Economy drives Snap-On to look at new finance options to fuel market growth
Leading franchise network Snap-on Tools has launched a new finance program in the Australian market, giving individuals the opportunity to fund a start-up business, whilst fuelling the company’s overall Australian growth strategy.
Instead of purchasing the start up inventory, the Snap-on Tools ‘Gateway’ program, will consign the inventory through an easy payment scheme.
“We are seeing a real shift in the market, and to remain competitive and achieve our growth projections we need to adapt to the current economic situation. As the job market gets tighter we will see more people look at starting their own business, which for a franchise network is a great opportunity,” said Ajit Ponnambalam, Managing Director of Snap-on Tools Australia and New Zealand.
“Business as a whole has been struggling to counteract the negative cycle in the economic market. We believe this strategy will allow us to continue our growth,” continued Mr Ponnambalam.
Snap-on Tools was formed in 1920 and grew during the Great Depression in America. Right from the beginning the company developed programs to encourage growth for franchisees and the business as whole.
The retail franchise program, although not suitable for all prospective business owners, is suited for those with few financial commitments, and individuals with a passion for business and providing quality service to customers.
The Gateway program will be a contributor to Snap-on’s growth strategy for the next calendar year.
Snap-on mobile franchise aims to grow total sales steadily in Australia from AU$ 52 million (in calendar year 2007) to AU$55 million (in calendar year 2008). The company’s priority is to better assist franchisees to grow significantly, strengthening its existing network in Australia.
Although Australia/ New Zealand only represents 150 of the Snap-on Tools Corporation's 4,700 franchisees, last year 13 of their franchisees made it into the Corporation's Top 100 franchisees ranked by sales, a clear indication of the company’s growth potential in the Australian market.
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