To the ISPs

[CJinx]

Our building has 4 or 5 groups that are comprised of former contractors that all own a stake in their corporations. They're all going on 5 years now.

They must have a solid in-house arrangement. The ones I've seen were just cobbled together partnerships for the purpose of surviving the ISP transition.

 

[sadmanhere]

few questions if anyone can answer all or any

1-if you have multiply PSAs here in ny . will they let you break them up and sell to different people who are going for ISP or are they still going to hold you to that new rule from last year about not being able to break them up.

2- we are set to go iso around august 2016 are were going to get paid the same during our last peak coming up? cause they are giving us non renewal letters with the understanding of it being an extension towards iso

3-when we had PSA the turnover rate was pretty great. you were renewed ever year unless you did some serious no no. and even if you did a serious no no they gave you some time to sell it for something.
how is it with isp/csa….. how is the turnover rate per contract with that?

 

[FedGT]

I'm IC so I can only say what I have heard.

1. I'm sure they will let you break up and sell down to holding a minimum of 3 PSAs if you are selling to existing contractors. If you are at 3 and want to go lower I would doubt they will allow further breakup. If they have switched the PSAs to 5 then there is a chance they will let you break it all up but I have no basis to tell you that is true.

2. Would assume it will be the same as last peak.

3. Don't screw up, if you do make sure it is well before the 6 month period of negotiations before your new contract. If you are solid, don't have continuous accident problems, pickup issues, and satisfactory numbers you won't have anything to worry about.

 

[sadmanhere]

i have 3 PSA… i want to sell or reassign 2 PSA to someone who has 2 PSA and sell/reassign 1PSA to someone who has 2psa as well..

 

[FedGT]

Would be interested to hear how it runs out if possible. I bet it will be a no but just a guess

 

[sadmanhere]

also if you don't go ISP do they give you a buyout? i know they are giving us 10thousand to sign this limited release thing but do we get further money if we don't make isp and we go out of business?

 

[bbsam]

i have 3 PSA… i want to sell or reassign 2 PSA to someone who has 2 PSA and sell/reassign 1PSA to someone who has 2psa as well..

I don't think they'd have a problem with this. It's all about getting to scale.

 

[sadmanhere]

they had a problem with it before the isp announcement. the set in rules that you can't break up your routes unless you had more then 3 and was selling to someone else to make 3

if i decide to go out of business why do they care if I'm helping two other people make scale or grow even more for isp

 

[bbsam]

they had a problem with it before the isp announcement. the set in rules that you can't break up your routes unless you had more then 3 and was selling to someone else to make 3

if i decide to go out of business why do they care if I'm helping two other people make scale or grow even more for isp

Exactly. Both entities will end up with three. Will probably have to do it simultaneously. You won't be able to sit around with just one or two.

 

[sadmanhere]

the scale is 500stops or 5 PSA… i don't know how in the world ground guys will ever make 500stop scale and the 5PSA how many ground guys have 5 or more ? lots of ground is going out of business. and they said they would like if we combined ground and hd in the future….

 

[FedGT]

the scale is 500stops or 5 PSA… i don't know how in the world ground guys will ever make 500stop scale and the 5PSA how many ground guys have 5 or more ? lots of ground is going out of business. and they said they would like if we combined ground and hd in the future….

Thanks for that last sentence. That answers a lot of questions that a lot of us have for when our terminals go ISP. If an HD/Ground merger was pretty much mandatory. Now we just have to figure out if they allow both of us to still occupy the same zip codes.

 

[UpstateNYUPSer(Ret)]

As an outsider I could never figure out why they were separate in the first place.

 

[Crozz]

the scale is 500stops or 5 PSA… i don't know how in the world ground guys will ever make 500stop scale and the 5PSA how many ground guys have 5 or more ? lots of ground is going out of business. and they said they would like if we combined ground and hd in the future….

Lots of horse trading I've been told 30 psa in a terminal 5 psa 500 stops. If your terminal is less than 30 then the rule is 4psa 400 stops. Fedex wants 5-8 contractors per terminal period thinly want to do business with a few contractors not 20 in a terminal.

 

[Crozz]

Thanks for that last sentence. That answers a lot of questions that a lot of us have for when our terminals go ISP. If an HD/Ground merger was pretty much mandatory. Now we just have to figure out if they allow both of us to still occupy the same zip codes.

Promise their will not be two contractors in two zips. They are phasing that out. They also don't want you in two different locations they want you in your own primary service area not all over the board.

 

[bbsam]

As an outsider I could never figure out why they were separate in the first place.

Because it provided room for growth without killing single route owners. A lot of contractors struggled with one route and throwing in all that resi stuff would have meant massive failure. Good thing they did because the HD growth was and is astronomical.

 

[sadmanhere]

they had ground first and it grew so much they made HD to help out . its hard to split the pick ups so they just gave HD most of the stops

many times id go to a house with two boxes from macys to see ground was there with one from the same order. waste of time and gas.

 

[Crozz]

they had ground first and it grew so much they made HD to help out . its hard to split the pick ups so they just gave HD most of the stops

many times id go to a house with two boxes from macys to see ground was there with one from the same order. waste of time and gas.

Absolutely right, but now they are learning to be a liger business a contractor has to have 5 or more psa and all the home and ground combined. 5 allows the contractor to get out of a truck and manage.

 

[FedGT]

Promise their will not be two contractors in two zips. They are phasing that out. They also don't want you in two different locations they want you in your own primary service area not all over the board.

That would be the only issue I have with all of this. They are in talks of co-locating our terminal and talks right now have my fully connected area split off 1 zip and 4 other are in the new building. Problem is that splits 1 route to old building and 2 other routes are 50/50 split. So 1 route and 2 half routes old building 4 routes 2 half routes in new building. It is hard enough running a 6 day operation in one building let alone trying to have the man power and management to do it out of two with such a small portion of my routes in the other building.

 

[sadmanhere]

i don't see how they expect to have both hd/gd one same contract if its in two different buildings…….. it will work in co-locations

 

[Crozz]

That would be the only issue I have with all of this. They are in talks of co-locating our terminal and talks right now have my fully connected area split off 1 zip and 4 other are in the new building. Problem is that splits 1 route to old building and 2 other routes are 50/50 split. So 1 route and 2 half routes old building 4 routes 2 half routes in new building. It is hard enough running a 6 day operation in one building let alone trying to have the man power and management to do it out of two with such a small portion of my routes in the other building.

I'm with you but to continue you have to find a way. All terminals will be co-lo and remember vans are now ground now no HD anymore.