I cannot sell tool review samples. This sounds like a simply policy, but every single time I tell this to someone, they give me a really funny look.
ToolGuyd has a lot of policies, and this might be the most straightforward one.
As tool samples land in my hands at no cost, they should leave my hands the same way.
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If tool samples could be converted into cash, such as if I sold a sample package valued at $800 for $500, could I be trusted to speak freely about the products or brand? Or would I worry about avoiding anything that could jeopardize my access to more samples?
ToolGuyd also purchases the products and equipment it needs, with very few exceptions.
This way, I don’t need samples, and so they generally don’t save me money and cannot be converted into cash.
Every now and then an influencer marketing contact will describe samples as compensation, but they’re not. I can’t buy food with a drill or pay the mortgage with a wrench. One or two have tried to argue when I said review samples aren’t compensation. “But it’s worth $X.” Were they being paid in tools? Of course not. So there you go, tools are not compensation.
I’d probably be fine if every tool arrived with a return shipping label.
Everyone has different policies and practices for their own reasons.
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For me, not being permitted to sell samples seems like the right call, and having a strict policy helps avoid hard decisions.
I donated some older tool samples to my kids’ preschool, as I needed to clear some space. The owner’s husband was always going to extra lengths for the kids, such as with garden projects and similar, and it seemed like a fitting opportunity for potential long-term feedback.
They appreciated the tools and wanted to give me a gift card to a local restaurant. Sorry, I can’t accept anything of value for samples – it’s policy.
Really, what’s the harm in accepting a gift card from the sweet couple that owned the preschool? I felt bad about turning them down repeatedly, and ultimately said they could make a donation to a food bank if they wished. (I learned that from a reader – hi, Fred!)
What if it’s a gift card one day and “you have the new [tool]? Can I give you $100 for it?” the next?
I don’t trust myself to make the right decisions every time on a case by case basis. If there are tempting offers that produce conflicts of interests, sooner or later I am bound to act out of self interest. Policies remove emotion from the equation.
After more than 16 years, I still prefer to ascribe zero value to tool samples. It just seems better that way.
What would a magazine have done 20 years ago? I’d like to think none of them would have sold product samples, and so I also shouldn’t.
Jim Felt
Why is this so hard in this era to be considered “reasonable”? Let alone odd or worse.
Good on you. (And fred on your shoulder)…
Stuart
There’s no guide on how to be an independent product reviewer, and too few media role models anymore.
Joel
Thank you for talking about how you do what you do. Keep on role modeling; even when it seems otherwise, people do pick up on it
Jbongo
I think that fits very well with your “be fair” rule. Thank you for taking the time to talk about how you run toolguyd and your integrity.
Six year ago you did a raffle for some of samples and I ended up receiving one of the boxes. I actually still have the majority of the tools (though my collection has grown a lot since then as I bought a large tool chest to store everything in!). Just a few days ago I used the convertible snips to cut drywall corner bead. Thanks for being willing to share!
Bob
My understanding is that such samples actually are “compensation” in the eyes of the IRS and are taxed as income at fair market value.
J.J.
What is your source or cause for this understanding?
Jay
That would depend on several variables, most notably *why* they are being furnished? Disinterested generosity? That would be a gift and be permitted without tax consequences . In exchange for a review? That would likely be compensation at FMV.
Stuart
“In exchange for review” are not terms I readily agree to.
JoshP
Just curious, but what would be wrong with the company sending you a sample ‘in exchange for review’.
If it was ‘in exchange for a favorable review’ that’s obviously a problem, but for an objective review thats how the system is supposed to work.
Jay
There’s nothing “wrong” at all about it but it rises (or could rise) to the level of a barter…something of value exchanged for something else of value and thus taxable.
It’s a unique tax question to be sure. I wonder if the companies write those off and how they characterize them.
Stuart
For one, not every product is formally reviewed. I strive to test everything, and sometimes different types of content make more sense than a review.
An “exchange” creates a sense of obligation, rather than simply review *consideration*.
That’s not how the system is supposed to work, where value is traded. Exposure is never guaranteed.
Content does provide value, but reviews shouldn’t be transactional. Want guaranteed coverage or exposure? That’s sponsorship territory.
I’ll flex a little when dealing with greener contacts. But there have been cases where influencer marketing folks made sponsorship-like demands.
If reviews become transactional, with samples “in exchange” for review, then what about all of the content I produce that doesn’t require anything on the part of the brand or retailer? What am I supposed to ask for “in exchange” for product news, deal, Q&A, guide, or other types of coverage?
“Exchanges” don’t sit well with me.
JoshP
I have been part of a reviewer network for a major retailer and they do have the IRS rules as ‘compensation’. We receive a 1099 for non employee compensation and essentially pay income tax on the MSRP of what we receive.
It is a personal activity for me, as a business as toolguyd most likely is, it could be handled differently.
Brad
I’ve found that it’s a lot easier for me to trust myself if I make a categorical rule, like your no-selling-samples policy, instead of relying on my case-by-case judgment. Some people might roll their eyes at it as excessive, but I see it as being self-aware enough to know that where I draw the line might creep in the wrong direction over time. Compromise is critical in many aspects of life, but rarely desirable in professional ethics.
Jronman
I got a tool sample once and this was part of the TOS. The company even went as far as to say not only can you not sell the product to anyone you can’t even give the product away for free. Thankfully it was modular storage in the platform I already had invested into. Wasnt a big deal to keep it.
Michael F
It might be weird, but this seems overbearing to me. I donate things to Goodwill all the time. How long are you supposed to keep something for? Forever? Donating and giving it away for free seems like the only reasonable way to get rid of it.
JoshP
My view is you can donate or pass on once the product is on clearance or pulled from sale.
That said, products I deal with have a short sales life, I honestly don’t know how you’d handle tools that can be sold unchanged for decades.
eddiesky
The other option is a raffle for the tool with the proceeds to a charity. Probably more a hassle but you do need to have some documentation when you give away or donate the items that were provided free. You should also look up any issues with the state as well as tax/income liabilities. Even a form to hand out that states this tool/item is free and not to be resold. Just like the manufacturers Terms of Service or limits to resale.
Also I would request from the tool/item manufacturer marketing rep to provide clear documentation on terms of the tool/item use and if no return, loan period and details. Review of said product can be a form of transaction/payment. And states are looking for any income to tax.
Stuart
I often check with brands about higher value or shorter duration samples.
No raffles. Giveaways are a lot of work.
JoeM
I thought it was even simpler than that: You don’t, to my knowledge, have a retail business license to sell the tools, accessories, and other products you test and review here on ToolGuyd. It would be a problem for your taxes to exchange money for anything you do, hence all the sponsors and partnership access instead.
Am I wrong here? It’s more down to the fact that you have a “Brand”, ToolGuyd, that doesn’t have a business license to sell things. It’s a publishing enterprise, not a retail enterprise. A financial zoning difference that matters on your taxes, right? I genuinely thought it was that simple all along.
Donating to Maker Spaces, Preschools, and Trade Schools would just make more sense for you. Whether you get some sort of tax benefit from doing it or not wouldn’t matter, because you are going at a Zero dollar value, Zero loss factor for doing so. The only thing you lose or gain is the loss of clutter, and gain of both workspace and operating space for yourself and ToolGuyd. This is, literally, invaluable. Literally. Until I read this article, I was not aware you put more thought into it than that, Stuart. It seems like it’s such a simple concept to me.
MT_Noob
Speaking of ToolGuyd policies, what are your thoughts on a merch store? I for one would love to support the site by ordering a ToolGuyd shirt or two. Are the logistics of setting up a store too much of a headache? Or is finding a good quality shirt/products too difficult? I’d love to spread the brand awareness by wearing a shirt with the ToolGuyd logo and url.
I’m guessing you must have some reason for not jumping on the merchandise bandwagon like so many others. I’d love to know more.
eddiesky
I can imagine, from what I’ve read about influencers and youtubers, that he probably get free mugs with his site logo on them to market “Sell items of your site! Merchandise accounts for X number of revenue to influencers such as yourself, TOOLGUYD.”
Other than a decal, who wants a mug, shirt, patch, tumbler, hoodie, coozee, or other numbers marketing junk, now tariff more from China?
I’d rather click his affiliate links to Acmetool deals, Home Dept and Amazon.
Besides, its work to have to run a site, chase tool news and manufacturer reps, update the site, manage comments (replying IS work), verify links, correct mistakes (hard to manage a web blog from a phone screen), etc.
Lastly, only a few, VERY few youtuber/websites I visit have really nice merch and usually a family or employee that handles that, or its subbed out. FYI For A Few Acres More has co-op merch with other farm-influences, and then there is ViseGripGarage with some expensive but quality made hats, Tees and flannel jackets.
Stuart, IMHO, doesn’t need merchandise. (Would like to hear about all the unsolicited merch pushing he’s gotten though. Has to be annoying).
Stuart
I don’t really get bothered by merch companies. Most of the business marketing-type emails I get are along the lines of “we can boost your ad revenue by xy%,” with the most annoying and incessant ones bothering me at every email address, including personal and private ones.
I also get multiple daily “content insertion” requests.
An industry friend set up a merch shop years ago, and I linked to them once. They were kind of famous for a TV show, and merch made sense for them.
I don’t even have my own merch. I’ve looked into logoed shirts and hats, but still haven’t done it.
Brands – most notably Milwaukee – have sent logoed stuff before, and it’s always pretty cool. So far I’ve got a co-branded hard hat, and also recip saw blades.
Acme Tools has sent some logoed workwear in the past, and I’ve given a bunch away. It’s always pretty cool, but not something I’d commission to sell.
Every now and then I consider putting together cutesy little packages, such as with Bondhus mini hex keys – https://14cyiuhvcgv.com/bondhus-mini-ball-hex-key-set/%3C/a%3E . But for the volumes required for different products to be customized in volume, it’ll cost a fortune to where shipping fees and fulfillment times would also be impossible to justify.
Stuart
It takes a lot of work, but also doesn’t feel right. I have yet to come across merch that I’d buy for my own use, let alone sell to others.
A long time ago I toyed with the idea of making keychains for fundraising purposes, but I found that while I enjoy the process, I was never motivated to make any to sell.
And like you said, there’s a quality concern. I would want base merch to be USA-made, and that means $$$$ for high volumes.
There’s a brand of USA-made pens and markers. While I can place an order, it’ll cost more to ship than they’re worth. Who’s going to package and ship everything?
There are some options, but it hasn’t felt right yet. Maybe one day I’ll partner with a retailer who can handle fulfillment.
But I also don’t like the idea of people buying things only because they have ToolGuyd’s name or logo on it.
Maybe one day I’ll do stickers/decals, but I haven’t felt strongly compelled to do that either. There, fulfillment is the biggest obstacle.
MT_Noob
Thanks for clarifying. Those are pretty much the reasons I guessed or assumed. I do try to use affiliate links to support you site when I can, I also need to scale back on buying new tools, and I wanted a possibly more direct way to still support your work. Thanks again for your transparency and all the effort you put into the site.
T N
I commend you for holding yourself to a high standard of self discipline and integrity in a world where there’s shills everywhere. Keep doing it !
Ray
I am emotionally attached to my tools. They represent a fineness and precision that I find compelling. However, I remember when GM built electric vehicles and kept ownership. After a while they took all the cars back and crushed them. I can’t understand that, but I am an emotionalist. I guess it must be the same for you, are these tools are just items not to get attached to?
Still, after 16 years you must have a pretty cool shop, or maybe, like GM, you aren’t that emotionally invested in that part of the tool experience? I would find it interesting to see some photos of your shop.
Stuart
My workspaces are NEVER presentable. I’ve been working towards changing that, but it’s been a very time-consuming process.
I can get extremely emotionally attached to tools, and it can happen with samples as well. That’s all the more reason to part with them.
I get less attached to tools that have zero value ascribed to them. It also helps to know I’d have to purchase for personal use. I feel more objective and analytical about no-cost samples, compared to equipment I buy out of pocket, where there tends to be a deliberate purchasing decision or choices to be made.
Ray
When I was actively working my workspaces were always a mess. In retirement doing the work has a more relaxed vision. I can value neatness more. The tools have more meaning, for example USA made Craftsman have a value to me that is the emotional value.
I suspect that you are a tool emotionalist.
Nate F
It takes time to find a neat home for everything and I typically plan that out based on how often I use it. An ever changing tool assortment would make any kanban system I know of impossible without having a giant dedicated shop with open space for each category of new tool.
JoeR
Thank you simply for donating the items. Stuart, you are also fortunate enough to have located groups that willingly and appreciatively accept the items. Schools have a dire need for newer items. In my area all the shop classes are long gone. Had they had someone who would drop off band saw blades, drill bits, mechanics tool sets perhaps it would have made sense to keep them around instead of indicating that college (and the incredible costs incurred) are the only way to go.
I asked you sometime back for a place to donate my dad’s tools when my mom passed and we could finally clear the garage. Goodwill took some of them (a friend later told me that they throw away a lot of things later) and Habitat for Humanity picked through the items looking for only the newest. I hope that when I kick the bucket my daughters take the time to find deserving peeps who can use well taken care of tools. In the meantime, stick to your rules. They serve you and your community well.
MM
I really lament the loss of practical skills education in high school. Not only shop class, but also “home ec” in which students do some basic cooking, hands-on experiments in science classes, and so on. I think there is just so much good that comes from it. Those kinds of things make education more interesting than just watching a video or listening to a lecture. Doing things hands-on teaches valuable skills and builds self-confidence.
I would love to see those things make a comeback. Shop class might be an easier sell since it correlates well with STEM which is all the rage these days. But, I fear the biggest reason why those things are gone has to do with liability. I know that was why my high school chemistry classes involved watching demonstrations on VHS tape.
cyberbuffalo
Just the fact that you are transparent about your policy is commendable, it’s something I appreciate.
As for the question about magazines, I can actually answer that!
I work in still photography and for a magazine( like Wired) that does product previews and reviews, often times what happens is they are on loan from the company. Sometimes we’d get stuff in to photograph for a magazine that has already been handled by 3, 4, 5 or more publications and as such, those things are all beat up! We’d have to employ lots of tricks to get them to look brand new (combined with healthy post production). When it comes to clothes that are being photographed (for things like the style section, think shoes stacked on top of each other), that stuff is generally loaned from department stores or directly from designers and it generally all also gets returned.
In movies there are places that deal with providing lots of stuff for props and set dressing and THAT stuff usually doesn’t have to be returned. This is what we all know as product placement. Anything bought or given to a movie/tv show that doesn’t need to be stored for reshoots or for ongoing use will usually get sold, first to cast and crew at the end of the a production.
Rick
“I’d probably be fine if every tool arrived with a return shipping label.”
I like that idea a lot; it’s a clear policy that is squeaky-clean . And the provider knows in advance that you will not be profiting from your review of their tool in any way.
Is there any real downside to not adopting this approach? I suppose that policy might actually dissuade some from providing you with tools for review, since you have no material incentive to review positively.
The only potential problem I see is if any of the big names are unwilling to provide return shipping labels for some reason. You obviously don’t want to be in the odd position that you can’t review (say) a DeWalt or Milwaukee tool because they won’t provide a return shipping label.
Stuart
Because it creates a lot more work and more headaches. How long of a test period? How does one return a ladder? Vacuum? There are long-term testing opportunities for a lot of products, and no easy way to be consistent.
Loaners tend to work best when supplies are very limited or product types very expensive.
Daniel
You could always raffle (or just sell) these older tool samples off, with 100% of the proceeds to go to the charity of your choice. No monetary gain on your end, your subscribers get a deal on good gently used tools, and a charity gets some extra support.
Stuart
“Well what if I…” Loopholes and exceptions are bound to cause problems sooner or later. It’s best to have a policy and stick with it.
Yadda
Good policy. Straightforward, no confusion.
Steven Phillips
You’re doing the right thing, that’s what is unfortunately so rare in the age of influencers. Good work.