Snap-On Customers Have the Right Tools for Success

Snap-on has achieved significant market leadership (approximately 60% share) in mobile automotive repair tool distribution in the United States. The key to its success is its franchise model, in which franchisees purchase vans and inventory from the company (often with financing from Snap-on’s captive finance subsidiary) to then resell tools to auto technician customers whom the franchisees call on every week. This network of franchisees calls on thousands of customers, resulting in an in-person, highly consultative sale that is notoriously sticky. Management views the franchise network as mainly optimized and generally more capable of GDP-plus growth.