Lacey – Shelton Washington Mission Tortilla Distribution Route
Asking Price: | $125,000 |
Gross Revenue: | $111,500 |
FF&E: | $15,000 |
Cash Flow: | $94,500 |
EBITDA: | $94,500 |
Price: $125,000 – Weekly Sales: $12,267
This listing is for a Mission tortilla distribution route with a price of $125,000. The owner distributes tortillas, chips, salsas/dips and related products to major grocery retailers, convenience stores and other accounts. The accounts include Walmart, Fred Meyer, Safeway, Thriftway and other locations. This route has 14 total accounts and they are located in Shelton, Elma, Montesano and McCleary. The warehouse for product pickup is in Lacey.
This route is currently averaging $12,267 per week in sales volume. The route generates approximately $2,147 per week in gross commissions based on the 17.5% commission rate. The current owner operates five days per week, Monday through Friday, and it requires 7-8 hours per day. However, the number of days and hours worked are flexible as long as the accounts are being serviced properly. Merchandising/restocking work is typically provided on Sundays for 1-2 hours although the owner could pay someone to handle that work.
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 name brand 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 delivers five days per week with Saturday off and quick merchandising/restocking work on Sundays. The route owner will work with company and account management teams to ensure that sales are being maximized and there are no service or inventory issues.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $12,267 in weekly sales volume. The owner generates approximately $2,147 per week in gross commissions based on the 17.5% commission rate. 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), returns and handheld/printer/warehouse expenses. The current owner estimates $325 per week in route 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. The company sales managers do provide support with these growth efforts.
FINANCING
Owner financing may be available for qualified buyers with a minimum $50,000 down payment
VEHICLE AND OTHER EQUIPMENT
2011 GMC 16? Box Truck Included
TRAINING
The current owner has agreed to provide full 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 route owner simply needs to make sure that their customers are taken care of, inventory is being managed properly, and sales are being maximized. The current owner makes deliveries five days per week and works a total of approximately 40-45 hours per week.