mass io

Sharon, MA

#1352 Aug 30, 2011
Clocker and Yaz,

Thank you VERY much for the updates. This information will be greatly appreciated here in Massachusetts. This is what we all have been waiting for, real information from IO's that have transitioned. Now the IO's in this area can make their decision going foward to buy back in or leave completely. I will inform my coworkers and go from there. Thanks again guys....
S-L DIST IN FLORIDA

Hialeah, FL

#1353 Aug 30, 2011
Clocker wrote:
Yaz you paint a rosy picture but thats not the way it is around here. Sure #'s are up because of the huge promotions that the new co has done. They better keep it up. Lance people are lost. I agree. Snyder people are having a tough time keeping up. Especially those with 14' box trucks. They are now working 7 days and because promotions start on wed or thur those who are on a 3 day deferment have to buy their product on Tues so many are doing over 10,000 but still not earning a check. A lot of frustration and a lot of burnt out distributors. Already. If this keeps up they will have to hire merchandisers like Flowers distributors have to. Too much to do for 1 person.
I have to agree with a lot of distributors getting frustrated with pay and burnt out with work.
Some of the lance guys are talking about walking away because they have no clue of the system..
They think they are getting shafted.
I am personally considering selling a store. I do use a helper 1 or 2 days out of the week, and I am still
overwhelmed with work. Of course, the numbers are up because of promos and increase in servicing.
this is causing lots of stress.
northeast snackman

Sharon, MA

#1354 Aug 30, 2011
Yaz,

I've read your reply to mass io. Let me give you a scenerio then you can help me with the answer: when the IO concept started in Massachusetts the IO's purchased their routes at a 6:1 ratio, averaging $5000/week in sales MANY years ago (I'm guessing around 15-20 years ago). So, the route cost the IO's $30,000 then. Today in 2011, the same routes are averaging around $9000+/week and have sold for 20:1 which is worth $180,000, as recently as last month. The way I read your reply to mass io is Snyders will buy the routes back from the original IO's for the same ratio 6:1 which equals to $54,000? And if the IO decides to buy a route after Snyders reconfigures the new routes he would buy it for the same ratio 6:1? If this is true this is what we are angry about here in this area. The IO's have built the routes up, along with the worth and Snyders lowballs us with their "fair market value" concept. Enlighten me please, if I have read the post incorrectly or my information is wrong in any way. I just need to get facts cause alot of money is involved here for alot of existing and potential IO's going foward. Since this area seems to be one of the last to transition.
just tryin to survive

United States

#1355 Aug 31, 2011
Yaz in Florida wrote:
One more thing, the former Lance employees that have decided to stay and become IO's are struggling badly. The learning curve has hit them hard. No way to tell yet how many will survive.
Good guys most of them, but you have to take it to a different level to be a successful IO with S-L with the amount of product lines that we currently carry here in Florida.
All of the SOH IO's have thrived from day 1, maybe a slight learning curve with Lance crackers.
I'm a lance guy and it is different but not impossable, I'm doing good on my first week, it has been hetic but it has been for everyone here.so sorry guy a lance guy can do just as well as u
dave

Bolingbrook, IL

#1356 Aug 31, 2011
ok tips on increasing sales

Since: Aug 11

Location hidden

#1357 Aug 31, 2011
OK someone who has done this a while help me out here. I just got sent a sell sheet for a halloween Snyders item to be on display at all Wal-Marts. How do I go about getting this display space? Is it just cleared for the item automatically or do we have to ask someone for the space? How does that work? Also, what is COMAC at Wal-Mart?
just tryin to survive

United States

#1358 Aug 31, 2011
Oklahoma Snackman wrote:
OK someone who has done this a while help me out here. I just got sent a sell sheet for a halloween Snyders item to be on display at all Wal-Marts. How do I go about getting this display space? Is it just cleared for the item automatically or do we have to ask someone for the space? How does that work? Also, what is COMAC at Wal-Mart?
a comac is the planner that walmart uses for displays. If u r on a comac then u have a display. Check with your manager and he will tell u where the display/endcap will be
mass io

Sharon, MA

#1359 Sep 1, 2011
I'd be careful selling any seasonal items. You will not get credit for thleftoves, even if mgmt says you will. We had an incident here last year when an IO did Snyders a huge favor late in the season (mid October) with the Halloween Packs (2 pallets worth). He was told he would get compensation for what was left. Guess what people? He didn't and was furious. He had just over a pallet leftover and fought with mgmt and Snyders for months to no avail. We also received the sell sheet and he is adament this year about not supporting the promo. I don't blame him. IO beware.
mass io

Sharon, MA

#1360 Sep 1, 2011
Forgot to add I too got screwed. With the chocolate covered pretzels at Walmart this past winter with a force in by Snyders. I had 13 cases here and there found late spring early summer in Walmarts backroom, on the third tier under the heater, in the home and garden section, and elsewhere. Mgmt would not give me credit for them. Last time that will ever happen to me!!!
Yaz in Florida

Hialeah, FL

#1361 Sep 1, 2011
just tryin to survive wrote:
<quoted text>I'm a lance guy and it is different but not impossable, I'm doing good on my first week, it has been hetic but it has been for everyone here.so sorry guy a lance guy can do just as well as u
You have no idea what I do.

You MAY be an exception to the rule, but I have seen first hand what the VERY BEST Lance guys here have done, and if they are the best I don't want to see the others.

Btw, I am not knocking them, it's just reality.
Yaz in Florida

Hialeah, FL

#1362 Sep 1, 2011
northeast snackman wrote:
Yaz,
I've read your reply to mass io. Let me give you a scenerio then you can help me with the answer: when the IO concept started in Massachusetts the IO's purchased their routes at a 6:1 ratio, averaging $5000/week in sales MANY years ago (I'm guessing around 15-20 years ago). So, the route cost the IO's $30,000 then. Today in 2011, the same routes are averaging around $9000+/week and have sold for 20:1 which is worth $180,000, as recently as last month. The way I read your reply to mass io is Snyders will buy the routes back from the original IO's for the same ratio 6:1 which equals to $54,000? And if the IO decides to buy a route after Snyders reconfigures the new routes he would buy it for the same ratio 6:1? If this is true this is what we are angry about here in this area. The IO's have built the routes up, along with the worth and Snyders lowballs us with their "fair market value" concept. Enlighten me please, if I have read the post incorrectly or my information is wrong in any way. I just need to get facts cause alot of money is involved here for alot of existing and potential IO's going foward. Since this area seems to be one of the last to transition.
Sadly, your assessment is correct.

Didn't you mention on one of you original posts how you guys had a different contract in hand that we did? I thought I remember reading that. I hope so because this scenario for you guys is bad.
northeast snackman

Sharon, MA

#1363 Sep 1, 2011
Yaz in Florida wrote:
<quoted text>
Sadly, your assessment is correct.
Didn't you mention on one of you original posts how you guys had a different contract in hand that we did? I thought I remember reading that. I hope so because this scenario for you guys is bad.
----------
Yaz,

Yes we do have a contract that states within a two year period the average ratio would be the market value. Some IO's have questioned our contract and the answer they got from mgmt was that contract was with distributor x, wich was bought out by Snyders. Which voids the old contract. This area never received a new contract with Snyders.
The person who owned distibutor x sold his company to Snyders and is now the senior vp for Snyders. He used to care what happened on the street, and communicated with IO's, but after he sold he became part of the coporate greed. We all know who he is. The IO's, and some of his peers have said he forgot where he came from.
Yaz, thank you for your insight and information. This area agrees with you on the profitable situation with being an IO for Snyders-Lance, but when coporate keeps taking and taking, at what point do IO's cut their losses, or band together as one and fight back? Just saying....
Clocker

Balm, FL

#1364 Sep 1, 2011
Correct me if I'm wrong but it's Dan Morgan. I know and I'm in FL,,LOL. I can say it because I'm out and I got my payout. Now the fun starts.
pretzelguy in pa

Stanhope, NJ

#1365 Sep 1, 2011
Just a question or 2. Why is Snyders reconfiguring routes?

they didnt do it in my area when they first got stella as a partner brand. they did buy back and resell routes at break even to IO. Then we lost stella (sorry guys no compensation for that)

why break up my route and take away my chance to build it up and split?

I fell like an employee. Why charge me for the new brands?

They did not do it for krunchers and grande, even though they bought Jays.

Greed?
Clocker

Balm, FL

#1366 Sep 1, 2011
Her's the reality of being an owner/distributor in the 21st century. When I started in this business in 1975 everybody but Pepperidge Farm and a few others were union or worked as a company employee. Union employees made 8% and got a base of around $200 with full benefits. People who worked as an owner/distributor got around 22% with 100% stale allowance. Other companies saw how this model worked and one by one they transformed themselves from employers to bakery wholesalers who sold territory to distributors. They sacrificed a bigger piece of the pie for passing on all the expenses. This worked well when the base % was in the 20's. But what companies have done is whittle away at that #. They want someday to get it back to 8% and still pass on all the expense of running a route. You think I'm crazy? Flowers has already done it. Their distributors make 22% on brand and 5% on private label and schools. I'm merchandising for a Flowers distributor. He sells about 70% PL and 30% brand. You do the math. Before he hired me he was working from 1:30AM to around 4PM. Plus he has to go out Wed and Sun for pullups. He gets phone calls all the time from ahole managers. Why anybody would want a job like this is beyond me. This used to be a great industry. But now it is just another victim of corporate greed. There really aren't many good jobs left in this country anymore. I'm glad I'm done. I'm happy being a semiretired merchandiser. Good luck to the rest of you. I mean it. You're going to need it.
northeast snackman

Sharon, MA

#1367 Sep 1, 2011
Clocker wrote:
Correct me if I'm wrong but it's Dan Morgan. I know and I'm in FL,,LOL. I can say it because I'm out and I got my payout. Now the fun starts.
----------
Clocker,

Ding-ding-ding. You have won the grand prize, an out clause. You are now free from this hell hole of a company lol....
Me Here

Indianapolis, IN

#1368 Sep 1, 2011
Clocker wrote:
Her's the reality of being an owner/distributor in the 21st century. When I started in this business in 1975 everybody but Pepperidge Farm and a few others were union or worked as a company employee. Union employees made 8% and got a base of around $200 with full benefits. People who worked as an owner/distributor got around 22% with 100% stale allowance. Other companies saw how this model worked and one by one they transformed themselves from employers to bakery wholesalers who sold territory to distributors. They sacrificed a bigger piece of the pie for passing on all the expenses. This worked well when the base % was in the 20's. But what companies have done is whittle away at that #. They want someday to get it back to 8% and still pass on all the expense of running a route. You think I'm crazy? Flowers has already done it. Their distributors make 22% on brand and 5% on private label and schools. I'm merchandising for a Flowers distributor. He sells about 70% PL and 30% brand. You do the math. Before he hired me he was working from 1:30AM to around 4PM. Plus he has to go out Wed and Sun for pullups. He gets phone calls all the time from ahole managers. Why anybody would want a job like this is beyond me. This used to be a great industry. But now it is just another victim of corporate greed. There really aren't many good jobs left in this country anymore. I'm glad I'm done. I'm happy being a semiretired merchandiser. Good luck to the rest of you. I mean it. You're going to need it.
Hi,

I have been following this for months. Just wanted to see what would have been if my husband had not left when he did. My husband was a Lance floater. Lance hired him last July and promised him he would advance that they had already tried the IO thing and it hadn't worked so they wouldn't be doing it again. They also promised him he would be at home and would only fill in for people in our area unless there was an emergency and then he might have to be away for a few days. From the begining they couldn't train him around here so they sent him into the field for training. They promised he'd be home for the holidays especially Christmas (we have small children). He did make it home but not until late Christmas eve because he was sent to where there was a snow storm. They just kept feeding him one lie after another just to keep him going. When they could tell he had had about enough they would throw him a little hope a few days home (promissing him a week) and then they would call with another emergency and off he would go again. For all of this they paid him 650.00 a week. Yes he got mileage but the wear and tear on the car can be compensated for.

He finally had enough and left Lance and went to Flowers. He was allowed to purchase his own route right away it runs over 8000.00 per week. He makes 23% on premium, 18 on cake, 10 on private label (5%+ an extra 5% at premium comparison). He vacations for 50.00 for the 1st week 150.00 for the 2nd (we already took one). His truck is not even a year old. And when they sold him the route private label is not figured into the cost. I won't say what he paid but believe me it was less than 1/2 of the numbers I read from the Snyder Lance posts. He is good at what he does he should be after more than 20 years in this business. We don't have any problem with 3 or 7 day terms he loads it sells it he gets paid end of story. Good lucky to all of you I hope the best for you all.
Me Here

Indianapolis, IN

#1369 Sep 1, 2011
Also forgot to metion. The contract dosen't run for just a few years. They can't come in buy everybody out and sell it back. They can't take things away. It is up to you if you want to sell something off or keep it all. They route even passes on to your heirs if something happens to you.
dave

Bolingbrook, IL

#1370 Sep 2, 2011
mehere, what is this flowers company you are talking about?
Starbuck

Apopka, FL

#1371 Sep 2, 2011
Yaz in Florida wrote:
Guys, if you have an opportunity to buy a chain store route it seems like a good opportunity. I know that S-L has been very aggressive in the past few weeks and in the weeks ahead with promos but guys here in Florida have been SHATTERING the numbers that the new routes are supposed to be doing. In most cases guys are doing in the neighborhood of over 20% more in revenue than projected. It is very common over the last few weeks for guys who are buying routes that are supposed to generate 7500-8000 to hit 10k with ease.
Let's face it,(in our area) Lance reps were tapped out, and our guys had to service 350 accounts to make it and were also tapped out. Running with this combination of products and less stores is a perfect fit.
Yaz you speak of all the promos and BOGO's, that is all great for those that have a chain store routes. For those that were stuck with mass/c-store routes a different story. No promos, no BOGO's and selling to WM at less than distributor cost. Have yet to even run close to what was projected for route. No numbers shattered just grossly over valued. Try a route that was projected in the mid $6K range and actually running between $5 and $6. Not much left after expenses. Been in dsd a long time so it isn't from a lack of experience.

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