Fedex route - good idea???

Discussion in 'FedEx Discussions' started by Iamstone, Jan 8, 2013.

  1. Iamstone

    Iamstone New Member

    Hi everyone, I'm new to the forum and new to the package delivery world. I'm currently working for a Corporate, 9-6 sedentary work and have been doing so for the past 9 years. It's time for a change as I'm looking to venture off on my own. I started looking at FedEx route back in early 2011 but never came across any deals that were worthwhile. However, recently I have found a route out of my home state selling for $120K, 200 stops a day, and gross $190k a year. The current owner has 5 and is looking to sell them all to venture into a different business. Since I'm a newbie, I'm only interested in 1 to start off which he's willing to part ways with 1 of his 5. I've done a lot of research with FedEx homes delivery routes in the past and in the present. I'm familiar with the risk involved and knows what it takes to work 12 hours shift. My question is given the # of stops, and yearly gross sales. Is it safe to assume the net is somewhere in the $170K range? If not, what are some of te variables to consider?

    Expenses: gas, maintenance, car wash, uniform, and payroll.
    income: pay per stop, pay per delivery, advertising, fuel surcharge, bonuses

    FYI: this is a very densed home delivery route.

    To current FedEx IC: Would you say this a profitable route? Aside from the current owner allocating his other package delivery on this route, what else should I look for? What data on the settlement are most viable? What metrics would you use to analyze a fair price of this route? Is it as lucrative as it seems based on #'s I see on the settlement? Thak you all. Hope everyone a happy new year!!! :)