Would like to purchase 3-6 Fedex ground routes.

Discussion in 'FedEx Discussions' started by Sharkboy, Jan 10, 2013.

  1. Sharkboy

    Sharkboy New Member

    Been looking online and too many posting from brokers are expired. Can anyone point me in the right direction? Perhaps a place where driver/owners post. You can message me directly or post here. Thx
  2. Iamstone

    Iamstone New Member

    Hey Shark, I'm also in the process of buying a route. I've posted on here a couple of days ago but never received a response from anyone. :(

    Have you done any due diligence? Any research?
  3. STFXG

    STFXG Well-Known Member

    We like to watch new guys dive in and sink or swim. When you screw up we get free routes.
  4. MrFedEx

    MrFedEx Engorged Member

    One would think they wouldn't want clueless people right off the street, or maybe that's exactly what they want.
  5. Nick9075

    Nick9075 Member

    The contract is only for a year. There is no guarantee of renewal. If you do not get your contract renewed you basically have forfeited your entire investment. I am being proactive for this reason and in the process of selling my three routes -- I have until end of July
  6. MrFedEx

    MrFedEx Engorged Member

    Wow. Nothing like taking a risk, eh? So, if you invest in a couple of trucks and own 3 routes, and FedEx does not renew, how much do you stand to lose or gain from selling-out?
  7. overflowed

    overflowed Well-Known Member

    Weren't you on here not long ago asking about ground routes? I may be confused sorry if thats the case.
  8. Nick9075

    Nick9075 Member

    Yes it was a bad decision but I have six months to find a buyer
  9. overflowed

    overflowed Well-Known Member

    Want to enlighten us and give a general idea why it was a bad decision. If it's too personal I totally understand. Just so no one else has a bad experience. hope all works out Nick.
  10. HomeDelivery

    HomeDelivery Well-Known Member

    he was barely making any profits after expenses... but he's also in an area where the costs of living is high & he needs to pay probably a bit higher if he wants to keep competent drivers that won't cause too many disputed deliveries / customer claims

    that's just a guess after reading some of his posts

    i was going to be a single owner-operator, but his testimony & closeness to my area showed me otherwise
  11. MrFedEx

    MrFedEx Engorged Member

    Please enlighten us, and other potential contractors.
  12. Schlepper

    Schlepper New Member

    Getting three to six all at one time would be a bad call. I'd do two at the most, preferably one with an established driver. I know a guy that did just what you wanted to, and ended up getting three routes. He then got a fourth, got a free PSA from the terminal for a fifth. Problem is, his drivers suck and he has two or three of his PSAs split in half running supplements because the people running them can"t handle the entire area. That's the fast track to completely losing your ass. Sad part is, he'll take on additional supplements just to please the terminal in hopes of having those sups turned into PSAs (as if any of those supplements will get converted to PSAs anytime soon...pipe dream).

    Long story short, I'd drive for a contractor for at least 6 months so you can see that side of it before you buy in. I had the same aspirations, but after seeing the contractors getting screwed (thresholds raised incrementally, core zones being whittled away at) and seeing how the dudes under the contractors get screwed, it's just not something I'd be a part of. Some guys like it, and if you can find a reliable guy to work for you @ roughly 600/wk you'd probably be ok provided your volume is steady and good. Rural or urban? Distance from terminal? Lots of factors at play here.

    The point is, you have the make the numbers work. Supplementals rarely benefit you. Dependent on the PSA you run them off of, you can either help or hurt your core zone. Factor in van availability, etc. and see if you can actually profit with a sup. The best scenario is to get away with running one van per PSA and not splitting it up. As soon as you split one PSA into a PSA and sup you can just watch your profit dissolve. At least drive for a contractor for a while to see what it's all about and get some inside baseball knowledge before you fork over any cash to anyone.