Indiana mobile distributor invests in his business

In 2008, as a general manager of a medical equipment company, Steve Smith lost his job when the company was sold. “I was downsized right out of my job,” he says. He couldn’t find many positions similar to what he had been doing, so when he asked a local Matco Tools distributor to take him on a ridealong, he found himself thinking, “This is something I could do.”

Although he had no prior experience as a technician, to Smith, the franchise, business plan and marketing he saw in Matco Tools felt right to him.

While running his five-year business as a Matco Tools distributor in the Marion, Ind. area, Smith has learned a lot about tools from his customers. He says that because he doesn’t have a background as a technician, he needs to be willing and open to learn from others as much as possible.

Investing in his business

Initially, Matco provided Smith with a list of shops to help him get started. As his business has grown, he helped increase his list by “making a splash.”

To Smith, that meant investing in a new truck.

“I started out with a new truck, smaller than what I have now. Making an investment like that makes an impression. I wanted to make an impression.”

He says, “This is my store, this is my business – my livelihood. I’m investing in (the business) and in the inventory. I wanted to make a splash by having the most inventory and the best looking store in my market.”

Smith also places emphasis on toting and promoting. He takes tools into shops, tells customers about discounts, buy-one-get-one opportunities and contests that he carries on the truck. “Creative contests are effective in attracting customers to the truck.”

Consistency and integrity

Smith, ranked on Matco’s list of Top 200 distributors for the fifth year in a row, felt the need to take care of his customers. He doesn’t just sell to them.

“Your word has to be worth something. If (customers) put up the money for a professional tool, you have to be around to warranty it for them. They want to know that they are getting a good deal/value,” he says. “I provide consistency and integrity.”

“That’s why my wife and I thrive at this.” He says that his business is not “just a one-man band.” His wife and son help him organize the truck, keep it clean and keep-up on inventory. “It’s a team effort and I’ve got a good team.”

As preparation for the Matco Tools Show, Smith says that contests are also a way to increase payments and keep purchases alive while he is out for a week. “We lose a week of income when we’re not out in the field working.” To combat this, if customers pay ahead on their account, or purchase a new tool, he enters them into a contest. “Last week I gave away a 50” TV, next week will be a laptop.”

To prepare for his truck for the show, Smith sells down inventory and talks with customers before leaving. He asks customers what purchases they would like to make so that he comes to the show with orders.

As a distributor, Smith says that time management and collecting are his challenges. “Making sure that you’re selling to people that can pay/afford to pay.”

Smith uses technology as a means to follow up with his customers who may be late on payments. He says, “There’s lots of texting.” He tries to stay in contact, and encourage his customers to come to him if they are having a problem with payments as opposed to hiding it.  

As a tip to new distributors, Smith says, “Stay positive, friendly and knowledgeable.” He also says, “Carry tools in to show to the guys.”