How to take over another distributor's tool route

1. A smooth transition depends on preparation and relationship-building.

2. Organization and follow-through are non-negotiable for customer service.

3. Success isn’t handed over — it’s earned.

Taking over another dealer’s route can be a blessing or a curse. Even if the route had a well-established, successful dealer, filling the “big shoes” can be intimidating. Whereas, taking over from someone who has questionable business practices can sometimes be more challenging than starting in an area without any representation at all.

Ride-alongs are essential

If you're taking on a successful dealer's route, you're not only taking on the prior dealer's customers, but in many cases some of their best friends too. Success in the tool business is predominantly based on quality service and customer relationships. If the opportunity allows and the current successful dealer is still running the route, try to arrange at least a weeklong ride-along. It's a huge advantage to see how the departing dealer runs the business. Being able to see firsthand why the dealer was successful is a tremendous head start.

Many times, the current dealer has either recruited their own replacement or played a part in the decision-making process based on the district manager's input. An endorsement from the departing dealer that you are going to carry on the quality service will help you make the transition as the “newbie” much easier. Your first week in your new business will be much easier having already met the majority of your customers. You'll also see how the prior dealer ran their schedule and took care of one of the main aspects of the business, warranty. More than likely, if the route was successful, it was operated by a “Sorry it broke” and not a “How did you break it?” type of dealer.

Beware of “steering”

Franchise tool companies will require a serious prospect to do ride-alongs with current dealers as part of their discovery process. A district manager, franchise specialist, or any other employee of the tool company cannot legally tell the prospect who to ride with. Telling a prospect who to do their rides with is called “steering”. Allowing prospects to choose who they ride with keeps the company from only showing a one-sided, positive spin on the business.

For an unbiased look at the reality of the tool business, I'd recommend a prospect ride with a newer dealer, a struggling dealer, and a successful dealer. Again, the decision of who to ride with is 100 percent up to the prospect. Franchises are federally regulated, and with that comes a long list of obligations that the tool companies must abide by. This ensures the prospect is able to make an independent decision based on their own discovery.

Passing the torch

I've personally experienced the journey of passing on my route twice in my career. Both times, I did the initial field training. I was able to spend two full weeks with each new dealer. The results were polar opposites.

Failing to write it down

The first time, the exit of my route came as a result of my accepting a district manager position. Part of the requirement to become the district manager was to find a replacement for my route. The last thing any tool company wants is an open route. I talked with one of my customers who I believed had all the qualities to be a great toolman. He was very excited to take on the new opportunity.

I had the number one route in my district at the time. I took over the route from an old school dealer who wasn't even using a computer. Previously, it had not been a high-grossing route. You build very strong relationships in this industry, and I wanted to make sure I was leaving them in good hands. Luckily, my new DM position was in my own district, so I was also the trainer for my replacement. I spent two full weeks with him.

When I returned to do dealer rides with my replacement, I always had guys take me off to the side with some of their concerns about the new dealer, such as “He never writes anything down!” When you’re seeing over 300 people a week, it's impossible to remember all the requests for tools, product knowledge, and whatever else your customer has asked from you. By not following through with customer issues, you send a message that their business is not important to you. It's nearly impossible to provide too much customer service, especially when there are so many other places to buy tools. Every customer should feel like they are the most important customer on your route.

Being “fired” from your tool truck doesn't happen as fast as if your employer handed you a pink slip. As a tool dealer, you have a couple hundred bosses. Every customer, in essence, is your “boss”. 

Success is up to you

The second time I exited my route was for retirement! No one had ever had success with the franchise I owned. In fact, the dealer I replaced left his flag to go independent. He believed the franchise was the issue. In less than a year, he was out of business as an independent too. Remember, “It's the man, not the van.”

Even with years of experience, it was intimidating to take on a route competing with two very strong established flags and an independent. On top of that, it was a very rural route. In a short amount of time, we (I say “we” because my wife did everything behind the scenes) had a Top 20, then Top 10 route.

This time I wasn't obligated to fill my route, but I wasn't going to leave my customers hanging without quality service. The first person I approached jumped at the opportunity. This guy worked a full-time job as a heavy duty tech and also operated his own service truck. He has an excellent personality and obviously a very strong work ethic. On top of that, he was an excellent customer. Even though he had left my route to take a job in the neighboring town, he still looked me up every week to purchase tools. Wherever he'd meet me, he'd always tell the guys on the truck, “I have two tool trucks that stop at my work, but I only do business with Brian.” He'd also tell people, “If this guy sold groceries, this is where I'd buy groceries too!”

He left his job two weeks early so he could ride with me for my last two weeks. Every successful tool dealer I've ever known works a stupid amount of hours every week. Seventy-hour weeks are the norm, along with plenty to do on the weekends. It was very important to him to mirror everything I had been doing, so he could continue the status quo. As a former customer, he appreciated the exceptional customer service, and it was paramount for him to continue the same. No-hassle warranties, positive attitude, and dependable weekly service have continued. He's also continued the little things like free name-brand sodas and waters, honoring new flyer prices on purchases made in the prior 30 days, etc. He understands spending a couple hundred dollars a week on his customers is insignificant if it's only costing you 1 percent in an average week.

Read more about this successful distributor in: The ‘seasonal sale’ doesn’t exist

Halfway into the 3rd quarter of his first year, he was already in the Top 20. Now, a year later, he’s been nationally ranked as No. 5 for his flag. He thanks me two or three times a week for the opportunity, and two or three times a week, I have to remind him he had the same opportunity as the other dealer who failed 20 years prior. Taking over a successful route doesn't ensure your success. It's an advantage for sure, but it's 100 percent up to you.