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What is so bad about a pepperidge farm cookie route?

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Answers (20)
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Do the math. These routes are asking 40 times
Weekly sales on avg. Yes, the company will finance
With 10% down for 5-10 years but that is a huge
Nut to pay every month for a job that the mark up
Is only .20%. Multiply balance after down payment by
11.6 and this is your 10 year monthly payment. A route
Running about $5000.00 week would gross you $1000.00
But your monthly punt could be around $2000.00! You're
Netting about $500.00 week before vehicle expenses. Upside
Is if you commit (all route sales) to increase route with extra
Off shelf displays etc. and if the route is located in a growing
Area. This is how you actually add equity to your route and can
Spin off or sell parts of the route for profit.

Dec 1, 2014
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The BAF Group LLC
MD

I will admit that I know next to nothing about Pepperidge Farm route'ss. However, what I do know is about retail trends, which would suggest to me that anyone looking at buying a route that caters to grocers and convenience stores should take great care. Overwhelmingly, there is a trend to do away with smaller convenience stores, including those in gas stations, in favor of mammoths, regional operators.as one example, BP is involved in the Orlando market in such a manner that, virtually all small dealers are gone, and one, singular dealer owns every major station in the entire city. Each of the convenience stores in those stations is probably 5000 square fee or more, which is almost double the standard convenience store size. The trend among gas stations and oil companies is to reduce the number of distributors and dealers within the market, which can have a serious implication for suppliers like Pepperidge Farm, as well. If you are buying such a route, please take careful note of any agreement with parent company that offers you protection if a national or regional operator comes in to your area. In that situation, do you still provide inventory for such stores, or are national accounts handled by the parent company, such as Pepperidge Farm, itself? This sounds like it can't happen, but it has happened with gas station suppliers for oil products. It very well can happen with food suppliers, as well. I am not saying this absolutely will happen, but it is something that you need to take a strong look at, if you are considering the purchase of a business of this kind.

Mar 1, 2014
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The reason pepperidge farm cookie routes are so expensive is because they are easier than most other route jobs. People love the flexibility they have and the long codes as opposed to bread. However you do pay through the nose for that little bit of ease. Way to much in my opinion. Most cookie routes sell for 30 to 40 times weekly gross. That means you do 5K in business you would pay 150K to 200K for the route. A 5K weekly gross will earn you about $1000 in commission. Look at how long it will take you to pay off the cost while eating cheese noodles every night for 10 years. I bought a bread route for 30K that does 10K a week in business. So I make over $2000 a week in commission and paid that route off in less than a year. These pepperidge farm cookie routes are treated like they are God's gift to the world by their owners when it comes time to sell but the bottom line is not the product. It is how much investment you need to make and how much you are going to earn. Almost any other route is better than the cookie routes.

Feb 27, 2014
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that's why its called a market. If you have the money and resources to buy a Pepperidge farm route, you'll do well. If you don't have the money, go be a clerk at a grocery store and lead a miserable life. The market dictates the sales price. If they weren't selling at market price they would be a lower cost. Get it?

Jan 26, 2014
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Pepperidge farm routes are awesome investments! I bought my cookie route 3.5 years ago and have over 150k in equity in it already. I make 3 times more then I did at my desk job and work a lot less hours. All the people that bash these business' don't own one.

Nov 26, 2013
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I have a chance to buy a PF combo route and now a Snyder-lance route has come up.
Any current I/Os have a suggestion on who to go with.
Thx

Mar 27, 2013
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The price is outrageous and you do not make that big money to justify the selling price my advice stay away no body in his mind will spend this kind of investment on cookie/bread route banks hate to give money for bread/cookie route because their is no collateral stay away

Mar 20, 2013
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The price is outrageous and you do not make that big money to justify the selling price my advice stay away no body in his mind will spend this kind of investment on cookie/bread route banks hate to give money for bread/cookie route because their is no collateral stay away

Mar 20, 2013
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Best thing I have ever done was buy a pepperidge farm cookie route .. Paid $ 300,000 for route , work 3 days a week , and make $ 90,000 a year .. It takes money to make money , and you get what you pay for .. If you don't have any money , go work for someone ..

May 19, 2012
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{{{I have a business that nets me ~$90-$100K/yr and is probably worth $500k if I decided to sell.}}

5 times (supposed) net income (before taxes & health insurance)?? You may as well just get a real job with pepperidge farm or entemanns as a manager where you can earn $70,000 - $100,000 and not have to spend $500,000 to make that.

Feb 26, 2012
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{{{I have a business that nets me ~$90-$100K/yr and is probably worth $500k if I decided to sell.}}

5 times (supposed) net income (before taxes & health insurance)?? You may as well just get a real job with pepperidge farm or entemanns as a manager where you can earn $70,000 - $100,000 and not have to spend $500,000 to make that.

Feb 26, 2012
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I looked into a few of these routes.. My advice is RUN do not Walk but RUN away. The numbers are completely inflated.. One pepperidge farm route is listed for $660,000 with a (supposed) net of $2,000 a week. Do the math...

Feb 26, 2012
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for the big money, benefits and retirement and no expenses go to work for Entenmann's in New York, New Jersey or Ct. routes can do as much as 30,000 a week or higher at full commission.

Jul 11, 2011
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Mike,

That's exactly the problem. Every seller today wants top dollar for his/her route and no one in their right mind would pay such amount.

Jun 22, 2011
Ken Sussman
Route Brokers, Inc.
NY
Premium Broker

Hi Peter,

In answer to your request, NOTHING. We would be pleased to assist you in your search for a Route business opportunity. We are Brokers that specialize in the Route Distribution Business. Some examples would be Snapple, FedEx, Boar's Head, Pepperidge Farm, etc.

Our firm, RouteBrokers.com has the largest selection of ESTABLISHED distribution businesses in the United States. These are NOT Franchises. We currently have NATIONWIDE over 250 businesses for sale. We have been in business for over 25 years and have sold THOUSANDS of businesses.

Our goal with any client is to develop a long term relationship. You can only do that if you listen to your clients and assist them in moving through the maze of legitimate questions needed to be answered before a business transaction can be consummated. Most of our new clients are referred to us by our existing clients. We would be pleased to work with you and truly believe that soon you will be referring new clients to us also.

Look forward to hearing from you soon.
Ken Sussman
Route Brokers, Inc.
516-482-8250
1-877-4-ROUTES (1-877-476-8837)
www.RouteBrokers.com

Jun 18, 2010
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Westchester County, NY

profits vary between customers. supermarkets are approx 20% while cash accounts are the going market rates. say 3.00 a dz rolls u shop around bakery's and u may get them for 1.45 this is where u make money. overhead is my vehicle. not very high costing. gas, insurance, maintenance, repairs

Mar 11, 2010
Robert Cutler
Attorney
New York County, NY

Mike, if you don't mind me asking, what are your profit margins? For delivery routes they are typically very low due to very high operating overhead, but perhaps I am mistaken?

Mar 11, 2010
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Westchester County, NY

I disagree with previous answers. I own a bread route. Sure I am up at 2am, but I also finish by 8am. I am very profitable, and looking for a partner. The only problem with a cookie route from what I have seen is that you get a lot of returns. People open them while shopping, eat a few and then leave the package on a shelf.

Mar 11, 2010
Jon Holmquist
Edgemaster Model 400 sharpener
President
Marion County, OR

Hello Peter, Don is right. If you are buying a business look at growth possibilities or freedom of work requirements. I know a guy that has to leave home at 3:00 AM to get his snack product in the stores before they open. If you want those kind of controls fine but if not, look somewhere else. Might I be so bold as to suggest looking at Edgemaster Mobile Sharpening for your hours, your days, and income as you want to earn it with expansion available. Thanks, Jon at Edgemaster Mobile.

Jan 26, 2010
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The BAF Group LLC
MD

I can't answer for that specific business, but delivery routes are frequently business operations that provide the driver with a great deal of expenses and very little profit. This is not always the case; but frankly, I can't think of a single success story, and I hear frequently of complaints.

Jan 26, 2010

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