# Opening up a new store USED TOOLS



## mnjconstruction (Oct 5, 2008)

Years ago I owned a small used item store. I had it for about 2 years and I loved it so much. I had to close it down because my construction company was so busy it didnt allow much time for the store. It really didnt make enough to hire a full time employee.

Anyway I plan on opening up another one this fall.

Its going to be a used tool store. With all types of tools. Just wondering what you think about this idea? Am I crazy for opening up a store in this economy. Or will the used tools sell good? In my area there are a few pawn shops that have tools, but very very little selection. And the prices are all over the place. They really have no idea on how to price tools. 

I am a tool junkie like many of you, and I figure what better way to fill my day and make a few bucks then to sell tools.


Advise???
input???
suggestions???


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## WarriorWithWood (Jun 30, 2007)

There is one near me and the guy who owns it is very nice. It used to be a chain store but I'm not sure if they're selling franchises anymore. He does good business, he buys VERY low (his analogy is "you always get less when you trade in a car versus selling it yourself") and sells high. He's been in business for about 10 years. I would give him a call, I'm sure he'd give you some pointers. Here's his website.
http://retoolpa.com/


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## mnjconstruction (Oct 5, 2008)

Also looking for a good name for the store....... what you got??


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## darr1 (May 25, 2010)

a great idea especially if you can also do a limited gurantee with them for a modest fee , and you could put up a sign "used but not abused tools " good luck on your venture


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## flashheatingand (May 3, 2008)

We have a used tool store here (A to Z tools) owned by an older guy with a filipino wife. The guy died, no kids and she runs the store herself. You might want to give her a call, nice lady and very talkative.

I don't know anything about the mathematics of the biz, but whenever, I stop in, there is at least someone else looking around. Also, with the numbers of business that I have seen open and close shop, I can vouch that they have been in business for a long time.


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## Wrenchouse (May 11, 2011)

Congrats and good luck!


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## 11678 (Jan 11, 2007)

"Knotstolin Tools"
:thumbup:
Good luck !


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## SuperiorHIP (Aug 15, 2010)

Retool

There is a place here that sells tools and all kinds of tool accessories. They have been around for years and they seem to do pretty good. My opinion would be to run an actual tool store that offers trade ins, rentals, consignment, etc. Being a specialty guy isn't always a good idea.


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## Dirtywhiteboy (Oct 15, 2010)

The Tool Box or The Gang Box and your logo is a gang box overflowing with tools:whistling best of luck at that


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## Brutus (May 29, 2007)

Dirtywhiteboy said:


> The Tool Box or The Gang Box and your logo is a gang box overflowing with tools:whistling best of luck at that


There used to be an.. "alternative" life styles bar here called The Tool Box.... :blink:

One problem I could see would be checking to make sure the tools are not stolen... My boss tells me the place he takes his tools for repair, they check serial numbers to see if it's stolen, and if it is, they will not give it back to you.


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## CookeCarpentry (Feb 26, 2009)

Most of the tool places around here do it all - rent, repair, lease, sell used and new.


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## Warren (Feb 19, 2005)

I think a good name would be "Experienced Tools" I would refer to them that way instead of calling them used.


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## Laketahoedan (Feb 16, 2008)

"Used Tools"

start an ebay shop too.


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## TBFGhost (Oct 9, 2008)

darr1 said:


> a great idea especially if you can also do a limited gurantee with them for a modest fee , and you could put up a sign "used but not abused tools " good luck on your venture


Any time I see someone putting some justifier like "used but not abused" I walk away. I would rather just see used.


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## darr1 (May 25, 2010)

TBFGhost said:


> Any time I see someone putting some justifier like "used but not abused" I walk away. I would rather just see used.


then what would your idea be , if it was me i would service the tools and put a limited gurantee on them and i would think most people would appricate a used but not abuses sign


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## TBFGhost (Oct 9, 2008)

TBFGhost said:


> I would rather just see used.


:thumbsup:

The whole not abused thing makes me think twice, almost like they were abused.

Ever note how most legit used car dealers and recon stores call their tools Certified Pre Owned? It gets rid of that bad image "abused" carries with it and it says exactly what they are selling without justifying how they are used but not pieces of junk. Slogans like used but not abused make me think of cheap corner used car dealers where most of their cars are abused.


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## darr1 (May 25, 2010)

thats why you would give a limited gurantee


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## TBFGhost (Oct 9, 2008)

darr1 said:


> thats why you would give a limited gurantee


:blink:

I understand that...I don't think you understand me.


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## darr1 (May 25, 2010)

i do and i dont


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## PrecisionFloors (Jan 24, 2006)

I would think this economy would be ideal for a second hand anything store. Think about it - people are cutting costs every where they can. Not to mention commercial space is never going to be cheaper than it is right now.


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## Jimmy Cabinet (Jan 22, 2010)

PrecisionFloors said:


> *I would think this economy would be ideal for a second hand anything store. *Think about it - people are cutting costs every where they can. Not to mention commercial space is never going to be cheaper than it is right now.


I agree with you to an extent. On the other hand most contractors have already bit the dust cause there ain't no work to need tools for.

I too feel a used tool store is a great idea. I have never seen one. It may seem like a silly or stupid or both question but where does one get used tools to sell? Maybe have a tool rental biz and beat the big orange rental prices......then place the used rental tools on for sale shelf later?


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## maninthesea (Nov 11, 2008)

How about 
The Tool Shed
Tested tools for less

If you go into the rental segment of the market, I would consider how you plan to recover the tools/value if they dont come back from rental. Not saying dont do it but consider all the worst possibilities first then come up with a stratagie. Like run deposit on credit card or have a collection agency on retainer. Or cousin guido:whistling

Cheers and good luck. I am guessing it would be enjoyable. Probably get the same guys you used to compete with for work comeing in and shooting the s#!t with you.

Cheers Jim


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## maninthesea (Nov 11, 2008)

Another thing.
Check out the local DRMO in your area. A LOT of working or easily reparable tools go thru the one here. You can find the auctions at govliquidation.com
Cheers Jim


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## carolinahandyma (Jan 6, 2006)

It sounds like a great idea. You can probably get very favorable lease terms on a space. Perhaps you could sell some tools on a consignment basis instead of having to buy them outright. Renting some items isn't a bad idea either.


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## maninthesea (Nov 11, 2008)

Somewhere in the shop (I'm thinking in the bathroom above the urnal or next to the toilet) you should have a list of "tools we refuse to buy or sell becuase they were crap right off the assy line" I am sure we could help you compile that list


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## slowforthecones (Aug 24, 2008)

the key to a used tool store is being able to buy broken tools for almost zero and fix em, turn em around into $. You could also sell parts too.


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## mnjconstruction (Oct 5, 2008)

At first I will be buying and selling. I am going to sell on consignment also. The rental part will come in time. But I dont think I am starting out with that. 

Im hoping to open the doors by oct. 

finding the perfect spot to rent is the hardest part so I am starting to look now. I have a few buddies in the real estate game and they are keeping an eye open for me.

As far as finding used tools, thats the easy part. To get enough inventory to open the doors I will be buying from yard sales, auctions, newspaper, craigslist etc. I also will have a continued ad running looking for tools. My plan is to sell most tools for about 50-60% of what they are new. So I need to buy at about 20-30% of new cost, to turn a decent profit. 

As of right now I have a shed almost full of tools ready for the shelves. 

Im thinking I am going to try to get a store with about 1000sq feet of store frontage plus backroom for repairs. 

I am wicked excited about this new adventure, I am hoping in time This will be my full time gig, pounding nails is getting harder and harder every year. If the store does good I will just do carpentry on the side. Guess we will see what happens. 

So far my favorite name I have heard is "the tool shed" LOVE IT !!!!


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## Aaron Berk (Jul 10, 2010)

+2 for the "Tool Shed"
and the slogan got my attention also, "Tested Tools For Less"

IF I walk into a store and the clerk doesn't display a proficient knowledge of the items they are selling I usually leave.

If you look, act, and talk like you know what your doing, and combine it with a catchy slogan like that one...... I'd be regular customer 


How many times have you guys seen a sign stating "We do such and such..." and you walk in and meet the ppl, then you think to your self YEAH RIGHT.

PS: My wife runs the 2nd most successful consignment shop in the area. The #1 is a major franchise place. We even get out of state shoppers looking us up.


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## Dirtywhiteboy (Oct 15, 2010)

Brutus said:


> There used to be an.. "alternative" life styles bar here called The Tool Box.... :blink:


 OK The Tool Box or The Gang Box is out the rainbow boys have messed that one up ing its 
Thank for that tidbit of info Brutus


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## PrestigeR&D (Jan 6, 2010)

Sell some Arn........:thumbup::clap::clap: 



B,.


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## Warren (Feb 19, 2005)

I like the Tool Shed. But you can use the slogan "Tools with experience"


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## maninthesea (Nov 11, 2008)

So far my favorite name I have heard is "the tool shed" LOVE IT !!!![/QUOTE said:


> If you use it I want a T shirt(which I will pay for) Cheep shirts are a good advertisement. You should be able to get them done up for $5-$6 Put them up for sale for $10 and give them away once and a while to good customers who would wear them on the jobsite. I think a shirt someone wants to wear is better advertisement than Radio or print adds.
> 
> Cheers, Jim


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## slowforthecones (Aug 24, 2008)

one word of biz advice, get a hot lady in there that also knows the product she is selling. it would be a huge upsell advantage!


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## Dirtywhiteboy (Oct 15, 2010)

slowforthecones said:


> one word of biz advice, get a hot lady in there that also knows the product she is selling. it would be a huge upsell advantage!


Very hot women allways work for me


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## ApgarNJ (Apr 16, 2006)

how much markup and profit is there in used tools? I think you'll need to do repair work, etc to make up for what you aren't making in selling the used tools. How are you going to get all the used tools, contractors bringing them in after they have already used them for a while? I would think with rent, insurance, taxes etc, you aren't going to be making much unless you are getting a lot of customers per day, not knowing your area, I can't really tell how busy you will be. If you are near a city setting then it might work, rural setting probably not going to work if you are only selling used without any other services.


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## loneframer (Feb 13, 2009)

"TOOLIN' AROUND"

"TOOL-TIME"

"TOOLS OF THE *TRADE*"

Sourcing decent used tools will be a challenge. Pricing them
competitively will be more of a challenge.

If you buy a tool with a factory fresh price of $200 for $60 and sell it for $100, that leaves you a gross profit of 40%. Not bad.

Now deduct the 1/2 hour you spent making the deal, servicing the tool and getting it on the shelf.

That leaves you what? 15 bucks to cover O&P?

I'm not sure such a specialized market could produce enough volume to make it profitable.

That being said, I'd love to have a used tool store to browse around in.

There used to be one in the city I did lots of work in, but the prices weren't good enough for me to ever buy anything.

I think 1/2 off the new price would sell the tools, especially with a satisfaction or your money back policy. The problem with that is, you'll get the weekend warrior buying a hammer-drill on Friday and bringing it back on Monday dis-satisfied.

Offering a store credit instead will eliminate that guy, but possibly kill a legit sale as well.

I'm not trying to discourage you in any way, just hoping you cover all the bases before pulling the trigger.:thumbsup:


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## mehtwo (Nov 14, 2010)

ApgarNJ said:


> how much markup and profit is there in used tools? I think you'll need to do repair work, etc to make up for what you aren't making in selling the used tools. How are you going to get all the used tools, contractors bringing them in after they have already used them for a while? I would think with rent, insurance, taxes etc, you aren't going to be making much unless you are getting a lot of customers per day, not knowing your area, I can't really tell how busy you will be. If you are near a city setting then it might work, rural setting probably not going to work if you are only selling used without any other services.


That's why an eBay store or something similar would be good. I don't know how profitable it would be, but how about also dealing with factory reconditioned tools. 
Another idea may be sell tool parts like this guy:http://www.mendingshed.com/powertools.html 

Just some ideas.


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## mehtwo (Nov 14, 2010)

Another BIG advantage you have is being out in the field, using these tools!:thumbup: There was a local tool store where the guy was a GC also, but he sold the store a few years ago.


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## PrestigeR&D (Jan 6, 2010)

"The Man & Machinery Power Tool Co." - that will get their attention... as long as you put some American made Arn in there as well....I would have a field day,,,and I am not the only one :shifty:... throw some drool buckets on the floor while your at it...your going to need them.:thumbsup: 


B, I can't help it... I have issues, it's an addiction....:laughing:


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## JenRan (Jun 20, 2007)

*Opening my store in June*

I've been wanting to do this for a few years.. trouble was finding the right space at the right price. The 2000 sq.ft. storefront where my office is located opened up and couldn't pass up the rent (plus I'm sharing phone/internet, etc) to cut down on costs.

We are opening in June. Contact me and I can give you some help on software for consignment, etc.

www.toolsandmoreshop.com

Trick to naming the business to me had more to do with finding a suitable web address as well. Tool Shed is taken a million times over. 

Randy


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## 74craig (Dec 28, 2010)

Good luck with your business.I think it's a great idea.Hope it works out for you.


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## SAW.co (Jan 2, 2011)

How about "SECOND CHANCE TOOLS".


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## Dirtywhiteboy (Oct 15, 2010)

"second hand lions"


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## KnottyWoodwork (May 23, 2010)

In bend there's a store called "trade n tools" some wicked cool guys in there. They've been around for quite a while, with some new tools but mostly used.


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## Coptool (Oct 8, 2008)

We don't have much around here other than pawn shops but I always thought if someone knew what they were doing its not to hard to make some old tools work like new with fresh brushes or seals (for air tools). Not sure if you want to get that involved but it would certainly help you buy cheaper.


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## Brad 1 (May 26, 2011)

We have a Retool in our city. It's a franchise and they have been around for awhile now so they must be doing OK. They stop by and buy parts from em once and awhile or call for help on a repair. If you decide to do this then you MUST offer repair services too. It will help with profits and you will have a way of fixing the used tools before putting them up for sale. I would also suggest dealing in used lawn and garden equipment. You can make decent money selling used mowers, snow blowers, etc.


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## mnjconstruction (Oct 5, 2008)

Brad 1 said:


> We have a Retool in our city. It's a franchise and they have been around for awhile now so they must be doing OK. They stop by and buy parts from em once and awhile or call for help on a repair. If you decide to do this then you MUST offer repair services too. It will help with profits and you will have a way of fixing the used tools before putting them up for sale. I would also suggest dealing in used lawn and garden equipment. You can make decent money selling used mowers, snow blowers, etc.




I will be selling all types of man toys. All type of power tools, hand tools, lawn mowers, atv's, snowmobiles, snow blowers, snow shoes, fishing supplies, camping supplies, canoes, etc. 


I looked at a spot today, The store itself was perfect. 1200 sq ft of store front, outback had an overhead door and about 400 sq ft. wicked nice place. Only bad thing is hardly any parking. Im looking for something with a good size parking lot, also want a private lot, dont want to share with other buisnesses. so the search continues....


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## PrestigeR&D (Jan 6, 2010)

Any OWWM ?----







I'm looking for a 1921 #1 Amercan "Buzz" 16" jointer cutter guard, you got anything like that float'in around there.....


B,:shifty:


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## Completespray (Jan 18, 2010)

I love the idea! And I think "Experienced Tools" was an awesome name idea :thumbsup:


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