Investing in a FedEx route basics

bacha29

Well-Known Member
There appears to be a growing sense of uncertainty if not down right suspicion as to what X is going to do next. It will be as it has always been. They will do whatever they damn will please and it will be up to contractors to adapt as best they can hoping that it will be good enough to satisfy them. There has never been except through the courts any organized contractor opposition . As long as no organized opposition exists they will continue to raise the bar expecting even greater value for even less money leaving each contractor to establish an estimated time line when they will reach the tipping point whereby the job they bought is no longer worth working.
 

dvalleyjim

Well-Known Member
If no one buys anything then the areas are worthless and so is every contractor's company. If service area has no value you need a real sucker to sell to.
If you swap and don't get money you really don't own a business. So you are right sir! This is just the beginning. Wait until they start have you guys bid against each other and go with the lowest bidder.
 

dvalleyjim

Well-Known Member
I made a living for a while, sold for a profit. Admittedly, did not go the way I thought in the end., but I figured lets turn it into a positive.
Think about it, it's a growing industry, X (ground)doesn't have to buy trucks, hire employees and eliminates liability it's perfect. They found a way to beat the system. So, please continue to run your company efficiently. Im counting on it now.
Dude. If you sold your ex business scam BBSAM says you failed. He claims he has a million dollar business with only 36,000 invested. Hell, who is he, Hillary Clinton?
 

dvalleyjim

Well-Known Member
Just responding to the original post. With the contracts coming out recently it's a bad time to invest in a Ground route. While the overall pie of revenue and profit is growing FedEx wants our slice to get smaller and smaller. They claim growth will make up for the low rates they want to pay, apparently believing we can get drivers to do 175+ stops a day for $35k/year. They think our trucks can fit 400+ pieces on them a day. They've gone far beyond reasonable and expected greed.
You get it. They are not paying enough to hire and retain professional drivers. bbsam doesn't respect any driver who thinks that working for his company is a career yet FX ex drivers, postal workers and UPS drivers all see their jobs as careers. This is the problem. This will work as long as America continues to decline and economic growth continues to be 0. At a 3-5 percent quarterly economic growth (which a real American economy used to produce) and real jobs be created employers will have to compete for labor. This will cause serious driver shortages a X ground.
 

dvalleyjim

Well-Known Member
One more thing. How can a company whose drivers are their really only customer contact continue to thrive when they are compensated so poorly and treated so badly?
 

bbsam

Moderator
Staff member
Dude. If you sold your ex business scam BBSAM says you failed. He claims he has a million dollar business with only 36,000 invested. Hell, who is he, Hillary Clinton?
Maybe I wasn't clear. I've only spent $36000 on routes. I've invested a lot in vehicles etc.
 

bbsam

Moderator
Staff member
You get it. They are not paying enough to hire and retain professional drivers. bbsam doesn't respect any driver who thinks that working for his company is a career yet FX ex drivers, postal workers and UPS drivers all see their jobs as careers. This is the problem. This will work as long as America continues to decline and economic growth continues to be 0. At a 3-5 percent quarterly economic growth (which a real American economy used to produce) and real jobs be created employers will have to compete for labor. This will cause serious driver shortages a X ground.
I remember this line of thinking. In fact, people keep bringing it up as if this robust growth is just around the corner. I have no idea what economic indicators suggest such growth anytime soon.
 

It will be fine

Well-Known Member
One more thing. How can a company whose drivers are their really only customer contact continue to thrive when they are compensated so poorly and treated so badly?
I don't think they care. The overall growth of ecommerce and the growth of the industry as a whole really hides everything they are doing wrong. We can be sloppy with junky old trucks and still grow at 6-10% a year so why change? Paying a good wage to people that actually care might only increase that a few more points.
 

dvalleyjim

Well-Known Member
So what. I only had one route given to me after my first year. I leased a vehicle for 1200.00 down. The rest I had to purchase. This was in the time when P&D managers were telling me they didn't like multiple van contractors and only wanted to contract with single van operators. They called me an absentee contractor. Now I hear of you guys getting everything for free. What some 15 yrs after I invested in this crap business they now tell me I'm the poster boy for the ISP, a contractor ambassador? Screw them. After 15 yrs.s of blood, sweat and money you tell me that your going to totally change the way I do business and it's my fault because somebody won a lawsuit over their illegal labor practices. I found the first sucker who could give me cash upfront and got out!
 

bbsam

Moderator
Staff member
I don't think they care. The overall growth of ecommerce and the growth of the industry as a whole really hides everything they are doing wrong. We can be sloppy with junky old trucks and still grow at 6-10% a year so why change? Paying a good wage to people that actually care might only increase that a few more points.
Well, good for you. Why so bitter?
 

dvalleyjim

Well-Known Member
I remember this line of thinking. In fact, people keep bringing it up as if this robust growth is just around the corner. I have no idea what economic indicators suggest such growth anytime soon.
Not they way people vote now. They say the America's best times are over. It was just luck. Well screw them all! Quit voting for failure. Get govt. out of our lives. Put an end to global crony capitalist like FX and get back to a constitutional republic with a free market system and you will see it again. I mean real free market where your not to big to fail. But the American people no longer want liberty. They want a huge centralized government to make everything fair. Since when was it cool to trust the Government?
 

dmac1

Well-Known Member
We are still the government, it's just not the best and brightest who are going into it. We get what we vote for- if a billionaire becomes president- what do you think we will get??????? Someone who looks at all of life from that viewpoint.
 

It will be fine

Well-Known Member
Well, good for you. Why so bitter?
It's just what's been going on for years. They devalue bulk in the ISP agreement so they take away any incentive to actually get more packages from shippers. It's a bad decision to remove the incentive from the front line workforce. It limits the growth potential. PGH doesn't care because overall growth has been good enough for years. Same reasoning for the low wages. Well paid productive drivers would increase the growth potential of Ground, but PGH doesn't care because the overall industry growth and our percentage of that growth has been good enough.
I'm just saying they could do better, but they don't care because regardless of what decisions are made they will continue to grow.
 

bbsam

Moderator
Staff member
It's just what's been going on for years. They devalue bulk in the ISP agreement so they take away any incentive to actually get more packages from shippers. It's a bad decision to remove the incentive from the front line workforce. It limits the growth potential. PGH doesn't care because overall growth has been good enough for years. Same reasoning for the low wages. Well paid productive drivers would increase the growth potential of Ground, but PGH doesn't care because the overall industry growth and our percentage of that growth has been good enough.
I'm just saying they could do better, but they don't care because regardless of what decisions are made they will continue to grow.
Correct. It is what it is.
 
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