Price: $181,800 – Weekly Sales: $10,200
This listing is for a Tastykake distribution route with a price of $181,800. The owner distributes a variety of snack and cake products from Tastykake to major grocery retailers including Giant, Karns, Weis Market, Rutters, Sheetz and more. The warehouse facility for product pickup is located in Harrisburg and the accounts are located primarily in the Newport and Mifflintown areas.
The route is averaging $10,200 per week in gross sales. The routes generate approximately $1,850 per week in gross commissions based on the average 18.25% commission rate.
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 by the owner.
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. This route is currently being with deliveries on Monday, Tuesday, Thursday and Friday. The route typically requires 35-40 total hours per week.
GROSS EARNINGS/COMMISSIONS
The route is averaging $10,200 in weekly gross sales volume. The routes generate approximately $1,850 per week in gross commissions based on the average 18.25% commission rate. 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
The current owner estimates $350 per week in operating costs which would include gas/fuel, insurance, computer/handheld costs, and other required expenses
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 per week in operating costs which includes gas, insurance, storage, maintenance, handheld computer/printer, and expired product expenses.
The current owner currently has about $350 in weekly expenses which leaves a weekly net of approximately $1,500. That figure does not include labor costs, 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 could be further optimized by a new route operator. This is a terrific territory with new products being introduced and a great account base.
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
The company requires a minimum 20% down payment at the closing. The remaining amount can be financed for qualified buyers
VEHICLE AND OTHER EQUIPMENT
N/A
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
As currently operated the route requires four delivery days per week and approximately 35-40 hours per week.
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