Ground non ISP

FedExer267

Well-Known Member
You don't understand my point GT. Not a takeover bid by another company but rather a proxy fight for control of the board. Furthermore it is simply unrealistic to believe that there will always be a work force avaialble that is willing to go out there and deliver top notch performance on a continuous daily basis for half of what an UPS driver makes. But finding that fast food wage labor force is what you multi routes will continue to be tasked with because that is the only reason for your existance in the first place.
My boss has said with him only owning 5 routes and the 99.8% service they want for the month he has yet to see a bonus. Bottomline drivers aren't going to give that kinda service making 650 to 700 a week. It just takes one driver to screw up the bonus for everyone else and if we are not going to bonus what incentive is there to work any harder. This will ultimately be the downfall of the smaller contractors at terminals. The drivers who used to get bonuses are not seeing one because everyone is having a hard time meeting 99.8%. The good drivers that are use to bonus are leaving left and right. We all heard more money when we went to this model and that has not happened. Contractors are asking drivers to take days off now because the are short on money. I see another lawsuit very shortly in the future.
 

It will be fine

Well-Known Member
My boss has said with him only owning 5 routes and the 99.8% service they want for the month he has yet to see a bonus. Bottomline drivers aren't going to give that kinda service making 650 to 700 a week. It just takes one driver to screw up the bonus for everyone else and if we are not going to bonus what incentive is there to work any harder. This will ultimately be the downfall of the smaller contractors at terminals. The drivers who used to get bonuses are not seeing one because everyone is having a hard time meeting 99.8%. The good drivers that are use to bonus are leaving left and right. We all heard more money when we went to this model and that has not happened. Contractors are asking drivers to take days off now because the are short on money. I see another lawsuit very shortly in the future.
Hate to break it to you, but service number is a small percentage of one incentive. The contractor gets 2 different incentives, 1 safety and 1 service/pickups/complaints. The service portion kicks in at 99.4% and goes up from there, it should be pretty easy to hit.
What lawsuit are you seeing? Pay going down is not grounds for a lawsuit, it's business as usual in America.
 

Bounty

Well-Known Member
I agree with you Crozz stand alone buildings will be a thing of the past. If you own ground in a stand alone in a non ISP state I would start to get to know the home contractor in your same area and talk about splitting the area, It won't be easy either one guy is always going to think he is getting the bad half.
What will happen if the ground guy and home guy refuse to work it out?
 

bbsam

Moderator
Staff member
What will happen if the ground guy and home guy refuse to work it out?
I don't think we know. My belief is that within the matrix of route area valuation X has a good idea of where they overpay for coverage. We have a lot of towns with ridiculous overlap. Towns of 1100 people being serviced by two trucks.

Some people think X will give monetary incentives to get contractors to comingle. That's just stupid. More likely the valuations will tighten so that eventually contractors will come to the smart business decision to make smart area trades.
 

Bounty

Well-Known Member
I don't think we know. My belief is that within the matrix of route area valuation X has a good idea of where they overpay for coverage. We have a lot of towns with ridiculous overlap. Towns of 1100 people being serviced by two trucks.

Some people think X will give monetary incentives to get contractors to comingle. That's just stupid. More likely the valuations will tighten so that eventually contractors will come to the smart business decision to make smart area trades.
Or, will they just not renew one of them? Do not put anything past x. Remember, sign it or you won't be renewed. You've been lucky so far, falling on the right side of the scam.
 

FedGT

Well-Known Member
Yeah for the tune of 6 figures a year. It is pretty rough being a multi route owner, something you don't know anything about.
 

FedGT

Well-Known Member
Not fired up just debating on a business that I know about to someone that wanted to go the completely opposite direction of what the company wanted and got very bitter.
 

Bounty

Well-Known Member
Not fired up just debating on a business that I know about to someone that wanted to go the completely opposite direction of what the company wanted and got very bitter.
When not if they screw you I'll save you a spot next to me at the bitter end of the bar.
 

bbsam

Moderator
Staff member
Or, will they just not renew one of them? Do not put anything past x. Remember, sign it or you won't be renewed. You've been lucky so far, falling on the right side of the scam.
No. They will keep both. They won't not renew contracts for something like this. They don't care if people make stupid business decisions. They just aren't going to keep paying for it.
 

Bounty

Well-Known Member
No. They will keep both. They won't not renew contracts for something like this. They don't care if people make stupid business decisions. They just aren't going to keep paying for it.
Are you sure? What if the ground guy is doing 1500 stops and home guy is doing 600, why bother keeping the home guy?
 

bbsam

Moderator
Staff member
Are you sure? What if the ground guy is doing 1500 stops and home guy is doing 600, why bother keeping the home guy?
Because they are mindful of not becoming too dependent on too few entities. They won't let themselves be "held hostage" by letting individual entities become too large in a building.
 

Bounty

Well-Known Member
Because they are mindful of not becoming too dependent on too few entities. They won't let themselves be "held hostage" by letting individual entities become too large in a building.
Maybe your right but I would be worried if I was just making that 500 scale number. Someone else said it on a different posting"be prepared to go big or go home".
 

bbsam

Moderator
Staff member
Maybe your right but I would be worried if I was just making that 500 scale number. Someone else said it on a different posting"be prepared to go big or go home".
True. If I were the 1500 stop contractor, I'd give that piddly little town up in a heartbeat. You don't get that big by being business stupid.
 

FedGT

Well-Known Member
And what do you think fedex will say when you decide to just 'give up' that route?

"Ok"

He is talking about dropping some for others to grow. They care less about how much you sell a route for or to who (unless it is a massively underperforming contractor). As long as someone wants it to scale up why do you think they would care.
 
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