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 the route distributorship averages $752,000 in sale per year. Documentation will be provided to all serious buyers.
How do I get paid?
As a master distributor you sell product to other independent distributors at cost. This route currently receives an average of 9% commission of its yearly sales of $752,000.
How much can I make?
$67,680 is the gross yearly income! This number can be increased, by selling additional route territories, and soliciting more accounts. Gross income will also be increased by new stores opening, new product lines, additional route territories 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. However if you need money, you can review additional Financing Options Here.
What are my expenses and overhead?
Expenses are next to nothing. Some gas is required if you choose to solicit new accounts, and a small warehouse expense (optional not required).
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?
There is no vehicle included in the purchase, however a vehicle is available to purchase as a separate transaction. Common delivery vehicles used for this type of business are box trucks or trailers. When considering an additional truck purchase, Routes For Sale recommends MAG Trucks.
What is the Gross vs the Net income?
For this particular business, the gross, cash flow, and net income are equal.
Do I have to pay for inventory or purchase product up front?
In most cases no… As long as your independent distributor’s order 251 cases or more, the product will be delivered and billed directly to each individual distributors warehouse.
Who is responsible for damaged or out of date product?
The independent distributors are compensated and extra 2% commission to cover stale and damaged product.
Do I have to sign a contract?
Yes, as a master distributor you sign a contract to represent Herr’s. The contract is to protect both the company and its distributors.
Why is the distributor selling?
Owner wants to retire.
Where are the warehouses located?
Warehouses are located in Memphis TN, Cookesville TN, Marion, Jonesboro AR, Cornith MS, Jackson MS, and Little Rock AR.
How often does the business receive deliveries?
The company delivers product once per week.
How long has the seller owned the business?
The current owner has owned this distributorship and territory for 2 1/2 years.
How many days a week, and what hours do distributors work?
Current owner works 2-3 days a week, doing paperwork and soliciting new accounts.
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?
You won’t find another Herr’s master distributorship opportunity like this one. Whether you simply want to manage the business and collect an average of 9% commission for doing virtually nothing, or grow the territory… This distributorship hasn’t begun to scratch the surface of its income potential. In addition to the 9% commission generated you have the opportunity to generate more income by selling more territories. Current owner estimates at least another 14 territories can be created and additionally more income will be generated from their sales. Priced to sell at $225,000! Unique, and rare opportunity! You won’t find another opportunity that has this type of return for the amount of time and money required for this investment!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.