Old school service with a modern twist

Three years ago, independent distributor Eddie Parraguirre was introduced to the world of mobile tool distribution. After spending 10 years as an automotive technician and then some time managing a tire store, he decided it was time for something new.

“A buddy of mine is a distributor, and he was talking about if I ever wanted to do anything different … he said, ‘I can get you in. I can get you connected to the right people,’” Parraguirre explains. “And I said, ‘Let’s give it a shot.’”

Since his start, he has transitioned from working with a flag to becoming an independent distributor. Though he’s only been working independently for around three months, Parraguirre has spent this time continuing to provide his customers with quality service, learning what new tools he should be stocking, and utilizing modern technology like social media and AI to help him run his business.  

Filling in the gap

Having been a technician himself, Parraguirre understands what it feels like to be in his customers’ shoes – he’s been in the after-hours situation where a tool broke or he where he realized he didn’t have the right tool and the only way he would be able to finish the job was with the help of his mobile tool distributor. Only to then reach out and find he’ll have to wait until next week to get what he needs.

Now, on the distributor, he knows how harmful those delays can be, so he tries to always make himself available. If a customer is reaching out at nine or 10 in the evening because they’re stuck and they need something, Parraguirre is happy to drive the tool out to them or have them stop by to pick it up. 

“I’m always working. I’m always on the clock, and I’m always here for these guys,” he says. “I feel like this is my time to fill in that gap that the other dealers weren't doing for me.”

Stocking the right products

Along his route, Parraguirre visits the typical locations – auto shops, tire shops, body shops, etc., but he also stops at less conventional locations like stereo shops and locksmiths. Anywhere that needs tools, he’s there. It’s not enough for him to get his customers any old tool, though; he wants to provide them with quality tools.

One way he makes certain the tools are high quality is by keeping track of replacement rates on tools. “If I see a tool that keeps coming back, I don't buy it anymore,” he says.

If a customer comes back with a tool he’s no longer stocking, he’ll ask them if a different replacement is okay because the last thing he wants is for his customers to run into the same issues with a tool over and over again. He stocks brands like TOPDON, Milwaukee Tool, and GripEdge for their high-quality products as well as their warranties.

Parraguirre is a firm believer that customers should be using their warranties. If he hears about another distributor not helping one of his customers with a warranty, he does his best to help them out. Even if they didn’t buy the tool from him, if he consistently stocks it, he’ll offer them a “one-time warranty” to make sure they’re taken care of.

“I like to go above and beyond for my customers,” Parraguirre says. “We are the suppliers to these mechanics, which are doctors, in my opinion, [who] get people back on the road.”

To make sure his customers get what they need, Parraguirre stays focused on providing quality tools, customer service, and warranties.

Modern tech on the tool truck

Though Parraguirre is a one-man show, he utilizes modern technology to help run his business. He has Instagram, Facebook, and TikTok accounts that he uses for much of his marketing.

“I just post a lot of my tools that I have on the truck,” he says, “and I have customers that come in looking for those tools that I have posted.”

By communicating with his customers in advance via social media, his customers can begin “shopping” before he even arrives. He also uses social media as a way to see what tools other distributors and technicians are talking about; that way, he’s keeping a pulse on what’s most popular and can better predict his customers’ wants.

In addition to social media, Parraguirre notes that he’s using AI every day to find ways to improve his business. From creating signs and exterior graphics for his truck to putting together bundle deals, calculating profit margins, brainstorming marketing ideas and collection strategies, AI touches just about every facet of his business.

When using AI, Parraguirre starts with specifying what he’s looking to do for that day, such as promote a specific tool or brand. The AI will then pull up different deals for that product and recommend how those could be incorporated into Parraguirre’s selling strategy. He notes that often he’ll need to make adjustments to the recommendation, letting the AI know these are the tools he has from that brand, and this is how much it cost him to purchase them. From there, it helps him put together a more specific deal and will even create a script that he can use to help make that sale. Although he finds the scripts to be a bit aggressive, so he doesn’t typically utilize that portion of the recommendation.  

Parraguirre also finds that using AI as an “assistant” allows him to keep tabs on deals that online retailers or big box stores are offering. He wants to know what these competitors are and are not doing, so he can fill in those spaces in between and meet his customers in the middle with the best deals and service he can offer.

Looking ahead

Even though Parraguirre has only been an independent for around three months, he already has plans to expand his business. Eventually, he would like to get three more tool trucks. He feels his location in Santa Maria, California, is the perfect place to expand.

“It's an amazing area,” he says. “We have towns that are literally attached to each other. And so, I can drive 20 minutes and be in another town. I can drive another 20 minutes and be in another town.”

With everything so packed together, future members of his team wouldn’t have to go far to find another set of shops to visit. He’s also already got friends and family members who are willing to help make this launch happen.

Overall, with Parraguirre’s combination of quality customer service and modern technology, he found a way to run his business that ensures his customers are taken care of while he stays at the forefront of running a contemporary business.