Snyder's of Hanover

[Rob MacArthur]

I am an investment analyst researching Snyder's Lance. I've been reading the posts all day. I am very interested in all the stories. Let' see if I got it right (correct me where I am wrong). The company used to use its own employees/trucks etc to make delivery into territories; however, they made a big acquisition and in the process decided to off-load all their employees turning them into IBO's; however, because of expenses incurred by the IBO, it's really not a viable model. It sounds like the company may be cherry-picking the best accounts in each territory that if left intact might allow the IBO to do ok. Their costs are pushed down, IBO income is pushed down, and now there is high turnover of IBO's that could go out of business. Is that about right? Do you divide the cost of a route by the yearly net income to determine valuation? If not, how are routes valued? It sounds like the company is providing financing to IBO's which could be a slippery slope. I am interested in hearing more about it. Feel free to email me your horror stories. What do you guys know about these companies: ARWCO Corporation, MAW Associates, LP and Warehime Enterprises, Inc.This is just background work. [e-mail]

[snack guy]

They had a combination of company own and independent operators. In our area we were already ios. They bought back the routes in at a rate determined by the contract. S-L then reconfigured the routes. You were offered a route which you had no say in. You either accepted or rejected it,if you said no you would paid the value of your old route. The value of the route is determined by a multiple time your 52 week average. In our area the routes have been selling at18-20 times the weekly average. All the companies were or are owned by Micheal Warehime, chairman of the board of S-L.

Rob MacArthur wrote:

I am an investment analyst researching Snyder's Lance. I've been reading the posts all day. I am very interested in all the stories. Let' see if I got it right (correct me where I am wrong). The company used to use its own employees/trucks etc to make delivery into territories; however, they made a big acquisition and in the process decided to off-load all their employees turning them into IBO's; however, because of expenses incurred by the IBO, it's really not a viable model. It sounds like the company may be cherry-picking the best accounts in each territory that if left intact might allow the IBO to do ok. Their costs are pushed down, IBO income is pushed down, and now there is high turnover of IBO's that could go out of business. Is that about right? Do you divide the cost of a route by the yearly net income to determine valuation? If not, how are routes valued? It sounds like the company is providing financing to IBO's which could be a slippery slope. I am interested in hearing more about it. Feel free to email me your horror stories. What do you guys know about these companies: ARWCO Corporation, MAW Associates, LP and Warehime Enterprises, Inc.This is just background work. [e-mail]

[Snyders of Hangover]

Former UTZ IBO wrote:

<quoted text>
What does BAC stand for??________
And if you financed with BAC you will owe them another 3% selling within the first year. 2% for the second, and 1% for the third. How smart is that? Knowing S-L were going to screw many people and if you want to get out, you pay.......

what does BAC stand for?

[jimmy jo]

Rob MacArthur wrote:

I am an investment analyst researching Snyder's Lance. I've been reading the posts all day. I am very interested in all the stories. Let' see if I got it right (correct me where I am wrong). The company used to use its own employees/trucks etc to make delivery into territories; however, they made a big acquisition and in the process decided to off-load all their employees turning them into IBO's; however, because of expenses incurred by the IBO, it's really not a viable model. It sounds like the company may be cherry-picking the best accounts in each territory that if left intact might allow the IBO to do ok. Their costs are pushed down, IBO income is pushed down, and now there is high turnover of IBO's that could go out of business. Is that about right? Do you divide the cost of a route by the yearly net income to determine valuation? If not, how are routes valued? It sounds like the company is providing financing to IBO's which could be a slippery slope. I am interested in hearing more about it. Feel free to email me your horror stories. What do you guys know about these companies: ARWCO Corporation, MAW Associates, LP and Warehime Enterprises, Inc.This is just background work. [e-mail]

The biggest problem I have with the system is the distribution centers, when our product was coming out of main WH the average chip date was 3 months and almost no cuts in orders. Now the average date is 6 weeks. I was cut more product in six months with snyders than 10 years with lance. We pay for all stales now so they could care less of the quality of the product or the date. They don't even like to give us credit for damages.

[Snyders of bend over]

Snyders of Hangover wrote:

<quoted text>
what does BAC stand for?

bank of America

[WNY distributer]

jimmy jo wrote:

<quoted text>
The biggest problem I have with the system is the distribution centers, when our product was coming out of main WH the average chip date was 3 months and almost no cuts in orders. Now the average date is 6 weeks. I was cut more product in six months with snyders than 10 years with lance. We pay for all stales now so they could care less of the quality of the product or the date. They don't even like to give us credit for damages.

Not receiving credit on company damages is unconscionable . But that is exactly what SL does

[WNY distributer]

not so fast there wrote:

<quoted text>
__________
I agree with all your points except the Frito salary back in the day. Before coporate started micomanaging there were route saleman making 70+. Our warehouse alone has 4 former Frito people.
For the single man there is money to be made. For people who have family it will be hard to be the bread winner. Unless your significant other is the bread winner. The more you beat Uncle Sam the more money in your pocket. It's a gamble........

Sad but true,eventually the company might come to realize they have to change some of their policies regarding the IO's if they want this to work. I still maintain if we made a straight 20% most of the gripes from the IO's would disappear .

[WNY distributer]

Rob MacArthur wrote:

I am an investment analyst researching Snyder's Lance. I've been reading the posts all day. I am very interested in all the stories. Let' see if I got it right (correct me where I am wrong). The company used to use its own employees/trucks etc to make delivery into territories; however, they made a big acquisition and in the process decided to off-load all their employees turning them into IBO's; however, because of expenses incurred by the IBO, it's really not a viable model. It sounds like the company may be cherry-picking the best accounts in each territory that if left intact might allow the IBO to do ok. Their costs are pushed down, IBO income is pushed down, and now there is high turnover of IBO's that could go out of business. Is that about right? Do you divide the cost of a route by the yearly net income to determine valuation? If not, how are routes valued? It sounds like the company is providing financing to IBO's which could be a slippery slope. I am interested in hearing more about it. Feel free to email me your horror stories. What do you guys know about these companies: ARWCO Corporation, MAW Associates, LP and Warehime Enterprises, Inc.This is just background work. [e-mail]

Rob, what is the name of the company you work for?

[Former UTZ IBO]

I made a big mistake leaving UTZ for a S-L route. Everyone who has made suggestions on how things could be better by putting more money back to the IBO is wasting their breath. Why whould S-L lose money to make the IBO richer? The whole idea is to control the IBO by taking from us so we would go out and be more aggressive getting more business and accounts. As I get older I don't want to work more for less, but it's the S-L way until I get out. S-L is NOT getting rid of the billbacks, direct store delivery where the IBO only makes 12%, and other forced products for less commission. Unfortunately there was a small group of IBO's before the merger who were trying to do good for us and no one followed. Where are we now? On this forum whining and complaining about the way S-L is treating us. In stead of being proactive like the small group of IBO's premerger, we are all reactive post merger. And it's too late. All of you who signed and took a loan from BAC (Bank of America) signed a terrible contract. If you ever sell or split your route you automatically owe S-L 5 or 7% and 3% to BAC with in the first year. As stated above 2% within 2 years, and 1% within 3 years. Only after 3 years you will not have to pay a fee to BAC. On the other hand you will always have a fee for S-L when you go top sell or split your route. For fomer Snyder's IBO's it's 5%. Lance IBO's 7%. We signed a terrible contract. For the people who got out they are much happier with less stress in their lives. For the current IBO's, yes you're making money, but looking back would you still be doing this if you knew all the circunstances? I think not.

[Rob MacArthur]

My company is called Alternative Research Services, Inc.

[Long Time Lance Man]

Old School Lance Man wrote:

Lance was a great company to work for before the so called equal merger with Snyders.........I go in stores now and see half empty shelves and listen to complaints from store employees and owners and it is just sad..........
Lance..........You asked for it and you got it......
Be careful what you ask for...

I agree with you. Lance was a good company to work for before Snyder's destroyed it. I had 24 years with them. they let me go. I am now with Mission. I am glad they let me go. I am in a far better place working for mission than working for Snyder's. They can't even keep inventory in stock for people. Lance was always very good about sending my entire orders.

[getting screwed]

Any ios out their been compensated for any items lost to other distributers.contract says we r to be paud on any item lost on a 52 wk average of the sale of the item

[Old School Lance Man]

Long Time Lance Man wrote:

<quoted text> I agree with you. Lance was a good company to work for before Snyder's destroyed it. I had 24 years with them. they let me go. I am now with Mission. I am glad they let me go. I am in a far better place working for mission than working for Snyder's. They can't even keep inventory in stock for people. Lance was always very good about sending my entire orders.

I had 22 1/2 years and they did'nt offer me a route.......the reason.......They said since I had less than 6 months before I turned 62 they figured I would retire.......

[Not ok]

getting screwed wrote:

Any ios out their been compensated for any items lost to other distributers.contract says we r to be paud on any item lost on a 52 wk average of the sale of the item

Yes I have tried to get compensated and was told to go screw myself. Good luck and let us know how it went.

[lance]

I concur lance was a great company. Cheap insurance, 401k, profit sharing, good pay..... oh those were the days....

[BURT]

Old school Lance dude, you could of had a route if you had sex with a DM.

[nfw]

Long Time Lance Man wrote:

<quoted text> I agree with you. Lance was a good company to work for before Snyder's destroyed it. I had 24 years with them. they let me go. I am now with Mission. I am glad they let me go. I am in a far better place working for mission than working for Snyder's. They can't even keep inventory in stock for people. Lance was always very good about sending my entire orders.

snyders was a very good company to own a route with. we all made a lot of money,got paid every week and never had any turn over. we kept the same group of io's for 7 or 8 years. then came the merger and lance tried to make things go their way and it has been down hill ever since. we have 2 or 3 guys quitting every week, just walking away from the route. so obviosly something is wrong

[BURT]

Snyders is a great company and anyone who says othertwise is a Frito Lay troll

[Ernie]

BURT wrote:

Snyders is a great company and anyone who says othertwise is a Frito Lay troll

aint it Time to film broke back mountain part 2 henry ?? Get outta here !

[Bordeaux11611]

Rob MacArthur wrote:

My company is called Alternative Research Services, Inc.

Is the SEC FINALLY investigating? And I haven't even told about the disability fraud that has been going on for many, many years, and that I have documented! Patricia Warehime is on the board of directors for Snyder's-Lance, and ALSO on the board of directors for Capital Blue Cross Insurance Company. Before that she was an occupational therapist for Lincoln Intermediate Unit Preschool Program in New Oxford, Pennsylvania, right around the corner from Snyder's of Hanover. One of the jobs that an occupational therapist does is help clients with billing and insurance forms, good practice for fraud.