Snyder's of Hanover
FORMER UTZ IBO

Littleton, CO

#4115 Jul 17, 2013
greennax wrote:
What if I try to partner with the seller?he will sub out the route to me and pay me a flat rate every week?then when the route is paid for I can get a substantial raise from him and he can still make money by doing minimal work.he has 4 grocery and good ones also a target.among cash stops I think its a good route,but from the insight you good ibos are telling me its way to high.if I can get this to a 12:1 will be better.I want to do this I don't want to kick my slef later
..........

As an IBO I would never pay a flat fee to run my route. There's no incentive for you to work. I would pay you commission. The more you sell the more your check will be.

And I would think the seller wants to get out completely cause he's had enough of S-L tactics. Or maybe he just needs the money.

Best scenerio for you is to work for a IBO as an EMPLOYEE and learn the process and actually see what goes on in the warehouse and how mgmt works. You will be enlightened to the things that go on behind the scenes.

Since: Jul 13

United States

#4116 Jul 17, 2013
FORMER UTZ IBO wrote:
<quoted text>..........
As an IBO I would never pay a flat fee to run my route. There's no incentive for you to work. I would pay you commission. The more you sell the more your check will be.
And I would think the seller wants to get out completely cause he's had enough of S-L tactics. Or maybe he just needs the money.
Best scenerio for you is to work for a IBO as an EMPLOYEE and learn the process and actually see what goes on in the warehouse and how mgmt works. You will be enlightened to tyouyhe things that go on behind the scenes.
your 3rd paragraph is what I'm leaning towards but only as a sub contractor not an employee.as for your first paragraph he just might let me do it because he wants to start his own biz.how is what I'm sugesting sound?
chipladyTX

Satellite Beach, FL

#4117 Jul 17, 2013
how do you figure out how to making a good offer for a route?
Lets say the route does 400K a year. No vehicle included.
Has 3 grocery store stops that accounts for 90% of the route sales
has another 7 accounts ( small mom and pop and c stores) accounting for 10%.
Estimates $250 week expenses. The route is a Chip company,

What would be a good cash offer?

Since: Jul 13

United States

#4118 Jul 17, 2013
cookieman wrote:
<quoted text>Offer 10 to 1 are chain accounts only. Cash accounts have no value.He will tell you how much money he makes a on cash stops, but your business will be driven by chain customers. It sounds like you want to do this, which thousands of people do, but do not overpayy because you think you can grow this by 20% overnight. Slow sustainable growth is what you want, not unsustainable spike growth.
spot on from you!thanks brother.
cookieman

Eagle, CO

#4120 Jul 17, 2013
chipladyTX wrote:
how do you figure out how to making a good offer for a route?
Lets say the route does 400K a year. No vehicle included.
Has 3 grocery store stops that accounts for 90% of the route sales
has another 7 accounts ( small mom and pop and c stores) accounting for 10%.
Estimates $250 week expenses. The route is a Chip company,
What would be a good cash offer?
400000x .90=360000÷52 weeks=6933(avg weekly sales × 8=$55384 cash offer
abc123

Hanover, PA

#4121 Jul 17, 2013
cookieman wrote:
<quoted text>400000x .90=360000÷52 weeks=6933(avg weekly sales × 8=$55384 cash offer
Why a multiplier of 8? If you could buy for that..it would be great but I know of no route selling for a multiplier of 8?
discouraged

Jacksonville, FL

#4122 Jul 17, 2013
abc123 wrote:
<quoted text>Why a multiplier of 8? If you could buy for that..it would be great but I know of no route selling for a multiplier of 8?
8 is not a realistic number. I have seen them going for as high as 20 to 1. Whatever the market will bear !
Cookieman

Eagle, CO

#4123 Jul 17, 2013
abc123 wrote:
<quoted text>Why a multiplier of 8? If you could buy for that..it would be great but I know of no route selling for a multiplier of 8?
she asked for best offer cash. If they want out they will take it.
chipladyTX

Satellite Beach, FL

#4124 Jul 17, 2013
net after expenses reporting 57k asking 2x net seems high to me. large difference between 8.1 and 20.1
BLUEGRASS

Louisville, KY

#4125 Jul 17, 2013
Best scenario is for you to run the route first. If the seller is willing, as you say, that's what I would do. If you have to buy a truck and pay gas then you should take no less than 75% of settlements.

Good luck and you don't have to be rocket scientist to do this type of work. One things for sure if you have any kind of route experience and can get along with people, you can always find work.
cookieman

Eagle, CO

#4126 Jul 17, 2013
discouraged wrote:
<quoted text>
8 is not a realistic number. I have seen them going for as high as 20 to 1. Whatever the market will bear !
bought mine for 8 to 1
BLUEGRASS

Louisville, KY

#4127 Jul 17, 2013
They go for 6 - 10 around here. I could never see investing three figures with this outfit but all areas value routes different.

Doesn't S-L take 7- 10 % when you sell your route ?
You would have to grow substantially to overcome the interest paid and their fees.
Stiff Peter

Chicago, IL

#4128 Jul 17, 2013
BLUEGRASS wrote:
They go for 6 - 10 around here. I could never see investing three figures with this outfit but all areas value routes different.
Doesn't S-L take 7- 10 % when you sell your route ?
You would have to grow substantially to overcome the interest paid and their fees.
yep crooks take money when u sell and if you split ...
Cookieman

Eagle, CO

#4129 Jul 17, 2013
BLUEGRASS wrote:
They go for 6 - 10 around here. I could never see investing three figures with this outfit but all areas value routes different.
Doesn't S-L take 7- 10 % when you sell your route ?
You would have to grow substantially to overcome the interest paid and their fees.
i bought mine just because I needed the income, I never wanted to be in the chip business , but it is great supplemental income .( Route avg 4000 a week)It does work , but it is very demanding, you have to compete with the evil empire frito lay, I would not pay more than 10 to 1. I got into this because I was fed up with running grocery stores, my next goal is to sell Sl. Don't be discouraged because it does work. Just be carful for what you ask for!
BLUEGRASS

Louisville, KY

#4130 Jul 17, 2013
Can you sell for a higher multiplier than what you purchased at ?
Stiff Peter wrote:
<quoted text> yep crooks take money when u sell and if you split ...
just trying to get by

Stone Mountain, GA

#4131 Jul 18, 2013
SL is using 12-1 so if I were to sell I would advertise my rt at 18-1 and drop no lower than 15-1. People need jobs and we do make decent $ if u work it right.
Stiff Peter

Chicago, IL

#4132 Jul 18, 2013
BLUEGRASS wrote:
Can you sell for a higher multiplier than what you purchased at ?<quoted text>
u can sell it for half million if somebody has the money ... Of course s-l would screw the paperwork up the buyer would get fustrated and walk away .. Knowing the dumbases they have working @ s-l
Stiff Peter

Chicago, IL

#4133 Jul 18, 2013
BLUEGRASS wrote:
Can you sell for a higher multiplier than what you purchased at ?<quoted text>
think they will finance 2 percent over the going rate for the route in your area , if u want more than that the buyer will have to come up with that cash
Merely Asking

Jacksonville, FL

#4134 Jul 18, 2013
BLUEGRASS wrote:
Can you sell for a higher multiplier than what you purchased at ?<quoted text>
You can sell for whatever you can get, but S-L will only finance to a certain level and buyer has to pay difference in cash
why

Virginia Beach, VA

#4135 Jul 19, 2013
has anybody heard that sl plans to buy our routes back after the first of the year ad reroute all the routes again. that seems to be tha rumor going around here. I think they are saying they will make all the routes combo routes.

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