Harrisburg-Newport Tastykake Distribution Route for Sale

Price: $181,800 – Weekly Sales: $10,200

This listing is for a Tastykake distribution route with a price of $181,800. The owner distributes a variety of snack and cake products from Tastykake to major grocery retailers including Giant, Karns, Weis Market, Rutters, Sheetz and more. The warehouse facility for product pickup is located in Harrisburg and the accounts are located primarily in the Newport and Mifflintown areas.

The route is averaging $10,200 per week in gross sales. The routes generate approximately $1,850 per week in gross commissions based on the average 18.25% commission rate.

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 by the owner.

box delivery truck
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. This route is currently being with deliveries on Monday, Tuesday, Thursday and Friday. The route typically requires 35-40 total hours per week.

GROSS EARNINGS/COMMISSIONS

The route is averaging $10,200 in weekly gross sales volume. The routes generate approximately $1,850 per week in gross commissions based on the average 18.25% 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. Sales can be increased by adding accounts or growing sales volume within the current accounts.

OPERATING COSTS

The current owner estimates $250 per week in operating costs which would include gas/fuel, insurance, computer/handheld costs, and other required expenses

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 week in operating costs which includes gas, insurance, storage, maintenance, handheld computer/printer, and expired product expenses.

The current owner currently has about $250 in weekly expenses which leaves a weekly net of approximately $1,600. 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 could be further optimized by a new route operator. This is a terrific territory with new products being introduced and a great account base.

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

The company requires a minimum 20% down payment at the closing. The remaining amount can be financed for qualified buyers

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

As currently operated the route requires four delivery days per week and approximately 35-40 hours per week.