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Buying a Fedex Ground Route
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<blockquote data-quote="echo" data-source="post: 2035246" data-attributes="member: 61926"><p>You guys covered it all pretty well. I've been doing HD 13 years and yeah the growth is off the chain which is what you want in a business. In my former life I was in management. With X I never expanded and just ran 1 route. Why ? Because X's model breaks a primary business rule that you have all identified. Your staff wil make or break you. I ran solo and put 14 hour + days in because I wanted it to go smooth daily and put as much in the bank as I could. In other words I already knew I was screwed and facing a long day rather than getting the " I Quit" phone call at 6 am. Finally hired a supp this past Nov and kept him on while trying to sale my route. The supp is top notch but he has a reason for doing this due to taking early retirement he needs to get his 40 quarters in. The contractors I see with the least turnover have high volume areas where the driver can be done by 3 or 4 pm and still pay for themselves. The rural areas have high turnover due to a much longer day and you can't pay enough to keep them. One of the most successful contractors simply had a large family. Had cousins brothers etc. driving and they show up everyday. One of the unluckiest contractors had 2 employee's that were roomates and one of them lost the keys but was parked behind the other truck. So mid december the contractor is short 2 employees and 2 trucks. The rest of the business model works. It is not bad money. The turnover is the biggest challenge.</p></blockquote><p></p>
[QUOTE="echo, post: 2035246, member: 61926"] You guys covered it all pretty well. I've been doing HD 13 years and yeah the growth is off the chain which is what you want in a business. In my former life I was in management. With X I never expanded and just ran 1 route. Why ? Because X's model breaks a primary business rule that you have all identified. Your staff wil make or break you. I ran solo and put 14 hour + days in because I wanted it to go smooth daily and put as much in the bank as I could. In other words I already knew I was screwed and facing a long day rather than getting the " I Quit" phone call at 6 am. Finally hired a supp this past Nov and kept him on while trying to sale my route. The supp is top notch but he has a reason for doing this due to taking early retirement he needs to get his 40 quarters in. The contractors I see with the least turnover have high volume areas where the driver can be done by 3 or 4 pm and still pay for themselves. The rural areas have high turnover due to a much longer day and you can't pay enough to keep them. One of the most successful contractors simply had a large family. Had cousins brothers etc. driving and they show up everyday. One of the unluckiest contractors had 2 employee's that were roomates and one of them lost the keys but was parked behind the other truck. So mid december the contractor is short 2 employees and 2 trucks. The rest of the business model works. It is not bad money. The turnover is the biggest challenge. [/QUOTE]
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