[V8] The Snap-on service myth

[Roger M. Woodbury]

Scott's tool story reminded me of the time when, looking for some gainful
way to make a living, I explored the idea of becoming this territory's
Snap-on driver.  The former driver had retired, and the franchise was up for
grabs so I called the Snap-on rep and started to ask questions.

 

S-O sent me a packet of information.  Details were included that quite
specifically outlined the financial commitment to get control of the
franchise, the details concerning the big truck or varieties of trucks that
you could buy and so forth.

 

But after reading it through, I suddenly came to the realization that the
"franchise" was not really a franchise at all.  There was no ownership
except on the part of S-O, and whether it was after minute one or after 100
years of running the route, the driver owned NOTHING except for any tool
sales receivables.  The way the routes run is that the driver has his
regular accounts that he visits on some sort of regular basis. Busy shops
probably get visited more often than smaller ones.  He maintains accounts
with every mechanic working in the shop.

 

Now, S-O tools are not made of high carbon-hydrounobtainium, and they break
like any other tool.  The S-O driver will maintain an inventory of whatever
he sells, and hopefully when the tool has broken, he appears or can be
called, and merely whips out another one that he gives the mechanic, since
the tool is warranted forever.  Such great service makes it sort of
automatic that every wrench turner on his route will buy from him, and to
make it better, he runs a kind of debit account current system so tools get
paid for over time, free.  Thus the bait is on the tool and the hook is set
because tools are necessary and expensive. 

 

At the end of the S-O driver's "career", he owns the amount of money that is
owed to him for the tools that have not been paid for yet, perhaps his truck
and the new tools inside it, and that is all.  The good will that he may
have accrued is valueless at the time the S-O guy leaves the business and
the time and effort expended peddling tools is only of value to Snap-on.  

 

The reason the S-O guy showed no interest in Scott's tools was because it
was a no-win situation for him. He knew that he wasn't going to have an on
going relationship with Scott, selling more and more tools, and he would
have to convince Snap-on that the tool he was replacing should be paid for
by THEM: probably not possible.

 

I thanked the good folks at Snap-On for the information but told them that
while I was interested in exploring franchise ownership, I really wasn't
interested in indentured servitude by another name. 

 

 

Roger