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Driver Annual Renewal - Financial Info
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<blockquote data-quote="bbsam" data-source="post: 3441846" data-attributes="member: 22662"><p>Think about it as an investor. If you pay a million dollars for a contract and make 8% year over year, that’s doing pretty good.</p><p></p><p>A guy like me is looking for about 12%.</p><p></p><p>Now people look at spending a million dollars and immediately wonder how long it takes to make it back. That’s not the mindset of an investor. The investor looks at it as 8% ROI and looks to increase the value of the investment as well. The investor believes is sold on the idea that the value of the investment will increase over time as well as pay the 8% return. Viewed like that it can be attractive.</p><p></p><p>So in Fedex’s mind, what’s better? Paying out 8% profit margin or 12%?</p></blockquote><p></p>
[QUOTE="bbsam, post: 3441846, member: 22662"] Think about it as an investor. If you pay a million dollars for a contract and make 8% year over year, that’s doing pretty good. A guy like me is looking for about 12%. Now people look at spending a million dollars and immediately wonder how long it takes to make it back. That’s not the mindset of an investor. The investor looks at it as 8% ROI and looks to increase the value of the investment as well. The investor believes is sold on the idea that the value of the investment will increase over time as well as pay the 8% return. Viewed like that it can be attractive. So in Fedex’s mind, what’s better? Paying out 8% profit margin or 12%? [/QUOTE]
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