MATCO TOOLS Franchise Complaints

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• It appears that the contract states that outside purchases are forbidden.

  When is it appropriate to terminate someone that purchases products outside?
  1. The first offense?
  2. Second offense?
  3. After x number of warnings of the violation?
  4. When the Matco DM is not making enough money off of you?
  5. When you fall below 100% NPA?
  6. When you are the ONLY ONE buying outside?

  I'm sure one of the most wise and all-knowing can give their opinion on this.

• Todd,thats how they are,they run, it is supposed to be a partnership, but when it comes down to it, they run,hide, and avoid questions.You promote their products,and they promote you out on the street, kicking people to the curb.

• Former Distr writes: "Six years on MDAC, not me, but others have raised the issue several times about the National Purchase Average and how unfair it is base this on a ‘National Average’, why not regional or district?

  Matco’s response EVERYTIME=”take it off the list, it is not up for discussion”."

  And yet Tom Willis openly states that different areas have differing levels of devastastation ("Florida, Arizona, California and Nevada... hardest hit"). I'm sure the Old Boys Club on here will just contend that the dbrs in Florida, Arizona, California and Nevada must just be lazier than the rest, since that's the only reason for failure.

  As far as MDAC, what good is a distributor committee if Matco can dictate which issues they are allowed to address? Former Distr: in your time on it, did you see MDAC tackle ANY of the most serious issues, like churning of dbrs?

• 7. When Matco can resell to a creditworthy newbie eager to make a big initial purchase, take out new loans & leases and be sucked dry for a couple of years?

• In 5 of the last 10 years, I asked for a Route Survey to be done and the DM always said it wasn't necessary. I wasn't the only one requesting a survey.

  My initial route had a total of 341 potential customers, due to shop closings, transfers to other distributors and layoffs, 5 years later it was 169.

  Today, I still call on that list and it is at best 200 potential customers. This is FACT, not opinion.

  I gave the facts to Tom Willis, RM and DM, they did NOTHING!

  Matco FAILED to Support me.

  I was smart enough to stay in business, by buying smart and being honest and loyal to my customers, with OUT Matco.

• Curious????

  Anybody ever get HURT while performing their Matco duties?? Say, injured while loading or moving a tool box?? Think you are out of luck?

  *********************you are not out of luck**********************

  YOU CAN FILE A WORKER'S COMPENSATION CLAIM!!

  yes!!! YES!!! yes!!! you can!!!!

• It was clear that MDAC is for Matco. It is a marketing tool for luring in prospective distributors.

  MDAC raised many concerns about everyday business to Matco. But if you look back at the record, Matco's so called 'MDAC Driven' improvements were going to happen over time anyway. They didn't happen because MDAC requested it, they happened because Matco needed to improve the bottom line AND they had no impact on Matco's business structure.

  Items within the Contract are off limits, remember you have people like 'Kevin' sitting on MDAC, Charter members that don't have to play by the same rules, and others that don't have the same rules, ie. 'the buying' of distributors from competing companies

• Looking back through old notes on MDAC, I served on MDAC in two different Regions. Because of contract clauses, I can not reveal the locations yet.

  One region would always attempt to raise issues and address the problems of 'Distributor Profitablity'. Through the years, it was getting tougher and tougher to make a profit. I think if you look back at numbers between 2001-2007, you would find that distributor margins dropped an average of 5%. (if not more).

  Some where in there, Matco introduced the 35% margin, Matco promoted that like they were helping us, in fact, many items that were 40% are now 35% or 30%. It helped Matco at the expense of the distributor.

  The 'other' region was pretty soft, bring up issues like product availability, product defects, new product suggestion.

  I could never figure out why 'we' as distributors had to tell Matco Product Managers what to buy. New and exclusives- when has Matco really introduced something NEW and EXCLUSIVE?

  Definition: NEW was something new to Matco, not the market place, they already had it. EXCLUSIVE is the fact that it had MATCO stamped on it and not a competitive name. yea, I know every once in a while we had an exclusive from OTC for 3 months or so. And the next time some one else had the 'Exclusive', but Matco still falsely promoted to distributors NEW and EXCLUSIVE.

  Its embarrassing to try and defend Matco's false advertising in the product flyers.

• Debbie said- "YOU CAN FILE A WORKER’S COMPENSATION CLAIM!!"

  REALLY??? DID YOU JUST FIGURE THAT OUT???

  So is that why I pay workman's comp insurance? WOW- I had no idea !!

  Debbie- If you don't understand even the most obviouse details of this business, you really need to find something else to do.

• Yes!

  You can file workers compensation
  You can file unemployment

  *******Againts MATCO******