Price: $30,000 – Weekly Sales: $3,827
* Owner also has another route in the Soledad/Salinas area that can be combined with this route if someone is looking for a higher volume route *
This listing is for an El Comal tortilla distribution route with a price of $30,000. The owner distributes a variety of tortilla related products to major grocery retailers in Santa Maria and Lompoc areas. The current owner stores their product in a truck in Greenfield. The new owner can rent a storage facility or use the current arrangement.
The route is currently averaging approximately $3,827 per week in gross sales volume. The route generates approximately $750 per week in gross commissions based on the 19-20% 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.
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 two days per week (Wednesday and Saturday). Restocking/merchandising is done on Monday, Tuesday, Friday and Sunday. Most weeks require a total of 25-30 hours per week. Some merchandising may be necessary during busy weeks/weekends but can be easily outsourced if the owner chooses to do so.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $3,827 in weekly sales volume. With an average commission rate of 19-20% the owner generates approximately $750 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) and handheld/printer/warehouse expenses. The current owner estimates $250 per week per route in operating expenses. Operating costs will vary from owner to owner depending on a variety of factors.
GROWTH POTENTIAL
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, restaurants, schools, hospitals and other accounts could potentially be added to the business as well. There are also display opportunities and the potential for more space in stores.
FINANCING
No financing is available through the company or owner
VEHICLE AND OTHER EQUIPMENT
No vehicle is included
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
The current route owner makes deliveries on Wednesday and Saturday…those days typically go from 5am until 1pm. Restocking and merchandising is completed Monday, Tuesday, Friday and Sunday. Those days are typically 7am-11am.
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