MAC TOOLS franchise owners claim they can’t compete because not only aren’t their products exclusive – they are sold by competitors for much lower prices.
(UnhappyFranchisee.Com) “MAC Distributors invest $120,000+ to be the exclusive distributors of quality MAC tools at fair prices,” states a slideshow prepared by disgruntled MAC Tools distributors.
MAC Tools distributors claim that the franchisor (the MAC Tools division of tool manufacturing giant Stanley Black & Decker) is “simultaneously undercutting their own distributors and franchisees” while overcharging loyal and trusting MAC Tools customers.
This situation, MAC franchisees contend, is leading those who invested in MAC distributorships down “a sure path to bankruptcy.”
Some franchisees contend MAC Tools is indifferent to their plight because Stanley Black & Decker’s MAC Tools division will simply resell the failed route to another trusting, enthusiastic distributor… an industry practice known as “franchise churning.”
MAC Tools Distributor Slideshow:
MAC Tools Prices Significantly Higher for Same Tools?
MAC Tools franchise owners allege that many of the tools they sell are offered at significantly lower prices by competitors… damaging their reputation with their customers and making it impossible to compete.
For example, the MAC Tools slideshow shows that MAC Tools promotes a cordless rubberized LED worklight as a “MAC Tools Exclusive” product.
It sells the worklight to its distributors for $95.15, who then offer it for $103.99 (regularly 134.92, MAC claims).
MAC Distributors claim their competitors sell the same light for only $20.99… nearly 80% less than MAC’s retail “sale” price and $74.00 less than MAC’s wholesale price to its distributors.
Here are some other examples from the slideshow:
|Product*||MAC Tools Retail Price||Competitor’s Retail Price||MAC’s Price is higher by ($)|
|1/2” Impact AW612Q||$400.99||$244.95||$156.04|
|1/2” Impact AWQP120||$320.99||$209.95||$111.04|
Source: MAC Tools Distributor Slideshow
What do you think? Is MAC Tools gouging customers and dooming its own distributors? Share your thoughts below.
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