Lincoln said:
I was a sales rep...I made $700/wk plus 14% commission on sales. (for zero interest 'truck accounts', the commission was paid as the customers paid on their accounts. For cash sales or accounts sold through SnapOn Credit Co, the commission was paid immediately.) Out of that $$$$, I was responsible for paying for the truck plus all upkeep/insurance, all promo/freebie stuff like hats & stickers, leasing a $4500 computer (their specs) I also had to pay the UPS bull to ship back broken/warrantied tools for credit.
Dealers were responsible for all the stuff I mentioned above, plus paying Snap On Credit (GE Capital?) for the inventory of tools (if not owned outright.) and a IIRC $5000/yr franchise fee. The 'gross profit' on Snap-on branded stuff was 33% I think. Less on other items from other Mfgrs (like 3M shop supplies, SATA spray guns, Milwaukee power tools, Gargoyles shades, etc...) Dealers were restricted on what vendors they could source the other stuff from,(So SnapOn could get their middleman cut) but I think many dealers played loose with their outsourcing... Dealers make no commission on sales.
The prices shown in the catalog price list are 'full retail' with the markup included. For Snap-on stuff that wasn't on promo that month, 67% is dealer cost. Every month things went 'on sale' or was packaged with a freebie tool or toy... it was up to the guy on the truck to pass that along to the customers, use the $$ on the table to close a deal, or to keep the item at full retail.
