Independent distributor Jim Klug runs his business by the mantra “Pigs get fat; hogs get slaughtered.” To him, this means making sure he’s fed, but not getting too greedy.
Before becoming a distributor, Klug started his professional career right out of high school as a shoe salesman in 1969, making his way up to a manufacturer’s representative for shoe brands.
He began selling tools in November 1994, after taking on a franchise route in the Colorado Springs. Klug went independent in September 2012, establishing his business in Canon City, Colo. under the name Mountain Man Tools.
Now that he’s shifted to tool sales, he translates many of the things he learned in the shoe sales business to his current line of work. While Klug doesn’t pretend to know how to fix vehicles, he makes sure that he provides exceptional service to his customers that do.
“Tools are the most fun I’ve ever had selling, because the guys are real people. There are no false pretenses,” says Klug.
Offering the right service
Klug has found a lot of crossover from his time in the shoe business and selling tools.
“When is the last time someone measured your foot? Nobody measures your foot anymore,” says Klug, referring to shoe purchases. “No one believes in customer service. Everything is geared toward a self-service store. What are you left to buy on? Price.”
Now that many consumers have based their purchases on price and much of the manufacturing has been transferred overseas, Klug emphasizes the importance of offering a quality product, with the service to back that product up. “Nobody justified their prices with service. As tool dealers, that’s what we should do.”
Klug feels that it’s this service that sets him apart from other avenues that techs can purchase from. He understands that many customers will purchase goods on the Internet. Klug stresses those purchases don’t have the one thing he can offer with his service: warranty.
His service follows through to how the customer uses the tool. “If you buy a tool from me that doesn’t do what you expect it to do, or what I thought it would do for you; say you don’t like how it feels in your hand. Give it back to me, I’ll take it off your bill.”
He only has had to take back a tool a handful of times, and understands that the tool isn’t worth having, if the customer is not using it.
Selling philosophy
Klug has taken his previous sales experience in the shoe business and applied it to his current business.
“I think I’m a pretty good salesman; I’m a good closer. But I don’t think they look at me as pushy,” says Klug, of his customers. “But, they’re scared to walk on the truck sometimes, because they know they’ll get tempted.”
Klug also stresses the importance of putting money on the street, in order to collect those payments. This means making the sale, and having customers keep a balance.
“I take a little more time in the shops that I should,” says Klug. “But at the same time, it’s because we’re relaxed about it, and it lets me get the maximum out of them – for payments and sales.”
Klug uses an everyday example, of when he himself might do the same thing. “You want to get them out because a lot of it is impulse.”
“If I go to the hardware store, and I don’t have a list? I come back from the hardware store with $300 worth of (items) I didn’t go there for, and I don’t have the thing I did go there for,” Klug says, laughing. “That’s what happens with guys, a lot, on the truck too.”
Setting terms and working with customers
Klug says he doesn’t sell on price, although it can sometimes “come into play” for some of his sales. For the most part, he focuses on the service he provides his customers.
Seeing about 200 customers at 50-60 stops per week, Klug’s primary stops include a number of aftermarket auto repair shops, body shops, heavy equipment shops and the Cripple Creek gold mine.
Klug keeps a limited customer base, and is very specific on who he chooses to do business with. Many of his customers are the same tech and shop owners he originally saw when running his franchise route. He’ll add on new customers, mostly by referral.
“If one of my guys goes to work somewhere else, and he and I are buds, I usually will start calling on that shop,” says Klug.
When making a sale with a customer, he’ll set new terms with the customer right away. This always starts with the question, “How much would you like to put down today?” He’ll then ask the customer how much he or she would like to pay on that item per week, or figure it into their current balance.
When evaluating any customer payments, he uses a formula that includes the customer’s current balance, payment history, including the amount and frequency of payments, and the quality of that customer.
While Klug does emphasize the importance of having his customers keep a balance on the truck to sustain his business, he explains the importance of paying off a larger balance to customers as well. Plus he reeducates the customer to understand the necessity in making larger payments on larger balances.
“You have to be nice about it, but at the same time you have to let (the customer) know, ‘I’m not just telling you this because I’m greedy – this is what it takes to survive in the business.’ Then I start telling them about all the guys that have gone out of business.”
Klug has seen a significant increase in sales since beginning his independent route. He forecasts a 25-percent increase in sales for 2015.
Along with that, his collections have been up as well. He aims to meet a seven-week term for customer payments.
Expectations of trust
Klug explains that he’s a fair, honest tool man that builds relationship to really make the technician understand that he or she is working with a person, not a company. Because of this developed relationship, Klug calls many of his customers friends, and says that he gets paid to see his friends.
“When they see me pull in, it’s the highlight of their week. That’s what I want. I want them to enjoy their time out on the truck. I’m not going to hawk them,” says Klug. While he will leave customers alone while they browse on his truck, “I’m happy to drop whatever I’m doing to answer a question.”
He makes sure to focus on building trust with his customers.
“I do everything I can to let these guys know that they can trust me 100 percent,” says Klug. “That’s how concerned I am about it. Because, if you lose their trust, you lose everything. That’s why they buy from me, because they know they can trust me.”
Klug used an example of providing free Hansen Global socket trays with the purchase of a metric and standard socket set, for one customer.
“I’m probably one of the only guys that does that. But it’s my philosophy: if it’s a one-way street, someone’s getting screwed. They feel it.”
He feels that this philosophy of helping his customers out also has helped him work with the best customers, so he rarely deals with any skips. “I’m not perfect, and I get screwed just like everybody else does, but I think it’s because these guys know that I’m fair with them and that I share with them.”
While Klug is selective about the customers he works with, he has vetted out his customer base and expects the same respect from his customers.
“I’m a bit of an egotist that way. I think I provide the best service of any tool guy around – always have,” says Klug. “If you don’t appreciate the service that you get from me, then I don’t need you. If all you want is price, and you string me out on payments and all that other crap, then I don’t need you.”
Plans for the future
Klug drives an 18’ 1997 Freightliner diesel truck. “I don’t like to have the truck messy,” says Klug.
He makes sure to utilize the shelving on his truck to display the tools. This means spacing out products, and having lids open for all blow molded cases, to show the goods inside.
“I like to keep a minimum amount of inventory on the truck, as far as the depth. I keep one of everything, except for socket sets – I keep two sets on the truck. Because I order often enough and I get it in two days, that there’s no need to carry a bunch. It helps cash flow,” says Klug.
Klug bought his truck used when he went independent. He just recently had to replace the transmission, and replaced the brakes.
He doesn’t want to deal with a lease payment, but he also does no maintenance on his truck himself – so he relies on customers to assist with it.
He’s done some customization and updates to the truck, including a custom lift gate ramp from the gate to the floor, and from the gate to the door/entrance.
He’s currently in the process of switching over from fluorescent to LED lighting on the truck.
Klug utilizes a Wi-Fi hotspot from his smartphone on his truck. He says while using the hotspot can drain his phone battery, the service has proved useful. “I use it to process cards, but I also use it to look stuff up because catalogs are always outdated.”
Klug is now 64 years old. While he says he may retire at 70, he’s not a guy who can settle down and just sit around. He says “I’ll do this until I die.”
“You can earn an honest living, and make a good money at it, by being honest with people,” says Klug.
About Klug’s favorite part of the job, he says that he works under his own terms. “I’ll do it my way. That’s what I like best.”
Top 5 Tools
- Rockford Portable Power Source / Mini Jump Starter (No. RFDPPJS2976DLX)
- GearWrench 51pc 1/4" Drive 120XP SAE/Metric 6-Point Standard and Deep Socket Set (No. 80300P)
- GearWrench 18pc SAE Long Pattern Combination Non-Ratcheting Wrench Set (No. 81917)
- Sunex 80-pc 3/8” Drive Master Impact Socket Set (No. SUN3580)
- KD Tools 225pc Tool Set (No. 80935) – DISCONTINUED. REPLACED WITH GearWrench 80942 239-pc mechanic’s hand tool set or the GearWrench 80940 219-pc mechanic’s hand tool set
