MrFedEx
Engorged Member
The FACT remains...Ground is heavily subsidized.
Ground Is Good!
- Thread starter MrFedEx
- Start date
The FACT remains...Ground is heavily subsidized.
Brown287
Im not the Mail Man!
Hello BbScam, I'm done complaining about the obvious. As far as my brother he has since moved on to bigger and better things, but trust me the foul taste of ground is still on the tip of his tongue. This driver lives in the same complex as my girlfriend and I just happened to be there as he was coming home. No agenda on my part just sharing what I was told. What this shows me is that perhaps more and more contractors are experiencing the same thing. In that hub he said that nearly half of the routes are owned by the same contractor. I say that's great news. You see with that many employees you are no longer a "small business owner" and are no longer shielded from requirements like healthcare. Also these contractors need to now be eyeful of their location being unionized. Just saying that in life there really is too much of a good thing.
I think it's possible to go several points above the stated percentage allowed in a building, but probably not an entire building. I do have a theory, however, that Fedex is not finished paring down the number of ISPs and contractors they use. I think they have it set up so that many will fail and sell to other existing entities who have shown ability over time. One thing I know about this company is that we are constantly being evaluated not only against numbers but against each other. FEDEX has every possible metric available to grade ISPs and contractors.
from their perspective, if a contractor can't find a way to handle $1,000,000 worth of business, they aren't in a hurry to double it.
Brown287
Im not the Mail Man!
I personally know the contractor who seems to own half of the routes. He seems to be a fair person who seems to provide what he can. Obviously though you can't always make chicken soup out of chicken crap. The point is that I'm sure a lot of contractors would like to be in a position to pay more but a lot seem to not be able to. I see that as FedEx failing not necessarily the contractor. Their high profit margin is coming from somewhere and it doesn't take a rocket scientist to figure it out. This is why they have the turnover they do and the low morale they do. At the end of the day assuming the BbScam is the exception, he still is just that. The exception. I'm not holding my breath though.
And that's why I think you will see the number of contractors shrink. FedEx is going to start cutting out middle men. Think about it. If they go from 10 contractors in a building to 5, and each contractor was making $100,000, they have potentially freed up ALOT of cash.
say I take on the routes of one of the deposed contractors. I immediately make things more efficient with lower overhead. I already have the accountant, lawyer, etc. I can rearrange routes to make them more efficient. I can take &25,000 as my own raise and distribute the rest in raises or equipment upgrade. How much did it cost Fedex? $0. But(and this is a huge but) they have to know that they are keeping the right people in those positions. We are being scrutinized every day, no doubt in my mind.
say I take on the routes of one of the deposed contractors. I immediately make things more efficient with lower overhead. I already have the accountant, lawyer, etc. I can rearrange routes to make them more efficient. I can take &25,000 as my own raise and distribute the rest in raises or equipment upgrade. How much did it cost Fedex? $0. But(and this is a huge but) they have to know that they are keeping the right people in those positions. We are being scrutinized every day, no doubt in my mind.
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MrFedEx
Engorged Member
My guess is that the deposed contractors aren't going to be leaving as happy campers. This seems to have been long prevalent at Ground, as those who can't cut it are killed-off, and then the vultures come down to feed on the carcass and buy the route and vehicles for a song. Time for Stalin to make another purge so he can get more profit?
MrFedEx
Engorged Member
You would be in the position to know. Ground routes used to be cheap because a lot of folks got-in, decided it wasn't for them, and got out, losing their asses in the process. I still occasionally see a Ground business for sale at much less than one would expect to pay. Maybe they were just a lousy businessperson, or maybe the contract gives too much to FedEx. This is just another reason why you'll never see decent wages or benefits at Ground. Maybe Fred should be content with 8.75% profit and create an opportunity for a fair wage job with benefits.
Code 82 Approved
Titanium Plus+ Level Member with benefits!
I don't think you can get into my terminal for less than $100k/single route. I've watched people at the guardshack give up a truck and route for $5000.
MrFedEx
Engorged Member
Exactly. It sounds like you're meant for better things than Ground.
Code 82 Approved
Titanium Plus+ Level Member with benefits!
Thanks. I'm not dumb, I'm not wise. I'm not stupid either. I'll keep you posted in privvy if you really want to know.
Code 82 Approved
Titanium Plus+ Level Member with benefits!
mfe 2/new of my original swing routes never got offered to me so we are 4/7 never to be offered to me.. kinda pisses me off.
Code 82 Approved
Titanium Plus+ Level Member with benefits!
My route was going to be sold to me at my guy's discretion. OOps sudden omfg he got his contract yanked. This guy was well off so he didn't really give a rat's ass. He knew I could succeed, and would have loaned me the money to do it. He had about 12 hours to get out with an established contractor. I drive that route today 4 yrs later. Grrrrr
northbound
Well-Known Member
Takes time to yank contract it doesn't just happen like that. $100k for single route is nuts.
