, Texas 4 views 0 favorites
Price: $102,000 – Weekly Sales: $14,127 This listing is for a Mission tortilla distribution route with a price of $102,000. The owner distributes a variety of tortilla related products to major grocery retailers including HEB, Walmart, Sam’s Club and Target. Accounts are located in very proximity to each other which makes servicing the route far easier and faster. The route is currently averaging approximately $14,127 per week in gross sales volume. The route generates approximately $2,260 per week in gross commissions based on an average 16% commission rate. This is a very convenient, low maintenance route with terrific growth potential for a motivated owner. The distribution rights and protected territory are purchased through the current route owner and contracted through the product manufacturer. This is a turnkey wholesale distribution route opportunity with consistent sales volume and support from a number one selling food manufacturer. Full training will be provided. WHAT ARE THE DAILY RESPONSIBILITIES OF THE ROUTE OWNER? The route owner is responsible for servicing their customer base and ensuring that product is well stocked and maintained for the consumer. Route owners will order, deliver and stock product accordingly. There is flexibility in the days and hours as long as the customers are being serviced properly. The current owner typically works Monday through Saturday from approximately 4am to 11am. GROSS EARNINGS/COMMISSIONS This route is currently averaging approximately $14,127 in weekly sales volume. With an average commission rate of 16% the owner generates approximately $2,260 per week in gross commissions. The sales volume can be confirmed through sales reports/invoices. Sales reports and other information can be provided once we receive an NDA submission. OPERATING COSTS Typical expenses include fuel/gas, vehicle insurance, vehicle maintenance, commercial liability insurance (often added on to vehicle policy) and handheld/printer/warehouse expenses. There is very little required in terms of administrative/bookkeeping work. Expenses will vary from owner to owner depending on how far they are from the warehouse and territory, what type of vehicle they use, what rates they receive on insurance, etc. The current owner estimates $315 per week in operating costs which includes gas, insurance, maintenance, handheld computer/printer, and expired product expenses. This leaves a weekly net of approximately $1,943. That figure does not include loan payments, taxes, etc. as they are highly variable from owner to owner. GROWTH POTENTIAL There are display opportunities and the potential for more space in stores that is not being maximized with the current route operator. This is a terrific territory with new products being introduced and a great account base. A motivated owner should be able to increase sales quite easily if they put in the time and effort to grow the business. Nearly every route has growth potential both within the current accounts or by adding new customers to the route. The route owner can work with current accounts and company managers to maximize sales volume. New accounts such as independent grocery stores, restaurants, schools, hospitals and other accounts could potentially be added to the business as well. The company sales managers do provide support with these growth efforts. FINANCING No financing is available through the company or owner VEHICLE AND OTHER EQUIPMENT The current owner’s enclosed trailer will be included TRAINING The current owner has agreed to provide training to the buyer. In addition to training from the current route owner, the company will provide some assistance when possible and will always provide administrative/sales support. The manufacturer wants their route owners to be successful so you will have a solid support system behind you. SCHEDULE The current route owner works Monday-Saturday and typically from 4am-11am each day. Most weeks require a total of approximately 40-45 hours per week depending on sales volume. Owning a route means that you are an independent owner/operator/contractor. You are ultimately responsible for the success of the route operation and you will need to find route coverage if you are sick or on vacation. Most route sellers and existing owners have a coverage person whose contact information they can share. Otherwise you are free to train someone to run your route while you are unavailable. It can require some effort and coordination to setup time off…but it does provide a lot of flexibility once you have a person or two that can cover your route operation when requested. PURCHASING PROCESS AND REQUIREMENTS Route buyers will have an opportunity to meet with both the current route owner and the management team at the company. You will need company approval to purchase the route. Credit checks and background checks may be necessary as well. Most companies are requiring that route owners have an LLC or corporation so that they are personally separated from the business. The incorporation process is relatively straightforward for most states and can typically be completed through your state’s secretary of state/business registration website. Location: San Marcos, Texas Home Based: Yes Real Estate: Owned Facilities: Trailer included Market Outlook/ Competition: Protected sales territory with major grocery retailers Growth & Expansion: Unlimited growth and expansion potential inside protected territory
Listed: Apr 18, 2022
Updated: 6 hours ago
Views: 4
Favorites: 0