FedEx Routes the right way to go?

[Grimreaper11368]

It would be a terrible idea to buy multiple contracts all at once, probably not very practical anyway with how long the process takes with FedEx. Even shadowing your friend, you’ll learn a lot with your first one and have a much better idea what to look for in a second. You don’t want to compound any costly mistakes by making them over 3-4 contracts instead of 1. After you get one going you might even be able to pick up distressed areas for free and use your capital for only equipment instead of buying another contract.

To another of your questions further down, I think FedEx is currently weeding out contractors that are less adaptable to improve their base for the transition to One FedEx. They’ll have to increase compensation some to maintain service when they make that switch. It won’t be a ton of money but they’ll need a more stable contractor base going forward. A lot of people got in or expanded during Covid and don’t know what they’re doing. Many overpaid for contracts and are going bankrupt because of the debt they’re carrying.

Really good advice about what's actually going on. Thanks for bringing some clarity to the chaos. So they will weed out certain contractors to become more efficient. Then it's more of a waiting game. I think Covid did give this false sense that the packages were just gonna keep coming as in Covid sped up the transition to online shopping and had many believing that it would just snowball more and more, as in the reliance on online shopping wouldn't eventually retract. It makes sense when you look at it that way. So in a way this is a natural re-normalizing period, where slowly but surely the FedEx community will force itself to become more efficient in a way? But if that's the case, do you think getting involved will eventually be easier or harder in the future? Thanks, man.

 

[Grimreaper11368]

Really good advice about what's actually going on. Thanks for bringing some clarity to the chaos. So they will weed out certain contractors to become more efficient. Then it's more of a waiting game. I think Covid did give this false sense that the packages were just gonna keep coming as in Covid sped up the transition to online shopping and had many believing that it would just snowball more and more, as in the reliance on online shopping wouldn't eventually retract. It makes sense when you look at it that way. So in a way this is a natural re-normalizing period, where slowly but surely the FedEx community will force itself to become more efficient in a way? But if that's the case, do you think getting involved will eventually be easier or harder in the future? Thanks, man.

Kinda like in the stock market, where it'll experience these natural pull backs.

 

[MAKAVELI]

Oh, wow. That sure is a resolute answer. I see. I definitely should consider other ventures then. Well, I didn't know any other place where I could easily find FedEx independent contractors. So this may not be the ideal place, just as you say. Do you know any other legitimate places where I could find FedEx independent contractors? It seems like car washes seem like a more stable business venture at the moment. Of course, no business is going to be perfect. But we have to try to do our best to research any way we can before throwing our money away, especially since money is so so difficult to come by in large amounts these days. I'm just trying to do my best. It's not easy. I was interested in car washes other than FedEx because I liked the idea of having a set place to go, one of two car washes that I could go and learn how to run. FedEx is a different beast because it's so many trucks and stations and packages. I mean to say, FedEx has much more moving parts then something like one or two car washes. Of course, I would also only buy established car washes. It seems much more safe than starting one in my own due to my lack of experience. Thank for answering. You guys/gals have been quick to try and offer them the wealth of insight you have and that's so cool that you can find a place like this with people who know more about something then you and yet are still willing to share. Truly grateful to everyone who has shared. Thanks again!

Would all of these problems be fixed and make FedEx routes a great investment if they had been offering a bit more to the contractors? What I mean to say is, if they decided to give more to contractors tomorrow, is the condition so bad that it would still take time for this investment to be worth it again? It's kind of hard to explain it what I mean. Like, if I chose not to invest in FedEx today and went with the car washes then five weeks from now they come to an agreement with the contractors, would it be like damn I missed on the opportunity and not it's suddenly fixed. Maybe I should have invested anyway? Or has more damage been done than what could simply be fixed from one day to the other if FedEx chose to stop being greedy? Hope I'm making some sense.

You're not going to find much honest opinions from current contractors as they don't want to hurt their ability to sell their routes and the value of them. FedEx in general is a dumpster fire right now and really not a good investment.

 

[Grimreaper11368]

You're not going to find much honest opinions from current contractors as they don't want to hurt their ability to sell their routes and the value of them. FedEx in general is a dumpster fire right now and really not a good investment.

Yeah, hahaha, didn't realize the conflict of interest. It seems like the opinion is unanimous, however. It can't be that everyone is saying the same thing for various reasons by chance. Thank you all! I'm still reading everything, though, since I'm learning more and more of the minutiae by interacting with you guys. A little bit here, a little bit there.

 

[bacha29]

Hi, I'm new to the community. I posted something about half an hour ago and it was deleted. But I wasn't sure what I did wrong. I looked through the policies. I didn't seem to run afoul of anything. I was just genuinely looking for some real unbiased information on these FedEx routes and how they would hold up to another of my business interests: car washes. I figured this would be the best place to get advice from people who either own or work closely with these FedEx routes. Thanks.

As a 23 year Day 1 former contractor I can sum it all up in 2 simple words.......NOTHINGS BINDING1.
There is not a single term or condition in that unilaterally drafted and implemented 1 year contract that is binding upon Fedex .
The reason is very simple.
There is simply no governing legal authority in place with the power to make it binding. As a result they just go on their merry old way doing whatever they damn well please. And that's the indisputable fact.
Think it doesn't matter? Let me show you why it matters:
Fedex required that we become Sub Chapter S Corporations. In addition it reserved the right to on demand access to our S corps accounting and payroll records for their so called "confidential audit and review" . The real reason was completely obvious.
They were checking to make sure we weren't making out too good in their estimation.
Now never mind the fact that this is privileged information protected under US privacy laws.
No matter what the contract might say or whether what's in it is legal or not there is no means available to make them abide by it. The contract means absolutely nothing.
When I was ordered to turn over my records....that was the last straw for me, Any doubts that they can do whatever they wanted
with no contractor recourse was gone at that point.

Right now there are plenty of high quality bond funds and ETF's paying 6% and more with nowhere near the level of risk.
And that's about the same annual return as you'll ever get out of a bunch of FDX routes . And you'll be damn lucky to get that.
Remember, you're buying an item convinced that it's going to go up in value. Trouble is you're buying it from someone who is
equally convinced that it's going to go down.

Oh BTW. To survive at it you'll have to find somebody willing to go out there 6 days a week and match the daily production of the average UPS driver for half the wages and zero benefits.....Good luck finding somebody who will take that deal.

 

[It will be fine]

Really good advice about what's actually going on. Thanks for bringing some clarity to the chaos. So they will weed out certain contractors to become more efficient. Then it's more of a waiting game. I think Covid did give this false sense that the packages were just gonna keep coming as in Covid sped up the transition to online shopping and had many believing that it would just snowball more and more, as in the reliance on online shopping wouldn't eventually retract. It makes sense when you look at it that way. So in a way this is a natural re-normalizing period, where slowly but surely the FedEx community will force itself to become more efficient in a way? But if that's the case, do you think getting involved will eventually be easier or harder in the future? Thanks, man.

I’d take any financials you’re seeing and try to project the revenue with declining volume for at least a year. I’m not sure if it will be easier or harder in the future. I do think volume will start to increase again at some point. That’s why I say you’ll be buying at the bottom right now. Beside the last few years the biggest problem has been efficiently handling growth and I expect that problem to return.

 

[FedexCares]

With all the uncertainty around this company for the foreseeable future as far as the combining of opcos (ground and express) and how that’s all going to shake out, I personally would stay far away.

From what I have read on here over the years the contractors get squeezed more and more every year and there isn’t a damn thing you can do about it. I doubt it’s going to get better with the upcoming merger.

 

[Nolimitz]

Why would you want to buy a contract and not be a real stand alone business owner?
Im retired from Express and as noted the company has no real direction going forward. A lot of smoke and mirrors imho.

 

[bacha29]

Why would you want to buy a contract and not be a real stand alone business owner?
Im retired from Express and as noted the company has no real direction going forward. A lot of smoke and mirrors imho.

I just had a PM with the guy. What he's telling you about his business interests and car washes etc. The more he talked the more obvious it was that the whole damn story is a lie.

 

[Grimreaper11368]

I just had a PM with the guy. What he's telling you about his business interests and car washes etc. The more he talked the more obvious it was that the whole damn story is a lie.

Whoa, they were right about you lol. I asked you to suggest an alternative, say that I'm willing to work. And you come and tell me about gaining 6% passive investments. I'm gonna attach my last message to you. You don't need to be disrespectful lol, like a child throwing a fit after I countered your 6% passive investment with car wash thing my guy. Why would I lie? Insane. Waste my time with all this for what?

 

[Grimreaper11368]

Whoa, they were right about you lol. I asked you to suggest an alternative, say that I'm willing to work. And you come and tell me about gaining 6% passive investments. I'm gonna attach my last message to you. You don't need to be disrespectful lol, like a child throwing a fit after I countered your 6% passive investment with car wash thing my guy. Why would I lie? Insane. Waste my time with all this for what?

Actually, I haven't made up my mind. You need not be disrespectful either. But, as I said before, I want to make more than 6% interest and am willing to work to do that. In other words, I don't want a passive investment. I want an active investment, and I told you I was willing to work. But you came back and offered me a passive investment. So, I'm asking again, other than the 6% passive investment, what's the best ACTIVE investment you would suggest? It's known that active investments can make more than passive investments. So gimme your best shot.

 

[Grimreaper11368]

Why would I lie about this and not expose my name or any personal information.
As soon as I told you a range of how much I'd be investing, when you asked btw, you said said something to the effect of "if it's the amount you say it is." Why would you question that? I gave you no reason to. Then, again, you tried to recommend me to your financial advice guy, who works with passive investments, after I told you I want to work it. Lol

Have a good day. Thanks for trying to help, in either case.

 

[bacha29]

Why would I lie about this and not expose my name or any personal information.
As soon as I told you a range of how much I'd be investing, when you asked btw, you said said something to the effect of "if it's the amount you say it is." Why would you question that? I gave you no reason to. Then, again, you tried to recommend me to your financial advice guy, who works with passive investments, after I told you I want to work it. Lol

Have a good day. Thanks for trying to help, in either case.

It is not incumbent upon the contributors to this site to backstop your decisions or to minimize your risks. There is no shortage of professional advisors and funds manager ready and willing to help you in exchange for standard professional fees. This is definitely not the place where you'll find what you're looking for....Unbiased, qualified, analysis of the industries you are considering entering. Go bother them. At least they get paid for it.

 

[Grimreaper11368]

Why would I lie about this and not expose my name or any personal information.
As soon as I told you a range of how much I'd be investing, when you asked btw, you said said something to the effect of "if it's the amount you say it is." Why would you question that? I gave you no reason to. Then, again, you tried to recommend me to your financial advice guy, who works with passive investments, after I told you I want to work it. Lol

Have a good day. Thanks for trying to help, in either case.

Bro, those twenty something odd years working FedEx like you said screwed you up. No need to be rude or respectful or question my integrity. you got issues man. Deal with them.

 

[Grimreaper11368]

It is not incumbent upon the contributors to this site to backstop your decisions or to minimize your risks. There is no shortage of professional advisors and funds manager ready and willing to help you in exchange for standard professional fees. This is definitely not the place where you'll find what you're looking for....Unbiased, qualified, analysis of the industries you are considering entering. Go bother them. At least they get paid for it.

You have no obligation to contribute, don't contribute and then complain about it. I'm off this. Take care of yourself, man.

 

[Grimreaper11368]

BTW, bacha will be along any minute now with a TLDR post about FedEx contracts non binding, jing weeds, and replacement hips made from recycled golf clubs. Bottom line is his advice is run far away from FedEx. I’d advise putting him on block now like I did years ago.

You were right hahahahaha

 

[It will be fine]

Bro, those twenty something odd years working FedEx like you said screwed you up. No need to be rude or respectful or question my integrity. you got issues man. Deal with them.

He hasn’t held a contract in over ten years. He never ran it as a business when he had one. He was one guy with one truck. He’s basically an old man that likes to hear himself talk.

 

[Grimreaper11368]

He hasn’t held a contract in over ten years. He never ran it as a business when he had one. He was one guy with one truck. He’s basically an old man that likes to hear himself talk.

In that case, I'm not gonna continue arguing with him. He's my elder, and I don't want to stoop to the same level. Two wrongs don't make a right, after all.

 

[bacha29]

In that case, I'm not gonna continue arguing with him. He's my elder, and I don't want to stoop to the same level. Two wrongs don't make a right, after all.

Seek the advice and analysis of the industry's top professionals. People like Broughton Capital. Not people like me or It Will Be Fine. He's just another contractor one of 6k who operates on a completely nonbinding unilaterally drafted and implemented 1 year contract who regardless of scale can be disposed of in an instant and would not be missed.

Now everybody on here has told you not to do it. That is ALL we can do

 

[Grimreaper11368]

I'm not doing the FedEx that's for sure.