What are the day to day operations of this route?
To summarize, you will start your day by picking up your bread order from the warehouse and then proceed to deliver product to existing accounts that include grocery stores, usually starting in the morning hours. Your responsibilities will include the following: evaluating and creating an order of product needed for the shelf, pull the order from your inventory, receive the order through the back door, and then fill the order to the shelf.
What are the current average sales and gross income for this route?
Currently this route averages $8,494 in weekly sales, and grosses $94,963 per year in commission. Income documentation will be provided to all serious buyers.
How do I get paid?
As an independent distributor you are paid by commission. This route currently receives an average of 21.5% of its gross weekly sales of $8,494 ($1,826 per week in commission).
How much can I make?
$1,826 per week is the routes weekly average! This number can be increased, by supporting the company’s promotions and up selling within your designated territory. Route values can also be increased by new accounts opening, new product lines being added, and simple inflation.
Can I finance the route?
The seller will finance up to $25,000. Terms to be discussed. However, if you need more, you can review additional Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to: route payment (if you finance), fuel, repairs, handheld computer, and insurance (Note: route payments vary for each distributor, depending on how much money you put down verses how much you finance). The current owner estimates $223 per week in expenses/overhead or $11,596 per year (route payment if financing not included).
What type of insurance do I need?
Typically a single owner operator of a route distributorship will need commercial insurance for their delivery vehicle and business liability insurance. Owners with multiple employees will need a multiple vehicle policy and worker’s compensation. Routes For Sale now offers discounts on insurance! Through our size and volume, we have partnered with some of the largest insurance brokers in the nation to offer the best rates. Request Your Free Insurance Quote Here.
What type of vehicle do I need?
The current owner services the route using a 2007 GMC Savanna 3500 (223,000 miles) that is included in the purchase. Estimated value is $10,000. Common delivery vehicles used for this type of business are step vans, box trucks and cargo trailers. When considering an additional truck purchase, Routes For Sale recommends MAG Trucks.
What is the Gross vs the Net income?
The gross income for the route is $94,963 per year, minus $11,596 in yearly expenses gives you an estimated $83,367 in net income or cash flow.
How does the selling price of the route get determined?
All route sales are determined by a ratio based on a weekly sales average. The selling price of this route is $69,500 based on a weekly sales average of $8,494; you come up with a selling ratio of approximately 8.2:1.
Do I have to pay for inventory or purchase product up front?
No, you do not have any out of pocket expenses when purchasing your inventory. You are however responsible for any inventory that cannot be accounted for through your sales. As long as you run the business as it is designed to operate, you will not have any out of pocket expenses or losses.
Who is responsible for damaged or out of date product?
Alpha Baking gives 16-20% credit of the weekly sales average for stale and damaged product.
Do I have to sign a contract?
Yes, as an independent distributor you sign a service agreement to represent Alpha Baking. In turn the company agrees to promote and assist you in growing your business. The contract is to protect both the company and its distributors.
Why is the distributor selling?
Owner is retiring.
How many accounts does the route have and where is the warehouse located?
Currently there are 12 accounts that include grocery stores. Location of accounts and warehouse will be disclosed upon execution of an NDA.
Do I get paid full commission when something goes on sale?
When the company discounts an item for store promotions, you are paid full commission on the discounted selling price.
How long has the seller owned the business?
The current owner has owned this route and territory for 3 years.
How many days a week, and what hours do distributors work?
Distributors work 5 days a week, 3am to 11am, taking Wednesdays and Sundays off. Early morning hours are required.
What about vacation time or personal days?
As an independent distributor/business owner you are responsible for servicing the route. It is our recommendation that you hire or train someone for additional time needed off. Additionally there are previous distributors for hire that are familiar with route distributorship type businesses.
What is required in order to qualify for purchase?
Typically, most company routes or distributorships will require you to attend an interview for approval from the company, background check, and in most cases require the buyer to form some type of entity such as an LLC or Corporation. This not only protects the company, but also ensures protection of your business. If you need help forming this, we recommend that you Form A Corporation Here.
What else should I know?
Alpha Baking delivers many well known name brand quality products such as Natural Oven, Rosen, and Gonella! Route is recession proof, and located in a solid, stable, productive area. Hurry this won’t last long! Priced to sell at $69,500! Contact Us About This Route Here!