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

LTFedExer

Well-Known Member
Curious, with the possible elimination of Express Saver and shifting 2nd Day to Ground, wouldn't buying a route make sense......since volume will only increase?
 

Nick9075

Well-Known Member
Curious, with the possible elimination of Express Saver and shifting 2nd Day to Ground, wouldn't buying a route make sense......since volume will only increase?

It may or it may not.. The good thing is that the numbers are easy to verify with the settlement sheets. Volume on the routes I am purchasing should increase by 20% over last years peak. Either they will add another PSA or I will purchase a larger truck. I am not giving up my 'day job' however but I don't get any benefits either. I am only a temp working for a major bank and my contract may not be extended past end of September.
 

HomeDelivery

Well-Known Member
before buying a bigger truck to handle more volume, ask your driver of that route if he can handle it... if not, go with adding another PSA so your current drivers won't "burn out"

i've seen a few runner-gunners that last 1-3 years & either have an injury or wised-up and found another line of work that actually has paid vacations, sick days, etc...

I currently have set my limits with the boss i have now, so if he treats me good, i'll return the favor by providing excellent service.
 

jaynick

New Member
actually until 2005, drivers working for independent contractors would fall under DOT. However, on 10 Aug 2005, Congress altered the Motor Carrier Act Exemption. This change did not come from admending the FLSA--but a new law was created known as the Safe, Accountable, Flexable, Efficient Transportation Equity Act. under this law, if the vehicle that is utilized to carry these packages has a gross weight of 10,000 pounds or less---these vehicles will not fall under the control the Dept of Transportation; these Vans and small trucks will fall under the control of the Dept of Labor. So, it seems by this definition of the new law--- you can be taken to court and sued if you do not pay overtime when warrented.
 

Nick9075

Well-Known Member
Be prepared for big expenses
Last week net settlement on three routes was over $6000.
Net aftet expenses and paying six people was just under 800. If you have another full time day job do not quit it
 

Mail Trucker

New Member
Hello, I am new here and wanted to pop in my 2 cents probably not worth that much but anyway...

1st. Anyone who puts out the money to establish and maintain a business puts a lot at risk and they deserve a good return if they succeed.
2nd. The people who drive for owners of ground routes know what they were getting into when they applied and took the job. I am sure there are some exceptions.

I work for a contractor for USPS, Now USPS sets our pay rate, benefits, checks our background and if they decide they don't like a driver well you can imagine how much pull we have. Now we are not covered under their union and are payed about 7.00 per hour less then they use to pay. We have long unpaid layovers, are expected to do more and more of their work so their union workers can work less.

I live in a state that does NOT require the company to pay over time, BUT the depot i work from is in another state that DOES require OT be paid. I run 40+ most weeks an holiday i run 55-70 I figure i like 70 hours of regular pay verses the guys based in the OT state who do not get over 40 unless there is no other choice. It sounds like the drivers for these contractors have made the same choice i have and like the pay. Sure i would LOVE OT but its not a option so i am content.

I am looking into buying a ground rt that i will drive myself and if it works well possibly purchase another that my son can drive. I am sure i can pay him better and treat him more fairly then walmart does.

Also with the current state of financials and idiots running the USPS i do not see them being bailed out for many more years. So i would think that will incur more work and more routes for fed an brown.

I am new here so be kind in your bashing i am learning lol.
 

AlexTve

New Member
Hello everyone,
I am new in this business and looking to buy a 2 fedex Home Delivery routes.

As of end of 2013 this was one PSA and Supplemental rout and had Gross for 2013 $185K. After January 1 Supplemental became independent PSA. I can't verify what gross can be for 2014 but seller think it can be at less $250K for both route.

I like to buy as Non-driver owner. Two drivers and two helper willing to stay.

He ask about $180K for both route.

I wanted to know the pros and cons if this is good deal, how hard or easy to find driver?

What kind of expenses are expected beside maintenance of the 2 trucks, payroll for 4 workers and all expenses which i can see from Weekly Independent Contractor Settlement Statement?

All yours responses will be very appreciated!
 

MrFedEx

Engorged Member
Hello everyone,
I am new in this business and looking to buy a 2 fedex Home Delivery routes.

As of end of 2013 this was one PSA and Supplemental rout and had Gross for 2013 $185K. After January 1 Supplemental became independent PSA. I can't verify what gross can be for 2014 but seller think it can be at less $250K for both route.

I like to buy as Non-driver owner. Two drivers and two helper willing to stay.

He ask about $180K for both route.

I wanted to know the pros and cons if this is good deal, how hard or easy to find driver?

What kind of expenses are expected beside maintenance of the 2 trucks, payroll for 4 workers and all expenses which i can see from Weekly Independent Contractor Settlement Statement?

All yours responses will be very appreciated!

Good luck. Ask bbsam, our resident ISP. HD is generally a bad deal compared to Ground due to lack of density, but he can fill you in.
 

HomeDelivery

Well-Known Member
sounds like Alex isn't in an ISP state (yet)... only 2 routes were offered to him & i believe you need at least 3 to be an ISP?!?

it's all dependent on the service area/s at hand...

some areas can operate well, while others (the extended areas) that are far from the base are not as easy...

other areas, like Nick had, has very high expenses & deals w/ more tolls/parking tickets because it's in a metropolitan area ~ one metro area has soo many send-agains because the driver can't driver release them or they'll be stolen... those areas i've seen so many different contractors in a short timespan

in my area, the ones thriving are in the suburbia/townhome complexes.

one contractor that i've trained as a driver first, purchased a route because he lived in it & had some inside info that there will be numerous suburban complexes popping up. only 3 short years later, that route blew up into 2 PSAs and a supplemental & still growing...
 

STFXG

Well-Known Member
You're a sucker if you pay that for 2 HD routes.

Why would you run 2 drivers AND 2 helpers?

How much do you estimate they will make this year? You should already have a number based on this years settlements.

Do you know what you're buying in to?

Gross doesn't mean much. What was his net?

Sent using BrownCafe App
 
P

prodriver

Guest
sounds like Alex isn't in an ISP state (yet)... only 2 routes were offered to him & i believe you need at least 3 to be an ISP?!?

it's all dependent on the service area/s at hand...

some areas can operate well, while others (the extended areas) that are far from the base are not as easy...

other areas, like Nick had, has very high expenses & deals w/ more tolls/parking tickets because it's in a metropolitan area ~ one metro area has soo many send-agains because the driver can't driver release them or they'll be stolen... those areas i've seen so many different contractors in a short timespan

in my area, the ones thriving are in the suburbia/townhome complexes.

one contractor that i've trained as a driver first, purchased a route because he lived in it & had some inside info that there will be numerous suburban complexes popping up. only 3 short years later, that route blew up into 2 PSAs and a supplemental & still growing...

I thought the magic number went up to 5 for an ISP?
 
P

prodriver

Guest
Good luck. Ask bbsam, our resident ISP. HD is generally a bad deal compared to Ground due to lack of density, but he can fill you in.


On home/ground it depends on individual after contracting at ground for years I don't miss those 140 stop 300 package 200 pickup days, HD is a lot easier on you physically. We don't gross as much but the cost of a cargo van or box is a lot cheaper than a new p1200 or 1000. At HD (for instance) you may have 80 stops with 87 packages in the ac in summer and good heat in winter, but Saturdays does cut down on the valuable family time, they used to be the easiest day of week but with amazon slamming us on sat its now a regular day.
 
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