Snap On Paradox: Part 2. Side hustle, industrial clients, Blue Point, small battles, and personality

[@muddyriverdogz]

Tekton's warranty is the best in the Industry today. You send them a pic of the broken tool and they send you a new one.. For what Snap On is charging they could do something similar.

[@slayerment]

This small change would make a huge difference for the DIY market

[@hjohn2]

They do... Snap-On has sent me broken tool replacements, ratchet repair kits, etc. at no charge, free shipping, no return required.

[@workingmanpatriot8760]

Snap on should lead the way with a “ truck locator app”.! Trucks arent allowed everywhere, like the industrial world that I work in.

[@hardlyb]

My younger brother spent a couple of years as a mechanic, and I used to joke he worked for Snap-on - he just took his paycheck to the Snap-on driver. He got a lot of great tools, most which wound up in my dad's possession - and I expect he still has them - as after my brother became a programmer and moved into an apartment, he didn't have a big enough garage for all his stuff (and then when he got married, his wife wanted some of the room in her condo for her stuff). I used to go to the Snap-on store near by dad's house in L.A. to get occasional tools, but it's been a long time since I bought anything from them. The tools are nice, but I never see the trucks where I live, so I never think about buying from them. And for a do-it-yourselfer like me, there are a lot of options. Since I retired I've upgraded a lot of my tools, and I would probably have included some Snap-on as part of that upgrade, but I never even considered it.

[@drengskap]

As far as the sales through tool trucks go, I believe that what Snap-On is really interested in there is not so much selling tools, but selling credit plans to buy their tools. Think about it - corporate charges franchisees to sell their products, then it gives franchisees credit to invest in inventory, plus it gives retail customers credit to buy tools from the franchisee - tools which the franchisee has also bought on credit. Who wins at every stage of this process? Corporate, every time. They make money off the franchisees, and off the customers buying on credit. Having said all that, I've spent about £250 on Snap-On products in the past week - all bought via eBay with cash, no credit required. I like many Snap-On tools, and I use them all the time, but I would never take on a huge debt to finance them.

[@deedeeramone34]

Every snappy truck driver I’ve dealt with loves that I pay cash, I always get at least a 10-30% discount, too. This is in Maryland.

[@68stonesfan]

$4.5B in sales for 2022 versus $3.5B in sales for 2020. 48% gross profit, $912MM in net earnings. They're doing something right! I agree that they don't care about the DIYer. I'd like to get a pair of those new adjustable needle nose pliers but I'm not paying $23 to have them shipped to me. I think that the eBay pricing on used tools has gone up directly as a result of Snap-on's shipping policy.

[@braho4998]

I’d be curious to know the driving force behind the annual growth….good p&l metrics are a positive to the shareholders, but have prices gone way up over the last few years? If so, then volume could be declining yet they’re still able to make up the difference (and then some) in margins. Just food for thought. I’m in the same boat with the pliers and agree that the eBay sellers are pricing their listings in line with Snap On direct and their flat rate shipping cost.

[@gingebrien2408]

Doc you are so correct about Snap On shipping. Presently one has to be over $250 dollars to get free shipping. There is no ability to choose a cheaper and slower shipping method. Thus this prevents me from purchasing. I’m not a professional mechanic but I do get my thrill from well designed tools that will last several life times. Snap On tools are often such tools. Finding a truck who will give me the time of day is difficult. This is why I believe so many look at alternate companies. Snap on needs to re-evaluate their business model in the Amazon error of consumers.yes I’m a happy bottom feeder too.

[@ckm-mkc]

IMHO, the Snap On model is not selling tools, it is selling finance and that's where most of the profits come from. The tools are just the vehicle for selling finance. They do have to meet requirements and justify the price, but the main product is finance.

[@Kaffeetanne]

A thing that i think is worth mentioning in your part 3 is: While most of the high quality brands from Europe and Japan sell their tools in many countries across the globe, Snap-on is pretty much irrelevant outside of the US. They stayed on their own soil far too long - which is kind of understanable since the US market is huge - but in times of global markets its not only a missed business opportunity, but also dangerous since now (as you mentioned) they find themselves in a defensive spot where they have to fight the competition, while at the same time not really being able to do the same on the european/japanese market.

[@joehart3826]

Big in UK Unsure about europe

[@Kaffeetanne]

@@joehart3826 Yeah the UK might be the exception. But as far as i know they dont' have any substantially market share in countrys on mainland Europe.

[@olbaid84]

Does seem like the DIY/civilian market is more of an afterthought/bonus hustle; they either have to compete on price or have something unique, and the tool truck used to be that and kind of part of the brand. One issue with streamlining other methods of acquisition, is it becomes a bit self-cannibalizing to the current structure, which can create some backlash (imagine if you were a tool truck guy and they made it better to just order elsewhere)

[@andrewscott8892]

Government prices aren't anywhere near the rest trail prices we pay, I have an Armstrong price list from 2011 and it shows how retail and government price for each tool and the government price is a third the retail price

[@duetto1995]

Who makes the pliers at the begging of the video that are on the far left that are almost 90 degrees with a red handle and white stripes? Thanks

[@braho4998]

NWS Combi-Ergo

[@duetto1995]

@@braho4998 Thank you

[@benjaminjwilson6694]

$70 for a 6" lady slipper punch. Cost plus shipping because the guy on the truck said he won't get it.

[@egbluesuede1220]

I wonder if Snap On could end up becoming Stanley. They used to try to own the market and make a tool for everything with redundancy. They were successful for decades, but pretty soon other tool makers competed with equally good tools and now Stanley is more of a historical note. They still make tools, but they are a shadow of their former selves. The Snap On business model does feel outdated, and others make high end tools that are much easier to buy, cost less, and also have excellent warranties.

[@workingmanpatriot8760]

The issue doesnt have to be complicated. A simple means of anybody logging on, the app shows where the truck is and maybe its next stop and approximate time and we would meet it.

[@guykulwanoski1629]

What happens to Snap-on, repair shops, mechanics if there is a significant switch to electric vehicles? They require much less service, maybe a 1/3 or a 1/4 of whats required on a combustion vehicle.

[@deedeeramone34]

Same thing that happened to blacksmiths when people stopped needing to shoe horses/farrier’s tools when the automobile became popular

[@burnedupsparkytipsandrevie9597]

I just wish snap on had a way to get in contact with the snap on rep in that area. My job has me doing a good bit of traveling so if i break a tool or like in my case my dealer retired so now untill the new dealer is set up im out of the ability to get good tools.

[@peacockealot]

That’s what I’ve found as a weekend warrior. Working on my Land Rovers. The Snap On dealer who comes to the bus garage across from my work doesn’t really want to bother with me because I’m not buying every week and isn’t bothered to order in things I ask about. I tend to buy new items of eBay now and touch wood haven’t needed to warranty a tool yet!🤞

[@davidbere000]

we want to see snap-on do what they are best at, not fight all these battles.

[@AToolWithTools]

Blue-Point is to make a sale that might not otjerwise happen. Not everyone cares about American made, or wants to take a huge truck debt, etc. Blue Point offers the truck style service but at a more economical price point. Mac has Expert, Matco has Silver Eagle isnt it? Cornwell has bluePower, Wright has Cougar Pro, Proto has Blackhawk, or on the flip side there's companies that go the opposite route having a side premium offering like Nepros is wirh Kyoto Tool. But a lot of companies have a more economical offering but choose to put it under its own brand name. It can be used for warranty purpose etc but is commonly used to protect brand identity, such as Snap-on being seen as very top tier stuff and not wanting to dilute it by mixing in the economy options under the same name. SBD in general kinda does it, Mac as their tool truck offering and Proto as their premier Industrial stuff, but with other brands aimed at other markets or different price points. Like DeWalt as the premium power tools, Porter Cable as their midgrade, or Black and Decker as your bare bones stuff. It's often about brand identity, and making the name retain value in people's minds

[@JEBell79]

Another point is the Snap On truck doesn't care about off shift sales (2nd or 3rd). Want something Snap On sells? Better work first shift.

[@ohiopipper3956]

When I go onto the tool truck and he don’t have a tool and you have to order and wait a week or two. I would like to see a Amazon ordering so the tool truck could ship it to our house and have it in a day or two. And still charge our tool truck account

[@bamboelaa]

i rarely see snap on here in the netherlands, ive seen the truck maybe a hand full of times never seen snap-on tools in the wild here its all german or french tools

[@leonardobehrens1204]

Reminds me Fluke electronics in some way.

[@workingmanpatriot8760]

I still say a “truck locator app” would give access for tradesmen that dont have access to a truck. Looks like snap on has no interest in expanding thier customer base. And thats a shame

[@ptstouring49]

I’d be interested to know what percentage of snap-on sales are online v, truck. Isn’t it public? I wonder what their SEC disclosures say. Snap on is NOT marketed to DIYers, it’s for professional mechanics where the truck comes to you. If you are not in a particularly rural area, and even if you are, you can find out who your local snap-on guy is and he will tell you where to meet him that works with your schedule. I have quite a bit of USA Williams and some Bahco too (both owned by snap on). They seem to be more mail order friendly through various vendors.

[@rickv5004]

great insight doc

[@jimbucket2996]

My local snapon guy was giving a new mechanic shit and got slapped in the face with his foot. I never went on his truck because of him.

[@vincedameion2631]

I see a lot of snap on products, play with some at work. I see items I'm not sure what use they have. I may buy some specialty items or locking flex ratchets. The prices are too steep for my tool addict diy/pro level of use, General contractor prior to warehouse work. Often the harbor freight to tekton tools are sufficient for most uses. Hopefully right to repair and education will work with tool companies to reduce waste vs companies gating or blocking repair

[@TheMrMarge]

Interesting video but a very north American point of view when you talk about all of these brands poking at the giant snap on bear. In my opinion these big specialized European brands (knipex, pb swiss, wera, etc) have been dominant on the European market forever. The north American demand for high quality tools at a fair price (contrary to snap on) that are easily accessible to the DIYer have progressively expanded. Being a DIYer but working with helicopter engineers what I see in their tool box is snap on ratchets and wrenches and specialized brands for the other stuff, which in my opinion makes the most sense. And then you have the brainwashed guy that has everything snap on including tool box, work lights, power tools, etc. For the snap on power tools you really have to be brain washed to buy them when they are like 3 times more expensive than milwaukee/makita/dewalt and on par power wise (demonstrated multiple times by guys like the torque test channel on KZbin)

[@xRedXLV]

Not happy with their marketing plan. It’s so obsolete. Come on. You get a snap on truck running a route weekly compared to optimizing customer service and shipment. Won’t deal with them if till that’s fixed

[@UnhumanNewman]

Yeah but with more volume come a drop in quality control

[@davehaggerty3405]

SnapOn online sales are full retail. SnapOn protects their vendors. After all the stuff that was sold door-to-door that tools are sold the same way for 100 years.

[@WA-zl6ju]

I think you got it. Snap-on customers are US government and their Franchisees. DIY is side hustle.

[@kirksmith347]

Snap on is the HK of the tool world.

[@NomadicHacker.]

If snapon an bluepoint can exist then maybe Milwaukee can make USA and over seas tools side by side

[@robertcasey3528]

Why can't snap on simply open their own store like Harbor Freight?

[@CarlOblander]

Why bother? They don't need to do so. Not their business model.

[@MattLitkeRacing]

Snap-on Industrial is very controlled. Regular customers can’t buy it not even my dealer. Lots of government contracts there

[@guykulwanoski1629]

Shipping should be free. Snap on is cutting out the truck and service.

[@ohiopipper3956]

Yep the website sucks big time. I wish the tool truck and website was one account so We could make one payment every week

[@ranacherian]

No more snap on monopoly... hopefully that will teach them a lesson ..

[@RickFarris]

blue point is made in China by Snap-on. Snap-on is made in the USA

[@acollegekid]

Does feel like Snap-On is resting on it’s name, which many MANY companies have done that and failed!!!! Always seek to re-invent and add value, once a company gets lazy, they start to rot from the inside out and you’re spot on! I want quality/warranty & American made! Don’t give a 💩 of the name!