Pros and cons of buying a tropicana route
Did you know that orange juice is considered by far one of the most favored drinks in America? So I understand why considering buying a Tropicana route for sale may be in the back of your mind. Tropicana Orange is a dominant brand, and you will find it in almost every deli, supermarket, gas station, and institution. In this guide, we will learn more about the business side of it and how Tropicana routes work for those interested to buy a route or for those who just want to learn more about the business model.
Let’s begin with who is the brains behind the iconic brand. 25 dollars! Yes, that is what Anthony T. Rossi arrived with in America from Italy - He founded the company in 1947. Before Anthony's mega plants, he would buy oranges from supermarkets and turn them into citrus gift boxes. Then Anthony developed a first-of-its-kind process, packaging citrus fruits in glass containers. Fast forward to today, Tropicana is a drink that many consumers start their day with. Their slogan goes by - “The juice that starts it all.”
Now let's get to the business side - Tropicana routes.
What are they, how do they work, and what not? Tropicana routes are a business model that allows you to take over an existing route and distribution from someone selling Tropicana products to businesses in a specific territory. The business for sale will normally come with a truck, several accounts (customers), a process, help, and training. The Tropicana route will be established with already existing sales and profit, making it a simple transition for you to take over.
The route for sale serves a variety of customers from bodegas to markets to even gas stations that have a convenience store, and much more like wholesalers that buy in bulk. The products range from all kinds of Tropicana juices from 12oz to 52 oz. ---> Here is a line of products.
The job consists of a simple process: load up your truck, route it to your customers, and distribute it to each customer's needs. Each customer's demands are different; some orders can be at $400 while others are in the thousands, but one thing is keeping each customer happy, satisfied, and stocked.
Orders are taken in person in most cases, in other cases by phone or a day before depending on the customer’s request, Your route is territorially protected, meaning no other Tropicana distributor can compete, but this doesn't mean no other beverage distribution company won't try to.
The work side of it is to be able to lift cases, load the truck, and then offload to customers. Trucks may come with a liftgate, but some don't. But don't sweat it too much; you will be using dollies to move cases alongside an employee to help you.
When buying a Tropicana route business for sale, make sure to also look at the size of the truck and what type of driver's license is required to drive it.
Upon delivering products to customers, you invoice them on the spot and collect them. This method is called C.O.D - Cash on delivery.
Pros and cons of buying a tropicana route for sale
We covered the brand, the business model, and what might come with an available route for sale. Now it's time to make a decision, but before that, let's quickly review these pros and cons!
The pros of buying a tropicana route business
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In the case of Tropicana, is a well-recognized and respected brand in the beverage industry, which is why many buyers consider purchasing a Tropicana route over an independent wholesale distribution business.
Acquiring a Tropicana route for sale typically grants you exclusive rights to distribute their products in a specific area, reducing competition. Essentially, if a new business opens in that area, you will get the first shot at it.
Buying a business that you are new to can be challenging, but unlike many businesses, Tropicana Routes often comes with an established business model that you will follow, including support, training, and marketing materials from the company.
While being limited to specified areas may seem like it could hinder growth, successful route owners may have opportunities to expand their operations by purchasing more Tropicana routes, increasing their revenue potential.
The Cons of buying a tropicana route business
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Tropicana routes don't come cheap; they require a significant upfront investment. The purchase of the route, equipment, and distribution rights may pose a barrier to entry for some potential buyers.
Your success as a route owner relies on the success of the brand. Luckily, Tropicana stands by good products and customer satisfaction. They offer no added sugar, 100% juice, no preservatives, and no artificial colors.
Just like any business, it's not all profits. Ongoing costs are a must to keep the business going, such as fuel, vehicle maintenance, and even labor. These costs can add up, so they must be considered when searching for routes.
In summary, there are many benefits of buying a branded route like a Tropicana route for sale vs an independent beverage distribution business where they buy from traditional wholesalers and resell for a profit. You get the support, marketing, and lead generation from the company when buying a route. You will also want to ask more questions to the listing brokerage like: Is there a deposit required? What are the terms and regulations? How long is training? These questions will help you prepare a better transition for the business.
Disclaimer: This article is not endorsed or sponsored by tropicana. It is provided for informational purposes only, and the research conducted was done independentlReaders need to conductuct their own research before purchasing a Thumann's route for sale or any other business. This article does not constitute legal advice or an attempt to solicit readers into buying a business. We do not earn any commissions from listings, and we do not verify the availability or accuracy of listings for sale.
