What the difference between PSA and ISP
- Thread starter alext
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STFXG
Well-Known Member
Get a copy and sit down with your lawyer so you understand the risks. That should be your first step.
Then get a complete copy of financials including settlement statements, tax filings, and a list of assets. Take them to an accountant if you need a proper valuation.
Then come back with any specific questions and we can help you out better.
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Then get a complete copy of financials including settlement statements, tax filings, and a list of assets. Take them to an accountant if you need a proper valuation.
Then come back with any specific questions and we can help you out better.
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Thank you so much for such value information!!!! What do you consider 'list of assets"? all truck which include in purchase or something else?
gixxer squid
Well-Known Member
Honestly, if you have no experience in package handling, everyones giving you good advice.
Its a one sided contract, be prepared for that. Contractor relations is all about protecting Fred, NOT YOU.
If a driver doesn't show up, be prepared to jump in drivers seat, that is if you have verifiable driving experience within last 3 years for 18 months. You are on your own, no one will or is looking out for you. It takes approximately 2 full weeks to learn a route, of course after you master the scanner.
Potentially you could loose your contract if you have DNA's. Owning this business is all about preparing for the worst and hoping for the best.
We started out with 2 PSA's. In the first two years I had to take off a cumulative 3 months to train 3 different drivers. Are you able or willing to do this. The list goes on…..
That being said, we now have 5 PSA's and 2 sups. We have a full time manager and I am now the 2nd go to guy. I don't feel we are paid nearly enough. Basically 2 bucks a stop and like .23 cents a package. We are making it work and I am sure you could as well but it takes time……
I think the best potential advice if you are going to do this is make sure the trucks are in damn good condition, 2005 or up P1000's with less than 200k miles. The margins are very small and one major breakdown will eat up 2-3 months profits.
Are we (me) being taking advantage of and being exploited, probably so. Am I making money, YES. Not sure which the lesser of two evils is. Just do you due diligence. You have been forewarned.
Its a one sided contract, be prepared for that. Contractor relations is all about protecting Fred, NOT YOU.
If a driver doesn't show up, be prepared to jump in drivers seat, that is if you have verifiable driving experience within last 3 years for 18 months. You are on your own, no one will or is looking out for you. It takes approximately 2 full weeks to learn a route, of course after you master the scanner.
Potentially you could loose your contract if you have DNA's. Owning this business is all about preparing for the worst and hoping for the best.
We started out with 2 PSA's. In the first two years I had to take off a cumulative 3 months to train 3 different drivers. Are you able or willing to do this. The list goes on…..
That being said, we now have 5 PSA's and 2 sups. We have a full time manager and I am now the 2nd go to guy. I don't feel we are paid nearly enough. Basically 2 bucks a stop and like .23 cents a package. We are making it work and I am sure you could as well but it takes time……
I think the best potential advice if you are going to do this is make sure the trucks are in damn good condition, 2005 or up P1000's with less than 200k miles. The margins are very small and one major breakdown will eat up 2-3 months profits.
Are we (me) being taking advantage of and being exploited, probably so. Am I making money, YES. Not sure which the lesser of two evils is. Just do you due diligence. You have been forewarned.
You scare me ... I don't have driving experience within last 3 years for 18 months, i'm planning buy as non-driving owner, and to be backup driver, but this is take same time I understand .. what can happen if I lost few drivers in first few month? how easy find driver? I know it take at least 2 weeks to teach him, on terminals have any backup drivers?
MrFedEx
Engorged Member
I work for Express, not Ground, but you really do need to understand the delivery business before you dive-in. It's a very different animal. Plus, FedEx is a very demanding master. As others have said, Fred is always going to make sure he gets his money...even if you don't.
gixxer squid
Well-Known Member
Not trying to scare you. Just presenting the facts. I don't believe that you can drive even though you are the owner without the experience. Someone can correct me if I am wrong but my partner does not have the experience and cannot drive. She deals with the management and all calls from fedex. I did or used to train and be back up driver. I drove saturdays during holiday rush and monday after thanksgiving, all I pretty much do now
Let me give you a scenario.
Driver "A" is kind enough to give you two week notice ( only 1 out of 3 I trained did this, other two bastards sent a text saying they quit on Sunday night).
You place an add on craigslist. You interview and hopefully find right candidate with no tickets and accidents that passed background check, LOL, has driving experience within last 3 years and passes driving test or actually knows how to drive a stick shift, Laughing to myself lots don't, only automatic. This process takes a minimum of two weeks, then you need to spend two weeks teaching them a route. If your route does over 100 stops a day than add another two weeks as most contractors don't throw a full route at a new driver unless they want them to quit. So you may be driving the route for a month or more.
Also, be prepared for the guys to ask you for a raise within a few weeks of taking over, if not , be prepared for them to hold you hostage. The success of this business rests entirely in the hands of the driver. I don't give a rats ass if your magna cum laude from Harvard University in business management. The drivers own the contractor if your management skills are sub par.
Honestly, please listen, ask terminal your interested in to introduce you to a contractor you can drive around with for a few weeks. Keep your eyes and ears open. If you were to find this, most likely management will have one of their own take you under the wing so don't believe everything you hear. BTW, what was gross last year or this year to date and what are they asking for the routes. Rule of thumb is 1.5 to 2 times NET earnings plus value of trucks. We get contractors trying to sell there routes and 99% of them pull a number out of their ass with nothing to support their valuation and how they came up with that number besides pulling it out of a hat.
Final advice: Do your due diligence. Good luck
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Thank you gixxer squid!! yours advice's are very helpful!! What is your opinion about starting with 4 FedEx Grounds and very little or no experience like me?
overflowed
Well-Known Member
STFXG can you just call Sasha please? PM him, something.
hypo hanna
Well-Known Member
Alex, if you dont mind my asking, do you have any experience in this industry? Trucking and or LTL P&D? How much experience?
STFXG
Well-Known Member
If you're going to be completely hands off make sure you have at least 5 drivers with one being a manager.
In my experience the hands off owners don't last long. Service suffers and they end up selling at a loss before fedex terminates them. I'm not saying it can't be done. Just that I haven't seen it done successfully at that size (4 PSAs)
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In my experience the hands off owners don't last long. Service suffers and they end up selling at a loss before fedex terminates them. I'm not saying it can't be done. Just that I haven't seen it done successfully at that size (4 PSAs)
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I'm new in this industry, came from IT, I was QA Analyst, but like to learn as much as can before go to P&D business.
I not planning to be hands off owner, I going to be full time manager and try to have approval from FedEx became backup driver. Correct me if I something don't understand....
STFXG
Well-Known Member
You have to have one year of driving experience within the previous three to get approved for driving. No way around it. Which means you will need a backup driver. You can ride along as a runner or to train, but you won't be able to drive.
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I know all IC have full time drivers and part time drivers, that what i'm going to start to do at the beginning if I take this PSA's to post adds everywhere to hire more drivers ...
Route 66
Slapped Upside-da-Head Member
alext, I'm worried about you, sir. I really think you should get at least a couple years experience working in the freight transportation industry in some capacity before committing to this. You sound like a decent guy and I would really hate to see you lose everything and end up in a world of hurt.
Think about it.
Think about it.
UpstateNYUPSer(Ret)
Well-Known Member
There is a great deal that you don't understand.
If you have money burning a hole in your pocket may I suggest you look in to becoming a franchisee.
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