MATCO TOOLS Franchise Complaints

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• I started a Matco Tools business and have been unhappy ever since. I came across the below and find it to be completely true............

  Matco Tools Dirty Dozen- 12 Reasons Why Distributors Fail

  1. Bait & Switch Distributor Rides
  The prospective distributor is taken on a “check ride” with a distributor that has a much better territory than the new prospect will receive.
  2. Inflated List of Calls
  The “List of Calls”, or number of potential tool buying customers, sold to the distributor is inflated and often includes customers that have little or no chance of ever buying tools from the distributor.
  3. Misleading use of branch paid sales figures to prospective distributors
  Use of misleading sales figures based on average sales of a Regional Branch, which are by their nature higher than a prospect can achieve.
  4. Churning of List of Calls
  Lists of Calls or territories that have failed before are re-sold time and again to unsuspecting prospects to ensure that Matco keeps a distributor in the territory regardless of their ability to be successful and the company’s knowledge that the territory is unlikely to support a successful route.
  5. Overselling of Tools
  Employees are paid commissions on tools sold to distributors by the company so distributors are subject to aggressive sales tactics used to sell more and more tools to distributors regardless of their ability to sell the tools; after all, you “can’t sell from an empty truck”.
  6. District and Regional Manager conflicts of interest
  Inherent conflict of interest between company managers and distributors because although managers are pitched as “business coaches” and “partners”, the managers are paid commissions on tools sold to distributors – if distributors don’t buy, managers don’t eat.
  7. Extension of Excessive Amounts of Credit
  Matco extends excessive amounts of credit to distributors to allow them to “purchase” more and more tools from the company regardless of the distributor’s ability to sell the tools and regardless of the distributor’s ability to pay that credit line off – eventually, the distributor suffocates on his debt and his route fails (this allows the territory to be re-sold to a distributor with a “fresh checkbook”)
  8. No Room to Grow- Over Penetration
  The List of Calls given to a distributor will shrink over time. Matco locates too many distributors too close to each other and consequently when the natural reduction in customers occurs the distributor has no place to go to replace these lost customers.
  9. Credit Hypocrisy
  Matco will extend credit to mechanics to purchase big ticket items from the distributors such as diagnostic equipment, but will not extend that credit to mechanics that do not have Social Security numbers or other proper worker documentation; yet Matco expects the distributor to extend its own credit to mechanics that do not have Social Security numbers or other proper worker documentation for the sale of smaller ticket items.
  10. Non-Supervision/Assistance –– Diluted District Manager supervision
  There are not enough managers per dealer to provide meaningful business assistance which should include sales assistance to business reviews.
  11. Usurping New Customers
  When a new customer is located in a specific territory, the customer is often not given to the distributor but used by Matco to create new Lists of Calls so that in can sell another initial inventory and more tools to a new distributor.
  12. False Recession Excuse
  Matco blames the current economic difficulties and failures of its distributors on the recession. The truth is that had the List of Calls had been sufficient, meaning enough customers to sustain the amount of tools purchased (and the debt service of those purchases) far fewer distributors would have failed.

• A class action lawsuit is in the works right now. It is time to put your foot down and let Matco Tools know that distributors are sick and tired of their illegal, and unfair business practices.

  Contact Jerry Marks @ (732) 747-7100

  jerry@marksklein.com

  Marks & Klein LLC
  63 Riverside Avenue
  Red Bank, NJ 07701

• There are two other places you can post your comments,
  http://www.ladymatco.com post in the comments section or

  go to Facebook
  https://www.facebook.com/pages/Matco-Tools-Distributor-Association/293379297348041?skip_nax_wizard=true
  thanks!!
  Debbie Solko

• 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. Matco does not sell territories- the franchises are free. Distributors buy nothing from Matco except tools, period. Use your head, buy what you need. Matco does not "expect" a distributor to sell to workers without proper documentation- the first line of the computer program page for customer entry is social security number. If you don't fill it in, you're an idiot. There is not a single customer in my computer without a SS#. Matco is not without problems, but if you don't have the intelligence or common sense to run a business, then punch a timecard somewhere. If you make mistakes and fail, look in the mirror for the reason. If you need someone to hold your hand, join a union.

• If Kevin has been a distributor for 22 years he is NOT a franchise - he signed on back when they were 'charters'- whole different set of rules for them boys. While Matco may not have 'sold' me a route - they did make me BUY $80K of start up inventory - that THEY choose, I couldn't pick anything. Oh, and Matco DOES make me buy 80% of the National Purchase Average/weekly OR I will get the boot. As far as expecting a dist. to sell to un documented workers - well, they didn't ask for SS# s when they did their survey - and they make up a large number of my customers. If I didn't sell to them, then I surely wouldn't have the 325 potential customer base. Matco doesn't care if their distributors have the intelligence to run a business - as long as they have good credit - Matco doles out financing like candy. I'm too busy working 80+ hours a week trying to make a living to see anything but a worn out man when I look in the mirror. Walk a mile, or a few hundred, in my shoes before you call me an idiot!

• Kevin,

  Congratulations on 22 years. YOU are located in a good market. The other 80% of us are dealing with techs struggling to turn 19-20 hrs. a week and keep food on the table for wife and baby. We are just trying to keep the wheels rolling.

  SSN's ? Who cares? All of my 142 skips have a SSN. We are talking about the "churn and burn" attitude Matco has. After 22 years I KNOW you have seen it !

  BTW, save the punch a time clock, look in the mirror, hold your hand speech for the MDAC suck-ups. Congrats again on your success, but don't think for one second you know what is happening on the other side of the fence.

  Franchise was free? LMFAO, that's a good one !

• Gary, Business is slow everywhere, including here. If I had any business debt, I don't know if I could survive. I've had very good years, and bad ones also. I don't blame it on Matco. So you really don't think I know what's happening "on the other side of the fence"? I've seen every possible side of this business. I've had many problems with certain individuals at Matco. Many are gone now, as they should be. Some still need to be purged. I am optomistic on the future of this company, as I've seen some positive changes, with more to come. I've known our incoming president since I started in 1989, spent a good amount of time with him and his wife, and consider him a friend. He has the potential to bring common sense back to the management of Matco, and I'm looking forward to it. I'm not really unhappy with our current president, as I know him personally also. He's a good man, but I'm sometimes not sure he knows what mistakes some of his upper management individuals are making.

  The bottom line is- I buy tools from Matco. I also buy tools elsewhere. Matco is my main tool supplier. I really don't need them for much more. If I am unhappy with their service or certain products, I go elsewhere. If Matco has a "churn and burn" attitude, why should that affect me? I buy what I choose to buy, and make my own decisions.

  So what did you pay for your franchise? I own two, and didn't pay a dime for either. My brother didn't pay for his. I have never known a distributor who paid Matco for a franchise, or for anything else, except tools. Please explain.

• John- I am a charter distributor. My second franchise is under the current agreement, so I know precisely the rules of both. When I started my second franchise eight years ago, the rules were the same as anyone starting a new route. I did not buy a starter inventory. Matco would have liked that, but they do not run my business, or tell me what to buy. I also did not finance my business through Matco. I had no money when I started, but I financed through a local bank with an SBA loan. I am an independent business man, and will not owe Matco anything except my current tool bill. Matco does not do an IQ test on potential distributors. Neither does any other company, tool related or not. I have also worked very long hours, and still stay on the route till after midnight one night a week. My son was born the year I got in business, and I missed a few things as he grew up. Point being, this business was MY choice, not Matco's. My success or failure is on MY back, not Matco's. Same goes for your satifaction and happiness. If this business is not for you, then find one that is. No company will ensure your success. That's up to you.

• Kevin - regarding your second franchise - it is NOT under the same rules - apparently. I DID HAVE TO BUY A STARTER INVENTORY AND I HAD NO CHOICE. I ALSO HAD NO SAY IN THE PRODUCTS THAT WERE INCLUDED IN THAT STARTER INVENTORY. I ALSO HAD NO CHOICE REGARDING FINANCING - I WAS TOLD MATCO WOULD HANDLE THE FINANCING, FILL OUT THE APPLICATION, PERIOD.
  PS the definition of a 'franchise' is a business plan that , if followed will not fail.
  Well, I followed the plan. Oh, and I keep being told that my franchise "will be pulled for non compliance IF I don't meet the 80% of National Average"
  Good for you, buy what you want. I'm stuck struggling to meet Matco's required purchases. It is like being told to juggle - sure, it would be up to me to learn - But, Matco wants me to juggle without any arms, not happening. Like Gary said, save the "look in the mirror" crap for MDAC suck ups.

• Kevin- Quote; "If Matco has a “churn and burn” attitude, why should that affect me?"

  It doesn't affect you. Obviously you are bullet proof, especially when you admit you buy from WD. IT DOES however affect the new people trying to make a better life for themselves. Can't make the top 500 in your first year? Let's make a call to the bullpen. You are outta here !

  You didn't have to buy a starter inventory for your second truck? BULLETPROOF !
  Everyone else was riding around with a whole shelf of Funnel Buddy's.

  Quote; "So what did you pay for your franchise? I own two, and didn’t pay a dime for either."

  You, I and everyone else that obtained a loan either through a bank or Matco is paying interest on that loan. Matco banks the interest, then cuts DBR's off at the knees and expects you to re-pay the loan with no income. Oh by the way, send us back all your tools -15% re-stocking fee and shipping costs.

  No worries though. Matco has another "qualified" candidate waiting in the wings and the vicious cycle begins anew.