So I have been driving for Fedex Ground for about 4 months now. In that time I've learned how the business works and how much it can suck. I have gotten close to the original contractor that hired me who owns 7 routes. 6 PSA's and one Supplemental. I hate driving the trucks due to the obvious pay and no benefits, but the contractor part of it seems to be lucrative. Long story short I have outside investors that are willing to give me the money I need to purchase around 4 PSA's. Is there really money in this business on the contractor side of it? After payroll. expenses, and Fedex deductions. Any true, honest opinions would be appreciated.
Had opportunity to buy routes, Opinions?
- Thread starter jmurph40
- Start date
thedownhillEXPRESS
Well-Known Member
run
Depends on alot of variables. Condition of trucks, amount of sale, payroll, etc. If you consider it, get all income and expense info from the contractor and pay an accountant to go over it with you as well as a lawyer. Same advice I gave Nick here and he bought routes and now spends alot of time here bitching about his decision.
There are alot of deductions. My guess is that many people take it too far and are afoul of the law. I'm fairly conservative with what I claim as deductions. If it's a legitimate business expense, it's a deduction, otherwise I don't bother trying to tip toe through dubious IRS code. Like my fellow contractor suggested, a good tax accountant is essential.
overflowed
Well-Known Member
I am just curious what Nick has to do with the OP question? The OP doesn't even know of Nick so why do you bring it up.
Because if he searches the threads, he will find that Nick was once in his position and had the same decision to make. I am simply suggesting that due diligence is a must and perhaps he can reach out to Nick and find out what he did wrong or right in his decision making process. We're adults here. Let the buyer beware.
GROUNDIsAHugeSCAM
Well-Known Member
murph, I've seen many a young driver become ambitious and want to buy a route. True, you can make some $. The first thing I'd like to point out is that 4 months is not nearly long enough to see the intricacies of this business as a driver or a contractor. I'd advise going at least a year in your current spot and watch the turmoil unfold as a driver. 4 months tells me you have not yet worked through a peak. Work through peak once. That alone may break your resolve. Another thing I suggest is to go to another terminal and do some "overtime" on a Saturday HD route, and pick the brains of other drivers and contractors. You're in the system, and contractors usually need help, and Saturday is good because you're off. If you're serious, this may help you. FedEx blows, but your terminal may blow harder or be much better than others.
My second bit of advice is.... you state that you need outside investors to fund you. Which means you don't have the capital? You will be recouping that loss for a long time. The real money comes when you're not paying down massive debt. This is not a career of passion, so I fear you would be in over your head.
Last thing.... If you're serious about this, why on earth would you wish to purchase FOUR psa's? One is enough to start. If you fail or change your mind, one psa is easier to sell or manage than 4. Why not buy one and drive it yourself? That's the smartest decision, IMO.
Lawyer + accountant + you working through this peak + HD time on Saturdays at a different terminal for a few times and/or talk with other contractors ... you must do all this at a minimum to prepare yourself for FedEx. Also be aware that once you get in bed with Fred, you walk a thin line. Be prepared.
My second bit of advice is.... you state that you need outside investors to fund you. Which means you don't have the capital? You will be recouping that loss for a long time. The real money comes when you're not paying down massive debt. This is not a career of passion, so I fear you would be in over your head.
Last thing.... If you're serious about this, why on earth would you wish to purchase FOUR psa's? One is enough to start. If you fail or change your mind, one psa is easier to sell or manage than 4. Why not buy one and drive it yourself? That's the smartest decision, IMO.
Lawyer + accountant + you working through this peak + HD time on Saturdays at a different terminal for a few times and/or talk with other contractors ... you must do all this at a minimum to prepare yourself for FedEx. Also be aware that once you get in bed with Fred, you walk a thin line. Be prepared.
GROUNDIsAHugeSCAM
Well-Known Member
True dat
overflowed
Well-Known Member
And you gave Nick advice? Buyer beware.
Same advice I always give. It can be a good investment, but it's not a yes or no question. People jumping into any such business foolishly are going to end up broke in a short period of time.
northbound
Well-Known Member
You have to know what your getting into or you'll be in trouble. I'm glad I started with one route 4 years before ISP now I run 5 trucks plus 1 linehual. It can be s very good investment as long as you don't over pay and don't mind getting your hands dirty.
MAKAVELI
Well-Known Member
And as long as you exploit your workers.
GROUNDIsAHugeSCAM
Well-Known Member
BBSam and the like provide great benefits. For your retirement, they rip a page out of the phone book and direct you to a place like Edward jones, where you can open up a 401k on your own. They match up to 0%. For your health benefits, they use the same plan MrFedEx described in his newsletter. SISI. With Self Insured Self Insurance, you pay all your own bills. The benefits of this plan are no more red tape, no more wondering if you're deductible will go up (there is no deductible!), and it puts you in charge of your own health. GO GROUND~~~~~~~~~~~
Cactus
Just telling it like it is
How 'bout we just avoid Ground altogether?
Cactus
Just telling it like it is
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