When is it time to buy a new tool distribution truck?

We all get to a point in our business when it is time to reinvest. Time for a new look. Time for a new computer and printers. Time to freshen up the inventory. Or maybe time to buy a new truck. But how do you know when it is that time? That's a good question...

Franchise rules 

When I signed with a franchise, it was explained to me that every 10 years, when and if I renewed my contract, I would have to reinvest, including buying a new truck. It was meant to be a time to look at my business and see where things could be updated or improved. I’m sure a lot of us use that as a guideline. Deciding to buy a new truck will definitely make you reevaluate your business as a whole. 

I started 30 years ago with a used truck from the distributor before me — a little 14' cabover GMC/Isuzu. It was a great truck that I had overpacked, and it barely pulled itself up a small hill. That truck lasted nine years, and I knew that I needed to replace it. My second truck was a larger 22' International DT4300 that lasted me 20 years. Being independent now, I am free of any regulations or design requirements, so I bought the truck I wanted. My new truck is a Kenworth T380, built by Herr’s Display Vans, and it's a little bigger and heavier than my previous trucks. Before getting a new truck, I also took some time to look at what it would mean for my business and the impact it would have.

"Need" vs. "Want"

One of the first things I needed to understand was whether I “needed” a new truck or “wanted” one. Both times, buying a new truck was definitely a need. I'm not saying I didn’t want a new truck, but the need was absolutely there. The cost of repairs from the constant age-related issues was getting out of hand.

I try to have pride in my truck and take care of it, mostly because it is my rolling showroom. As distributors, we fix things inside and out, while trying to keep it looking good, but with an old truck that can take some doing. I don’t think many of us would go to a store that doesn’t look clean and well-maintained. Big stores spend a lot of money and time to entice their customers to visit, so why shouldn’t we do the same?

The “want” question is easier to answer. YES! I want a new truck — the new truck smell, the new bright lighting, the shiny new shelves — who wouldn’t want that? However, there are other options aside from buying a new truck, especially if it isn't in your budget.

Most truck builders will do a new interior for your truck. If your chassis is in good shape, it might be worth looking into getting your box redone inside. All of the showroom updates are available at a more reasonable cost. Or maybe consider a slightly used truck instead of a brand new one. There are plenty out there if you look.

Change it or leave it?

Since I had established that there was a need and definitely a want for a new truck, I looked back at all the things about my old trucks that did and didn’t work for me. I had under-shelf storage that I didn’t use. I had a few drawers that ended up being junk catchers. Sitting down to think about what will best suit your needs and considering a few potential “cool things” to add to the design pays off in the end.

Financial responsibility 

After deciding it was time for a new truck, the first thing I looked at was whether my business could financially support that kind of payment. You will be taking on a fairly large monthly payment for years. Making sure it does not affect your day-to-day business is important.

I looked at it like this. If my monthly new truck payment was going to be $4,000, then I needed an increase of $1,000 weekly. With an average payment of $40-50 per customer, this equates to four to five new customers a day. I believed it was possible for me, so I tried, really tried. It was not easy, but what is? The idea worked well for me, so I knew the financial aspect of the new truck would work, as long as I stayed disciplined and focused.

It is also hard to have a new truck with a lot of old-looking inventory. This is where a type of purge happens. I went through my inventory and pulled out products that were badly truck-worn or just looked old — items that hadn’t sold in years. Those items went into a box for “great deals,” and I got rid of them easily. I replaced those items with fresh-looking products. The manufacturers update their packaging and look every few years; why shouldn’t we?

If these points or ideas sound like things that you and your business can handle, you might consider buying a new truck. From picking out the chassis to the box and shelf design, buying a new truck is definitely an exciting adventure.