Looking into getting a FedEx home route, Any suggestions?

Discussion in 'FedEx Discussions' started by delboy, Nov 22, 2011.

  1. delboy

    delboy New Member

    I'm looking into buying a route and wanted to know the inside scoop from people on the job. IF you own a route it would be great to hear the pros and cons. I've read some good and some bad posts online but many of them are old. I want to know if it's worth the risk and how much BS am I going to deal with. It seems that the customers aren't the issue but FedEx corporate seems to be the major down side. How much time should I expect to be putting in? Are the drivers happy and do they stay on the job for any extended period of time? Any info would be greatly appreciated.
     
  2. klein

    klein Für Meno :)

    Buy yourself a catering truck instead. Good money in it, and lots of fun.... much less driving, less insurance costs, less gas money, less accidents.
    Just go to special events and or find a place to park.

    Hotdogs, hamburgers, or whatever....
     
  3. MrFedEx

    MrFedEx Engorged Member

    This is mainly an Express forum, but bbsam, who is a successful Ground ISP, can probably help you. I'm assuming you know that Express is company employees, and that Ground is contractors.
     
  4. delboy

    delboy New Member

    I did know that but I'm trying to get as much information as possible. I assume that there are some similarities between them. I'm wondering what the plus's and minus's are.
     
  5. FedExer267

    FedExer267 Member

    Now that FedEx is switching over to ISP you will have to buy atleast 3 routes. FedEx is doing away with single route contractors because of to many lawsuits. They are trying to make it more like a small corporation for every contractor. So you will need to bear that in mind when looking into purchasing a route it could be a single contractor trying to make some money before he gets bought out for cost. If that is the case I would not do it because you will not get what you put into it.
    That being said I will tell you that it depends on the Contractor if his employees stay. If you pay them decently and kick down bonuses and maybe give them a paid vacation you will have happy drivers. If you just pay them for 8 hours a low wage no vacation you will have high employee turn over. Drivers are always looking for a better deal. The other thing to keep in mind is with the new restrictions and qualifications that FedEx wants in drivers it can be difficult to find qualified drivers willing to work up to 70 hours a week and not get paid OT. FedEx will also make you terminate your drivers for a accident and if the truck fails inspection. If you keep up on you're vehicles you will have nothing to worry about.
    My terminal has been a revolving door for months. If the TM doesn't like you or you're driver they will not make it easy on you and that is for sure. The drivers usually do enough to skate by they will not put their heart and soul into it if they are getting a low wage. Too many drivers in my building make 500 a week and work 65+ hours a week which is below minimum wage. The attitude is simply you get what you pay for. So it all depends on the contractor and how they treat their employees. I am sure bbsam will paint a better picture however he is a contractor, I am just a driver.
     
  6. bbsam

    bbsam Moderator Staff Member

    Actually, 267, I agree with you. It depends on the contractor/driver relationship. Good contractors don't have the revolving door problem and can turn a decent profit and keep drivers relatively happy. Change to ISP is a situation that the OP needs to keep in mind.
     
  7. delboy

    delboy New Member

    The business I'm looking at does have several routes. I'm all for paying the employee and incentive's for them. It seems that the distributors have a lot of say and they can make or break you. What have you done to keep relationships going in the right direction? Also, how much work can I expect to do if I have a manager and how much work do they really do?
     
  8. HomeDelivery

    HomeDelivery Well-Known Member

    i've turned down in becoming a manager for a contractor; i've seen the headaches about broken vehicles, juggling the routes, etc...

    just make sure that "manager" is up to par to for-see any types of problems that'll arise

    did you also venture out to fedexaminer.com? that site is fairly dead now since most are too busy to go online & is less "public friendly" (can't read threads unless you register/ log in)
     
  9. Nick9075

    Nick9075 Member

    I am new here and looking into this as well. I am looking at a 4 route package in the Stamford CT area listed for 340K. What exactly so I be looking at in addition to settlement sheets & contact??
     
  10. delboy

    delboy New Member

    It seems that the manager is willing and has been assisting with the vehicle maintenance. That's a big plus. I was told that they aren't charging us for uniforms and other materials we will need and use on a daily bases, Is this true? I also found out that the weekly balance sheets have changed. This seems like it will be harder to track information and expenses that FedEx is charging.

    The sellers seem to be a little lacked in there books, I assume the numbers from FedEx are the numbers but it's the expenses that worry me. Do they recommend service people and mechanics?
     
  11. golfgod00

    golfgod00 New Member

    Don't do it, too much headaches
     
  12. bbsam

    bbsam Moderator Staff Member

    Low ball these sellers. Find other contractors that are good with income/expense tracking and you should be able to get a good feel for what the "for sale" route is really worth. If they are bad witht the finances, they probably not only want to sell, but NEED to sell...badly.
     
  13. Nick9075

    Nick9075 Member

    From my understanding the listing price is pretty much firm -- non negotiable. I am looking at a 4 route package in CT for $340,000
     
  14. bbsam

    bbsam Moderator Staff Member

    On a very rudimentary look, that's not bad for 4 routes. Is it ISP or contractor system in CT? If after investigating you are interested, offer 300k. Never hurts to negotiate.
     
  15. Cactus

    Cactus Just telling it like it is

    Why bother with this when you could start up your own business? By meaning "your own" one that YOU call the shots not somebody in a suit from Memphis. Plus all the hassles involved.

    Nevertheless, it's your money but if I were you...............
     
  16. bbsam

    bbsam Moderator Staff Member

    Because if done correctly, you could make ALOT of money.
     
  17. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    ...and, if not, you could end up on Craigslist.
     
  18. MrFedEx

    MrFedEx Engorged Member

    Question. How do you handle liability? If one of your drivers has a bad accident and someone sues, is it all on you to have adequate insurance, or does FedEx accept some of the liability? Since you are an ISP, I'm guessing it's all on you.
     
  19. bbsam

    bbsam Moderator Staff Member

    Million dollar liability insurance. Very expensive, but that's the price of doing business. That's not to say that Fedex could not also be sued since we do run under their DOT number so I assume there is some level of culpability, but I don't know where the lines are drawn.
     
  20. MrFedEx

    MrFedEx Engorged Member

    A million doesn't seem like enough. The reason I asked is that bad accident in MS a few weeks ago, which will probably go into the multi-millions. That's where the gray area would come in. No ISP could probably handle that type of judgement.