Contractor to ISP conversion

gixxer squid

Well-Known Member
Any luck selling?
Not yet. We have sent quite a few settlements out and a few meetings but this takes time, not sure anyone with common sense would want to get something before peak anyhow if they know anything about peak….. Still hopeful, if not, fedex life goes on and wasn't meant to be…..I try and keep a positive attitude :)
 

bbsam

Moderator
Staff member
Not yet. We have sent quite a few settlements out and a few meetings but this takes time, not sure anyone with common sense would want to get something before peak anyhow if they know anything about peak….. Still hopeful, if not, fedex life goes on and wasn't meant to be…..I try and keep a positive attitude :)
Good luck.
 

It will be fine

Well-Known Member
You may actually have better luck selling after you have an ISP agreement. You can sign a 5 year deal which has more value than the one year IC agreements.
 
You won't be able to sell before peak, as far as I know. They put a freeze in asset transfers in place really soon. We are hoping to squeeze a big transfer in, but they have to get it input in the next few days and hope for the best.

Station management basically told me to only go for a longer contract if you feel you got a sweet deal. Otherwise, with a change in package and stop volume, it can be better to negotiate more often. But an investor may not see things the same way...

This doesn't include the portion about a renegotiation mid contract due to a significant change in the business though. Still not sure how they would handle being asked to renegotiate mid contract.
 

STFXG

Well-Known Member
So management said you should shoot for a shorter deal... maybe so the company can get out of it if they need to?
 

It will be fine

Well-Known Member
Renegotiations occur often. No one gets a sweet deal. They want shorter terms because legally it's easier for them to "accept other bids" for a service area than to terminate a contract mid term. Banks definitely like the longer deals.
 

bbsam

Moderator
Staff member
Renegotiations occur often. No one gets a sweet deal. They want shorter terms because legally it's easier for them to "accept other bids" for a service area than to terminate a contract mid term. Banks definitely like the longer deals.
"Accepting other bids" comes with its own risks. Bringing in a new owner of a multi-route CSA is even more risky than terminating the contract of a single route owner, something I have never seen happen locally in 20 years. The company has to consider not only the legal ramifications, but as far as day to day functons go, "the devil you know vs the devil you don't know".
 

It will be fine

Well-Known Member
I saw quite a few single van guys terminated under the IC model. The biggest ISP I've seen go ran 9 routes. Management gives them time to sell and makes plans to cover the work if that doesn't work out. The vultures are always around to pick up free service areas. It's not that hard to cover the work, the drivers still need jobs.
 

clubmo

New Member
"Accepting other bids" comes with its own risks. Bringing in a new owner of a multi-route CSA is even more risky than terminating the contract of a single route owner, something I have never seen happen locally in 20 years. The company has to consider not only the legal ramifications, but as far as day to day functons go, "the devil you know vs the devil you don't know".
Do you know if we will get more revenue for what is currently called as up? We have 3 sups and all lose money bc we get no van availability, etc. We are hoping we will get more with ISP contract. Are we dreaming?
 

gixxer squid

Well-Known Member
Do you know if we will get more revenue for what is currently called as up? We have 3 sups and all lose money bc we get no van availability, etc. We are hoping we will get more with ISP contract. Are we dreaming?


I believe its more like hallucinating :) From what I have gathered. You may get more per stop and less per box, you may get more per box and less per stop, you may get more per stop and box but no fuel mileage……..Anyway you cut it, your not going to come out ahead because the number crunchers have everything in their favor. If you think you to good of a deal, you probably haven't read the fine print.

Fedex gives a rats ass whether you are loosing money or not, as long as its not "their" money thats being lost they could care less. Think about why the "ground and home delivery" model is their cash cow. No benefits paid whatsoever, they have no truck maintenance to worry about, they don't have to keep guys on payroll in the event someone doesn't show up to drive in their spot. Everything and I mean everything is on "YOUR" shoulders, its your burden the minute the contract is signed.

My advice again to you in order:
1. Sell as quick as you can
2. Join forces with another to spread risk which is a risk in itself
3. Buy more routes to get to scale
 

Cactus

Just telling it like it is
Yeah, it's almost as if you're a contracted service provider. :confused2:

Einstein.jpg
 

overflowed

Well-Known Member
The problem is that it's a crap contract that they attempt to interpret any way they want in order to attempt to extract UPS service at Walmart prices.
I think you boys in the next couple years will get hosed. This is just my opinion, but I think it will happen. This is their thinking, " when they get tired of what we do, they'll sell. Just another contractor we have to deal with. No thang but a chicken wing. " Same as us, just applying it to you guys.
 

gixxer squid

Well-Known Member
Yeah, it's almost as if you're a contracted service provider. :confused2:
I have no problem providing services that are contracted for. However, I do have a problem with one sided negotiations. We, as well as our employees, should all be making a decent living ( is $20-25 an hour so outlandish) we don't have to sign up for dumbo's obamacare which is socialist medicine at best on the backs of the 51% who actually contribute into the system.

I will strive to provide 100% service but in doing so, I hope, or rather expect to be compensated for doing so.

We get paid if our package is received. If we make an attempt and no one is there, we are not paid, we make a second attempt and no one available, we are not paid. Third and final attempt we are paid whether it is received or goes back. In the time I took boxes off truck, attempted delivery, properly wrote and left a door tag, should I not be paid as I attempted to deliver??????? We bring back a box and terminal asks why we brought so many 04's back and didn't re-attempt ( which I will often try on my pickup sweep). Well :censored2:, do you expect me to do it for free, time, energy, gas. I mean seriously, treat us your ISP provider as you expect to be treated.

BBSAM said it best. They pay walmart prices but expect UPS service!!
 

MAKAVELI

Well-Known Member
I have no problem providing services that are contracted for. However, I do have a problem with one sided negotiations. We, as well as our employees, should all be making a decent living ( is $20-25 an hour so outlandish) we don't have to sign up for dumbo's obamacare which is socialist medicine at best on the backs of the 51% who actually contribute into the system.

I will strive to provide 100% service but in doing so, I hope, or rather expect to be compensated for doing so.

We get paid if our package is received. If we make an attempt and no one is there, we are not paid, we make a second attempt and no one available, we are not paid. Third and final attempt we are paid whether it is received or goes back. In the time I took boxes off truck, attempted delivery, properly wrote and left a door tag, should I not be paid as I attempted to deliver??????? We bring back a box and terminal asks why we brought so many 04's back and didn't re-attempt ( which I will often try on my pickup sweep). Well :censored2:, do you expect me to do it for free, time, energy, gas. I mean seriously, treat us your ISP provider as you expect to be treated.

BBSAM said it best. They pay walmart prices but expect UPS service!!
Welcome to Fredex.:(
 
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