Price: $70,000 – Weekly Sales: $10,400
*Truck valued at $30,000 is negotiable*
This listing is for a Mission tortilla distribution route with a price of $70,000. The owner distributes a variety of tortilla related products to major grocery retailers including HEB and three cash accounts. The storage facility for product pickup and the accounts are conveniently located in the Austin metro area.
The route is currently averaging approximately $10,400 per week in gross sales volume. The route generates approximately $1,740 per week in gross commissions based on an average 16.8% 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 begins loading the truck around 2am and is at their first store by 4am. Most days are completed before 9am with this schedule so it could be bumped back a few hours if the new owner wants to start and finish later (e.g. 5am – 12pm). This is a very manageable route with a low number of accounts that are conveniently located. Each store requires a minimum of three deliveries per week. Additional merchandising may be necessary due to sales volume. Merchandising can be easily outsourced if the owner is interested in doing so.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $10,400 in weekly sales volume. With an average commission rate of 16.8% the owner generates approximately $1,740 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. The current owner has their insurance taken directly from their weekly route settlement. There is very little 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 $240 per week in operating costs. This leaves a weekly net of approximately $1,500. 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.
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
All wheel rollers and a pallet jack will be provided to the new owner. *Truck valued at $30,000 is negotiable*
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 begins loading their product around 2am but you could start as late as 4am-5am. Most days are 6-7 hours in length which includes drive time between stores, etc. The current owner has a fluctuating schedule each week depending on what they have going on outside of the route business.
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.
REQUEST MORE INFORMATION
Our route blog is a fantastic place to find more information on the distribution route business. There are a wide variety of articles including overviews on different types of routes (bread, snack, vending, etc) and others that discuss general route operating topics.
If you are interested in acquiring more information on this route please submit our non-disclosure agreement here. Please note the route number or route location on your NDA submission so that we can send over the correct information.
If you have any other questions please feel free to contact us through this form or by email at Jay@TheRouteExchange.com