How much do Snap-On sales reps make? - Page 2

Halm · 07-09-2008, 03:47 AM

Snap-On is a great organization, if you fit what they are looking for. A good friend is a branch manager and over the last 20 years I have leaned a lot about them. First, they don't take anyone via a mailed in resume. They typically seek out a wrench based on his reputation for a number of factors including ties with other mechanics in the area. You then go through extensive sales training, have a manager riding with you on a routine basis and attend more sales training /positive motivation sessions weekly, sometimes 2 or 3 nights a week. And this is for the entire branch including the most senior drivers.

Money? The biggest problem from a managers perspective is keeping a young driver motivated after the cash starts rolling in. Seems that within the first year they quickly make 3-4 times more than they ever have. And yes, $100k+, after expenses, is on the normal side of things.

on2wheels52 · on2wheels52's Garage

I'm pretty sure I bought a S-O dealer's kid braces.
Jim

legion · 07-09-2008, 04:56 AM

Quote:

Originally Posted by Eric Coffey

I hear a lot of the Snap-on guys get shafted on the financed items, so you might have to play bill-collector and repo-man as well. If I was going to drive around in a truck all day on some sort of route, I think I would look into a FedEx franchise.

My bro-in-law has $8,000 worth of Snap-On tools that he financed, and never paid the guy for.

sammyg2 · 07-09-2008, 05:43 AM

Mark-up is huge on those tools. They stay in business because people have been fooled into believing that those tools are worth the incredible amount they charge for them. They aren't.

If a mechanic has $100,000 worth of snap on tools I wouldn't pay him to work on my stuff, anyone that gullible can't be a good mechanic. Either that or he charges waaaaaaay too much.

I made a good living using tools every day when I was a millwright. Most of em were proto.
Yet I have people who can't change a light bulb telling me how good snap on is. Uh huh.

Rick Lee · Rick Lee's Garage

Quote:

Originally Posted by Jim Richards

RL, is the newswire business drying up?

We had some layoffs yesterday and I'm sure more are coming.

TerryH · TerryH's Garage

Quote:

Originally Posted by sammyg2

snipped.... Yet I have people who can't change a light bulb telling me how good snap on is. Uh huh.

Cost aside, Snap-On makes the best tools overall, IMHO. Whether they are worth the extra money in every instance is where the real debate begins.

Snap-On makes some tools that are very superior to other brands and some that aren't.

berettafan · 06:10 AM

Quote:

Originally Posted by sammyg2

Mark-up is huge on those tools. They stay in business because people have been fooled into believing that those tools are worth the incredible amount they charge for them. They aren't.

If a mechanic has $100,000 worth of snap on tools I wouldn't pay him to work on my stuff, anyone that gullible can't be a good mechanic. Either that or he charges waaaaaaay too much.

I made a good living using tools every day when I was a millwright. Most of em were proto.
Yet I have people who can't change a light bulb telling me how good snap on is. Uh huh.

I have to believe this is the case.

Anybody paying $10k for a toolbox either has a LOT of money or very little sense. Peer pressure is what it is. I know more about old 911s than the most expensive import wrench in town and I work out of a $280 Craftsman box stocked with everything from craftsman to SK to Ace Hardware to harbor freight.

I've been in garages with REALLY high quality tool storage and let me tell you it was so freaking beautiful my wife would probably allow it in the house! Poor suckers have no idea what 'nice' really is. These clowns could build a 30x40 cement floored pole barn for the price of one big tool box for pete sake! Those overpriced SO boxes are constantly on ebay likely being sold by some poor high school dropout who drank the kool aide and thought the box would make the man.

berettafan · 07-09-2008, 06:09 AM

Quote:

Originally Posted by Rick Lee

We had some layoffs yesterday and I'm sure more are coming.

is this the job you moved to Az for?

this sucks man!

TerryH · TerryH's Garage

When you make your living out of a toolbox, I don't see anything wrong with wanting something to be proud of and not something that just holds tools. These guys aren't using their toolbox for 2 hours a week, it's more like 50 hrs.

Yes, Snap-Ons boxes are very expensive, but they are also spectacular. With tax deduction/depreciation, it knocks off 50% of the cost. They also hold pretty good resale value.

asphaltgambler · 07-09-2008, 06:23 AM

I can contribute a lot of factual info concerning this. I have been a wrench for almost 28 years and almost went with a Snap-On franchise in the late 80's. Overall the routes are not a good return on time and dollars compared to other businesses.

A) The 'average' gross is @ 32% -PLUS- you are holding the bag for the "in house" financing for every customer.
B) Snap-on is notorious for their customer glass ceilings. IE: anymore than @200 accounts/customers and they divide your territory.
C) Declining market share. Most young guys coming into the business are not into buying tools like 20 years ago. % wise tools are much higher cost to the tech than in 1980's dollars.
D) Was advised by a good accountant then that it was too much risk for return. At that time the minimum buy-in was $65K.
E) Every tool, ad, even the truck / lease must be dealt with through Snap-on. Where they make a cut on each and every thing.

berettafan · 07-09-2008, 06:30 AM

Typical wrench probably pays 30% +/- marginal tax rate. NOT 50%.

stomachmonkey · 07-09-2008, 06:48 AM

Quote:

Originally Posted by berettafan

is this the job you moved to Az for?

this sucks man!

Was just wondering that myself.

Rick Lee · Rick Lee's Garage

Quote:

Originally Posted by berettafan

is this the job you moved to Az for?

this sucks man!

I didn't get laid off. My boss explained it to us in an email yesterday that the six folks who did were in "non-revenue producing" positions. I know mgt. will spin things anyway they can. But I do believe sales people will be the last to be let go. My company has nothing at all invested in my move to AZ. I paid for everything and had to use vacation days to drive out here. But I'm pretty sure they'd try to give me 6-12 mos. in this new territory before I was to be canned.

Our comp plan is so screwy, that you can be at 50% of goal and still make more money through other incentives than folks who are at 120% of goal. We get 10% of whatever new business spends in a year. Last month I got a new client that spent $20k on their first job. So that's a $2k commission for me payable this month. But last month I was at 56% of goal. Had I been at 100% or above, I'd have only gotten a $1250 bonus for being at or above goal. My boss always tells us the real money is in new business and not to worry about percentage of goal each month. But what do you think senior mgt. looks at for performance when they're thinking about layoffs? Can the guy who's way below goal and making huge commissions? Or can the guy who's at or above goal and not making much?

Asphaltgambler, is that buy-in amount cash you have to front in addition to financing, or can you finance it all?

TerryH · TerryH's Garage

Quote:

Originally Posted by berettafan

Typical wrench probably pays 30% +/- marginal tax rate. NOT 50%.

Cost and depreciation. Back when I was wrenching 20 years ago, pretty sure I was depreciating tool purchases for 7 years or something like that.

berettafan · 07-09-2008, 07:06 AM

I should've been more clear; you only deduct the purchase ONCE. Maybe over 7 yrs or maybe in 1 yr but you don't get it 2x's. That is, if you paid $10,000 (again, you COULDA had a pole barn) for a box you don't get to deduct $10k in year of purchase PLUS $10k over 7yrs.

VincentVega · 07-09-2008, 07:10 AM

Right, but to a lot of wrenches the payment plan lets them having the nicest box in the shop.

legion · 07-09-2008, 07:13 AM

I'd rather have the nicest box at home.

berettafan · 07-09-2008, 07:26 AM

I can see it now: the 'Snap On Nicest Box in the Shop Calendar 2008'

cab83_750 · 07-09-2008, 08:06 AM

Quote:

Originally Posted by Rick Lee

What does a truck like that cost and can you keep one in your driveway or do you have to park it at their location each night?

Around here, you:

1. Can't park a commercial truck on the street.
2. Can't park your SeaDoos on your driveway.
3. Trash cans can't be visible from the street (even though they are inside your gate/wall).
4. blah, blah, blah....

They are very loosely enforced, but they are there.

asphaltgambler · 07-09-2008, 09:09 AM

Snap-On has changed their dealership program drastically in the last 8-10 ten years. Two ways to go in now

A) As a "Employee" (franchisee) in training. You operate a small van and get a set salary + small % in total sales. This goes on for a year or so where you should be ready to move up to a full franchise. The last I heard the "IN" money was $20K or so for that deal.

B) Buy out an exiting dealer/franchisee and his teritory for XX amount. The amount would depend on his sales, success, # of customers, age of the van, etc, ect.

I strongly believe that this was a good business 20 years ago but has leveled out considerably and is starting to decline now. Ask your account or a accountant that is familiar with the auto tool vendor business and get their opinion.