How does Harbor Freight make a profit????

Seriously though.

They practically throw free stuff at me and coupons left and right, their prices are absolutely amazing, and the stuff lasts pretty long provided you aren't going Rambo with it.

They must have alotttttttt of workers

I just bought the $9.99 digital caliper and got a free tape measure thrown in. Great tools? These aren't Craftsman but I won't be hacked if somebody swipes my tape at work.

Although I believe our QC guy might frown on having to certify it...maybe best if I leave it in my desk.

I just bought the 18guage air nailer for $15. Gotta say, quite impressed. After all it is already technically a hammer.

Got a angle grinder from there lasted about an hour. Swapped it and that one is still grinding strong, probably about 30 hours on it and no issues.

It is a crap shoot.

EDIT: It was $9.

I just bought the $1500 Mill currently "on sale" for $1200. Googled HF Coupon and found a 25% off. $300 more off for a total of $900. Shipping for the 750# thing was $90!

The odd thing was the HF phone worker asked me what the price was rather than confirming it. I could have said $500. No idea how they make money.

My dad's marina has a HF shop press that gets used daily in industrial-rate work. I think he's had it for something like 15 years now and it still works fine.

The only thing I've bought in recent memory from HF that I thought totally sucked were the zip-ties. Didn't have much holding strength compared to Home Depot ones, or whatever.

Otherwise, almost all my HF tools work as they should (granted, I don't really have any HF power tools to speak of).

Flight Service wrote: ... EDIT: It was $9.

I just got a $9.99 die grinder...now to test it out...

I buy a LOT of stuff at HF, and I worked for 7 years as a tech. I laughed at my colleagues. They all had $4000 Snap-on boxes full of $15,000 worth of $20-a-piece sockets. In the middle of a job, they would break a $250 impact wrench and have to wait 6 days for the truck to come around again... or meet the truck somewhere in BFE to get a replacement. Not to mention, half of their paycheck was sucked up by a retail scheme that rivals Kirby vacuum cleaners.

I had a Harbor Freight air die grinder that worked for 7 years until I loaned it to a friend and never saw it again. I still use my HF air angle grinder, air chisel/hammer, 1/4" air ratchet, 3/8" air ratchet, and have painted many pieces of junk with my HF gravity feed paint guns.

If something breaks, I take it back to HF on my lunch break and get a new one. If its something that isn't covered, so what? It probably cost $2.49 to begin with.

As a long-time professional tech, I definitely see the value in HF stuff. Some things I avoid, but I have three hydraulic floor jacks that work brilliantly, a rotary buffer, one of those vibrating multi-tools, lots of air tools, and a large selection of other stuff that I love.

I have come to really appreciate HF for low-volume specialty stuff. An example: I had to replace the press-in, lower ball joints on my GM B-body. A long time ago, I would have removed the shocks, gently lowered the control arm with a jack, and prayed that I didn't lose a facial feature so I could take it somewhere with a press. Solution? I bought a c-clamp style ball joint press at HF for $60. It paid for itself the first time. Its cheaply made. It might only last for 5 jobs, but it did the work and paid for itself already.

The unfortunate answer to your question is, "cheap foreign labor."

I use my HF welder constantly with having only switched to a name brand wire. Just bought an "open box" drill press there a couple months ago for half price. It's worked flawlessly (once I swapped the belts to a name brand).

Oh, drill press is the larger of the bench top, 16 speed. Was 78.99.

curtis73 wrote: The unfortunate answer to your question is, "cheap foreign labor."

I know, I feel bad about not buying American made, but their prices aren't competitive at all.

I've got it, embargo on cheap chinese tools will cause Snap-On to become cheaper. ok well maybe not

Generators, jacks, and other crap that's excluded on the 25% off coupon you can get any day of the year online. Also idiots who don't wait for the sales, get the coupon codes, or take advantage of the warranty.

Cool_Hand_Luke wrote:

curtis73 wrote: The unfortunate answer to your question is, "cheap foreign labor."

I know, I feel bad about not buying American made, but their prices aren't competitive at all. I've got it, embargo on cheap chinese tools will cause Snap-On to become cheaper. ok well maybe not

Truth be told (in my little libertarian opinion) much of the Chinese production effort is remarkably beneficial. Much of the big production growth in China is basically a big Capitalist effort. Its just that the government absorbs the benefit.

In contrast, I'm sure the Chinese view the insanely inflated prices of Snap-On tools as an indicator of American greed. Manufacture a $1 socket forging, sell it to one of 6 companies who plates and etches their own name on it, then sell it to an international distributor who sells it to a Snap-on regional warehouse... who then sells it to a private contractor who is paying for his/her own $80,000 box truck with $150,000 worth of inventory so they can sell that socket for $25 and collect a modest profit from the sale.

In my opinion, buying premium Snap-on or Mac or Blue Point tools is like gambling at a Vegas casino. If you think you will actually get a payout that exceeds your investment, take a look at the $6 billion worth of marble columns in the lobby. Who do you think paid for that marble? It sure as heck wasn't because those slot machines pay out more than you pump in.

When I walk into a HF store, I think... this entire store cost the company less than one Snap-on contractor paid for his single truck.

THAT is how they make profit.

In reply to curtis73:

Overhead probably has something to do with it, the cheap harsh lighting, the zero effort towards keeping it from smelling like cosmoline and rubber in there, etc. I remember once I was in HF and had to take a piss, the bathroom sink was draining into a 5 gallon bucket.

When I was in China I walked into a small tool store. It was the size of a single car garage but I think it contained an entire HF store. The stores here are saks fifth avenue by comparison. I even recognized some of the tools, only the tags were in Chinese. It even smelled the same.

God I love that smell.

curtis73 wrote: I buy a LOT of stuff at HF, and I worked for 7 years as a tech. I laughed at my colleagues. They all had $4000 Snap-on boxes full of $15,000 worth of $20-a-piece sockets.

That must have been a while ago... a new Snap-On box runs around $40-50k and I don't think even Cornwell sockets are $20 each if you buy them singularly.

This is why I have an overflowing, cramped Matco box that I bought used in '97 for $1000, and I have converted storage shelves on the shop's back wall to Tool Storage Annex #2. Annex #1 is the workbench next to my toolbox.

Probably like ALDIs. Make about 1c on everything and loose money on the sales that drag everyone in.

The only tool failures I've had were a pop rivet gun that disintegrated after the second rivet and an aluminum racing jack that blew a seal after 3 years. I like getting free flashlights too, must have about a dozen of them scattered throughout the house. Makes me feel wealthy when I walk in there or its slightly more expensive cousin, Northern Tool.

Knurled wrote: That must have been a while ago... a new Snap-On box runs around $40-50k

They're expensive, but not that expensive (well, maybe if you buy one of the aircraft carrier - sized combinations.) You can browse pricing at http://buy.snapon.com/catalog/catalog.asp?tool=storage

Did somebody order an aircraft carrier-sized tool chest?

http://www.harborfreight.com/72-in-18-drawer-industrial-roller-cabinet-61656.html

In reply to Swank Force One: I just got a coupon for that bad boy for a shade over $700

remember that article that dude wrote in the mag about every HF tool could be used as a hammer, that was the funniest E36 M3 i ever read.

DaveEstey wrote: In reply to Swank Force One: I just got a coupon for that bad boy for a shade over $700

WUUUUUUUUT!?!?!?!

Please scan and send to me!

Ironically the only thing I've had consistently fail on me are the mini sledge hammers. The head flys off the 2nd time you use it.

If you don't mind waiting/hunting buying used tools is a good way to buy decent tools for a decent price. I was going to say how much I hate harbor freight and their lack of quality then I though about how some of the favorite tools are from harbor freight so I'd hate to be a hypocrite. I'd just say to inspect what you are buying before plunking down for it.