit card 100
    mail /freight 50
    expo / tool fair 200
    loss on TP 360
    Advertizing and promotional 100

    Total expenses 8160

    At 100 percent of national average, this business doesn’t work.
    Am I missing something?

  35. Former Distr on December 10th, 2011 10:47 am

    I went to the Independent Dealer Luncheon at the ISN Expo, a Q&A with a panel of independent distributors. Someone noted the vast majority of the questions were coming from Former or Current Matco Distributors. He asked for a hand showing of Matco people in the room. I would estimate 1/2 of the room raised their hand. I would guess that was about 100 of the 200 people in the room.

    I just had a local Cornwell distributor comment that recently a group of about 9 distributors left Matco to go to Cornwell, I don’t know if that was nationwide or locally in the midwest.

    I wonder what is the reasoning behind the mass exodus from Matco? For some reason i believe Matco is driving this. If the rumor is true that Matco Tools is For Sale, it would make sense to trim the lower half to make the numbers look good for a prospective buyer. Trimming the lower purchase averages away will artificially raise the purchase average.

  36. TLMAN on December 10th, 2011 10:53 am

    Lenny, the problem in your math lies in 2 areas total sales and total profit. Using your numbers I got around 35% profit margin it shoud be 45% which is very easy. The matco way sell 350k at 36% margin = 126 gross profit my way sell 350k at 45% margin =157 gross profit. I have done this both ways and will keep doing it my way. Your overall margin must be above 40% at the very least, or you will fail.

  37. Lenny on December 10th, 2011 11:06 am

    The matco worksheet shows 35% margin, thats why i used that. some distributors said some product margins are low like 20% and most were 30%.

    when i asked about margins, most everyone complained it wasnt what it used to be. some also said they add a fuel surcharge to help.

  38. TLMAN on December 10th, 2011 11:19 am

    Any one that can go to the ISN EXPO I highly recomend it. New products are one of the biggest needs in the tool business and you are more likely to see them here 1st. At Matco’s EXPO great giveaway dinner they gave away screwdriver sets wrench sets tool boxes ect. At ISN dinner they gave away 6 cars and over a million in cash on the floor. It is a free trip for most that go just ask do your own research. Can’t wait to see what Matco gives away this year pocket screwdrivers and t-shirts mostlikely.

  39. TLMAN on December 10th, 2011 11:25 am

    Lenny think outside the box Matco is just one of many sources for tools. If you volume buy from a WD you can get a better price do your research. Just don’t try that with Matco they keep it all for themselves.

  40. Matco2 on December 10th, 2011 11:47 am

    Former dist.

    I would bet ISN had a Matco contact contact list. I recieved info too. Didn’t go though. The fact that they were there and if these are the ones that left would make sence. They bought and stocked their trucks with none Matco, dropped their PA and now are in trouble. If your truck is full of none Matco it tells your customers that you don’t suport Matco and you are independent. Matco will not allow you to sell none Matco part numbers on PSA so that also kills that cash flow.

    Going to Cornwell from Matco if you are failing as a Matco dist is jumping from the frying pan into the fire.

    Less brand loyalty and fewer dist in any area makes it harder to make it.

    In my veiw I can sway the Cornwell buyers when it is cheep. “Matco BOGO’s” and such. They will bail on the Cornwell guy if it is cheep. These customers flote from one tool guy to another and often are the slow payers and only look at price.

  41. TLMAN on December 10th, 2011 4:31 pm

    Matco2 it would suprise many that a lot of people attend the ISN EXPO, APEX, SEMA and other tool / trade shows I fail to see how that is a bad thing. Product knoledge is key in this business and first on the street is a priority for me I can’t afford to wait 6 months for Matco to come out with an item that is already on the street. Loyalty is a 2 way street how many stinger led lights did you buy from matco when they came out in the national promo flier for over $200. In my opinion cash flow comes from TP accts distributors that live buy paper ( PSA contracts ) usually die by them. Don’t get me wrong I sell plenty of tool boxes but it is not my main focus. My customers know me as the goto guy no mater who makes it where it comes from they know I can get it and the price will be fair that Sir is how you build loyalty.

  42. matco2 on December 10th, 2011 5:35 pm

    Yes I agree but not here to get into all the ins and out. Every day is a new challenge new deal. Point being having all that Matco offers including Psa volume rewarded discounts from Matco and keeping a full truck. Everything helps to gain market share. Only so many tools will be sold in any rout and using all options to help get your customer into what they need first.

  43. TLMAN on December 10th, 2011 6:18 pm

    Matco2,

    You agree with what ? That Matco in order to keep distributor loyalty and grow it it in return needs to be loyal because on many issues this is not the case price being the largest issue. 5.2% vptt is fine but getting 20-30 pts elsewhere makes more sense.

  44. matco2 on December 10th, 2011 8:09 pm

    I never thought of pricing being a loyalty issue. It is ongoing battle no mater what business your in. That said the other services we spoke of earlier does have a cost along with feild management that is priceless when getting started. With out it the drop out rate would be much higher. And yes I to have a few things that I like to see price adjustments on. Air tools being at the top of the list. But I try my best to off set with meeting buys and stocking up with bogos and promos.

  45. TLMAN on December 10th, 2011 8:40 pm

    Price is a loyalty issue with customers it has been since the first sale was made. I have no problem with matco koolaide I just don’t live on it. I don’t try to offset margins I do offset them with as little effort as posible by finding great deals. I will trade profit for a plaque any day of the week. Quick note- while looking into the tool business a Matco rep came to talk to me one of the many topics we talked about was quality of route and he had an example of a dist in a area where many had struggled with no success this dist had not only succeded but was in the top 30 and had recently bought a new truck sounded impresive. Here is the funy part 3 years latter I had a great oppertunity to upgrade my tool truck for minimal cost as a repo poped into my lap I jumped on it only to find out who’s truck it used to be. Had to drive over 1000 miles to get it but like I said it was a great deal. I can only assume this dist drank far to much koolaide.

  46. matco2 on December 10th, 2011 9:54 pm

    That could be true but as you know this is a game of balance. I tried to grab some.things out side of matco and found that having extra tool bills coming in became more of a problem than what it was worth. I don’t buy anything unless I know how I am going to pay for it. That true for business or personal. I do know of a guy that had to get out because of family troubles, another because of health, and another because he couldn’t get out of bed. I am also not a fool. As they say have faith but tie up your horses. I hope this will take me to retirement but only time will tell.

  47. TLMAN on December 10th, 2011 10:12 pm

    Who said anything about another tool bill the last thing I want to suggest is anyone going into debt. The single most important thing you can do for your business is to get out of debt. Pay cash for all tools if you don’t have extra cash your doing something wrong. Anyone that is in debt is a slave to the one he owes. Never buy more than you can pay grow slow as steady eddie wins the race. If you had an extra $1000 WHY WOULDN’T YOU WANT TO TURN INTO $1700 OR $2000 take a break from the koolaide.

  48. MATCO#1 on December 13th, 2011 2:07 am

    Hmmm….wonder why nobody is posting on this side, oh yeah that’s right Unhappy Franchise, I mean ideaFarm, or whatever you call your self only want th unhappy people heard. Apparently only one side gets a voice.
    Funny the side that is actually full of lies is the ones being heard.

    Hmmm….December of 2010, the FCC passed a net neutrality rule that prevents internet service providers (ISPs) from either playing favorites when it comes to displaying content, or from blocking competitors’ content.

    MATCO#1:
    - Commenters are required to provide a valid email address (not publicly shown) and respond to UnhappyFranchisee[dot]com when contacted. Email us if you’d like to continue participating.
    - Your comments are being moderated, not blocked. Post praise for Matco or rebut criticism on this post without personal attacks or insults and your comments will appear.
    - We’re not an ISP.

  49. Tommy Cheung on December 13th, 2011 8:00 am

    In my opinion, to hear the truth, go to the other side. Theres alot more of the truth and what you can expect from matco.

  50. MATCO#1 on December 13th, 2011 1:46 pm

    Well Tommy that’s your opinion, just like all of your comments, only your opinion, no facts to support.

    Admin my correct email is on this post

  51. Tommy Cheung on December 13th, 2011 2:17 pm

    I got the facts, I just dont need to share with someone like you, go sell your foreign made tools, that matco puts their name on it.

  52. Cary Devitt on December 13th, 2011 3:29 pm

    tommy, I didn’t know that service was made in a foreign country, maybe that was your problem, maybe thats why you failed as a distributor. who cares where the tools are made as long as there is service to back them. My customers dont have a problem with it and my service is made in the USA!

  53. Anon on December 13th, 2011 3:50 pm

    Cary Devitt wrote “who cares where the tools are made”?

    Seriously? Who cares where the tools are made?

    Guess who wrote this:

    “Matco Tools, its 800 U.S. employees and 1,250 U.S. Distributors, makes and distributes tools for the professional mechanic. Our customers have a very strong preference for “Made in the USA” products. Therefore, Matco Tools strongly opposes the commission’s proposal to weaken the standard for ·Made in USA· claims… Weakening the standard will … deny Matco Tools the marketing advantage attributable to Made in USA products.”

    Anybody?

    THOMAS N. WILLIS, PRESIDENT, MATCO TOOLS in a letter to the FTC:
    http://www.ftc.gov/opp/madeusa2/c600.htm August 6, 1997

  54. MATCO#1 on December 13th, 2011 6:07 pm

    A lot has changed since 1997, I agree with Tom then, Cary now seems price and service are more of an issue now 14 years later

  55. Cary Devitt on December 13th, 2011 7:06 pm

    Anon,

    Good quote, mind you its 4 years old not really relevent to my comment. What control do I have where my inventory is made, the one thing that I do control is the level of service after the sale. Of course I would like to have a stronger mix of made in USA product but in this game you play the cards your dealt.

    Thank you

  56. Cary Devitt on December 13th, 2011 8:59 pm

    sorry 14 years

  57. TLMAN on December 13th, 2011 9:56 pm

    Cary how are those china boots working for you ? Went back to Red Back I bet even though they aren’t loyal to Matco oh wait they were loyal to Matco for years but not anymore just why is that???????? Made in china means nothing to me as long as the price reflects it. Look at the 1/4 swivel sockets apx $37 ea at one time said USA not anymore, same with pliers wrenches ect ect ect. The cost for Matco went down and the profit went up buy buying overseas but not only did the cost for distributors go up it keeps going up ie the new 3.2$% price increase. I caution you before you slam me my PA is great my PROFIT is even better but WTF ( WITH OUT GREAT DISTRIBUTORS MATCO WOULD BE NOTHING MORE THAN AN OFFICE IN STOW). The problem with most of these people is they never should have been recruited by Matco or the local popsicle company they are helpless, But that does not excuse Matco of ripping us off every chance they get I am getting freaking tired of it. You know exactly what I am talking about. You really need to goto the ISN EXPO no need to buy just go. That said I’ll bet you the cost of the trip you will buy the deals are just that good!!!! See you in Vegas

  58. Cary Devitt on December 13th, 2011 11:06 pm

    TLMAN

    Fine with redbacks, fine with ISN, appreciate the leveling competition that brought them back to a realistic net. So you know, Tom @ redback has been persuing other retail outlets for the past 10 years: Cabelas, Genesco (largest retail footwear company in the US…..I worked for them for 11 years) events at or around expo put some fire in his britches thus ISN….good for him! great product everyone should try a pair on….its a two way street do you think that was all he wanted….matco’s market get real every business wants to grow. Didn’t care for the Shield boots but thanks for the assumption.

    Got the email on the 3.2% also read everthing that was stated after that….materials….shipping….fuel…..etc. yes its the same every year, not going to say anything else.

    Have no desire to slam you on your PA and im sure your profits are wonderful and 100% believe you about great distributors, happy to say myself my brother and some really good friends are a part of that club.

    Not going to comment on the “helpless” you can relate this to what we do on the truck everyday and im not saying thats bad or unethical.

    Would have attened ISN’s expo this year but grumpy pregnant wife had a problem with 2 unsupervised excursions to florida. My ISN guy said travel expenses are covered for next year as well as Matco for Vegas. So see you at one of the two ill buy you a beer….not sure who you are though. email address is at matcotools.com/carydevitt.

    thanks
    Cary

  59. MATCO#1 on December 14th, 2011 1:55 pm

    Tlman, you are correct Pre sell one box, pays for expo, not only that if you are in top 200 you get a couple nights free.

  60. TLMAN on December 14th, 2011 10:28 pm

    ISN EXPO Flight paid for and 2 free nights. The top 200 in matco is great just not for me and not in area just won’t work. I’m okay with the top 600 and a nice Margin.

  61. Former Distr on December 14th, 2011 11:13 pm

    Cary,

    “your ISN guy said travel expenses are covered…

    Your cheating… You should be terminated for violating the contract. It would only be fair to the others that have been terminated for the same reason.

  62. TLMAN on December 14th, 2011 11:24 pm

    ???

  63. Former Distr on December 14th, 2011 11:31 pm

    How are you Matco distributors offering warranty from Grey Pneumatic?
    I purchased a lot of Grey via Matco, now you have to cheat the system, or VIOLATE the CONTRACT to honor your customers and the warranty they bought from you.

    Sorry about the knife in the back… That was Tom Willis and company :-)

  64. TLMAN on December 14th, 2011 11:37 pm

    Former Dist had you bought your grey somewhere else —- never mind some people just can’t be helped.

  65. Former Distr on December 14th, 2011 11:40 pm

    I bought 100% Matco, A lot of special orders, but via Matco.

  66. TLMAN on December 14th, 2011 11:47 pm

    The reason Matco droped grey is distributors would buy it on the outside and use Matco for their warranty. I don’t blame them for that makes sense. Sometimes you do need to purchase products on the outside and if you are good with your money it is not a problem but some people are not cut out to be business owners and get in over there head. Why you feel the need to blame everyone and your neighbors goat is beyond me.

  67. Former Distr on December 14th, 2011 11:48 pm

    The Neighbors Goat is eating MY GRASS!

  68. TLMAN on December 14th, 2011 11:55 pm

    Former ,
    You bought 100% and drank 100% of the koolaide how did that work out for you ?? No one no matter what they say buys 100% from Matco. Do you really think Matco can give deals on everything. So what you a saying is I was 100% loyal to the end and it killed me how stupid was that friend. Like I have said before some people can’t be helped.

  69. Former Distr on December 15th, 2011 12:04 am

    you sell a screw driver set to customer…$100. set the terms, 20 down 20 a week. Everybody agrees.

    three weeks in customer notifies you that his wife had some unexpected health issues. He can’t make the payment this week and won’t be able to ‘double-up’ next week, but will continue the payments a week later.

    What do you do? Repo the driver set? Slap a late fee on him? Sympathy with the guy and move on? Or sue him for failing his portion of the contract?

    ————-

    Matco finds out your only 70% of NPA, and there is no way you can get it above 80% this year. What should they do? Terminate you? or maybe realize the economy is bad in various areas, or maybe the list of calls was less than honest and give you another year to work it out, by honestly looking at the list, and the economic statistics for the location your in?

    Maybe even listen to your concerns and attempt to address them.

    No, it is more profitable and less manpower is required to just terminate you and start over with a new body.

  70. Former Distr on December 15th, 2011 12:15 am

    Good people die young

  71. TLMAN on December 15th, 2011 12:24 am

    Former,
    You said the goat was eating your lawn no wait you said grass now I understand the problem. Matco does not support the drugs

  72. Former Distr on December 15th, 2011 12:31 am

    in my contract, I did not have to do drug testing. Matco tried, but i do not have to honor contracts I didn’t sign.

  73. Former Distr on December 15th, 2011 12:32 am

    It was a mexican goat.

  74. Former Distr on December 15th, 2011 12:33 am

    Thank god it wasn’t a Bolivian Goat.

  75. Lenny on December 15th, 2011 12:38 am

    I reviewed the UFOC on line, and it did not mention goats.What are you guys talking about. Just concerned, I have alpacas.

  76. MATCO#1 on December 15th, 2011 3:21 pm

    We don’t have a ufoc anymore Lenny

  77. Lenny on December 15th, 2011 7:53 pm

    Thanks, last business I reviewed had a UFOC, its been about 15 years. Meant FDD.

    Seems interesting that the UFOC/FDD was always difficult to get your hands on, but now you find the Matco one on-line.

  78. MATCO#1 on December 15th, 2011 9:01 pm

    Overcoming challenges is a primary source of happiness.

  79. TLMAN on December 17th, 2011 8:32 pm

    What challenges getting out of bed not coming home at 3:00 and complaining that your broke. This business is pretty easy for the most part not for everyone as we can clearly see on this site.

  80. Guest on December 21st, 2011 2:50 pm

    I’m leaving this comment here because I feel sorry for this comment thread.

    Now there are 80 comments.

    It’s been at 79 comments for 4 days. Meanwhile the complaint page has racked up a few hundred in the same time and will hit 2000 comments soon.

    http://www.unhappyfranchisee.com/matco-tools-franchise-complaints/

    Why is no one defending Matco here? Doesn’t anyone have anything nice to say about the company? Are they too busy complaining about the quality of the distributors?

    Well, I for one think Matco has a really cool race car. I’m glad they support racing. That’s good. I have a crush on the girl in the calendar. And I like the logo.

    Woo Hoo! 80 comments!

  81. MATCO#1 on December 21st, 2011 3:09 pm

    Guest, it’s a pain in the butt going back and forth between sites, just easier to stay in one….so here you go MaTcO Tools is the # 1 franchise!

  82. Guest on December 21st, 2011 3:22 pm

    Here’s another positive: Entrepreneur has named Matco Tools the top ranked tool distribution franchise in its 2012 Franchise 500!
    That’s right! #1!
    Out of a field of 2, Matco is #1!

    It’s easy to see why Matco blew Snap-On away:

    Most years in business: Snap-on
    Most locations: Snap-on (4747 vs. 1434)
    Most unit growth: Snap-on
    Advertised in the Entrepreneur 500 issue: Matco

  83. MATCO#1 on December 21st, 2011 4:52 pm

    Guest, wrong again, 3 franchises, Cornwell doesn’t make the top 3, and how about this. Cornwell the oldest with the fewest dbr’s.

    Second just think if Matco went to a 200 headcount like snap on Tommy would really be pissed

  84. MATCO#1 on December 21st, 2011 4:56 pm

    Don’t be fooled by unit growth, snap on is filling vacant routes with employees because they don’t have enough people wanting to pay their franchise fees, computer fees, advertising fees, truck maintenance fees….etc the list goes on!

  85. Guest on December 21st, 2011 6:05 pm

    MATCO#1 said “Guest, wrong again, 3 franchises…”

    But MATCO#1 is wrong again. Entrepreneur only has Matco and Snap-on in their rankings. That would equal two.

  86. MATCO#1 on December 21st, 2011 6:15 pm

    Yes guest….Cornwell doesn’t make the top 500, but they are a tool franchise so you still have to count them, no matter how you spin it MATCO is #1Mac is not a franchise so they don’t count.

  87. MATCO#1 on December 21st, 2011 7:27 pm

    Guest…I not wrong. I know there are 3 tool franchises. Matco is #1, snap on is #2, and Cornwell is #3. Mac is not a franchise and Cornwell doesn’t make the top 500 franchises, boy thank god your son didn’t go with them.

    Guest did you also know that ALL Matco tool boxes are made in the USA, unlike snap on, there kra series boxes are made in Canada.

    Did you also know Matco had the best built took boxes?

    Do you know you can customize your box at no additionL charge, if you get a custom color from snap on it’s 10% more.

    Guest do you see a pattern with Snap on they nickel and dime their dbr’s to death.

  88. MATCO#1 on December 21st, 2011 8:13 pm

    No franchise fee for matco

  89. MATCO#1 on December 21st, 2011 8:14 pm

    No advertising fee for matco

  90. MATCO#1 on December 21st, 2011 8:15 pm

    No royalty fees for matco

  91. MATCO#1 on December 21st, 2011 9:14 pm

    No computer fee

  92. MATCO#1 on December 21st, 2011 9:14 pm

    No fees for promo fliers

  93. MATCO#1 on December 21st, 2011 9:15 pm

    325 headcount for Matco vs. Snap on 200 headcount

  94. MATCO#1 on December 21st, 2011 9:23 pm

    If you are self motivated, a self starter, and desciplined Matco is right for you.

    If you are looking for a 40 hour a week job, look for another career

    If you can’t drag your self out of bed, look for another career.

    If you require someone to hold your hand or run your business, work in an office.

  95. Matco2 on December 21st, 2011 9:37 pm

    I’m glad Snap On is in almost all my shops…….. They just keep driving customers to me…….. All they have to do is be the cocky jerks that they hire and I clean up. They send me more business that they take. GO Snap On.

  96. MATCO#1 on December 21st, 2011 9:42 pm

    Being a Matco tools distributor is awesome but it’s a lot of work to be successful

    Some people don’t have the strength needed to be successful.

    Some people only want to work 4 days a week.

    Some people don’t go to expo to take advantage of extra margin or promo’s on tools

    Some people don’t attend sales meetings and talk to their fellow distributors on how to be successful.

    Some people who fail in this business blame others for their failures, because that’s easy.

    Some people expect their franchisor to run their business for them.

    It’s up to you to be successful. A franchisor provides the foundation, you have to build the rest…it’s up to YOU!

  97. Matco2 on December 21st, 2011 9:43 pm

    I do look at the other site but my the same thing over and over. All I can say is….. in business each deal is like making sausage it always comes out a little differant each time.

  98. MATCO#1 on December 21st, 2011 9:44 pm

    Exactly matco2. They are more pushy now than ever. I hear it every day how pushy my snap on guys are. It would have cost one a toolbox sale today, but I couldn’t get the guy approved.

  99. MATCO#1 on December 21st, 2011 9:47 pm

    Guest makes it look like all those posts are complaints 1/2 of them are Tommy saying go Jerry or him lying about being in the top 200, which he NEVER was.

  100. Matco2 on December 21st, 2011 11:04 pm

    Had a Snap on guy tell a customer that a clasic 78 is bigger than a 5s I was getting pushed him into it. He saw the 5s and was so mad at him he baught very little from him sence. He got the box I FILLED it. Now he”s thinking 6s. I could go on for more post than the othe side just about snap on. Hey theres a idea we should all post how we are taking market share from Snap on……. It could help those that are not doing as well but the down side is we could help Snap On. You know they are reading.

  101. matco2 on December 21st, 2011 11:23 pm

    Sorry typing needs help. Letting Snap On get a box sale now and then is a good thing keeps the bad ones in. If he goes out because of the 200 head count they mite get a good one in and it wpuldn’t be so easy.

  102. matco2 on December 21st, 2011 11:28 pm

    Stupid phone

  103. MATCO#1 on December 21st, 2011 11:52 pm

    I hear you, one of my snap on guy’s is on “tilt” I have sold 8 toolboxes to his zero in the last year at one of my dealerships. The techs say he only comes in every other week now, there for about 10 minutes and gone. I spend 2 hours there everyweek, everybody has a tp account along with there PSA.
    3 guys I collect 50 on Tp and 50 on PSA, the others its your typical 30/30 split, one guy is 120 a week. Who ever says when they go on a psa you never get them on TP anymore is a fool.

  104. Cary Devitt on December 21st, 2011 11:59 pm

    Amen matco1&2! its great to be able to control the strenght of your competition, giving them just enough rope to hang themself…then cut them down so they can do it over and over again. Love being part of a winning team that allows us to rule our market!

  105. matco2 on December 22nd, 2011 12:45 am

    A new customer with a Psa is a good way to test drive a.customer before you het to much on him. If he will not pay Matco he will not pay you. All 3 Snap On guys I have are under a dozen boxes total. 3 mac and 2 Cornwell. Guess who got the rest.

  106. Former Distr on December 22nd, 2011 8:55 am

    I’ve sold hundreds of Matco Tool Boxes. NOT ONE of THEM says “Made in the USA”.

    Snapon puts “Made in the USA” on every USA Made box, but Matco does NOT.

    Why doesn’t Matco put the words “Made in the USA” on their boxes?

  107. MATCO#1 on December 22nd, 2011 10:23 am

    Former lie again, everyone of mine says made in USA

    The snap on trade in I have says made in Canada what are you talking about

  108. Former Distr on December 22nd, 2011 10:52 am

    That is a lie Matco#1, they only list the plant in Jamestown, NY. It does NOT say MADE IN. THis issue was raised within MDAC years ago.

    The last sticker I looked at 30 days ago, said Made in Jamestown, NY [with] globally sourced parts.

  109. Matco2 on December 22nd, 2011 11:14 am

    YOUR POINT IS??????

  110. Former Distr on December 22nd, 2011 11:33 am

    MATCO#1 you commented on December 21st, 2011 7:27 pm , that all Matco Boxes are made in the USA. That is a misleading statement,

    Yes, they are assemble in Jamestown, with foreign made products, mainly the steel. unless you can prove otherwise. jamestown at its best probably never employed more that 50 people.

    I would have been proud to sell Matco Boxes made in the USA with American Steel. THATs my point. Unlike Snapon that actually manufacture some their products. Matco only has a toolbox plant, everything else is outsourced or via DTG.

  111. MATCO#1 on December 22nd, 2011 11:37 am

    I am proud to sell made in the USA Matco tool boxes just sold one on Monday.

    Slides are made by accuride in Mexico, box made in Jamestown NY.

  112. Matco2 on December 22nd, 2011 11:46 am

    I would bet that there is a mix import and US steel. This is traded as a comodity as anything. Like tires or anything with a rating steel is also rated. Most supplers buy on the open market. They run on margens very tight margens…. Steel companys swap all the time.

  113. Former Distr on December 22nd, 2011 11:53 am

    The MDAC issue raised, was “why does Snapon put Made in THE USA on their product, but we do NOT?”

    That was raised by customers and distributors had no answer. Customers believe what the see.

  114. MATCO#1 on December 22nd, 2011 12:10 pm

    Former, not an issue all boxes have made in USA, and like I said the snap on on my truck has made in canada

  115. Matco2 on December 22nd, 2011 2:09 pm

    Most techs don’t even look at the tag. Some don’t even know why I need to look at it to warrent parts on the box. I would hope MDAC didn’t spend too much time on this.

  116. MATCO#1 on December 22nd, 2011 10:36 pm

    You notice Guest never said where his route was, or if he ever attended expo, or any sales meeting. I guess we all know he was not a dbr.

  117. MATCO#1 on December 22nd, 2011 11:41 pm

    Matco Tools is a 60 year old organization focused on supplying professional grade tools, automotive service and diagnostic equipment to professional repair technicians in the automotive, truck, marine and aviation industries. We distribute our products through a system of Franchised Distributors. Our Franchise features:

    * No franchise fees
    * No royalty fees
    * No advertising fees
    * 5 week Training
    * Local training and field support
    * National Brand
    * Computerized business system
    * Exclusive Territories
    * Pre identified potential customer base
    * No employees
    * Home based business
    * National conventions at world class resorts
    * Financial assistance
    * Modest overall investment
    * SBA approved Franchise
    * IFA member
    * VetFran sponsor

  118. Former Distr on December 22nd, 2011 11:41 pm

    Matco#1, why would a DM go back to selling tools on the Truck?

    Better Money? Too many failing distributors in the district?
    Or the experience I’m witness to- Your fired! or you have the option to go on a truck…

  119. MATCO#1 on December 22nd, 2011 11:45 pm

    Recognized as the “Best Automotive Franchise” by FranchiseBusiness REVIEW (based on 2006 Franchise Satisfaction Survey), Matco Tools is one of the top franchise opportunities out there. That’s because Matco Tools provides you with the guidance, training, potential customer base, marketing and the on-going support you need to start your business. Our award winning franchise program provides you with a business process
    that will help you generate revenue from day one.

  120. MATCO#1 on December 22nd, 2011 11:46 pm

    Financing Options
    At Matco, we understand that starting your own business can be financially trying. With our low start-up costs, we can offer a variety of options to fit your unique financial needs. You may also qualify for financing through our in-house financing department or an SBA Bank Loan.

    Additional Support Includes:
    Matco Distributor Business System (MDBS)
    Matco Customer Service Support Team
    Matco Distributor Advisory Council (MDAC)
    National Advertising
    Racing Support

  121. MATCO#1 on December 22nd, 2011 11:46 pm

    Outstanding Franchisee Support
    We offer a variety of programs to support and help your Matco business grow, including:

    Premium quality products
    Lead the industry with New and Exclusive products and monthly promotions
    Custom financing programs for your customers
    Field management support
    Customer support center
    Technical support staff
    24/7 online order placement

  122. MATCO#1 on December 22nd, 2011 11:56 pm

    Franchise Satisfaction
    Recognized as “Best in Category -Automotive Franchises” by FranchiseBusiness REVIEW (based on 2009 Franchise Satisfaction Survey), Matco Tools has rated as one of the top franchise opportunities out there. That’s because Matco Tools provides you with the guidance, training, potential customer base, marketing and the on-going support you need to start and run your business.

  123. Former Distr on December 23rd, 2011 12:12 am

    Matco#1, why would a DM go back to selling tools on the Truck?

    Better Money? Too many failing distributors in the district?
    Or the experience I’m witness to- Your fired! or you have the option to go on a truck…

  124. MATCO#1 on December 23rd, 2011 12:16 am

    Former, several reasons why DM’s go back to the truck. When I first took the job I was told by several people you will be back, remember you became a MATCO franchisee to be your own boss.
    MATCO has been very good for me and my family. Nobody forced me to go back, in fact my boss tried to talk me out of it. My RM is absolutely the best boss I have ever had, and the most honest guy I have ever met. I still talk to him several times a month. I learned a lot both as a person and a human being from him.
    Me personally, I just got tired of being a DM, maybe someday I will go back but for now, I like being home every night with my family.
    unfortunately it was about a 70 hour a week job, so I figured if I was going to put that much time in, I was going to do it for me and my family.
    I was not a fan of the Tech ed program either, and honestly that was pretty much it for me. When MATCO put the burden on the DM’s I didn’t like it. I knew I couldn’t change it, so back on the truck I went. I always liked being a distributor so it was a pretty easy decision for me.
    As a DM you see how successful guys run their business and how unsuccessful guys run theirs. I learned a lot from both, and use that now. I currently run about 40% higher now in sales compared to the first time being on the truck. The routes that I took over, one had been vacant for years, this one the previous guy moved and iit was in the city I lived so the decision was easy.

  125. Former Distr on December 23rd, 2011 12:24 am

    Matco#1, thanks for the response. I’ve worked for a corporation for 20+ years and can appreciate your reasoning.

    I know Matco has tried several things for their DMs and I really believe they need to get back to basics before its too late…

    Cheers…

  126. MATCO#1 on December 23rd, 2011 12:25 am

    Didn’t have too many failing distributors. See former you guys see a seperation as a failed distributor. That’s not the case.
    When I left as a dbr and became a DM, the next year I was in the FDD as a seperation…why, because I seperated as a dbr.
    This business is tough, a lot of hours and work to be successful. A lot of former tech’s come into this business because they are tired of turning wrenches and think its going to be easy, and it’s NOT.
    I had some distributors that didn’t like collecting money all the time so they quit, had a few that got divorced so they quit, some dbr’s die, some DM’s die, seen both. Some guys do it for several years then use it as stepping stone for another business. Then unfortunately some just run the business into the ground and blame everyone else except themselves.

    Former, I am sure you know this business is a lot of work, i think you said at one point you said you are an independant now. More power to you, I think that’s tougher than having a name on the side.

    I didn’t see too many DM’s that were about to get fired offered a chance to be a distributor. I can’t remember any in my region. Most of the time, it was you have a choice, quit or be fired. If a guy was a bad DM, why would you want him as a distributor? I wouldn’t….would you?

  127. MATCO#1 on December 23rd, 2011 12:30 am

    Good night.

  128. Former Distr on December 23rd, 2011 8:11 am

    In the last 10 years, of the Distributors that left my district, no one common denominator for the reason of separation. Yes, most had a drop in business which caused them to rethink their line of work. I can’t speak for the others and their reasoning.

    I have seen a very good DM forced out and he chose to go back to a route to continue his long successful career. And then I see a very poor DM continue (with numerous complaints against him), and not understand why.

    In my case, I did not sue Matco, nor do I want to. They violated the contract by not acting in a consistant manner nor giving me a fair playing field. My definition of success was different than my DM’s, and his inability to assist me along with other moral business issues and Matcos support of him caused me to walk away.

    yes, I bought outside and yes I didn’t meet the 80% NPA. But my business was successful and I support Matco and spoke good of the company. The reality of this business is there are customers happy to by Matco, Snapon or others, but there are also those that will go down to the local Harbor Freight Store in my town and buy there. I provided what my customers wanted, I supported them in a way that they knew I would be there ‘tomorrow’. And I am still there.

    Matco, like all corporation have to answer to the share holders, private or public, but they also answer to their customers, employees and communities. They, like so many other companies have lost their way…

  129. Todd A. Peterson on December 24th, 2011 10:15 pm

    Over 465 Matco Franchises available right now. Why?

    Here is what Matco did for my FRANCHISE.

    First the Distributor before me only worked 3 days on a Matco route and yes I bought it. I also bought his truck. I could have taken a route closer to where I lived but I liked the truck and established customers. Did not want the Isuzu Matco was cramming down my throat.

    So I went to this distributors house and I saw his financials. I cringed he was not doing well. Of course, he only had 3 days on route per week the other two and Saturday he was restoring vintage cars.

    I talked to DM who had told me this was a great business opportunity and explained to him I had my doubts about the route. I told him I didn’t think by looking at the financials and the amount of customers on the books I could be competitive with the 333 customers I was given which was largely made up of very few shops:

    Monday- 13 shops 68 customers (One shop had 5 customers and while I was riding around with Trainer the first week he informed trainer and myself that he had told DM he didn’t want a Matco truck on his property) So -5 equals 63

    Tuesday- 6 shops 73 customers (5 shops were part of 1 Auto Park) it was really two shops.

    Wednesday-3 shops 68 customers

    Thursday- 4 shops 76 customers

    Friday- 7 shops 48 customers

    Grand total of 33 shops and 328 customers.

    So I explain to DM that this is a very low number and I think that distributor I did ride with has a lot more customers and definitely a larger route.

    He tells me “that Matco usually gives Distributors a minimum head count and leaves it up to them to grow their own route.” That made sense to me. People who work hard succeed and those who start up a franchise and don’t work will fail. He assures me that I will pick up shops that need a Matco distributor because they will call me when they see my truck on the road and get the number off the back and side of truck. He also tells me to call him if I want to add a shop so that I don’t pick up shops that belong in someone elses area or on an open route.

    So i go to training come back load up my truck and start my franchise. Things were terribly slow in the begining. Learning the computer, talking about tools instead of turning them. But after two months I found myself going home early every day two days by 2:00 and 2 days by noon. The other day 7-5.

    I was hitting all the shift jobs during the daytime when other distributors serviced them and I got to thinking when I was a tech and how it made me feel when other tool guys would not come and service me on a third or second shift. So, I restructured my route and started working longer hours and as people called me and needed service I would add them to my route calling my DM for approval first.

    After about 6 months I was kicking ass! My customers loved and respected me. I would work late come on their shift and not in between shifts. My DM was plastering my walls with sales achievements plaques from meetings. Life was good.

    I filled the holes in my day with shops I added with DM approval.

    Things are going so well I was inventory rich. I was putting on my truck 3/4 in drive everything. I was stocking specialty tools out my butt. I was adding pliers and all kinds of tools I thought I would need when I turned wrenches. I was living the Matco dream.

    In June of 2005 I had a fire on my truck and found myself in a bit of a pickle on a tool truck. It seems that no companies(Not Matco’s Vendors) except for the manufacturer of my truck would take my truck in trade. So I did trade my truck in and got a bigger one because I had grown my inventory to over $200,000 my cost. I bought a 26′ Peterbilt.

    So although I was without an actual tool truck for 6 months I had acheived a top 50 ranking with Matco Tools in 2005. I worked out of a temp truck and it was such a piece of crap that I ended up working out of my Jeep Cherokee a bunch.

    So at Cancun, Mexico Expo in Feb. 2006 I receive an award from Matco being 41 out of over 1500 distributors from my new RM Tim Novak. I also received a GOLD sales excellence ring as well. Our whole District received awards for being a #1 District. Our DM was pumped. He was talking about growing our District and helping our Region become #1 in 2006. I purchased around $25,000 at Expo.
    I remember Tim Novak asking me to tell the other distributors in our Region what I did that made me so successful. I told them say hi and talk to every customer in the shop every week. Work longer hours than your competiton. Tote and promote Matco products.

    In less than 3 months after Expo my DM was fired. A fellow distributor would quit has franchise (I believe he was 45 out of 1500+) and I would be threatened by Tim Novak to surrender shops I had established with my Ex DM (of which I had PSA written and credit apps approved and denied.) or I could lose my franchise.

    Having Tim Novak in my home and knowing that I am heavily invested in tools and truck and with Tim threatening my franchise I caved. He left me with Rick Pena to decide what shops I would be surrendering and I did.

    Before Rick Pena came to me he and another DM surveyed our entire area and only found around 100 shops not getting service between me and another distributor Bud Cook. Rick explained to me that during his surveys he only found two shops that had negative things to say about me and that over 95% of my customers were happy to have me as their distributor. But he also explains to me that one of the reasons my DM had been terminated was because he had promised a new distributor Michael Johnson a Distributor Franchise but had not surveyed a route to put him in. Rick had been tasked with the duty of finding this Distributor a route. I suggested to Rick that there were at least three different routes available in Little Rock and I knew that there were others elsewhere but Rick said that this distributor was promised a route in NWA. I told him I didn’t care and that everything I had had been approved through my DM to call on. I even told him about shops I had picked up temporarily to help prep a route Kevin Hodges dad Gerald had taken so that TP would be established and customers broken tools would get serviced before Gerald got there.

    He showed me his survey sheets and I asked him if I could keep them. I DID!

    He showed me sheets with tacks on them in different colors showing shops with no service, shops with my “LOC”, shops I was calling on but had not been signed into my route list. I asked if I could keep them. I DID!

    I told him that I wasn’t giving up one shop and that I was servicing them all and he himself said my customers were happy. He said that is all true but this distributor was promised a route and my shops that I had added were not secured on my route list. I told him my DM gave me approval to call on them. He informed me according to my contract that they have to be in writing and signed by me and DM. I told him I didn’t care. I also told him maybe it was time to talk to a lawyer.

    Fact of the matter is I was still paying off tools ordered from Expo. I owed over 10,000 on deferred payments of inventory that was rolling in months after Expo. I couldn’t afford an attorney at that time.

    But soon Tim Novak flew in from Texas and threatened me with my franchise. Showed me the same tacks on a route maps (which I kept Yes I have Tim and Rick copies of the same goople map crap) I ask him point blank “Can I lose my franchise if I don’t surrender shops” he says “Yes”.

    So I surrender because although I was sure I was right and I new my fired DM gave me those shops it did say it had to be in writing. I felt it would be better to float in the boat than hire an attorney and maybe sink it.

    Tim left and I gave Rick enough customers to give Michael 338 customers on his “LOC”.

    So I am thinking it is a shitty deal but it is over. Not so. Rick comes back to my house and tells me that I gave Michael “JUNK SHOPS” and tells me “Michael deserves the same opportunity you had to become a successful distributor.” I tell him. Yeah he is right and that him being successful is going to destroy me. He tells me I am a good salesman and that I can build it agian but this time make sure your DM does his job. I tell him I am “but I have a large inventory and a new truck. How am I going to make it with the bills I have. He tells me I will manage. Then he tells me he has been authorized to give me 3 MB4725 for my trouble. I told him I could buy four in one month with the over $2000 a week in TP I was being forced to give up before I give up more customers. He tells me well you can take the boxes and surrender the shops or not take the boxes and surrender the shops either way Matco was going to give him more of my shops.

    So, I gave him every 2nd and 3rd shift shop I had. My thinking was if this guy wanted my success he was going to have to work the same way I did to get it. So Mike ends up with over 450 customers to call on. I am reduced to 350 and a lot of what I was given were shops that Bud Cook didn’t want to call on. Yeah I can say that too because I have Matco route sheets to prove it.

    One of the last things I asked Rick to do was when I found new shops that I would be allowed to call on them. He told me he wasn’t my DM and he thought that my new DM Anthony Kramer (who was a previous Snap-On distributor and had been in my District as a Distributor for less than a year) could help me establish new shops on my route list.

    So within two or three months of surrendering shops I have two brand new shops opening up on a street where Bud Cook and myself overlap on Moberly Lane in Bentonville. I call and ask Anthony about a month before they actually open if I can call on them and he says to get him an address when they open with the name of the shop and customer count and he will add them to my route list.

    So I swing by on Wednesday, the day I service that area , and they inform me they already have a Matco distributor and he came by the day before. So I call Anthony and ask him if he gave the shops to Bud Cook and he tells me “No”. I remind him that he told me I could call on them and he tells me to call Bud.

    So I call Bud Cook and ask him if he is calling on the new shops. He tells me “No. I gave those shops to Michael Johnson.” I say “Okay” and I call Anthony back. I ask Anthony “Since when do distributors assign shops to other distributors?” Anthony tells me “They can’t” and I tell Anthony “Then why did Bud tell me he gave the shops to Michael Johnson?” He tells me “He can’t do that.” I tell him “That’s your job. Right?” and he says “Yes”. So we hang up with the understanding that I will be calling on those shops. Then I get a call from Anthony telling me that “things are going to stay the way they are.” I can’t believe it.

    So I don’t give up I tell him I need to talk to him. He comes to my house and tallks with me and my wife. I tell him that is wrong to let a distributor call on shops when he doesn’t have any shops on that street already. Not to mention the fact that I put him in business and he already has more head count than I do. Anthony once again tells me those shops are mine and that I am right and this should never have happened.

    Two days later Anthony tells me that this decision is not his and that “It is out of my hands.”

    Over the course of the next two years I will lose a large percent of my customers due to an ailing economy. I will have multiple shops close and work reduction in every shop I have. Hardly no new businesses will open doors and many will open and close within a years time.

    Sometime in the Spring of 2009 I will tell Anthony I need a route resurvey done because I do not have anywhere near the minimum a new distributor has to start a new franchise. He tells me he is very busy but can get it done around the fall.

    In Nov. 2009 I will call Anthony and plead with him that I am fixing to lose an Important dealership who is closing their doors forever Bob Maloney Ford and that it is imperative that my route be resurveyed. I am told once again that it is the Holidays and in the New Year it will happen.

    Then in January of 2010 Anthony sends me an email stating I am at a YTD purchase average of $1,608.02 and that I am not at 80% of the National average. It also states that “Our end-user customers expect and deserve Matco products from their Matco Tools Distributor. Since I didn’t find this email until after I was terminated because Anthony knows I have never communicated by email. I ask you why would a DM who’s job is supposed to be supporting distributors not at least call me? Is it because I had already asked once and begged another time in the same year for a resurvey?

    So Anthony said resurvey in the new year. It never happened!

    On July 12, 2010 I get “THE LETTER” stating I have 90 days to cure a violation of my purchase average. Not being at 80% of the National Average. If I do not cure within 90 days Matco has good cause to separate. If I repeat same violation within a year Matco can terminate my franchise.

    As soon as I get the letter I come home and start raising hell with Tim. I told him that it was pretty shitty that He would separate me from Matco after I had been begging for a resurvey of my route Anthony said he would perform. I also told him that I had not received one shop added to my route list since he ruined my business in 2006.

    I felt like I was getting nowhere so I started calling corporate and gathering route list to prove I had a low head count to corporate.

    Thats when I received a letter from Anthony stating he had performed a survey of my route and found I was only servicing 67% of my of 328 customers. A totally fraudulent survey. There were shops on the survey that had not been open for over 9 months, there were shops I never heard of, there were shops that he asked me to call on but never added them to my route list. There were shops with inflated numbers.

    Again, I RAISE HELL. I try to talk with Tom Willis and Ernie Lauber but I am not getting any returned phone calls with messages I leave.

    Then, on July 28, 2010 I get a call from Anthony. He has good news and wants to meet me the next day. We set up a meeting at McDonalds because when he lied to my wife and I over those two shops on Moberly Lane my wife told him to never set foot on our property again.

    At the meeting he hands me a route list to sign which says I will have 405 customers to call on. I am overjoyed! I felt someone at Matco had heard of the fraud and made it right. I ask Anthony “Why did it have to come to this for them to take care of me.” He told me “I have more freedom than I did in the past and I deserved this opportunity.

    So I go right to work. I take a purchase average of 620 per week off the false survey performed on July 26, 2010 and turn it into a 1,472 per week purchase average by the end of the year. I was above the 13 wk National Purchase average at the end of the year.

    Yes, I did take three weeks off at the end of the year. One Thanksgiving week and Two Christmas into New Years. I have two kids who were 10 and 11 who were at home as well. The weather would not be kind in the new year having over two weeks of snow days in which I would have to take care of my kids because my wife has worked full time every since Tim cut my route in 06.

    On February 11, 2011 I would receive a conference call from Tim Novak with Anthony Kramer in attendance where Tim informed me that I was no longer a Matco Distributor. When I asked why he told me I had gone back to doing what I did before. I asked specifically and he told me I was not at 80% of the National Average. I told him what about the four feet of snow in my driveway. He told me its too late. I asked if I could start another route somewhere else where their wasn’t a distributor. He told me “I don’t care what you do you won’t be doing it with Matco.” I asked him what about moving to Kansas and selling tools for Matco their? He said “I don’t care what you do you won’t be doing it with Matco.” I asked him if I could at least service my customers till Matco found a replacement. Again he said “I don’t care what you do you won’t be doing it with Matco.”

    What really blew me away was sometime in late November 2010, after my cure period Anthony shows up out of the blue on my truck. I ask him “Oh No! What did I do now?” Anthony proceeds to tell that I am “doing great”. I ask him what about the letter and he tells me “forget the letter ever existed” “your doing great” “just keep doing what you been doing.” I ask him specifically about the one year clause in the letter and he tells me if anything is going to happen he will contact me first. Just like he always did he lied again. Noone ever called and asked if I had a Death in the family. Noone asked if I was sick. Noone called to tell me what a terrible distributor I am.

    Matco didn’t do a damn thing to help me and lied to me every chance they got.

    Did I mention again that Anthony Kramer and Tim Novak hired Robert Demers a long time Snap-On distributor who won a Harley Davidson and a BMW Mini-Cooper for his sales excellence with Snap-On to come on board with Matco as a District Manager in San Antonio Texas less than 6 months after he filed bankruptcy in Arkansas.

    Did I mention Bob told me personally that he hated being a Manager for Snap-On for the year he did it and he told me he would never do that agin.

    Did I mention that Bob was made a Distributor a few months after I received my Separation letter from Matco?

    Guess where Bob assumed his route where two failed distributors had ran a franchise?

    Yes. Bob is back in his home town in Michael Johnson’s old route.

    Now! You smart intellegent people can probably find something to smart off about I am sure. But anyone who has a brain can figure out this is one SCREWED UP FRANCHISE
    ?

  130. Snapon1 on December 30th, 2011 1:30 am

    I read some of this crap and most of it is crap. I been a tool dealer for 5 years. Some of those years with Mac and the rest with snap on. For the record snap on only charges dealers $102 a month franchise fee and $26 a month for computer software. That’s it.. Snap on also doesn’t charge any fees for writing contracts. I know matco and Mac does.. I do over $600 k in sales with a 40% profit margin. I do that with 240 head count of customers and 185 of them on the books. There are zero snap on routes available in my district or any of the surrounding districts around me. I know there are plenty to go around with matco and Mac. Last time I checked there wasn’t all these lawsuits going on with snap on like you hear about match and Mac. Bottom line is I am sick of the snap on bashing because I don’t any of you have touched my numbers and need to worry about yourselves. Btw I put 4 match guys out of business in my 5 years…

  131. Snapon1 on December 30th, 2011 1:38 am

    Snap on also has also shown 15% increases in dealers businesses 2 years in a row. I don’t think matco can say the same!!!

  132. jim Lager on December 30th, 2011 8:57 am

    I can’t disagree with you about Snap-on being the best of all the tool companies. I have been with them since 1992. Made a lot of money. Snap-on does a lot of things right but don’t be mistaken they do a lot wrong also. All new and old dealers need to know how to deal with certian things within Snap-on dealer system. I am starting a web site call snapontoolsdealerassociation.com. It will be a place where dealers can help each other by sharing ideas. It can be used to bash Snap-on or it can be used to help dealers increase profitablity. It is up the dealers. Lets help each other and also give notice to Snap-on where to improve in certian areas. site is under construction so give it some time. You can also find on face book. Please go on and like the site.

  133. Matco2 on December 30th, 2011 11:47 am

    Snap on 1,

    The problem are the very few…… I sure snap on has them too…..

    Been doing this les than you but have one snap on out and one more on the way out.

    The ring leader of the law suets I sure will coming to snap on too.

    He is suing Mac now to test the waters. With Black and Decker not happy with Mac they are the easy target.

  134. jim Lager on December 30th, 2011 12:55 pm

    Believe me Snap-on has been sued a lot. More than you can possibly know. Some suits for good reason some not. Owning a tool franchise can be a great way for a young guy who wants to be independant to learn to run his own business and even possibly prosper. There are pitfalls that can be avoided that I have learned over the years by being both a field manager and a multi franchise. There are other dealers who have also overcome these pitfalls. Working together we can make Snap-on be a more prosperous opportunity for the franchisee. We dealers have to keep Snap-on feet to the fire though. I plan on teaching good and bad about Snap-on and in the end make it a great business one can retire on with lots of cash. Snap-on will need to make some changes but they won’t unless all dealers are educated.

  135. snapon1 on December 30th, 2011 3:07 pm

    Jim you are 100% right. Snap on can be a better company. Your association is a great idea. Running a truck is hard and takes alot of work and sacrifices. I do also think the tool company has an upper hand on dealers and really can control the success and failure of each route. I say that because they put you in buisiness and have the power to take you out. Financing is a key issue too and credit lines. Our customers for the most part can’t afford our merchandise. So you need a good finance company in place and a good trade account system that works. I find all companys lack in those depts. Most tool trucks are empty. There are many reason for that but I am sure little credit sales, small dealer credit lines and a 10 or higher tp or ra turn will play a roll in a truck being empty. Empty trucks means less sales for the dealer which then turns into less cash flow. Less cash flow means less money to restock the truck. It goes on and on but you get my point. It isn’t alway’s the dealers fault for failure. The mothership needs to have programs in place that work. If not the little ship sinks. I think this SBA loan fraud against Matco was the first example of how the company already made it hard to sell tools. A big loan that looked easy to pay back on paper and harder in reality. So you guys need to stop bashing eachother and realize everybody came on board to sell tools for one reason. That was too make money and have the dream of being your own boss. Just because other people may sasy something you dont agree with doesn’t make it right to pick at eachother. I think every situation is diffrent and alot of people did get screwed and lost everything ( which isn’t fair) and others did well. It doesn’t make it right for anyone to judge a persons feelings on a situation there are not 100% aware of. Good selling and good luck to everyone….

  136. Matco2 on December 30th, 2011 4:27 pm

    Jim,
    If you would???? What is Snap On’s stand on what Matco calls National Purchase Average?

    To keep this short 80% of that average is required to continue with your franchise. There is plenty more to it than that but what I assume is after all the dust settles the numbers would be close Matco / Snap on.

    I see it as if you are not running at or better than that average your not making money…

  137. snapon1 on December 30th, 2011 4:48 pm

    I don’t think snap on will bother you if you stay current on your invoices and service your shops….

  138. matco2 on December 30th, 2011 9:49 pm

    Ok thanks Just wondering.

    600k good numbers.
    Your counter parts in my area are not putting up those numbers.

  139. Cary Devitt on December 31st, 2011 12:17 am

    [note to ADMIN redacted]

    Sorry to butt in matco2 snapon1 and jim

    Todd here is my reply in reference to me being a charter member:

    What???? I reviewed my franchise 3 years ago…..I have to abide by the same guidelinesthat new starts do. At least what new starts had to abide by 3 years ago.

    You were misinformed by the WMD.

    All I am saying is that you can make a great living with a 325 start and after my 10 year survey I was still within 10 potential customers of the 325. I have been in the top 50 for the past 5 years?????? I am not a charter distributor”13 years”

    [note to ADMIN redacted]

  140. Snapon1 on December 31st, 2011 9:15 am

    I work hard every day in my route. I tote and promote items everyday to my customers. I offer sales to all my customers and give everyone the opuurtunity to buy snap on. Following a simple system helps me generate over $10k every week in sales and collections. I hit bumps on the road with snap on which does happen but I don’t take any crap and stand my ground. Having a good relationship with a great lawyer helps along the way too.

  141. jim Lager on December 31st, 2011 11:26 am

    Good point about lawyer. there is no doubt Snap-on is the best tool dealer opportunity. They(Snap-on) does take advantage however of new nieve dealers if allowed. They don’t like to be sued. Snap-on settles a lot because they have lost their tale in court over the years. There is up and down side to Snap-on. Hopefully the Snap-on tools dealer association will be up and running Monday, Jan. 2nd, 2012 so we can start helping dealers maximize their potential within Snap-on tools.

  142. Todd A. Peterson on December 31st, 2011 5:33 pm

    Snap-On 1 don’t answer any more questions because the OBC does not like your answer.

  143. Todd A. Peterson on December 31st, 2011 5:36 pm

    Cary you are full of more stuff than a stuffing stuffed Christmas turkey.

  144. Todd A. Peterson on December 31st, 2011 5:42 pm

    Snap-On guys!

    What is the average length of time that ALL Snap-On franchisee’s have been in business? You know all Distributors divided by the years spent in business=?

    If I had to guess Snap-On would be around 13years per Distributor.

    Matco would probably be 6 years.

  145. Snapon1 on December 31st, 2011 6:11 pm

    Todd what is an obc?

  146. matco2 on December 31st, 2011 6:49 pm

    Snap on 1 wait till you get Todds answer you’ll love it.

  147. Todd A. Peterson on December 31st, 2011 8:05 pm

    Snapon1

    OBC=Old Boys Club

    You See! You know them too! They are spread out all over the U.S. You scratch your heads and wonder how does this guy get this much on his route list to cover.

    You think to yourself if I had this much territory to cover I would be a top Distributor too.

  148. guest17 on December 31st, 2011 9:11 pm

    Wrong again Todd,
    Head count.. Here in our small town we have 3 Matco distributors, and 4 snap on.. While the three of us do pretty damn good with our 325 apiece (975 total), that leaves 4 snap on Dbrs with 225 apiece and only (900 total)!! So we have 4 competitors that are trying to make a living on less than what we Matco Dbrs make on 3!! And youd never guess, but the same snap on route has changed distributors 8 yes 8 times in the last 13 years!! So where is the “NON VIABLE” head count here??

    So whats wrong with this picture Todd?? That’s right, nothing if you’re a self motivated Matco distributor..

    Even though these are cold hard facts, some people would rather let failed Matco Dbrs give advise on going into business than let successful ones share what they know..

  149. matco2 on December 31st, 2011 9:14 pm

    Todd
    Snap on 1 dose 600k a year by as he said;
    Toting
    Seeing all his customers
    All on 240 head count

    I run similar and see about 375. On track to pass that next year. Doing the same thing.

    He also said he put 4 Matco guys out. What do you think they aren’t doing.

    Truth be told I have had 1 Snap on guy 1 mac go out.

  150. Todd A. Peterson on December 31st, 2011 11:05 pm

    Good point Matco2

    Let’s look at my experience.

    I have seen, besides myself in 6 1/2 years, 4 STS (Superior Tool Sales), 2 Cornwell, 2 Mac, 4 Snap-On and 6 Matco start and leave or leave their franchises.

    Snap-On guy I ran up against was Robert (Bob) Demers who used to have a plus truck with Robert Garza. He sold his truck and gave Garza his own franchise. They both left Snap-On not servicing their customers because they couldn’t buy tools in 2008. Bob filed bankruptcy and within a few months Matco (Tim Novak) hired him to be a DM in San Antonio, TX. See I no alot about Bob his Dad retired from selling tools for Snap-On and Bob ended up getting his start from his Dad which is great. I wish my dad would have gave me the truck and tools to start my own franchise. But I had to have good credit and equity in the properties I owned to start. Bob already had DM experience with Snap-On and hated it told me “I’ll never do that again.” “The truck is where I belong.”

    So why become a Matco Distributor?

    All I know is after I received a Separation Letter from Matco Bob is in a truck within 2 months selling tools where Tim Novak forced me to give up shops that I had secured with the DM who got me in the business.

  151. Todd A. Peterson on December 31st, 2011 11:08 pm

    matco2

    My head count when I got separation letter was less than 250 and a lot of them were shops that Bud Cook did not want to Service anymore.

  152. jim Lager on January 1st, 2012 11:08 am

    I have seen a lot of Snap-on, matco, mac and Cornwell dealers fail and succeed. I can only speak for Snap-on however. If you do your homework when you get in. Get the right training and support and get a good route you can make monney. Understand though if worked properly You just bought a 6 day a week JOB working 12 hours a day. At the end of the year if all went well you made 60 – 70 grand. To me thats a job. If all doesn’t go well. Route short. bad training, on-hold etc. well who knows. I think Snap-on and other tool companies can and should do more. I have 5 franchises and bought 2.3 million from Snap-on in 2011. Now i am trying to sell off franchises and there is no value what so ever in my business. Snap-on does everything they can to inhibit the sale diminish the value. I have had some success making Snap-on look at their faults in the past. I hope that my dealer association will push them to do better for dealers.
    By the way I don’t know many 13 year veterans in Snap-on running great numbers. Snap-on loves fresh meat.

  153. Todd A. Peterson on January 1st, 2012 2:34 pm

    Jim I know a Snap-On guy with over 29 years. His name is DON HAMILTON and he is a great Tool Dealer. He and I look at our business in much the same way and did business the same way.

    Rumors were that Don was trying to sell his franchise back in 2008 when 3 other distributors were leaving the Snap-On system. But done prevailed and when things started to get better and competition was failing DON had some very nice years when others weren’t even around to compete. Don is still going and is still one of the most reputable tool distributors I have ever met!

    Stories like Don is why I am still thinking about selling tools but man I don’t know if I can take another leap of faith like that again.

  154. Judge on January 1st, 2012 6:48 pm

    Jim lager, funny how you mention owning routes that aren’t worth anything. I talked to a very smart snap on dealer. He said ” you can’t expect more then $30 to $50k blue sky for a route.” his reason was your prospects to take over this kind of job is higher low class or middle class ( if that still exsist) candidates. These kind of prospects have some money tuct away and have been convinced owning there own business will make them rich. Let’s face it if we sold our routes for a real number like $250k, who would buy it? Anyone that has that kind of money in the bank certainly don’t wanna be a sales person chasing dollars and a company hammering you every week to buy more tools. Or like you said put yourself into a 12 hour a day job 6 days a week to make 60k a year. I know a friend that sold a boars head route. He sold it for $300k. I asked him how he got that kind of money. He said ” he has a route just like us tool guys have. The overhead is low, you generally restock once a week and all you do is see what your customers are low in and restock them. So he said it’s not really a sales job. He just services his stops and drops them an invoice before he leaves.” My point is it’s easier to sell something that only requires service, less overhead and not being a sales person. Our routes don’t garauntee anything to a new prospect because this is a relationship business for one and in order to be at that $10k a week you have to be a good seller. Most people don’t like sales jobs.

  155. MATCO TOOLS: Lady Matco Speaks Out (Video) : Unhappy Franchisee on January 1st, 2012 9:06 pm

    [...] MATCO TOOLS Franchise Defenders Speak Out December 7, 2011 (Comments defending Matco invited) [...]

  156. ADMIN on January 1st, 2012 9:12 pm

    Speaking of Snap-on, I just posted the current Snap-on Tools Franchise Disclosure Document (FDD) here:

    http://www.unhappyfranchisee.com/%ef%bb%bfsnap-on-tools-franchise-disclosure-document-fdd/

    It’s a large file, in part to list all the past lawsuits from franchisees (40+)

  157. jim Lager on January 2nd, 2012 10:01 am

    Per lawsuits. 40+ is just what is listed in the FDD. Go backover 25 years and there are probably over a thousannd lawsuits against snap-on.

    Selling your business?? I am at least a little pissed off at Snap-on because i am trying to sell one of my franchises to one of my dealers. Believe me there is NO BLUE SKY in your business/job. Let me tell you why. snap-on has something called a schedule 1. This lists everything you as a selling dealer has to sale, Inventory, accounts recievable, truck, used tool, discontinued tools, computer, and other things you might sell a dealer. The schedule is bullshit because Snap-on credit will only finance 2 things on that schedule. Inventory and accounts recievables. The kicker is the maximum accounts recievable or R/A they finance is $55,000.00. So if we do a good job and put a bunch of money on the street, turn it well, Snap-on rewards us by saying they wont finance it when we go to sell it. by the way you can’t go to a bank for financing because if you do, Snap-on tools, not Snap-on credit puts an all encompassing 1st lien against your business. NO BANK WILL TOUCH THIS AND TAKE A 2ND POSITION. Snap-on does this to keep routes cheap and bring in young nieve guys with little education to run volume. Snap-on protects themselves. Everything Snap-on does is contrary to us gaining wealth. their training and even volume discount is designed for us to sell high volume at low profit margins.
    Understand all my routes do between $10,000 and $14,000 a week. I am very succesful and always have been. snap-on only looks out for us when we force them to. I was a field manager in the 90′s. I will tell you you will never hear a discussion in Snap-on asking themselves what Snap-on did wrong when a dealer is failing. Here is how the discussion always goes. “What can we do to get rid of this guy and put another one in his place.”

    [jim: I've copied this comment over to the new post specifically for Snap-on Franchise Complaints: http://www.unhappyfranchisee.com/snap-on-tools-franchise-complaints/. Thanks. ADMIN]

  158. jim Lager on January 2nd, 2012 10:51 am

    I would like to hear from the Veteran dealers, Snap-on, Matco, Mac anyone. These Franchisors are bullies. If we don’t stand up to them they will walk all over us. If you want to retire someday or maybe your route has shrunk over the years and you can’t get any help then you need to stand up and confront them. Snap-on doesn’t like me much because I have grown to a size that I can stand up to them. they don’t like it but I have had success getting Snap-on to change the rules for me where they don’t for other dealers.
    Does everyone understand when you buy a route from Snap-on they apply your business credit to your personal credit. No bank does this. Snap-on does it so you can’t go buy anything. they want to tie you up and keep all of your money going to them and no one else. Your debt to income ratio destrys your ability to get even the smallest loans. Snap-on will own you for years. Oh yeah, Snap-on has pre payment penalties on their loans. Who does that today. No one but Snap-on. Again Snap-on has you tied up until they want to cast you aside. When they cast a young or veteran dealer aside it will not be pretty for that dealer. If you havent noticed I don’t intend to give my succesful business away. My goal is to force Snap-on to participate in building real value in our franchises that we as dealers can prosper and some day sell. Snap-on will have to listen to us if we all stand up to them.

    [jim: I've copied this comment over to the new post specifically for Snap-on Franchise Complaints: http://www.unhappyfranchisee.com/snap-on-tools-franchise-complaints/. Thanks. ADMIN]

  159. matco2 on January 2nd, 2012 11:14 am

    I wish you luck Jim.

    Is your site up? Will you have it open for none snap on visitors?

  160. ADMIN on January 2nd, 2012 11:21 am

    New post specifically for Snap-on Franchise Complaints:
    SNAP-ON TOOLS Franchise Complaints
    http://www.unhappyfranchisee.com/snap-on-tools-franchise-complaints/.

  161. jim Lager on January 2nd, 2012 11:40 am

    http://www.facebook.com/pages/Snap-on-Tools-Dealer-Association/181193135313159

    Thank you for your support. I will have it open to all dealers. Yes it is a Snap-on dealer association for now but I want to share my knowledge and help all dealers that are being taken advantage of. Its really too bad because a tool route can be a great opportunity for a young ambitious dealer to learn and grow. Few new dealers understand everything these big companies do to manipulate us. I hope to have site up later today. Please for now if you have a face book page go to the above link and like the site. There is no content yet but there will be. Understand we don’t have to get out of a route to prosper. There are succesful dealers that need help increasing profitability. This is not just about bashing these companies, but we do need to point out their misdeeds to get them to pay attention to us.

    If the above link doesn’t work mark Jim lager as a freind on facebook and I will push the link to you. I should be the first jim lager on face book. The picture will be a family picture at a high school graduation.

  162. matco2 on January 2nd, 2012 12:19 pm

    This will be very interesting to follow.

    There was something called a.association for Matco but was for destruction of all and the gain of few with out looking for answers. Any help that was offered was over looked and went to sarcastic poems and utube videos by the originator.

  163. MATCO#1 on January 3rd, 2012 9:32 pm

    Hmmm Interesting Jim, I like the angle you are going towards, have a sight that people can help people, unlike the other sight here, just a bitch fest.

    Look forward to seeing how it evolves, thanks for the invite.

  164. Todd A. Peterson on January 4th, 2012 4:05 am

    Matco#1

    If you are unhappy with Matco I can take your complaint and submit it to the board for review.

  165. Jim Lager Snap-on Dealer on January 4th, 2012 11:31 am

    Matco#1
    My relationship with Snap-on started in 1992. I have had many good experiences with snap-on. A tool franchise in general can be a great way for a young person to learn how to run a business succesfully. Unfortunatly these tool companies get greedy and become bullies at times. I believe these companies are very well suited at protecting their assets to the detriment of dealers. I hope the association webstite I am creating will not only open the eyes of all dealers but force companies like Snap-on, Matco, Mac and so on to be better and provide long term value to the franchisees. If I can get both dealers and managers of these corportations to share their ideas on this site it could grow and help the industry. I am wiling to share my experience good and bad, I hope others will as well. Beware there will be some bashing of these companies. I have concerns and I know others do as well. Hopefully the outcome will be positive.

  166. MATCO TOOLS Franchise Information Video [UPDATED] : Unhappy Franchisee on January 16th, 2012 10:40 am

    [...] MATCO TOOLS Franchise Defenders Speak Out December 7, 2011 (Comments defending Matco invited) [...]

  167. Denny Cattell on January 20th, 2012 4:39 pm

    I have been with Matco for 30 years as a distributor and a DSM and back again. I’ve seen many people come and go and in almost all cases it relates directly back to the person behind the wheel. It is a personality and service based business. If you come up short on either you will most likely fail, or if you work less than 5 days, same thing.
    As others have said it is a damn tough business but to be self employed you have to have personality, honesty, perseverance and be willing to work harder for yourself than you have ever worked for a employer.
    I have been able to sustain a very comfortable lifestyle working as a Matco distributor. I have attained many goals by working hard and if there is something I want I just work a little harder.
    In my 30 years I have faced many challenges, lost two wives to cancer, had 7 separate surgeries and lost a lot of time but Matco stood behind me through it all.
    Matco is not perfect and I’ve had my gripes in the past but everyone is not cut out to be in business for themselves, it’s just a fact of life.
    As someone once told me:
    When you are pointing the finger of blame at someone you have three more pointing back at the possible cause to the problem.

  168. Todd A. Peterson on January 21st, 2012 2:02 pm

    Point away Denny! If you are going to Expo come see me at some point! I will show you what Matco did for me and let you decide if I am a Failure! I kicked ASS at selling tools and even when Matco let me get reduced from 328 unviable customers which I started with to 154 customers when I was given my SEPARATION LETTER I was still paying my bills and making a LITTLE money.

    If you read my early posts then you remember I told you I had been begging for some support for a 1 1/2 and I was PROMISED a RESURVEY. So, when I called TIM NOVAK (RM) after talking to ERNIE LAUBER who told me to call TIM first and give TIM an opportunity to FIX it. What does TIM do? Send Anthony Kramer out to do a BOGUS SURVEY claiming I had WHAT? 328 customers to service but I was only servicing 67%.

    This is how Matco SUPPORTS DISTRIBUTORS!!!

  169. matco257roberts on January 22nd, 2012 2:16 am

    I have been with Matco for 5 yrs and have noticed certain methods that are impacting my business negatively.I am also one of the distributors that does not have a typical route- if there is such a thing.The majority of my customers are illegals or they have poor or no credit so I must carry their TP on truck. The previous 3 or 4 dbr in this route failed.My previous experience was in sales to automotive dealers etc.I chose this route on my own,spent my life savings on this business and came in debt free, no one tricked me or lied to me to get me to invest in a Matco franchise.I do not believe Matco tries to take out dbrs, but I believe that in their zest to make profits BAD decisions are being made and I hope that this forum will surely have some positive effects on management.Corporations all must answer to shareholders,however we must not lose sight of what has made Matco a major player in the tool market —DISTRIBUTORS we are their most valuable asset!

  170. Todd A. Peterson on January 23rd, 2012 4:36 pm

    Wow! Good comment Robert. Would like to talk to you by email if I could might be able to give you a little info about Matco. Look me up on Facebook! I am the only Todd Peterson wearing a softball uniform red and white. Look forward to talking to you.

  171. MATCO TOOLS: Franchisee Alleges Franchise Fraud (Video) : Unhappy Franchisee on February 24th, 2012 3:20 pm

    [...] MATCO TOOLS Franchise Defenders Speak Out December 7, 2011 (Comments defending Matco invited) [...]

  172. Mobile Tool Franchise Guide : Unhappy Franchisee on March 9th, 2012 1:31 pm

    [...] MATCO TOOLS Franchise Defenders Speak Out December 7, 2011 (Comments defending Matco invited) [...]

SHARE A COMMENT HERE:





Bottom