Competing with online retailers

April 30, 2025
It can be difficult to keep up with the prices and availability of online retailers, but there are several ways to keep your customers coming back to you.

When I first started on a tool truck in 1998, there were online tool sales. Of course, online tool stores weren't as predominant as they are today, but it was still an option for everyone of my customers. I've always believed it's nearly impossible to provide too much customer service.

Providing premium customer service is the best defense to counter your customers from buying online or from any other source, for that matter. Every time you pull up to a shop, you need to remember the shop is not obligated to allow you to stop, nor are the technicians obligated to buy from you. It's not just online retailers you're competing against. It's not only the other tool trucks, either. We live in a world where you can buy almost anything from dozens of businesses selling the exact same or very similar items. It's your obligation to earn the respect of your customers so they'll value the exceptional service you provide.

Be dependable with your techs

The online deal doesn't include in-person warranty service, nor does it have the benefit of breaking the full purchase price into affordable weekly payments. Being a dealer with a motto of "I'm sorry it broke," rather than that all too common, "How did you break it?" makes you the go-to tool dealer of choice.

That's not to say that if I had a customer bringing me a bent screwdriver every week, I wouldn't try to help them with the purchase of a pry bar set. Even if the customer's tool is covered by warranty, the inconvenience of having a non-working tool until your next visit to the shop is an aggravating issue for your customer. That's another reason it's never acceptable to skip a shop. It's so easy now to text a reliable person in that shop to let them know you can't make it by that week. In the "old days", I'd call the shop and talk to the service manager to tell them I couldn't make it in. Service managers usually have so much going on that my message would seldom make it to the techs. They'd want to know where I was. Make sure they understand, if they have a warranty or a need tool, you'll figure out how to take care of them. They need to know that dependable, weekly service is a top priority for you. 

Find creative ways to repurpose tools

Creative marketing is another effective defense against online retailers. The cordless tool world is one of the most competitive.

When you have the opportunity to purchase deals with free batteries or tool kits that include additional tools and batteries, break the kits down. I found I could separate the components of the kits and sell them individually at prices that would meet or beat the online and home stores. Using the batteries out of a kit you've separated allows you to run your own "free battery" with a purchase promotion. Make sure you adjust your inventory as you break down kits into individual components.

Offer a warranty on your products

Warranty is the cheapest customer service you can provide on a tool truck. I had a customer text me a picture of a new tool cart that had just been the victim of a faulty neutral safety switch on a pickup they were repairing. Along with the picture, the text was, “Is this under warranty?” As I was reading the message, I received another text from them. It was, “We know it's not warrantied, but you warranty everything else!”

There are so many items that come from the same vendor that most tool trucks carry. Flashlights are probably the best example of an item that can be purchased for less online, and are also available from all tool trucks. It's also the one item that technicians rely on the most. I didn't care where the light was purchased. If your light isn't functioning, I'm going to replace it or repair it on the truck. Even back in the days when it took a specialized tool just to replace the lens (and it was a pain to do), I took care of it. On top of that, I never charged for the lens.

The same is true for the o-ring and metal retainer on impact tools. I never charged for a socket retainer kit. I'd remove the old retainer and press a new one on. It didn't matter what the brand name was on the tool. When you can easily fix an aggravation like having a socket fall off the impact gun, do it. People would usually ask how much they owed for the repair. I'd always explain that I appreciated their business, and I felt it was my job to make their job easier. It's called customer service.

Proof of purchase

You also need to politely educate your customers that some online stores are not authorized dealers. Proof of purchase becomes an issue for older tools and batteries. If the tool wasn't purchased from an authorized dealer, the warranty most likely will be denied. Along those lines, do your best to help with warranties for the tools and batteries that were purchased before your relationship with your customer. 

It adds one more reason for your customer to purchase from you, the dealer who's at the shop at the same time every week. Not only are you there to sell tools, but equally as important, to handle warranties. 

There's not a single online retailer that can compete with the in-person service provided by a quality tool dealer.

About the Author

Brian Fahlgren

Brian Fahlgren started in the tool business in 1998. Fahlgren has been an employee dealer, franchised dealer, and district manager for two different flags. In 2018, he returned to the driver's seat of his own tool truck. Providing premium service and his continuous "close to perfect" attitude, he achieved his goal of being a Top 10 dealer for Cornwell Quality Tools. He and his wife of over 44 years recently retired, moving from Oregon to the endless summers of Beverly Hills, Florida.

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