Should I buy some routes?

[Cactus]

I'm actually surprised. I didn't think I made it sound all that attractive. Maybe I'm just a natural. Or maybe you're just wrong.

Or maybe you're just talented at BSing. ;D

 

[bbsam]

Or maybe you're just talented at BSing. ;D

Yes, well that would be covered under being a natural.

 

[fedexbuyer1]

He wants $650k
He owns 9 trucks worth about $220k
He has 4 routes and 2 supplementals
He has 6 drivers
Revenue is $650k
His expenses he says are $500k

He nets $150k

There is no way 6 routes, 2 of them supplemental are grossing 650,000. That would average out to be $108,000 per route and 2 of them are not even routes. If the routes did that much revenue his wages would be insane. I drove for a Ground contractor for 9 years who knew what he was doing. If he just bought all these they are not paid off and he still making payments on the trucks and the business he bought. He's looking for someone to buy his mistake.

Actually, the report from the FedEx computer system affirms that indeed he is grossing 650. The expenses are the hard thing to nail down. Two of the routes that have supplementals are grossing about 200 each. The other two routes are grossing 100 each.

 

[fedexbuyer1]

Yes, well that would be covered under being a natural.

Bbsam and the other contractors.....I really appreciate your help.

I searched around on the net and found an article about a contractor in Dallas. I searched his name and found a cell number on his old business website. I called his cell and left a message. He called me back and said that he owned 11 routes with 4 supplementals. Last year he grossed $1.2m and lost $11k.

He said the business is a bust and he sold out. He said he was the FedEx poster child for years but then the biz changed in 2010 and some of the bonuses went away. He said that the payouts aren't what they used to be. He said FedEx doesn't have the money to buy out the contractors so they are starving them out.

I was shocked. He said I should RUN from this investment. What do you guys think about what he said?

 

[Route 66]

I was shocked. He said I should RUN from this investment. What do you guys think about what he said?

sounds like the benevolent ol' FedEx that many of us know and love has turned it's sights on Ground now. I knew it would happen....just wasn't expecting it to be quite this soon.

 

[bbsam]

Remains to be seen. 2010 was a year when many states moved from IC to ISP. And yes, the company bled the contractors pretty badly. They've done better since then. Through renegotiation, most got a much better deal but they have a ways to go. But to think they don't have the money? Lol. Go look at the quarterly financials quarter after quarter. But you do have to look out into the future with this company. They have huge growth potential, contracting law with alot of gray wiggle room and an experienced law department skilled in making the model work. They aren't going to give the model up and if that means they have to put more into the workforce, they will. They view workers/contractors as parts of a money generating machine. That's not the cuddly, loving image many would like, but the company is mindful of their deficiencies and will invest when and where they have to in order to preserve the model.

 

[MrFedEx]

sounds like the benevolent ol' FedEx that many of us know and love has turned it's sights on Ground now. I knew it would happen....just wasn't expecting it to be quite this soon.

That sounds about right. I've been warning bbsam and the other Ground cheerleaders that Fred would decide he wasn't making enough profit. While it's possible the contractor in Dallas was just a bad businessman, I am starting to see more Ground routes for sale again, which may be an indicator the money is no longer there like it was for contractors.

 

[bbsam]

May also mean Fedex sees a way in which they are able to cut the total number of contractors and spread that money around. I'm all for that, of course I've spent the past few years positioning myself to take advantage of that possibility.

 

[MrFedEx]

May also mean Fedex sees a way in which they are able to cut the total number of contractors and spread that money around. I'm all for that, of course I've spent the past few years positioning myself to take advantage of that possibility.

I've never said you were stupid, just misguided.

 

[bbsam]

I never said you said I was stupid, just that with all you understand about the company, you still allow yourself to be victimized by it. I don't. I align my financial future with the model and the direction it is heading.