Buying a Fedex Ground Route

Discussion in 'FedEx Discussions' started by Xquestionman, Jan 12, 2016.

  1. bbsam

    bbsam Moderator Staff Member

    ELDP can be built by a contractor in 45 minutes. The "classroom" time can be done in a truck as a "helper" gaining route knowledge, customer service knowledge, scanner training and safety tips. The driving test can be one with questions and ideas taken from any state CDL test. It really isn't complicated and compared to having multiple driving jobs confirmed theough first advantage is probably far quicker on average.
     
  2. bbsam

    bbsam Moderator Staff Member

    Because if you read the finer details, it allows them to make Sunday a service day and allows them to move stops from other contractors into your area up to the right to decline number.

    i do subcontract some HD throughout but do you think i get any of that training money? Of course not.

    They calculate my surge stop threshold based not on my own CSA but based on the stops i have done the previous three months. Therefore, the extra 80 stops per day i take from HD increases what they now demand i do every day by 80 + x%.

    It's a bad deal all the way around. I stay staffed all year to handle up to my "Right to Decline" number. I see no reason to go beyond that to shuffle their money in and out of my checking account with very little staying there.
     
  3. It will be fine

    It will be fine Well-Known Member

    They can already make Sunday a service day with written notice. Not signing is just leaving money on the table to prove some point that no one cares about anyway. Management won't dump stops on someone that can't handle them just because they signed schedule K. It won't do them any good to just move the problem around to different contractors.
     
  4. bbsam

    bbsam Moderator Staff Member

    I suggest you read schedule K carefully. Any ISP can work Sunday if they want without schedule K. Schedule K expressly gives that determination to X as well. Unless you can show me somewhere else in the agreement where that is spelled out, i have to believe you are mistaken. Or is there some other reason that would be redu dantly added in schedule k?

    I make good money every peak and i don't have to bring in the inexperienced driver who has accidents, complaints, and low productivity to do it nor do i have to spend weeks training said waste of money.
     
  5. It will be fine

    It will be fine Well-Known Member

    Section 3.3 service days. It says Fedex may modify service days according to customer or competitive demand with notification given in writing in a time reasonable under the circumstances. It's the same clause they used to extend the peak Saturday's to everything between thanksgiving and Christmas. I think they added the Saturday before thanksgiving this year too.
     
  6. bbsam

    bbsam Moderator Staff Member

    Hmmmm. Could be. I still don't find the risk/reward to be worth it. I don't have a "peak plan" because my daily operation is built to handle my peak volume. Anything beyond that is their problem and they can keep the money.
     
  7. bacha29

    bacha29 Well-Known Member

    Moral of the story. The contract, it's theory, language and application is whatever X Ground says it is. Hope you guys don't get hemorrhoids wiping your a* ss with it.
     
  8. bbsam

    bbsam Moderator Staff Member

    Maybe. They seem to make a bigger deal of me not signing schedule K than I do.
     
  9. It will be fine

    It will be fine Well-Known Member

    I think local management catches a lot of crap if they have to bring in temps now. If you don't sign they have to worry about your area going over the decline threshold. I think they also take pride in their manipulation skills, they can brag to the other managers in the area about getting all their contractors to sign.
     
  10. bacha29

    bacha29 Well-Known Member

    No question that temps are budget killers and TM bonus's are impacted if they don't stay on them. Therefore regardless of the volume limits set forth in the IC/ISP agreements you the contractor will always get far more than the contracted volume dumped on you especially the money losing kind. The most beguiling part of the entire experience is how they shove in your face a contract containing terms to which they have absolutely no intention of complying with themselves.
     
  11. Exec32

    Exec32 Active Member

    Fedex does get there money no matter who ones it, however we all know it cost them A LOT more when they have to service it. Not to mention the daily liability they love to pass on.
    I've seen it first hand for 16 months, wonderful watching them suffer.
     
  12. Exec32

    Exec32 Active Member

    With ISP is the decline threshold negotiated?
    Is the threshold different from peak to the rest of the year?
    Is the " schedule K" an addendum that you can decline?
    Is not easier to know your threshold, determine your capacity and resource utilization and not go beyond that, thus not signing schedule K be the best wAY to protect your contract?
     
  13. Exec32

    Exec32 Active Member

    Seems to me the ISP model by its nature has eliminated Fedex ability to manipulate areas and offer them to other contractors by piecing out the real estate.
    This is an unintended consequence for X.
     
  14. chuckbeyor101

    chuckbeyor101 New Member

    If you want to start this conversation on fedexcontract.com I think you will get some valuable input
     
  15. STFXG

    STFXG Well-Known Member

    From the 2 members? Fedexaminer is more active.
     
  16. SecondTier Driver

    SecondTier Driver Active Member

    I was going to say something similar. Not too impressed at the moment
     
  17. dvalleyjim

    dvalleyjim Active Member

    Obviously he must be talking about the net, after his operating expenses are subtracted this makes 30 percent of his pay, and 70 percent is incentive based. I agree it would be better to get more on the operation end instead of have money they can take away but what are you going to do? Sell?
     
  18. 12yearsaslave

    12yearsaslave Member

    Been doing their QA, VRP, sort for years...never thought to invoice them.
    Good idea.
     
  19. Bounty

    Bounty Active Member

    All true, it is a good idea and you should be able to bill them. The problem is you are thinking like an independent business owner. Which we all know is not the case.
     
  20. dmac1

    dmac1 Active Member

    You can't bill them. Fedex already quoted them a price. You are contracted to fedex, not their customers. You can give fedex an invoice daily for the work you agreed to do for them if you want, but not their customers. You have no contract with the customers of fedex. For you to invoice them would be like me invoicing you.