You could say Corrales, New Mexico tool dealer Raymond Simpkins started his business at an “iffy” time in the economy. He made the leap into the life of a mobile tool dealer in September of 2008. The economy had just crashed. Many businesses and industries were about to begin their spiral into a state of uncertainty -- even failure. Lucky for Simpkins, sometimes when you start low the only place to go is up … and that he has. Simpkins was sixth in the nation for Cornwell in sales in 2017. He has been Top 30 every year for the last five years.
His secret seems too simple: show up and grow your customer base. But it works.
Getting started
The New Mexico native began his career as a service manager, then moved on to works as a technician for fifteen years. After that, Simpkins knew he wanted to try something else. Only in retrospect does Simpkin think he took a risk by leaving his position and striking out on his own. At the time, he was simply ready for a change.
“I was working 70 hours a week; I was driving two hours a day to Santa Fe and back, and I had a GM (general manager) who would only look at a spreadsheet and … couldn’t see the day-to-day operations of the shop or the work ethic of other people. I just contemplated and contemplated [changing jobs].”
One day a Cornwell district representative visited the repair shop where Simpkins was working. He wanted to survey the route for a new dealer. The rep informed Simpkins they had some routes open. He asked whether Simpkins might be interested.
As it turns out, Simpkins was approved for the route right away. Still, he hesitated at first. “I said, ‘Ah, I’m ok. I was just having a bad day’ and so I procrastinated for about a month and things didn’t get any better. And then something happened one day and I picked up the phone and called [the Cornwell GM]. I said, ‘Let’s do it.’”
“I look back and the only thing I regret is that I waited so long,” says Simpkins. “It’s just been the greatest thing in the world.”
“[In 2008] I came in at rock bottom,” Simpkin recalls. “It’s funny; the first couple years I’d be talking to other mobile dealers and they’d say, ‘Oh, it’s not like it was before.’ I never knew any different. I guess maybe it was a blessing I started at the bottom … every year [sales have] increased from the last.”
These last nine years Simpkins’ route has changed some. He credits his district manager [name?] with growing the route -- adding stops here and deleting some there. “He tool this district over in ‘09 and we had about five dealers; now we’re up to 14,” says Simpkins. “He’s really turned this district around.
In the course of a Wednesday, Simpkins is in Albuquerque. He stops at a Freightliner dealership, a Camping World RV new and used RV dealer and repair shop, as well as another shop that works on semi-trailers. In the afternoon he sees a couple mom and pops, two body businesses and a Chevrolet dealership.
The rest of the week is similar, but covers a much larger geographical area. Overall, Simpkins’ route includes a few dealerships, a few body shops and even a couple construction equipment places.
A number of competing trucks move about the area, but Cornwell has six dealers in Albuquerque alone.
New truck, new outlook
For this Cornwell tool dealer, a truck is not just a truck. It’s his storefront, his office and his transportation. He knows any investment he makes in this crucial piece of equipment is a sound one. Simpkins drives a two-and-a-half year old 2016 Freightliner M2 that he purchased new. It’s his fourth truck. With all the miles he puts on (about 30 thousand per year) Simpkins finds driving a new truck keeps him motivated -- not to mention it’s typically easier to get rid of a truck before you’ve reached a certain mileage point.
“My practice so far has been -- I usually drive [a truck] around three years and put 90 thousand miles on it. Then I sell and get a new one.”
He acknowledges a lot of people are anti monthly payments, but this system works for him. “I just kind of feel like, if I truly waited and carried it out through the full loan, what am I going to have? A truck with a quarter million miles on it and what’s the dependability going to be on that?”
A new, dependable truck keeps morale high -- for both Simpkins and his customers. “I have found that a new truck motivates you; every time I’ve gotten a new truck my sales have gone up. It gets me excited -- of course you’re going to be excited when you’re driving around in a brand new truck,” says Simpkins.
Customers are frequently on and off the truck, perusing product on meticulously labeled shelves and loitering if the entryway -- telling stories and catching up.
“I like getting them out here,” Simpkins says. “Then I feel like I have their attention, and we’re truly thinking about tools. When they’re in [the shop] I find they’re thinking about other stuff. They’re thinking about what they’re working on… I’m at the back of their mind. If i say ‘Hey, let’s go to the truck,’ then we’re in my area now.”
Simpkins’ truck is clean and well organized. He doesn’t keep up with it religiously, but he does make the time. “To be honest, yes I like it organized, but I just don’t have the desire to spend three hours a night on the truck [tidying up]. About every three months I’ll spend a Saturday morning out here to re-do it or whatever.”
He does make it a priority to keep product front-and-center.
“I’ve got my regular customers that owe me money (that will buy sight unseen), but if I don’t have stuff on here I can’t grow that customer count. That’s the bottom line,” he says.
It’s important to Simpkins that he keeps product moving without overextending himself. To accomplish this, he attends the Cornwell tool shows every year and takes advantage of special packaging. He strategically utilizes Cornwell’s financing options to restock the truck and “step it up a level”.
He buys from warehouse distributors on occasion -- to purchase a certain pair of gloves or underhood light a customer might insist on -- but he is cautious about it. “I learned that it’s real easy to get yourself in trouble, financially, to have more than one tool bill. I have to really watch that.”
For Simpkins, the most challenging part of his business is the paperwork, budgeting and finances. So he keeps an extra close eye on payments, and product coming in and out.
He warns, “It’s real easy to get yourself in trouble if you’re not on a tight budget.”
Give yourself a raise
At a second RV shop customers pick up flyers as they exit the truck. Simpkins talks with one customer about a box trade-in. He tells the technician, “As long as you buy a new box from me, I’ll give you $5500 for yours. A new box or this one (large and slightly used).” Simpkins says he will typically trade a lot of boxes, and has taken lifts and AC machines in on trade, too.
“I’ll start anybody with a couple hundred bucks. That’s the name of the game. That’s how I’m going to grow my business is to grow customer count.” Simpkins explains to new customers that they just need to develop a relationship first, and then maybe they can do something big (like a toolbox). It’s just not the kind of sale that happens right away.
“My number one goal is to grow my customer count. That’s one way to give yourself a raise … is to have more customers.”
He frequently drop-ships items, particularly for his Thursday route in Los Alamos, which is about 100 miles outside of Albuquerque. “If somebody calls me on a Monday and say ‘i really need a tool’ I’ll drop-ship it to them so they get it the next day and explain to them they’ve got to pay a little freight. As long as they order $250 in cost I can even have it shipped for free. But any toolbox or equipment I do have drop-shipped.”
A schedule that works for him
Simpkins takes his time chatting with customers, listening to their stories and their concerns. He never gives the impression that he’s rushed. Even so, he makes an honest effort to stick to his schedule. “There are just so many things in the day. I have to watch it if i start falling behind,” he says.
Work-life balance is important to Simpkins. He knows it’s up to him to make use of the benefits owning one’s own business can bring. Sometimes he will intentionally keep his Monday on the slow side if he knows he’s got a dentist or doctor’s appointment, or if he heads out of town for the weekend and needs a later start.
“I’ll ship all of my broken, warrantied tools out on Mondays and make it a clerical morning,” he says.
On Thursdays he leaves his house at quarter to five in the morning and may not return home until 7pm. Fridays he’s at his first shop at 6am and finishes at 1pm.
For the most part, Simpkins strives to create for himself a work schedule is well-planned yet flexible, and allows him to get out and have some fun, too.
“I also think it’s important to take a little personal time,” Simpkins says. “I’m a single man, no kids. I take time off and spend it with my nephews and I take a vacation. It’s important to get your time, too.”
Simpkins’ nephews are twin 8-year-old boys. He’ll often pick them up from school and spend the afternoon hanging out or riding horses. “I’ve been doing that for a couple years. They’re characters, I love them to death. I spend a lot of time with them,” he says.
Simpkins has traveled to Mount Rushmore, the Grand Canyon, Yellowstone just to name a few places. He also owns some cattle and two horses. He’s been riding for about twenty years.
“The flexibility means a lot,” he says of the job. “The first five years I didn’t [take advantage of that]. I learned I was just going to get burned out if I didn’t. I’m not saying it’s easy to do -- it’s hard to take two weeks off and plan and budget and try not to have a tool bill for those two weeks; but it’s definitely rewarding. It seems to rejuvenate me when I’m ready to go back to work. I’m excited about the job again when I come back.”
Focus on the good
Like any other mobile tool dealer, Simpkins gets his share of skips, though he doesn’t dwell on it. His outstanding rapport with customers helps him to stay focused on the positive.
“You can get frustrated, you can get down about it. But then I … start concentrating on the [vast majority of customers] that do what they say they’re going to do and take care of me. It’s real easy to get tied up and dwell on a scum bag that didn’t pay but you’ve got to think about all the good guys out there – the majority. I had a couple around the holidays skip out on me; one of them owed me a fair amount of money and it did hurt a little bit, but you’ve got to focus on the ones [who do what they say they’re going to do].”
Simpkins has a straightforward outlook when it comes to his success: “Just show up every week. Get in front of them. I think the most important thing is just to go to work every day and support [the technicians].”
For Simpkins it all pays off. He’s helping customers get the tools they need to make a living, and if he works things just right he also gets the time he needs to recharge and enjoy life.
In the next few years Simpkins hopes to just keep increasing sales every year.
“Whatever I’ve done has worked, so I’m going to stick with it.”
