Price: $65,000 – Weekly Sales: $11,892
*The truck used for this route is negotiable and would be included for an additional $23,000*
This listing is for a Kyle, TX area Mission tortilla distribution route with a price of $65,000. The owner distributes tortillas, tortilla chips, salsas/dips and other products to major grocery retailers in the area. The accounts are primarily in Kyle and Lockhart. Product pickup is also in Kyle. This route is currently averaging $11,892 per week in sales volume. The route generates approximately $2,100 per week in gross commissions based on an average 18% commission rate. Commission rates can vary depending on product. This is a turnkey wholesale distribution route opportunity with consistent sales volume.
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 makes deliveries Monday, Tuesday, Thursday and Friday. Light merchandising work can be necessary on Wednesday, Saturday or Sunday depending on sales volume. The current owner estimates 35-40 total hours per week are required.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $11,892 in weekly sales volume. With an average commission rate of 18% the owner generates roughly $2,100 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), storage, 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
The current owner’s 2016 Ford E350 is not included in the price but can be negotiated in if the buyer is interested
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 makes deliveries four days per week. Those days go from approximately 3am to 12pm. Merchandising can be necessary on other days but generally only takes 2-3 total hours.
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 $65,000. The buyer will have to meet with Mission management and complete their paperwork/requirements to purchase the territory.
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