Price: $175,000 – Weekly Sales: $13,315
This listing is for two Lansing Michigan area Mission tortilla distribution routes with a price of $175,000. The owner distributes a variety of tortilla related products to major grocery retailers including Kroger, Target, Walmart and Sam’s Club. These are two different routes and the owner would either need two route drivers or some kind of help to properly manage both routes.
The route is currently averaging approximately $13,315 per week in gross sales volume. The routes generate approximately $2,800 per week in gross commissions based on an average 21% commission rate. The owner receives 22% on all Mission branded products and lower rates on private label products. This is a very high income, high sales volume set up with consistent sales volume.
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. Each route would require 30-40 hours per week if operated by two drivers.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $13,315 in weekly sales volume. With an average commission rate of 21% the owner generates approximately $2,800 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
Typical expenses include fuel/gas, vehicle insurance, vehicle maintenance, commercial liability insurance (often added on to vehicle policy) and handheld/printer/warehouse expenses. There is very little required 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 $450 per week in operating costs which includes gas, insurance, maintenance, handheld computer/printer, and expired product expenses. This leaves a weekly net of approximately $2,350 for both routes combined. 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 is not being maximized with the current route operator. This is a terrific territory with new products being introduced and a great account base. A motivated owner should be able to increase sales quite easily 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
No financing is available through the company or owner
VEHICLE AND OTHER EQUIPMENT
The current owner’s delivery vehicle could be purchased separately. It is not included at the current price.
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
Each route would require 30-40 hours per week when operated separately. A Monday-Friday schedule of approximately 5am-12pm or 1pm each day would be reasonable.
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