Tales from the Road: When life gives you lemons, become a tool dealer
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If there’s one thing independent mobile tool dealer Art Ellis has learned after being in business for around 29 years, it’s that there’s always going to be obstacles. Whether those obstacles come in the form of customers buying tools and not paying for them or personal issues putting you on the sidelines. Ellis knows this is a “good business.”
Such a good business, in fact, that Ellis retired and then came back to the industry about four years ago. Unfortunately, his reason for retirement wasn’t one to celebrate. After 25 years in the tool distributing business, Ellis made the decision to retire to care for his sick wife. He sold his business to a customer and that was that — until after his wife passed away.
About a year and a half after losing his wife, Ellis was sitting on a swing, watching the grass grow when he thought to himself, ‘I’m getting old. I think I’ll go back in the tool business.’ So, he wound up buying out the customer he had sold his truck to — who was, unfortunately, having some financial problems — and came back as an independent with the GEARWRENCH Street Team.
Before beginning his career as a mobile tool dealer, Ellis worked in the air conditioning business for about 16 years. However, the competitive nature of the industry made it difficult to make money, so Ellis decided it was time for a change. His friend told him about an ad he had seen for a flag, and Ellis applied, becoming a dealer at age 51. Two years later, Ellis left the flag and went into business for himself.
Now, he runs a route covering three counties through the Charleston/Hanahan area in South Carolina delivering tools to heavy duty equipment shops, heavy duty truck shops, automotive shops, and a few government shops. Ellis notes that he has a “good mix of customers.”
Customers who even after Ellis’ time away remembered the tool dealer and were glad to see he was back. Ellis says that was “the thing that made it so easy to go back into the tool business.”
Another bonus of seeing these customers again was that they also remembered how Ellis worked. One of the biggest challenges Ellis says he has faced as a distributor is financing and trying to be competitive with the three major flags.
“[The flags] do their own financing so they sell a lot of heavy equipment and toolboxes. If I sell a toolbox, I finance it out of my pocket and I just don't go that route, I concentrate on the tools. I would rather have a $500 tool sale than a $5,000 toolbox sale because there's no profit in it. I'm not saying I won’t finance one for a good customer, but it's not something I go out to do.”
Overall, his customers know to come to him for the wrenches, sockets, screwdrivers, etc., and go elsewhere for their bigger purchases. But that’s not to say Ellis doesn’t do everything he can to help out his customers and reward them for their loyalty.
Stocked on his truck, Ellis keeps a variety of beef jerky. He gets it from Michigan and says it’s “very good jerky.” So good that he likes to use the jerky as an incentive. If a customer pays $100, Ellis will give them a free bag, or if a customer’s been faithful, keeping up with their payments and spending with him, Ellis will give them a bag as well.
Ellis has big plans for the future of his business. Currently, he has two trucks with a third coming soon this year. His ultimate goal is to split his route into four pieces and have four trucks managed by him. Until then, he’ll keep handling any obstacles thrown his way and enjoy his time back in the tool distributing business.
