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Routes For Sale
Delivery Route Equipment For Sale
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HolsumAZ.com > Contact Us > Routes For Sale
Here are some general topics that may be helpful in response to frequently asked questions about purchasing a bread distributorship:
Business Week: The bakery industry delivers on a split week. Delivery days are Monday, Tuesday, Thursday, Friday & Saturday. You do not receive bread deliveries on Wednesday and Sunday. On these two "down days" you need to make provisions for product pull-ups at your retail chain grocery stores and a contact for customer emergency calls. Back to top of page.
Business Hours: There is no "typical" workday. Each I/O has different work hours depending on their own efficiency and the distance from their route sales area to their home and their assigned Holsum Depot, customer types, service windows, sales volume, and the number of customer stops. Holsum I/O's generally start their workday at their Depots very early; i.e., 2:00-4:00 am, in order to meet their customers' requirements for service. Back to top of page.
Self Employment: As a self-employed I/O of your bakery distributorship, you are solely responsible for the operation of your route business, including your paperwork, taxes, governmental agency compliance, insurance, benefits, and equipment, as well as the hiring and training of your employees/agents. As your bakery supplier, Holsum legally cannot be your accountant, lender, or back up driver. For decades, the relationship between the I/O network and Holsum has been built upon each of us successfully managing our respective businesses for our mutual benefit. Back to top of page.
Employees/Agents: Of course, you can hire agents or employees for your route operation and, yes, you can arrange for time away by hiring vacation relief drivers, some of whom freelance their services directly to our I/O network. However, you are responsible for the training and performance of your employees. Back to top of page.
Business Income: Each week you receive a check for the previous week's sales less your cost of product. You receive cash directly from non-charge accounts. Your proceeds or margin is the difference between your invoiced sales and your cost of product and by the level service required by the customer. For example, although there are exceptions by route, metropolitan Distributors have the following general service margins. Back to top of page.
- Full Service @ $.20/Dollar
- Service: For Holsum retail branded products--you do it all for the customer: order, stock, rotate and return stale on code for credit from Holsum. This service level covers the majority of your customers.
- Customer Type: Chain, independent & club store grocer, restaurant
- Modified Drop Ship @ $.15/Dollar
- Service: Usually unbranded or private label--you or customer order, stock, credit stale; you don't do it all for the customer.
- Customer Type: Some fast food accounts, bid accounts
- Drop Ship @ $.10/Dollar
- Service: Unbranded or grocers' private label--customer orders, stocks, rotates and stands stale; you deliver it.
- Customer Type: Chain store, independent grocer, club store
Depending on the customer mix within a route Sales Area, the overall margin may vary; e.g.; Distributor A may have an overall margin factor of 18.5 because he serves a fast food account; while Distributor B has a margin factor of 17.75 because he does private label business. To be a full "20", the Distributor would serve only accounts with service at the $.20/Dollar margin.
During the sale process, the Seller will give you specific detail by account and level of service. Seller's supporting documentation should enable you to verify average sales and income. Since Holsum does not own or run the route business, it is inappropriate for Holsum to supply verification of sales data for the Seller. Back to top of page.
Business Considerations: Your workday is physical: pushing bakery baskets stacked 15 high on 4-wheel dollies, lifting, reaching, driving a truck, loading and unloading product up and down on docks and ramps, in all kinds of weather. Bread may seem lightweight, but a basket of ten units of 1-1/2# bread weighs 15 pounds--just the same as 15 pounds of potatoes! Back to top of page.
Moving product can be hot, dirty, and repetitive. Customers and schedules can be demanding. Working a handheld for invoicing and route accounting requires basic number and computer abilities. You need to be flexible and resourceful. The baking industry is not an exact science. In producing millions of pounds of products each week, Holsum makes every effort to fill your orders. However, you may order 60 units and occasionally get 55 or 75, depending on the bake production that day. Sometimes there are breakdowns, asset shortages, missing product, incorrect promotion dates…your Holsum Sales team will do its best to resolve problems with you, but you'll need to be prepared for such events. Back to top of page.
Business Territory (Sales Area): You do not purchase accounts when you buy a route. Each route has a written description of the territory perimeter. Everything inside that perimeter is the route Sales Area, the "dirt", in which the Buyer will have the sole distribution rights to represent Holsum products. Holsum will not grant distribution rights to another distributor in that Sales Area per the Distribution Agreement signed with the Buyer. And, if a new customer opens in the Sales Area after the route purchase, the Buyer pays nothing either to the Seller or Holsum. Likewise, if a stop closes after purchase, there is no payment made to the Buyer. Back to top of page.
Business Vehicle(s): Your bread delivery vehicle system may consist of a box truck, step van, trailer, or a combination of any of those, to get your product to your customer per their requirements in a sanitary and uncrippled condition on time. You may purchase the Seller's vehicles that are usually configured to access their customers in one trip, or you may purchase your own. Few bread vehicle operators need a Commercial Driver's License (CDL) as the total Gross Vehicle Weight Rating (GVWR) is less than 26,001 pounds. Back to top of page.
Public Relations: You should have the ability to be professional and helpful in your interface daily with your customers and the public. Your driving skills should be safe and courteous. After all, you are representing your business--as well as that of the other Holsum distributors and Holsum. Back to top of page.
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