Price: $75k + inventory
Weekly Sales: $10,000
This listing is for a beef jerky, chips and snack distribution route with a price of $75k + remaining inventory. The owner distributes jerky, snacks and related products to retail locations that resell the products. The accounts are primarily in Lansing, Battle Creek, Jackson, and Howell area. The owner goes to Sterling Heights or Dearborn once a week to pick up primarily chip/snack products. Most jerky products are delivered to the owner. This route is currently averaging $10,000 per week in sales volume. The route generates approximately $2,000 per week in gross commissions based on an average 20% commission rate. Commission rates can vary depending on product. 65% of accounts pay by cash/check on delivery and the remaining 35% are on Net 15 payment terms. No major retail big box accounts.
This is a turnkey wholesale distribution route opportunity with consistent sales volume. The owner sells a number of name brand products such as Jack Links, Trail Best, Old Trapper, Vitner’s, Jay’s and many others. 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. The current owner works Monday-Friday with approximately 50 total hours required. They do take every other Wednesday off so it is 9 days worked every two weeks.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $10,000 in weekly sales volume. With an average commission rate of 20% the owner generates $2,000 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), returns and handheld/printer/warehouse expenses. The current owner estimates $600 per week in route operating expenses. Operating costs will vary from owner to owner depending on a variety of factors.
GROWTH POTENTIAL
The owner can add new accounts or brands/types of products to the route. New accounts such as independent grocery stores, restaurants, schools, hospitals and other accounts could potentially be added to the business.
FINANCING
Third party funding may be available for qualified buyers (680+ credit score, clean credit history, etc)
VEHICLE AND OTHER EQUIPMENT
Van and trailer included. If the buyer does not need the van/trailer they can be removed
TRAINING
The current owner has agreed to provide full training to the buyer.
SCHEDULE
The route owner simply needs to make sure that their customers are taken care of, inventory is being managed properly, and sales are being maximized. The current owner typically works five days one week and four the next week. The average day runs around 8.5 hours with drive time included.
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
The owner is selling their route for $75k + inventory. Paperwork will be drawn up to transfer the route to its new owner.
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