Considering 3 PSAs: Need some help deciphering settlement sheets

[dandan14]

Hi,
I'm talking with an owner of 3 PSAs and 2 supps in North Carolina. He is looking to sell (but stay on as manager of the routes).
I'm considering this and trying to figure out if this is a business I want to invest in and if so, what the price would be.

At the moment, I'm going through his FedEx settlement sheets. In April, he sold a supplemental to another owner at the same depot. However, I can't seem to figure out how to subtract that supplemental out of the numbers (to figure what revenue would have been without that supplemental). It seems like supplementals just get blended into the primary PSA -- making it very difficult to separate.

So my questions are:
​
Is there a way to separate PSA and supplemental numbers?

What is the formula FedEx uses to calculate the revenue? (I assume it is a formula based primarily on pickup stops/packages and delivery stops/packages.)

Dan

 

[STFXG]

If you're looking at the settlements then you know how we are paid. In order to tell what the supplemental was doing take the average before April and subtract the average after April. You can also see the settlement statements at the terminal if you want to see how much volume each truck was doing. But you won't know how much he sold or kept for himself. Sounds shady if he wants to sell and say on to manage it. You won't make any money with only 3 routes with a manager. You'll need to manage it yourself.

 

[MrFedEx]

Hi,
I'm talking with an owner of 3 PSAs and 2 supps in North Carolina. He is looking to sell (but stay on as manager of the routes).
I'm considering this and trying to figure out if this is a business I want to invest in and if so, what the price would be.

At the moment, I'm going through his FedEx settlement sheets. In April, he sold a supplemental to another owner at the same depot. However, I can't seem to figure out how to subtract that supplemental out of the numbers (to figure what revenue would have been without that supplemental). It seems like supplementals just get blended into the primary PSA -- making it very difficult to separate.

So my questions are:
​
Is there a way to separate PSA and supplemental numbers?

What is the formula FedEx uses to calculate the revenue? (I assume it is a formula based primarily on pickup stops/packages and delivery stops/packages.)

Dan

Sounds like you're about to be taken. Talk with bbsam and STFXG about the numbers you need to see.

 

[dandan14]

Sounds like you're about to be taken. Talk with bbsam and STFXG about the numbers you need to see.

Thanks...I'll reach out to them.


I would think that a way for me to reduce my risk would be for the current owner to seller finance a portion (maybe 50%) of the sales price.
When you guys have seen other routes sell, do the sellers typically sell finance a portion for the new buyer?
​

 

[CJinx]

Not sure about someone selling their routes but staying involved with them after the sale. I could see if the state was transitioning to ISP and he wasn't up to scale, but this? Is he underwater on his finances? Has he had any nasty BD's with station management, or been sent any cure letters? lol

 

[dandan14]

How would I find out if this owner operator has been sent warnings? Is this something I could discuss with the station manager?

 

[Nick9075]

Don't do it, trust me on this. There are I think two contractors here who are just corporate shills or they must pay their drivers some obscenely low amount that it may border on (if it isn't) on illegal. If you other sights and actually talk to real people you will find that things aren't as hunky doory and it isn't all sunshine, lollipops & unicorns as the corporate lackeys, the person selling the route & any intermediary may want you believe it is...

 

[bbsam]

Full disclosure time Nick. What did you not know going in when you bought in? Who lied to you? Why are you still at Fedex when you have a willing buyer, would make.a profit on the sale, and have other career options? Something in you disillusionment with your choice to buy and remain at Ground doesn't add up.

 

[Nick9075]

Full disclosure time Nick. What did you not know going in when you bought in? Who lied to you? Why are you still at Fedex when you have a willing buyer, would make.a profit on the sale, and have other career options? Something in you disillusionment with your choice to buy and remain at Ground doesn't add up.

I am not going to explain everything on the internet to an anonymous group of people. All I will say is talk to other real people and look on other sites and you will see that they share close to my exact opinion.

 

[bbsam]

I am not going to explain everything on the internet to an anonymous group of people. All I will say is talk to other real people and look on other sites and you will see that they share close to my exact opinion.

Come now Nick. You share an opinion but you refuse to live that opinion in your own life? You have stated repeatedly on this forum to "an anonymous group of people" about how bad Ground is. You have stated to the same "anonymous group of people" that the local management was out to get you and could terminate your contract for any little infraction. You have nearly bragged to "an anonymous group of people" that you could sell the business for a $50,000 profit. But now you have some kind of aversion to posting? In light of all you have claimed, how is it that you are still at Ground? You do see the irony, don't you?

 

[CJinx]

Nick sounds like one of those contractors that struggles with his routes and regularly catches hell from management about it. He then sees other contractors not struggling at all and even growing/absorbing other routes while having friendly relations with management. He then chalks this up to favoritism and believes that the world is out to get him. He desperately wants to leave but he is afraid of change. He knows that by leaving the contractor model, he will no longer be his own boss and that scares him too.

 

[MaineGroundDriver]

Nick sounds like one of those contractors that struggles with his routes and regularly catches hell from management about it. He then sees other contractors not struggling at all and even growing/absorbing other routes while having friendly relations with management. He then chalks this up to favoritism and believes that the world is out to get him. He desperately wants to leave but he is afraid of change. He knows that by leaving the contractor model, he will no longer be his own boss and that scares him too.

Wow, sounds like you're describing a contractor I know.

 

[CJinx]

Wow, sounds like you're describing a contractor I know.

I'm sure I just described a lot of contractors out there. The one who constantly whine about how their settlement isn't enough, the one who's fleet of trucks is in shambles or replaced with rentals while theirs sit outside rusting, the one who's employees have to race each other to the bank to cash their paychecks because the last one there will bounce, the one who complains that management plays favorites(whether it be true or not). There are a lot of folks out there that have no business being in this business.

 

[northbound]

Wow, sounds like you're describing a contractor I know.

I'm sure I just described a lot of contractors out there. The one who constantly whine about how their settlement isn't enough, the one who's fleet of trucks is in shambles or replaced with rentals while theirs sit outside rusting, the one who's employees have to race each other to the bank to cash their paychecks because the last one there will bounce, the one who complains that management plays favorites(whether it be true or not). There are a lot of folks out there that have no business being in this business.

We will see these contractors weeded out sooner them later.

 

[Cactus]

I'm sure I just described a lot of contractors out there. The one who constantly whine about how their settlement isn't enough, the one who's fleet of trucks is in shambles or replaced with rentals while theirs sit outside rusting, the one who's employees have to race each other to the bank to cash their paychecks because the last one there will bounce, the one who complains that management plays favorites(whether it be true or not). There are a lot of folks out there that have no business being in this business.

All that makes Ground look really classy too.

 

[bbsam]

All that makes Ground look really classy too.

To whom? Most don't know the difference between Ground and Express.

 

[CJinx]

All that makes Ground look really classy too.

Bad apples in every bunch.

 

[Cactus]

To whom? Most don't know the difference between Ground and Express.

Quit making excuses.

 

[Cactus]

Bad apples in every bunch.

Well if Ground was a produce market they'd be shut down by the Health Department.

 

[MaineGroundDriver]

Funny how on my route, a new Express driver has taken over for one who just retired. I have heard several times the last few months about Express mis-deliveries, late deliveries, lost packages, etc. Yeah, Express looks awesome!