Bread run

Murdock7

Hi folks,

Would anybody out there know anything about the bread distribution business?

I'm posting on behalf of a friend, who has been quoted 17k for a bread run in his area. The guy selling says it makes him approx 40k net per annum (not counting overheads like diesel, insurance etc).

My friend can get the finance to buy, but doesn't know a huge amount about bread runs, the potential pitfalls involved etc. Any advice would be greatly appreciated.

Cheers,

M

donkey balls

Expect early morning starts 2/3am;) as for the the run/area being sold for 17k get your mate to do the maths on it if the guy selling it makes only 40k before over heads like fuel/insurance paying tax etc he would be coming out with around 25/30k depending if he owns the van or if it's on lease.
Add everything up that will cost your mate from scratch just say 17k for the run and he needs a van/small truck for the run add another 20/25k depending on the make of van,All ready he has spent nearly 40k before making a penny add first time commercial motor insurance road tax fuel prices going up etc these things all add up.
And before long your mate might earn around 25/30k a year as a self employed driver which he won't be entitled to sick/holiday pay etc.

dvpower

Murdock7 wrote: »

Hi folks,

Would anybody out there know anything about the bread distribution business?

I'm posting on behalf of a friend, who has been quoted 17k for a bread run in his area. The guy selling says it makes him approx 40k net per annum (not counting overheads like diesel, insurance etc).

My friend can get the finance to buy, but doesn't know a huge amount about bread runs, the potential pitfalls involved etc. Any advice would be greatly appreciated.

Cheers,

M

My extensive investigation has determined that 17k is too expensive.

wmpdd3

I have experience for the other side, in a supermarket. After the delivery guy has been, the section is walked by the dept manager. The bread must be rotated properly and nothing damaged. If its not faced off right or the stock is in front of the wrong price etc, they guy has to be called back to do it again.

The section has to be full, no matter what, if its not the delivery guy is killed.

But, all out of date returns are given to the delivery guy and he covers waste. This included damages from customers in the shop.
This must really cut into the delivery guys profits as I have often found out of date / damaged products hidden in the display.

The usual for a product is 1% of retail price, returns in waste, but it has to be highter for bread. You'd need to budget for this.

Murdock7

Yeah, there's a lot to be looked at before he can make a final decision, even past the usual stuff like the accounts etc. Certainly isn't straightforward. Thanks for all the replies, and for the link to the other thread, which was very useful.

Eoin

moved to Entrepreneurial & Business Management

TheCostumeShop.ie: Ronan

Topic dealt with here:

http://www.boards.ie/vbulletin/showthread.php?t=2056516708

It's a bad idea.