High Income Evergreen Park - Lockport Mission Tortilla Route
Asking Price: | $95,000 |
Gross Revenue: | $83,000 |
Cash Flow: | $70,000 |
EBITDA: | $70,000 |
Price: $95,000 – Weekly Sales: $8,620
This listing is for a high income Mission tortilla distribution route in the Evergreen Park, Illinois area. The warehouse for product pickup is located in Lockport. The owner distributes a variety of tortilla related products to major grocery retailers including Walmart, Target, Jewel, Mariano’s, Sam’s Club and an Amazon grocery location.
The route is currently averaging approximately $8,620 per week in gross sales volume. The routes generate approximately $1,600 per week in gross commissions based on the average commission rate of 19%.
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. The current owner works four (4) days per week with approximately eight (8) hours required each day.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $8,620 in weekly sales volume. The owner generates approximately $1,600 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
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 per $255 week in operating costs which includes gas, insurance, storage, maintenance, handheld computer/printer, and expired product expenses.
The current owner incurs about $255 in weekly expenses which leaves a weekly net of approximately $1,345 for the route. 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
N/A
VEHICLE AND OTHER EQUIPMENT
N/A
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
This route typically requires four (4) days of service per week and 30-35 total hours per week.
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.
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