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<blockquote data-quote="bacha29" data-source="post: 2365575" data-attributes="member: 58386"><p>What drove up the price for routes in some area in addition to the required additional routes was the incursion of the investor class, hedge funds, private investment managers etc all looking for yield in a zero interest rate environment. As dmac pointed out a 500% increase in the number of routes owned in no way shape or form guarantees a 500% increase in profits. Keep in mind the the business model was never designed to create equity for contractors but rather a pathway to low cost trucking and labor and that is why Ground's operating margins are the highest in the industry and when X started to see the kind of prices the investor class was paying for the routes based on present and future expected margins X saw that they were making too much money and decided to go after them in the form of heavy downward pressure on settlements making it hard on contractors because they're entire success is entirely dependent on their ability to procure fully vetted highly reliable labor that is willing to deliver top of the scale performance for near bottom of the scale money and do it on a continuous daily basis for an extended period of time. So if you want to be Mr. ISP multi route contractor just remember that you're only as good as the guy you have behind the wheel and if you no pay they no stay. One other thing as an ISP you have to " negotiate" a revenue package but you cannot have an attorney or engineer present during those ( cough, cough), "negotiations".</p></blockquote><p></p>
[QUOTE="bacha29, post: 2365575, member: 58386"] What drove up the price for routes in some area in addition to the required additional routes was the incursion of the investor class, hedge funds, private investment managers etc all looking for yield in a zero interest rate environment. As dmac pointed out a 500% increase in the number of routes owned in no way shape or form guarantees a 500% increase in profits. Keep in mind the the business model was never designed to create equity for contractors but rather a pathway to low cost trucking and labor and that is why Ground's operating margins are the highest in the industry and when X started to see the kind of prices the investor class was paying for the routes based on present and future expected margins X saw that they were making too much money and decided to go after them in the form of heavy downward pressure on settlements making it hard on contractors because they're entire success is entirely dependent on their ability to procure fully vetted highly reliable labor that is willing to deliver top of the scale performance for near bottom of the scale money and do it on a continuous daily basis for an extended period of time. So if you want to be Mr. ISP multi route contractor just remember that you're only as good as the guy you have behind the wheel and if you no pay they no stay. One other thing as an ISP you have to " negotiate" a revenue package but you cannot have an attorney or engineer present during those ( cough, cough), "negotiations". [/QUOTE]
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