“It's so simple, even I can do it!” A good friend and fellow dealer, Dave Henrie told me that over 20 years ago. We were discussing the challenges that tool dealers experience. I was just starting my new position as district manager. Of course, that comment was said with “tongue-in-cheek.” If the tool business were all that easy, every dealer would be successful.
So, what makes a dealer successful? My DM told me when I first started on a truck, “If you can master the mobile tool business, you'd probably be successful running any business.” What he meant was, you're not just a tool dealer. A successful tool dealer must wear many hats. You have to be skilled at customer service, credit approval, marketing, purchasing, shipping and receiving, warranty, fleet maintenance, scheduling, company morale, etc. I could expand on the list, but if you know the tool business, you understand. Many of the new dealers I've started were previously technicians. The tool business seems easy from the outside. However, like most things, they quickly learn it's much harder than it looks.
Seven tips for success
I firmly believe the two most important words in the tool business are, to and for. A successful dealer understands that as they’re driving away from the shop, it's important your customers are talking about what you did for them and not what you did to them.
1. Provide a warranty
Customers don't mind paying a premium price for a quality tool as long as it's followed up with premium service. Warranty is the cheapest customer service you can provide on a tool truck. Don't get caught up with the event of the day at the shop. You need to stay focused on the next week, next month, and the years that follow with those customers. If you have to spend a little to take care of a customer issue, do it. There will always be items not covered under conventional warranty. You are your own advertisement for quality service and warranty. Most tool dealers never spend money on outside advertisements as we personally see our customers every week. I've always believed the money I spend going above and beyond was my advertising budget.
For example, a customer only had their air or electric tool for a couple of weeks and it fails? Hand them a new one! Would you want your new tool sent in for repair and to have to wait for it to come back? Even if you have to sell the tool at cost when it does come back from repair, you've made the original purchaser happy and also have another happy customer who got a deal on a “new” tool.
Additionally, it doesn't matter where your customer bought the tool needing a warranty. Take care of the customer when it's a common brand that all tool trucks carry. Being cheap on a tool truck is the kiss of death. A successful dealer understands that a few dollars spent out of pocket yields one successful week after another.
2. Honor sales prices
Having policies like honoring the new flier sale price on a purchase made within the last 30 days makes customers feel good about their purchase. How do you feel when you buy something and the next week you see it on sale? I used to enjoy walking into a shop and handing a receipt with a credit to reflect the new flier sale price BEFORE the customer opens up the new flier. You can always recover the loss when you resell the item at its regular list down the road.
3. Check your attitude
Attitude is everything is not just a cliche, it's a fact. Do your customers know that, no matter what, you're going to show up with an upbeat, positive attitude every week? It's possible your customer is already dealing with a frustration before you pulled in. The last thing they want to deal with is a tool dealer with a negative, down-and-out attitude. My customers always knew my answer to “How are you doing?” was going to be, “Close to perfect!” I've often had people tell me, “I wish I could say that.” I'll always explain that you can. Your attitude is one of the few things you can control.
4. Prove you're dependable
Ten o'clock on Tuesday? Are you the dealer that everyone knows will be there every week at the same time? If you do have to skip a shop because of a delay at another shop, don't just do a drive-by. Call or shoot the shop a text. Make sure they weren't depending on you for a special tool or a needed warranty. Customers are more likely to buy from a dealer they can depend on. You can't hope to have successful sales and collections if you're not consistent.
5. Take pride in your tool truck
Keeping your truck clean and well-stocked is also a reflection of how you care about your business. It's the first thing they see as you drive in. You are driving a rolling billboard. It's also a great feeling walking out of a shop and seeing your shiny, clean tool truck.
6. Utilize a planner
Write it down! Yes, I know you can keep track of the daily events on an app on your phone or laptop. Perhaps that works for you. I found that keeping a daily planner open on my workstation worked best for me. If a customer had a special tool they needed, I'd have a place to write down the information and to reference as a reminder.
I always enjoyed the follow-up. There would be many times I'd see the customer that next week and tell them, “Hey, I did find out I can still get parts for that old puller set you have.” It wasn't uncommon to have the customer respond, “I forgot I asked about that, thank you.” There's just too much that happens between the first stop and the last stop of the day. A planner is just another tool to assist you in providing excellent customer service.
7. Cultivate a professional image
You are a professional, selling professional tools to professional technicians. You need to dress as a professional too. You'll never pull into a dealership and see all the technicians dressed in a t-shirt and blue jeans. It's important for the shop to project a professional image for their customers, so you too need to be conscious of your personal image for your customers. Save the blue jeans and t-shirt for the weekends.
And lastly, make sure you're the tool truck everyone looks forward to seeing every week. It's such a compliment to have a new customer jump on the truck and tell you, “All the guys in the shop say you’re the best tool guy in town.” It's up to you to earn the business and respect of your customers every week.
