SSNASnap-On Incorporated

Snap-on sells tools to mechanics from a van that comes to their workshop, and finances the purchase itself.

The sales channel is unusual: a franchisee drives a fixed route between workshops, knows every mechanic personally and sells tools on instalments straight from the van. The mechanic buys not the cheapest spanner but the one that will not fail and will be replaced under warranty, because a broken tool means downtime and lost earnings.

The second half of profit comes from financing: instalments are written by an in-house finance arm at a substantial rate, and that income is comparable to the manufacturing side. Risks: mechanics' ability to pay in a downturn, electric cars needing less servicing, and loan book quality. The company has raised its dividend for many consecutive years.