The independent distribution routes have been often referred to by a number of terms. Some of the terms have been distribution route, independent operator, delivery route, bread route, sales route, cookie route, chip route, ATM route, vending route and more. The list is endless. You should be able to understand the exact nature of the route. You would be required to find the route along with the one that could be turned into generating profit and equity building business.
Different types of routes
The different types of route businesses have been made available in various parts of the country. Majorly, you would find some of routes such as bread routes, cookie routes, snack routes, ATM routes, FedEx ground routes, pool routes, vending machine routes and more.
Working of the routes
Usually, the owner of the route would be referred to an independent operator. These have been mostly sole-proprietorship opportunities available in these routes. The owner would be offered limited access to a selected territory. It has been deemed imperative for sales inside the territory. Sales could be enhanced when the owner add new account or enhance the performance of already established accounts. Personal experience has revealed that a majority of routes offer substantial amount of untapped prospective. Building relationships with the management along with actively selling displays for various kinds of promotional items would be a good sales strategy. It could rapidly add considerable sales volume to the route.
As for distribution, routes of food products, the owner would be required to buy wholesale priced products from a supplier and sell products to accounts within the limited territories. Various routes such as vending, ATM or pool routes have been entirely service based. They would offer more flexibility in terms of schedule and pricing.
How do you pay route owners?
In case, the route owner has been distributing products from a major company, the territory purchase agreement would provide complete detail about the commission percentage of the sold products. The percentage could vary from 10% to 25%.
Determining the relationship between owner and supplier
While the route owner has been, independent operator and running the business as they deem fit, various companies that have been supplying the products would often cater sales support on the route. A majority of companies have employed district managers and other personnel, who would be assisting in facilitating the process for sales in the restricted territory. These individuals could assist in managing the store relationships inside your desired territory, seeking out additional accounts, sell displays into the accounts and more. The supplier along with the owner would often work in partnership, as enhancing sales has been beneficial for both the supplying company and the independent operator. The company would also cater display pieces along with other items that you could make use for driving sales in the territory.
Buying and selling of routes could be done between individuals. The value of routes for sale would be determined on a number of multipliers such as supplying company, type of route, location and average weekly sales.
Author Bio : Jay Armour has been the face behind the success of Route Exchange. His skills and wits have brought the company to the position where it is today. His expertise in the arena has made him sell and operate a number of independent routes.