MATCO TOOLS Franchise Defenders Speak Out

178 thoughts on “MATCO TOOLS Franchise Defenders Speak Out”

• 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.

• [Comment moved to http://www.unhappyfranchisee.com/matco-tools-franchise-complaints%5D

• 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.

• 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.

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• 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.

• 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.

• 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,

• 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

• 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.

• 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?

• 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

• 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.

• 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.

• 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.

• 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?

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• 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.

• 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!

• 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

• 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.

• 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.

• 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

• 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.

• 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.

• 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?

• 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.

• 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?

• 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.

• 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!

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

• 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.

• 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.

• 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?

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.
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• 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.

• 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