Question: Is now a good time to buy a FedEx Ground Route?

[HomeDelivery]

Not real sure where the 10-14 hours come from even if you have a kinko's where last pickup is 6 at ground. Home delivery may be different story.

Express company owned. Think only ground and home delivery would apply for your question

yeap, HD is somewhat of a different beast than Ground; we don't do that many B2B pickups; call tag pickups are less than 1% of our stops

we sometimes cover more zipcodes in a given area, more mileage & that's why some contractors get better pay at Ground.

evening deliveries(5-8pm) and appointment deliveries may push our day longer

our terminal are seeing close to peak season capacity; some drivers are over 150~200 stops daily

 

[bbsam]

So Home Delivery, are most of the drivers at your terminal paid hourly with OT?

 

[Nick9075]

If you are not paying your drivers hourly plus overtime you are setting yourself up for major legal and employment problems. They are also entitled to breaks and lunch. You should read the labor laws for your state to know for sure. These breaks and lunch must also be documented. You need a time card and an employee manual. Lawyers are also effected by the slow economy and this is a lawsuit they are now pursuing intently.

In many states piece work is also illegal, check your states employment laws.

That being said, I know that payroll companies will tell you that salary is ok for your drivers. They won't be fighting the legal battle, you will. In my state salary is only for managers that supervise employees. Who does your driver supervise? Same for piece work, it's a red flag. Is it one your willing to try and defend at a labor board meeting?

What about if you pay the driver min wage on the books and the rest 'off the books' (way of personal check) to avoid tax liability?? That is how many do it to avoid witholding taxes.

 

[UpstateNYUPSer(Ret)]

What about if you pay the driver min wage on the books and the rest 'off the books' (way of personal check) to avoid tax liability?? That is how many do it to avoid witholding taxes.

...and then the driver can apply for public assistance and further burden an already overwhelmed system...

 

[bbsam]

The more I hear about other contractors, the more I am impressed with me.

 

[bbsam]

The more I hear about other contractors, the more I am impressed with me.

 

[HomeDelivery]

So Home Delivery, are most of the drivers at your terminal paid hourly with OT?

no bbsam, they're either salary (flat rate per day) or by the stop if the driver's service area is close to the terminal (5-30 minutes away). No OT for them at all... I did saw some temps-to-contractor drivers got smart and did both Flat rate salary up to 130-150 stop ceiling, then "per stop" for any additional parcels that the contractor "flexed" on to his / her route. The ones with over 200 stops per day can take it because they're the "runners-gunners" so to speak; until they sprain an ankle or worse... then i jump in to cover 'em.

being a Saturday driver for now for 2 different terminals until summer gives me other options of income (under-the-table drivng jobs, internet sales, etc...)

If i do things by the book, to the T, i know that i'll be pushing 15 stops per on road hour in a suburbia environment... so its above minimum wage, but below a comparable ups driver's wage.

others say that's not bad in our part of the state since they do about the same & i'm only the swing/cover driving other peoples' routes semi-blind.

at Fedexaminer, a contractor pays his drivers "load/sort time" of 1.5 hours each day. If that contractor was in my hub, i'll probably be working for him because at least i'm sort of compensated that way if i ever have a late or delayed dispatch.

 

[bbsam]

HD, don't take this the wrong way, but you think too much and you don't think enough. Short term you have it down, but I think you should focus on turning it into a long term strategy.

 

[HomeDelivery]

yea,

i'm just in it for the short term; until my last offspring is old enough for grade school, i'm moving on.

but for now, i'll be in it

any hourly paid employees over at your terminal?

 

[dvalleyjim]

The more I hear about other contractors, the more I am impressed with me.

That's a pretty cockey statment. I'm sure your just kidding. Be careful, one day you can be brought low and humbled. Remember you don't control your business, FedEx does. They can take their packages off your van and you will have nothing. I've seen it happen to contractors over the years were very impressed with themselves.

 

[bbsam]

That's a pretty cockey statment. I'm sure your just kidding. Be careful, one day you can be brought low and humbled. Remember you don't control your business, FedEx does. They can take their packages off your van and you will have nothing. I've seen it happen to contractors over the years were very impressed with themselves.

I am not cocky but I am confident. I am not conceited but I am convinced.

 

[bbsam]

yea,

i'm just in it for the short term; until my last offspring is old enough for grade school, i'm moving on.

but for now, i'll be in it

any hourly paid employees over at your terminal?

No. All salary. I did have one hourly a year ago. Now she's a fill in for me.

 

[dvalleyjim]

What about if you pay the driver min wage on the books and the rest 'off the books' (way of personal check) to avoid tax liability?? That is how many do it to avoid witholding taxes.

We have a tax lawyer who sets up drivers on this payroll scam and claims he can defend it. I wouldn't try it because it's illegal and considered tax fraud. Just know this is a risk. But sometimes you have to do things just to turn a profit a FedEx. Best thing to do is live beneath your means, have a good cash flow and invest in your retirement and be debt free. If you incur debt make sure it's through your corporation and not personal debt. Pay it back as soon as you can unless there are tax incentives to keep it a while. Realize that until you become a big FedEx ground conglomerate your not really making that much money. Don't set yourself up to lose down the road to tax fraud. There is enough ways to lose money in this business in just servicing FedEx Ground's customers.!

 

[UpstateNYUPSer(Ret)]

The more I hear about other contractors, the more I am impressed with me.

The more I hear about other contractors, the more I am impressed with me.

Sounds like you were doubly impressed with yourself.

In all seriousness, I would have no problem working for you....

....but we would have to discuss the pay and benefits.

 

[bbsam]

Sounds like you were doubly impressed with yourself.

In all seriousness, I would have no problem working for you....

....but we would have to discuss the pay and benefits.

I do like me, but that was an accident. And if you are as good as your decades at Brown would suggest, you would probably write your paycheck.

 

[UpstateNYUPSer(Ret)]

I do like me, but that was an accident. And if you are as good as your decades at Brown would suggest, you would probably write your paycheck.

...or perhaps I could sign yours?

 

[bbsam]

Bbsam Ent. IPO?

 

[UpstateNYUPSer(Ret)]

Bbsam Ent. IPO?

Maybe you'll be the next facebook.

 

[Nick9075]

What about if you pay the driver min wage on the books and the rest 'off the books' (way of personal check) to avoid tax liability?? That is how many do it to avoid witholding taxes.

We have a tax lawyer who sets up drivers on this payroll scam and claims he can defend it. I wouldn't try it because it's illegal and considered tax fraud. Just know this is a risk. But sometimes you have to do things just to turn a profit a FedEx. Best thing to do is live beneath your means, have a good cash flow and invest in your retirement and be debt free. If you incur debt make sure it's through your corporation and not personal debt. Pay it back as soon as you can unless there are tax incentives to keep it a while. Realize that until you become a big FedEx ground conglomerate your not really making that much money. Don't set yourself up to lose down the road to tax fraud. There is enough ways to lose money in this business in just servicing FedEx Ground's customers.![/QUOTE]


I see submitted the paperwork and the corp documents and waiting to hear if they will approve me. These routes should net close to 2000 a week after all expenses

 

[STFXG]

"should net"? You don't KNOW what they net all ready?