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Customers in the 9,000-square-mile territory serviced by mobile tool distributor Heath Mannis range from mom-and-pop auto repair shops to large agricultural dealers employing more than a dozen technicians. From his home base in Goodland, Kan., Mannis drives about 750 miles a week on his heavily loaded 24’ Mac Tools truck.
He finds that much of his basic stock works for both auto body shops and suppliers of heavy agricultural equipment, from tractors to combines. Among his biggest sellers for both sectors are cordless tools, which are mobile and tidy.
“It’s amazing what these new-generation cordless tools can do today,” he says.
Agriculture is a huge industry in the American Heartland that sees technicians doing anything from replacing wheel sets on tractors to dismantling combines. Mannis keeps considerable inventory on hand for their needs, such as 3/4”and 1” sockets, ratchets, and torque wrenches.
Views from the manufacturing line
We got some hard facts and insider tips from tool manufacturers on stretching your inventory and adding new market segments without breaking the bank. We also asked about trends that will affect your business.
Stretching your inventory
Most manufacturers began by specializing in one type of vehicle. Today, despite the challenges in diversifying, some are using revolutionary technology to do that.
“It takes a lot of time to develop and master new systems," says Dario Peruch, managing director,TEXA USA. "Then, you have to make sure you can assist customers after the sale is done.”
He explains that TEXA, born as an automotive diagnostic company, was able to do something different by developing high-end products for marine, agriculture, construction, and powersports vehicles.
“Our licenses can be loaded and used with the same scan tool, so an automotive shop can mix and match, adding powersports software to work on bikes or side-by-sides for example,” he says.
The TEXA NAVIGATOR TXB Evolution scan tool works on bikes and boats while the TEXA NAVIGATOR TXT works on all vehicles.
Peruch adds that where shops work on various types of vehicles, different businesses can coexist. In such cases, dealers could help potential customers explore new options and business opportunities.
“An automotive shop may not even know that it can easily add motorcycle software to their scan tool and start working on powersports or add the truck software to work on diesel pickup trucks,” he says.
He points out that the same thing can apply to a truck shop that might start working on construction equipment. This “mix and match” option gives dealers and garages new opportunities without taking them away from their core business.
Adding new market segments
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According to Victor Rivilla, marketing director for CanDo Diagnostics International, a good way to add a new segment to an existing automotive tool business is to start by providing lower-cost tools that cater to that specific market.
For example, dealers might start with a heavy-duty code scanner.
“Our HD Code II and HD Mobile are priced under $500 retail and are well within reach of most technicians and shop owners,” he says. “These tools allow dealers to slowly enter a new segment without too much financial exposure.”
He has found that users of these “triage” tools grow into needing more full-featured diagnostics, so dealers will have planted seeds for sales of these higher-ticket items.
“This way, the initial investment is low and dealers can walk into any kind of shop with a great solution,” Rivilla adds.
He also reminds distributors who want to differentiate themselves to build trust with established and skilled companies that offer quality tools.
According to Haresh Gobin, product development manager, Launch Tech USA, the company has recently ventured from the aftermarket automotive tools and diagnostics sector into motorcycles and heavy-duty diagnostics by developing versatile products.
One such product is the adaptable Launch X-431 Throttle III, a professional automotive diagnostic scan tool with pre-installed software that can be used to service and repair most vehicles on the road today. Its platform also enables users to centralize their workflow of emails, web browsers, playlists, and more.
“An X-431 Professional Line scan tool is the entry point for technicians and shops to upgrade and attain the hardware and tools to fully address new-age repair technologies,” Gobin says, who notes the tool can interface with other Launch specialty tools, “stretching the possibilities into an all-encompassing tool arsenal.”
He adds that distributors who sell the Launch X-431 Scan tool will be establishing long-term value relationships with their clients that yield years of positive returns.
Game-changing trends
CanDo’s Rivilla believes that the electronic vehicle (EV) market is definitely one to watch out for.
“Having witnessed what is coming out at the HDAW and TMC events, I know that diagnostics providers have much work ahead of them to fully cover this evolution,” he says. “We will be working closely with EV component manufacturers to make sure we are in the right position once things start rolling out.”
TEXA’s Peruch has seen off-highway sales grow exponentially over the past three years, with motorcycle scan tools gaining momentum as well.
“Motorcycles are extremely complex, and a diagnostic tool is needed for any repair or maintenance activity,” he says, adding that technicians realize that and are increasing their learning about these technologies.
He advises dealers to invest time in getting familiar with these technologies and notes that inventories in TEXA’s case don’t need to change because the company offers one tool to scan them all.
“The only difference is that when it comes to marine, motorcycles, and off-highway equipment, there are no standard diagnostic ports like the OBD ones on cars, so they would need some extra proprietary adapters.” Peruch says.
Launch Tech USA’s Gobin notes that products based on open platforms that synch easily and interface with consumers’ current technology have the edge in terms of desirability and usability.
“The most prevalent trend in tools is multi-function, multi-feature products that make standalone gadgets obsolete," he says.
The bottom line: Vehicles are becoming more complex with technology that includes advanced processors, a range of electronic systems, and software-linked networks.
Tool truck successes
Since he bought the franchise in December 2020 – in the midst of the COVID-19 pandemic – Mannis has picked up a lot of business. In 2021, his first full year of operation, he picked up recognition from Mac Tools for outstanding performance: The Diamond sales status and a President’s Club membership. He credits his wife, Ashley, for helping to make that possible.
“She ensures that everything runs smoothly behind the scenes – and takes care of our two-year-old daughter, Berkley, while I take care of business on the road,” he explains.
A trained diesel technician, Mannis most recently worked as an equipment operator for the government. Today, as his own boss, he sets his own schedule, plans his routes based on customer needs, and provides them with regular, reliable service. This connectivity is especially important in the Great Plains since stores carrying supplies are few and far between, and trips back and forth could cost shop owners many billable hours. As a mobile store, his truck also allows technicians to try products out on the spot.
With the help of Facebook, Snapchat, and Instagram, Mannis stays connected with customers that are scattered around his vast territory.
“I also sell used equipment on Snapchat,” he says. “I just add it to my story, and it’s usually spoken for within a couple of hours.”
If he can’t get onto the road due to snowstorms or other issues, he posts alerts as well.
Mannis’s motto, “You can’t sell it if you don’t have it,” keeps his truck packed with tools to cover all the bases he’s identified. When customers ask for specific items not in inventory, he makes sure to bring them in quickly. He also keeps up to date on developments in the tool industry, so he can advise them on the latest innovations and improvements in hardware and software.
Things will change again when electric vehicles – and eventually self-driving ones – become prevalent.
Whatever the case, Mannis thinks the tools industry is the place to be right now.
“I encourage people to get into it if they can afford a franchise,” he says.
With his business bursting at the seams, Mannis hopes to buy another truck later this year and hire an operator. He might have to get a second dog, too – his traveling companion Jake is a big hit with customers.
