Route Sales Service – How We Can Help

Thank you for visiting our site TheRouteExchange.com.  This post will explain why you should use a route sales service to find your own route or find buyers for a route you are selling.

Reasons to Use a Route Sales Agent when Selling

• Save Time
  • Marketing your route can be extremely time consuming.  Creating marketing materials such as listings and advertisements can take several hours.  You will also spend countless hours communicating with any leads that you do find.  Most sellers simply list their route for sale through websites like craigslist.  Unfortunately the leads generated from craigslist are often unqualified from a business and/or financial stand point.  Most sellers end up going through countless phone calls and emails only to realize none of their leads are serious buyers.

• Less Effort
  • Route sales services like The Route Exchange specialize in qualifying buyers.  Our service acts as a third party and can request non-disclosure agreements, non-compete agreements, proof of funding and other qualifying materials.  This saves the route seller the time and headaches of dealing with unqualified buyers.

• Get the Best Offer Possible
  • Our entire business is devoted to finding qualified buyers and connecting them with route sellers.  We create professional listings, advertisements and have lists of pre-qualified buyers.  A route service will get you the best price possible for your route by creating as much interest as possible in your business.

• There is No Risk
  • The Route Exchange has no upfront costs.  As a seller you owe nothing to our service unless one of our leads actually purchases your route.  You can market the route through your own efforts and cancel our agreement at any time.

Reasons to Use a Route Sales Service when Buying

• Expert Advice and Insight
  • We work on routes for sale all day every day.  We used to own our own routes as well.  As a third party we can provide valuable insight on each route opportunity.

•  Third Party Funding
  • It is extremely difficult to find financing for route businesses.  We have established strategic partnerships with third party funding companies.  These funding programs are based on personal credit and nothing else.  Submit a financing request if you are in need of additional capital.

• Updated Records and Information
  • We work with each individual seller to make sure we have all relevant information on each route.  Requests for additional information can be submitted to our service and we will work with the seller to compile any necessary information.

What Are Routes for Sale?

Independent distribution routes are part of a very niche industry.  There are dozens of different types of routes and hundreds of companies who use the independent operator model to distribute their products.  The most common routes are related to vending machines, bread/snack/food distribution, wholesale delivery routes and FedEx routes.

How do the Routes Work?

The route owner works as a subcontractor or salesperson for either one or several companies.  They are compensated for providing a delivery and sales service for that company.  Typically these routes have a defined territory which the owner has exclusive access to.  If the route was established previously then the owner will have active accounts.  For example, food distribution routes almost always have large grocery accounts that sell their products.  The route owner will make a commission percentage on the products they sell.  Some routes such as vending routes just work off of the profit margin between sales and expenses.

Benefits of Owning a Route

Most route businesses provide a great deal of flexibility and autonomy.  The owner is treated as an independent operator or a subcontractor.  For large companies such as Pepperidge Farm, Snyder’s-Lance or FedEx, you will receive corporate resources and assistance through a district or regional manager.  However, you own your own business and will decide how it operates.  This includes day to day decisions such as scheduling.  There are almost always opportunities to grow the business by adding new accounts or simply growing sales within the current accounts.  Routes for sale are valued based on their sales volume, the territory they are in, any equipment included and several other factors.  This allows the owner to not only impact their current income but also the value and equity of their actual route business.

Route Purchasing Process

The process of buying a route varies depending on the type of route.  Vending, ATM and other routes are typically just sold from one individual to another.  There is no company overseeing these routes so they can easily be transferred between the buyer and seller.  Our service, The Route Exchange, can easily handle these closings and will provide all of the contracts/paperwork required to get the deal done.

Routes that are company based…FedEx, Pepperidge-Farm, Snyder’s-Lance, etc…will have a more thorough application, interview and purchasing process.  The most common scenario will start with a potential buyer meeting the route seller.  A ride along is conducted where the interested party can see the route in person and go through a normal day of operation.  Once the buyer decides to move forward they will be directed to speak with a district or regional manager for the company.  Managers from the company will answer questions, confirm sales figures and offer insight on the business.  They will also start the application process.  If the company offers financing then a credit application will be submitted at this time.  The application and approval process can take several weeks.  If everything is approved then the company will start drafting the purchase documents.  The entire closing process can take anywhere from 4-12 weeks for these larger companies.

If you have any questions about the route industry please feel free to contact us at any time