DISCLAIMER: The following questions and answers are for INFORMATIONAL PURPOSES ONLY. The responses provided by S-L Distribution Company, LLC are not representative of a specific route’s value or productivity. For route-specific information, please refer to the route detail summary. The profit or loss an Independent Business Owner (“IBO”) will recognize is dependent on a variety of factors, including the quality of the IBO operations and ability to successfully service its customers.
Route Logistics FAQs
Q: What is my company’s username?
A: If you have never logged into the site, your username is SL followed by your handheld login #, and the default password is pass4ibo.
Example: If your HH Login is 123456, your username would be SL123456 and your password is pass4ibo.
Q: What is the default password?
Q: What if I forget my password?
A: Select the “Forgot Password” link
If you are still unsuccessful, email IBOInfo@snyderslance.com
Note: After 5 failed attempts, the user is locked out for 30 minutes.
Q: Where are my company’s weekly settlements located?
A: Once logged in, click in Sales Data and Settlements. Folders are labeled by year and month.
Q: Where is my company’s YTD Summary Report?
A: The 2017 YTD Summary Reports are located within the January (01) 2017 Settlement folder.
For all other website related inquiries, email IBOInfo@snyderslance.com
ROUTE PRICING AND SALES
How is the route purchase price determined?
For IBO to IBO route sales, the seller will determine the sales price. All S-L owned route sales are calculated by a ratio based on a weekly gross sales average.
Why is a particular route for sale?
There are any number of reasons S-L may be offering a route for sale. A re-engineering project may have resulted in the creation of additional routes. An IBO may have voluntarily terminated its contract due to medical or personal reasons that preclude the owner or operator from servicing the territory. At times, it is necessary for S-L to terminate the distributor agreement with an IBO for serious or repeated violations of the distributor agreement.
How does an IBO recognize a profit?
As an independent distributor, IBOs receive a profit margin on products purchased and sold. Profit margins vary depending on the items sold but are generally between 15% and 21%. Margins and product mix will fluctuate by sales market and by route. The margin is earned on the net sales ticket. This is equal to the gross sales ticket less any off-invoice promotions.
By way of illustration, if a route operated on an 18% margin with average net weekly sales of $6,636, the estimated weekly earnings for the route would be $1,194 per week.
What is the route’s profit potential?
The amount of profit an IBO realizes is largely dependent on its ability to effectively manage its business. Many variables will affect the success or failure of an IBO. Areas of potential profit growth include the opening of new customer locations, the addition of available product lines, and expansion of the product mix or quantity a customer purchases from the IBO.
Can IBOs finance the purchase of a route?
There is no requirement that an IBO finance the purchase of a route. If an IBO is interested in financing the route purchase, it may do so through a financing entity of its choice. S-L has established a relationship with three independent lenders to assist with route financing for IBOs that meet their credit qualifications. If an IBO wishes to explore financing through one of the lenders with which S-L has an established relationship, S-L will coordinate this process between the IBO and the potential lender. If financing is approved, S-L will provide for automatic settlement deductions to the lender for repayment of the loan post-closing.
Is there a down payment requirement?
The necessity and amount of down payment will depend on the route, purchase price, IBO and IBO guarantor credit and funding source. Generally, a minimum of ten percent (10%) of the purchase price is the down payment requirement.
Do IBOs have to sign a contract?
In order to clearly define the responsibilities, obligations, rights and remedies of the parties, it is necessary to enter into a written agreement. The distributor agreement will be provided as part of the closing paperwork. IBO representatives are encouraged to review the distributor agreement and associated purchase documents with appropriate professionals, such as an attorney and/or certified public accountant.
EXPENSES, OVERHEAD AND SERVICING CUSTOMERS
What are potential expenses and overhead an IBO may incur?
Each IBO’s expenses will vary depending on its business structure, operating procedure and market requirements. Examples of potential expenses and overhead an IBO may incur include, but are not limited to, loan repayment (if an IBO elects to finance the route purchase), fuel, stale or damaged product, equipment, employee wages and benefits, health insurance, and general liability, automotive and workers’ compensation insurance
Do IBOs need a specific type of delivery vehicle?
S-L does not provide IBOs with a vehicle nor does it impose any vehicle requirements on IBOs. An IBO is responsible for providing its own vehicle. Common delivery vehicles used for this type of business are step vans, box trucks or trailers, but IBOs are free to utilize whatever type of vehicle it deems best fits its business needs.
Do IBOs have to pay for inventory or purchase product upfront?
S-L does not offer product on consignment. IBOs generally purchase product from S-L at its warehouse locations. At the time of such purchase, title and risk of loss is transferred to the IBO. However, S-L offers credit terms wherein an IBO is able to make the payment for the product a specified number of days after purchase. IBOs are expected to settle their accounts with S-L on a weekly basis. Failure to make timely payment may result in S-L’s refusal to sell additional product to the IBO until its account balance is paid.
How does an IBO determine its net profit?
To determine Net profit subtract the IBO’s variable operating expenses from the Gross profit.
How many days a week, and what hours do IBOs operate?
It is up to each IBO to determine what days and hours its employees will work. Most IBOs operate 5 days a week, usually taking Wednesdays and Sundays off. Service hours for most accounts range from 5 a.m.-1 p.m. The days and hours of operation are subject to any specific customer requirements. When S-L receives notice from a customer of service expectations, S-L will promptly notify affected IBOs. It is up to each IBO to develop its operational cadence in order to comply with its customers’ requirements.
Do IBO owners, officers and/or employees receive vacation time?
IBOs are responsible for determining any benefits offered to its owners, officers and/or employees, including vacation time, while maintaining effective customer service and sales. S-L may be able to provide temporary coverage for an IBO when its normal operator is on vacation or ill if S-L personnel are available. There is no guarantee that S-L will have personnel available to provide route coverage nor any guarantee of the length of time S-L will be able to provide such coverage. A standard fee, outlined in the Suggested Operating Guidelines, is charged by S-L for this service. Due to the uncertainties surrounding the availability of S-L personnel, and in order to secure definitive coverage, IBOs often hire temporary employees or engage other IBO companies to provide coverage of its territory. Be advised, the IBO that owns the territory is ultimately responsible for the service provided to its customers even when a temporary employee or IBO is providing coverage.
What is a re-engineering?
S-L monitors the various regions across the United States to evaluate market saturation. When territories become too dense, IBOs often struggle to properly service customers and are unable to seek out new opportunities to grow their business. S-L will review the various territories and realign route boundaries to provide a better opportunity for IBOs to provide exceptional service and further develop the market. Prior to the realignment of boundaries, S-L will repurchase the existing routes from the IBOs in the region in accordance with the terms of the distributor agreement. After the realignment, IBOs will be offered an opportunity to purchase a new territory. Re-engineering projects frequently result in the creation of additional routes. Qualified IBOs are encouraged to explore the expansion of their business into multiple route ownership.
What is the company background of S-L?
In 2010, Snyder’s of Hanover, Inc. and Lance, Inc. completed a merger that resulted in the creation of the second largest salty snack manufacturer in the country! The newly formed company, Snyder’s-Lance, Inc., is the parent company of S-L. Snyder’s-Lance, Inc., its affiliates and subsidiaries, including S-L, continue to gain market share through their commitment to provide consumers delicious snacks made with quality ingredients for every occasion.
What products are available for purchase and distribution?
S-L offers a wide variety of both Snyder’s-Lance, Inc. branded products as well as partner brand products to IBOs to provide a greater mix and opportunity for profit in each IBOs territory. Examples of Snyder’s-Lance, Inc. brand products include Snyder’s of Hanover®, Lance®, Kettle Brand®, Cape Cod Potato Chips®, Stella D’oro® Krunchers!®, Archway®, Eatsmart®, Emerald® and PopSecret®. Please note product availability may vary by warehouse. Not all Snyder’s-Lance, Inc. products are considered Authorized Products under the distributor agreement. For a listing of current Authorized Products, please consult the DSD Price List under the IBO Information tab.