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An interesting article in the papers
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<blockquote data-quote="Anonymous Coward" data-source="post: 75031"><p>just a thought... Fedex Ground and Home delivery are here to stay. There are alot of IC out there making money already. How long does it take for the average person to turn a profit on there investment when starting there own business? While they are growing and are already turning a profit, the MBE owners are losing money. If Fedex Ground can charge $2. less than UPS on the same ground pkg and still make more money on it, what is UPS going to do to prevent customers from switching over? The more volume the IC get the more profit they make. I already see IC splitting there routes and selling for a large profit and others contracting the work out. There are four major ground hubs opening in 2006 aloan and I expect them to be looking for some heavy volume shippers. 5 years is a short time to be able to grow the way they have. As there volume grows there routes will get smaller. The smaller there routes get the more IC there will be. Yes..they may have to pay into benefits and pension plan if they so choose, many have initial expenses (many one time, like buying the route and truck) but also enjoy alot of tax excemptions. yesterday on CNBC they were talking about Fedex compared to other companies in freight transportation. Analayist were saying Fedex had the strongest business model and were the "Cream of the crop". seeing nothing but positive growth in all operating companies and even more improved balance sheet. there stock was over $105. this A.M.</p></blockquote><p></p>
[QUOTE="Anonymous Coward, post: 75031"] just a thought... Fedex Ground and Home delivery are here to stay. There are alot of IC out there making money already. How long does it take for the average person to turn a profit on there investment when starting there own business? While they are growing and are already turning a profit, the MBE owners are losing money. If Fedex Ground can charge $2. less than UPS on the same ground pkg and still make more money on it, what is UPS going to do to prevent customers from switching over? The more volume the IC get the more profit they make. I already see IC splitting there routes and selling for a large profit and others contracting the work out. There are four major ground hubs opening in 2006 aloan and I expect them to be looking for some heavy volume shippers. 5 years is a short time to be able to grow the way they have. As there volume grows there routes will get smaller. The smaller there routes get the more IC there will be. Yes..they may have to pay into benefits and pension plan if they so choose, many have initial expenses (many one time, like buying the route and truck) but also enjoy alot of tax excemptions. yesterday on CNBC they were talking about Fedex compared to other companies in freight transportation. Analayist were saying Fedex had the strongest business model and were the "Cream of the crop". seeing nothing but positive growth in all operating companies and even more improved balance sheet. there stock was over $105. this A.M. [/QUOTE]
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An interesting article in the papers
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