That will have to be worked out between the two contractors. Trading portions of the areas to create efficiency.
Ground non ISP
- Thread starter Crozz
- Start date
It will be fine
Well-Known Member
Did they give scale requirements?
STFXG
Well-Known Member
No. Those will be announced next month when they give out the transition schedule.
My sources are telling me that there are meetings scheduled tomorrow in Pa and NY. These are states that have nearly completed ISP transition. As for the number of routes I have been told 5 but in small barns 4 will do. But given the time and expense setting up meetings nationwide there has to be more to it. As for share buyback 25 million at 130 bucks is 3.25 billion. That's 10% of it's market cap. No small piece of change considering that the just bought out TNT for 5 billion in cash and guess where the money is going to come from.?So "getting up to scale" is not going to be the problem, the problem is finding a guy who is willing to work for nothing in order to keep you at scale.
It's really not too hard as long as you don't live in places like New York and California. Live in middle America and it isn't a problem.
OrioN
double tap o da horn dooshbag
Aw man! I actually favored having a weekday off. I just renewed my DL and car registration on a Monday...
With HD gone, will we still have to load our own vehicles?
Crozz
Well-Known Member
You will not have two contractors in the same service area. HD is not going anywhere just the brand name. One contractor will be servicing the area with ground and home and servicing the area completely. HD packages will still be hand loaded and ground loaded. Just like they do in co locations.
Slick silver
Well-Known Member
I just heard through the grape vines that some contractors just got screwed today
Not exactly what plaintiffs expected when they sued to be classified as employees, but yeah.
Class action or no class action consolidation was inevitable given that Ground has become Smith's cash cow . But now the demand for even more cash and even higher service precision will fall on the shoulders of fewer people whose only salvation will be their cheap labor procurement skills and those skills will come under increased pressure in those markets where an improving economy may leave fast food wage labor in short supply .Even Walmart is starting people at 10 bucks which is at least a buck more than what Freddy believes the people who are doing his dirty work are worth. A favorable class action settlement may in the end leave those who left better off overall than those who remain.
Fedex could have made all the so-called ICs really independent, which would have been totally acceptable, but since they need the control, they couldn't give that much independence.
I still think that fedex's new ISP model is really at best a 'franchise' model, and that will create its own problems soon enough.
RAvirginia
Member
would any of you guys that have already gone thru the ISP transition care to discuss what to look for and how to negotiate as not to get screwed. We have 5 routes with 6 supplementals in HD located in VA. We were just getting ready to downsize to 3 routes until this happened. Now I don't want to do anything yet. Thanks for any help. Maybe we can start another thread for all of us that have questions.
I don't argue against any of that. However, IC law doesn't dictate "no control".
If it is a franchise model, the challenges it faces will be with other very rich and powerful corporations. I would not expect a huge upheaval in favor of franchisees but perhaps some corporate concessions on the fringes.
On a side note, ever notice that the loudest whiners about the "nanny state" can't wait to micromanage their own companies and affairs in much the same way?
It will be fine
Well-Known Member
We can discuss generalities, you're just not supposed to talk about specifics and actual numbers. That said, if I were interested in purchasing your routes I would need to see the numbers on your contract and I'm always looking for opportunities to expand.
There's not much to look out for in negotiations. With the way we grow I try to get as much money in stops and pieces as I can, but it depends on your area.
Ground Schmuck
Well-Known Member
Can't wait to hear the "bucket" references. Remember that word when you new isps start negotiations.
IWBF is the pro when it comes to ISP. Here's what I can offer. Supplementals lose money because they are in reality not supplementals. They're noncontracted routes and each one of those route saves X at least $30,000 a year. Get rid of them because there is no reason for X to convert them to true contracted routes when the the desired effect is already being realized at a savings of thousands. Under ISP if you are in a small barn you can get away with 4 routes, 5 minimum in big barns. If you can't get rid of those damn sups and somebody makes you a good offer don't reject it outright. He's makes a good point when he says that the strength of the demography in your area is paramount. Having plenty of easy, high quality, stops in a concentrated area in a favorable labor market with good weather and a modern highway system will be the difference maker.
Ground Schmuck
Well-Known Member
Yes
Similar threads
