Buying an ISP

Discussion in 'FedEx Discussions' started by bigbox, Nov 20, 2015.

  1. bigbox

    bigbox New Member

    Would like some insight from some ISP/IC owners. I'm in the process of purchasing a portion of an ISP with 5 WA. Over the last yr they have averaged over 480 stops per day and approx 1400 packages. I will be managing the day to day, there are 5 full time drivers and an additional cover driver.

    How much can one expect to average on maintenance for these trucks? They have anywhere from 150 to 325k on them. They average about 65 miles each per day.

    What do you think is a reasonable total revenue number for the above? Does anybody have a similar isp to compare?

    For those still in the IC world. Is the pay consistent throughout the country? Per stop charge, package, van ext, service bonus every 4 weeks, multi route bonus.ect. I'm using settlements from a different state under IC model to compare during isp negotiations

    Please only constructive comments/questions. Thank you all for your help
     
    Last edited: Nov 20, 2015
  2. Crozz

    Crozz Member

    $500-$550k to run 5 trucks would be a good contract. With the miles you have on those trucks expect a high cost in maintenance 10k+ per unit, but low miles so it may be a little less.
     
  3. bigbox

    bigbox New Member

    Thanks for the response..
    That's what I figured I should try to get. They're about 20k off right now. I budgeted 200 a week per truck for maintenance so that looks in line as well.

    On the ic model is the compensation the same in all states? Also, I see some posts on threshold pay Is that just for supplementals? Or are PSAs getting those as well? How much is it or how is it calculated? Am I missing any other compensation components not listed in my original post?

    I'm trying to get an accurate calculation what this would make under the ic model

    Thanks again for the info
     
  4. Crozz

    Crozz Member

    IC world is crap just to be honest everyone is growing at an extreme rate and the faster you grow in an IC world the faster you fall in debt. Reason is you don't get to negotiate what it is you need. In IC supplementals eat you alive because Fedex doesn't pay you to run sups. So if you have to many sups running the less u make. you could be running 5 units on 3 PSAs and only averaging 85k a unit. Threshold is a made up number by FedEx the more you hit it the higher that number gets and less money you get for a sup. So if you bought in the ISP don't waste your time learning IC world because it's crap lol.
     
  5. bacha29

    bacha29 Well-Known Member

    Right Cozz Supplementals have a nasty little habit of going from stop gap measures to becoming permanent solutions When that happens they stop being supplementals and become non-contracted routes and once they start going out on a daily basis you can never get rid of them and they will never become a contracted route. Why not? You tell me. What would be the incentive for the company to convert that noncontracted route to a contracted route when the desired effect is already being realized for $30,000 a year less than a true contracted route. IC or ISP you will never get the additional money needed to make that supplemental truck a break even proposition.