What are the day to day operations of this route?
To summarize, you will 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 for this route distributorship?
Currently this route averages $6,702 in weekly sales, and grosses $90,612 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 26% of its gross weekly sales of $6,702 ($1,743 per week).
How much can I make?
$1,743 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?
There is no seller financing for this route, and unfortunately banks will NOT write business loans against route based businesses for several reasons. 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, warehouse fees, stale or damaged product, 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 $455 per week in expenses/overhead or $23,660 per year (Note: Expenses represent a cash purchase and do not account for finance payments if requiring a loan to purchase).
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 workers’ 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 two vehicles that are included in the sale: a 2002 P30 Step Van (200k miles) and a 2004 Ford F350 (200k miles). Estimated value totals $10,000. Common delivery vehicles used for this type of business are box trucks or trailers. When considering additional vehicle lease or purchase, Routes For Sale recommends Bush Trucks.
What is the Gross vs the Net income?
The gross income for the route is $90,612 per year, minus your above mentioned expenses of $23,660 per year gives you an estimated $66,952 in net income or cash flow.
Do I have to sign a contract?
Yes, as a distributor you sign a contract to represent Mikesell’s. The contract is to protect both the company and its distributors.
Why is the distributor selling?
The owner is downsizing.
How many accounts does the route have?
Currently there are 90 accounts that include popular convenience stores and grocery stores. The location of the accounts and warehouse will be disclosed upon execution of a Non Disclosure Agreement.
How long has the seller owned the business?
The seller has owned this route for 21 years.
How many days a week, and what hours do distributors work?
The current owner works 5 days a week, taking Saturday and Sunday off. Early morning hours are required.
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 form an 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?
Mikesell’s has been a privately held manufacturer and distributor of snack foods ranging from potato chips and pretzels, to corn products, pork rinds and dips, for 100 years! Routes are recession proof, and located in a solid, stable, productive area. Priced to sell at $69,900. Contact Us About This Route Here!
How can I learn more about these type of routes?
For additional Consulting Services with one of our route specialists Request A Consultation Here.
