Price: $145,000 – Weekly Sales: $9,500
This listing is for a wholesale bakery route distributorship for Brownberry, Oroweat, Entenmanns, Thomas, Little Bits, Boboli and other bread/bakery products. The owner distributes a variety of products to major grocery retailers including Kroger, Meijer, Walmart and other grocery locations. The accounts are primarily in Saginaw while the storage facility for product pickup is in Bay City.
The route is currently averaging approximately $9,500 per week in gross sales volume. The route currently generates approximately $1,800 per week in gross commission based on the average 19% commission rate. Commission rates vary from 18-21% depending on the brand. A motivated owner can increase sales by growing their sales volume at current accounts or by adding new locations to the route.
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 rapidly growing 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. The schedule is flexible as long as the accounts are being serviced properly. The current owner works four (4) days per week with Wednesday, Friday and Sunday off.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $9,500 in weekly sales volume. With the average commission rate at 19% the owner generates approximately $1,800 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. Sales can be increased by adding accounts or growing sales volume within the current accounts.
OPERATING COSTS
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 $385 per week in operating costs which includes gas, insurance, storage, maintenance and the handheld computer/printer.
This leaves the owner with a weekly net of approximately $1,415 for the route. That figure does not include labor costs, loan payments, taxes, etc. as they are highly variable from owner to owner.
GROWTH POTENTIAL
This is a terrific territory with new products being introduced and a great account base. A motivated owner should be able to increase sales 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 could potentially be added to the business as well. The company sales managers do provide support with these growth efforts.
FINANCING
Company financing is available with a minimum 20% ($29,000) down payment
VEHICLE AND OTHER EQUIPMENT
The current owner’s cube/box truck is 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
This route requires typically approximately 30 hours per week. The current owner is working four (4) full delivery days with Wednesday, Friday and Sunday off.
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 the current route owner. 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. If the buyer is utilizing the company’s financing then a basic credit check will be conducted.
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