12yearsaslave
Well-Known Member
Over the years I've seen these discussions pop up across the interwebs, decided to share some experience.
I am still a current contractor. Over 10 years experience.
Couple of things to know from the start:
Can you make money in FedEx Ground/Home? Absolutely. We have steadily grown in HD averaging 10%-30% a year. I have yet to spend a dime to attract new customers.
Is it easy? Absolutely not.
Before you put any money into any business you should assess a lot of variables.
The entry floor (knowledge, experience, education etc) is pretty low in FedEx. All you need is a driver's license, a year of driving experience and a tolerance for cardboard.
Can you invest and have it managed for you? No.
The stress level is high. This is not a 9 to 5 job. You are never really done until the last package is delivered (you or employees).
Your contract is not guaranteed. It's pretty straight forward, they can pull it any time they want to. That being said, I've only seen a handful of contracts terminated, and those were some major failures committed across significant amounts of time. It won't happen overnight.
Now, what to look for if you do decide to invest:
Is Home/Ground or a mix? Home is Tue-Sat, Ground is Mon-Fri, mix is Mon-Sat. How do you like your weekends?
Is it a contiguous area? That is preferential obviously. It is easier to manage and is better for future growth.
Does the business have a management team? Makes life a bit easier and hopefully you can learn from them. (1 manager per 7-10 vehicles is a good rule of thumb)
The condition of the fleet. It might be an older fleet. Or a fleet of smaller vehicles which will have to be replaced with bigger vehicles. You can talk to the drivers to see what they think about their trucks.
There are some major changes on the horizon for us right now. ( 6 day operation, Ground/Home merger). Might be the best time to invest, might be the worst. Time will tell.
I am still a current contractor. Over 10 years experience.
Couple of things to know from the start:
Can you make money in FedEx Ground/Home? Absolutely. We have steadily grown in HD averaging 10%-30% a year. I have yet to spend a dime to attract new customers.
Is it easy? Absolutely not.
Before you put any money into any business you should assess a lot of variables.
The entry floor (knowledge, experience, education etc) is pretty low in FedEx. All you need is a driver's license, a year of driving experience and a tolerance for cardboard.
Can you invest and have it managed for you? No.
The stress level is high. This is not a 9 to 5 job. You are never really done until the last package is delivered (you or employees).
Your contract is not guaranteed. It's pretty straight forward, they can pull it any time they want to. That being said, I've only seen a handful of contracts terminated, and those were some major failures committed across significant amounts of time. It won't happen overnight.
Now, what to look for if you do decide to invest:
Is Home/Ground or a mix? Home is Tue-Sat, Ground is Mon-Fri, mix is Mon-Sat. How do you like your weekends?
Is it a contiguous area? That is preferential obviously. It is easier to manage and is better for future growth.
Does the business have a management team? Makes life a bit easier and hopefully you can learn from them. (1 manager per 7-10 vehicles is a good rule of thumb)
The condition of the fleet. It might be an older fleet. Or a fleet of smaller vehicles which will have to be replaced with bigger vehicles. You can talk to the drivers to see what they think about their trucks.
There are some major changes on the horizon for us right now. ( 6 day operation, Ground/Home merger). Might be the best time to invest, might be the worst. Time will tell.