Good price for purchasing fedex routes?

Cflfdx

Member
Considering a cash offer, would 1-1.5x "net" + vehicle equity be a decent purchase price for fedex routes?

Net numbers based on manager run op, with owner doing mostly admin work, and not acting as a daily driver/manager working 20hrs a week more or less.
 

It will be fine

Well-Known Member
Considering a cash offer, would 1-1.5x "net" + vehicle equity be a decent purchase price for fedex routes?

Net numbers based on manager run op, with owner doing mostly admin work, and not acting as a daily driver/manager working 20hrs a week more or less.
That would be a very good deal. They typically go for 3-5x net. I wouldn’t expect to only work 20 hrs a week as owner, it takes a lot more than that.
 

Cflfdx

Member
That would be a very good deal. They typically go for 3-5x net. I wouldn’t expect to only work 20 hrs a week as owner, it takes a lot more than that.

Can you tell me what an owner does exactly that is not driving on a regular basis? If he has a solid manager in place that handles the day to day op...
 

OrioN

double tap o da horn dooshbag
I got diss, @bbsam

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:raspberry-tounge:

(Don't be using yo mod powers & deleting this... U knows it's da troof!)
 

OrioN

double tap o da horn dooshbag
giphy.gif


Then hops in the low ridah & has a proper lunch:

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While his minions will have this on a hot dog:

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I bet it the same thing! Just the name brand...
 

It will be fine

Well-Known Member
Can you tell me what an owner does exactly that is not driving on a regular basis? If he has a solid manager in place that handles the day to day op...
I don’t drive much anymore but I’m busy most days. I’ll spend 3-4 hours at the terminal in the morning for dispatch. You have to fix everything FedEx screws up overnight, wrong load plan, wrong trucks in the lineup, lights left on, straight trucks not plugged in outside, etc. I’ll meet with Fedex management to go over what my people screwed up the day before. I’ll chat with other contractors, networking is key to success, they’ll help you when you really need it as long as you return the favor.

Then I’ll head home. I’ve got payroll to run, load plans to map out so clearly a toddler could input them but FedEx will still screw up, keep up with all the other paperwork admin stuff, etc.

I’m not super efficient with my time so I suppose if you are you could get by with 20hrs, but it’d be hard. Your manager would have to be a rock star and you’d need multiple redundant backup drivers for everything that comes up daily for them to able to handle all the FedEx nonsense and never drive. That would suck up most of your profit.

I haven’t seen a true absentee owner ever be really successful. There are plenty that never drive but they are still around at least once a week, the best are there daily.
 

OrioN

double tap o da horn dooshbag
I be lucky if I see the owners once a year...

but I'm in an investor group & the BC s are running the daily ops. Are they doing ok? I have no idea since I'm self sufficient
 

bbsam

Moderator
Staff member
Honestly, there are days I wish I was just running a route. Sometimes when someone is on vacation that is all I do and let my BCs take care of everything else. Sometimes dealing with all the stupid is just too draining.
 

It will be fine

Well-Known Member
I be lucky if I see the owners once a year...

but I'm in an investor group & the BC s are running the daily ops. Are they doing ok? I have no idea since I'm self sufficient
That’s too much faith in a BC for me. Your whole investment would be in the hands of a manager with nowhere near as much to lose. I couldn’t do it and the ones I’ve seen try it aren’t around very long.
 

OrioN

double tap o da horn dooshbag
Yup, it's y they only get dedicated people to do it... I turned them down multiple times
 

bacha29

Well-Known Member
Considering a cash offer, would 1-1.5x "net" + vehicle equity be a decent purchase price for fedex routes?

Net numbers based on manager run op, with owner doing mostly admin work, and not acting as a daily driver/manager working 20hrs a week more or less.
Look, you're not going to be satisfied until you sink everything you've got into a venture with risks that cannot be ignored or mitigated.Furthermore , every move,every decision, every operational change Fedex decides to make it's interests will always be placed ahead of yours. You simply don't matter

The only number that you need to pay the closest attention to is the number 1. Why, because it's a 1 year contract. Furthermore the company operates 1 quarter at a time and given the troubles it's currently experiencing this upcoming quarter could be one of the most consequential in it's history.

So go right ahead .....cherish the experience. But just remember at this moment there is a person out there you don't even know upon whom you are totally dependent on to come in every morning regardless of the weather and go out there and defend your personal economic interest for a fraction of the going pay rate.........Maybe you'll find enough of them and then again maybe you won't .......but what is for certain is that you can't MAKE somebody accept your offer.
 
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