ISP branding & defined area

[Exec32]

Has anyone declined branding for all trucks?
Can you make up the revenue elsewhere?
What is X doing to contractors when trying to define areas?
*Are TM manipulating that process to favor in town dense ISP?
Is the settlement based on each truck performance, or is the ISP paid one settlement as a whole each week?

 

[It will be fine]

Has anyone declined branding for all trucks?
Can you make up the revenue elsewhere?
What is X doing to contractors when trying to define areas?
*Are TM manipulating that process to favor in town dense ISP?
Is the settlement based on each truck performance, or is the ISP paid one settlement as a whole each week?

I don't know anyone that's declined branding for their whole fleet. A handful of guys have 1 truck without it. You can't make up the revenue in another bucket. You can see for yourself when you're negotiating. Opt out of branding on a proposal and they'll respond by taking a ton of money away in other buckets as well as branding. They say it lowers the value of your CSA.
Not sure what your second question is asking. Areas should already be defined by psa in the IC model.
ISP is one settlement per terminal you operate in, broken down by driver.

 

[Exec32]

Thank you for your response. You have often been able to assist another contractor with the information you provide. I respect that a lot.

 

[Exec32]

Just curious,,,
I understand X encourages the contractor to allow X to make the first offer, or proposal in the negotiating phase of ISP.
That is a terrible way to negotiate.
1. If you know your cost
2. If you know your resource allocation
3. If you determine your acceptable net

Why not open up the negotiation with your own number.
I'm not asking for specifics just wondering if anyone has or knows of anyone starting out with their own benchmark or anchor $$$.
Everyone I talk to said "I'm gonna see what they start off with" , that seems like a terrible option.

 

[FedGT]

I don't see why it would matter one way or the other. I've negotiated many deals and I would always prefer to know a starting point from the other party. In this situation they already know what they are going to accept going in so it makes no difference if the contractor is 25% higher than their max or hears FedEx number first they are still going to start at the same level. I think you may have more to lose by overshooting at what they may think is ridiculous. I know if someone was wanting me to buy at 200%-500% or higher than the previous years gross I would counter back at 50-75% just because they are ignorant.
Just saying

 

[It will be fine]

Fedex making the first offer is new, they just started that a few years ago. It used to be we had to make the first offer. It doesn't make a difference. Their first offer or first counter is total garbage. Unfortunately now it doesn't get a whole lot better. They are in a take it or leave mode and don't care one bit about your profit or your costs. Neither of those will even be discussed by them. Their only line is "this is what we value your CSA at." Full stop, that's it, you can talk to the guy for hours and it will be the same result as that one line. Nothing you say matters or makes a difference beyond trying to get the guy to like you so you can get higher on the scale they're willing to pay. The negotiators are soulless terrible people. I don't know how they go home at night and tell their wives how they screwed over hundreds of working people so their corporate masters can make more money. They honestly disgust me.

 

[bbsam]

Fedex making the first offer is new, they just started that a few years ago. It used to be we had to make the first offer. It doesn't make a difference. Their first offer or first counter is total garbage. Unfortunately now it doesn't get a whole lot better. They are in a take it or leave mode and don't care one bit about your profit or your costs. Neither of those will even be discussed by them. Their only line is "this is what we value your CSA at." Full stop, that's it, you can talk to the guy for hours and it will be the same result as that one line. Nothing you say matters or makes a difference beyond trying to get the guy to like you so you can get higher on the scale they're willing to pay. The negotiators are soulless terrible people. I don't know how they go home at night and tell their wives how they screwed over hundreds of working people so their corporate masters can make more money. They honestly disgust me.

Yep.

 

[Star B]

FThe negotiators are soulless terrible people. I don't know how they go home at night and tell their wives how they screwed over hundreds of working people so their corporate masters can make more money. They honestly disgust me.

it$ ea$y when you get paid bonu$e$ for how hard you $crew people.

 

[blacksox]

Has anyone declined branding for all trucks?

If you are thinking by opting out of branding you won't have to fix up your trucks to pass ISP inspections, think again non branded trucks still have to be nice and white no dents or scratches and still pass quarterly inspections. Fedex pays for the decals so you might as well brand them and get paid each week from them.

 

[Exec32]

As you can tell I'm still IC.
So,,,,, you overlevrage debt by upgrading to newer fleet. You participate in a negotiation with a party that has already determined their not going to really negotiate, you are responsible for a defined area and all the services that are needed in that area, they say you don't have to brand but make it so bad $ that you have to,,,,......
After taking on additional debt, and trying to provide decent employment to others, your making less. You become inslaved to X because they know you have to take what they offer.
Wow, great future in this,,,,
One question,,,how are they able to enforce imaging standards, I still cannot find those MINIMUM STANDARDS.

 

[bbsam]

As you can tell I'm still IC.
So,,,,, you overlevrage debt by upgrading to newer fleet. You participate in a negotiation with a party that has already determined their not going to really negotiate, you are responsible for a defined area and all the services that are needed in that area, they say you don't have to brand but make it so bad $ that you have to,,,,......
After taking on additional debt, and trying to provide decent employment to others, your making less. You become inslaved to X because they know you have to take what they offer.
Wow, great future in this,,,,
One question,,,how are they able to enforce imaging standards, I still cannot find those MINIMUM STANDARDS.

Perhaps you should get out now.

 

[It will be fine]

As you can tell I'm still IC.
So,,,,, you overlevrage debt by upgrading to newer fleet. You participate in a negotiation with a party that has already determined their not going to really negotiate, you are responsible for a defined area and all the services that are needed in that area, they say you don't have to brand but make it so bad $ that you have to,,,,......
After taking on additional debt, and trying to provide decent employment to others, your making less. You become inslaved to X because they know you have to take what they offer.
Wow, great future in this,,,,
One question,,,how are they able to enforce imaging standards, I still cannot find those MINIMUM STANDARDS.

They don't. They'll threaten to drop your trucks off the schedule B if they don't meet the standards. That means you won't get paid for branding and you can't use them under dispatch from fedex. The reality is no manager I've met will tank their own service by dead lining your fleet over scratches and dents. They also don't define the standard. I've been asking for that for 6 years so don't hold your breath. It's up to some district level guy's discretion. He'll get pictures of your truck and say yes or no. You won't have any idea what he's basing the decision on and it can change depending on the day.

 

[FedGT]

They don't. They'll threaten to drop your trucks off the schedule B if they don't meet the standards. That means you won't get paid for branding and you can't use them under dispatch from fedex. The reality is no manager I've met will tank their own service by dead lining your fleet over scratches and dents. They also don't define the standard. I've been asking for that for 6 years so don't hold your breath. It's up to some district level guy's discretion. He'll get pictures of your truck and say yes or no. You won't have any idea what he's basing the decision on and it can change depending on the day.

My terminal would. Over the past year I have seen them pull trucks for appearance crap with other contractors that was not bad. They have done it for not washing them, done it repeatedly for maybe a quarter size drop of oil. They are nazis at my terminal which was the main reason I got fed up.

 

[Exec32]

Perhaps you should get out now.

Perhaps you should get out now.

Most of the time you are useless on this forum

 

[bbsam]

Most of the time you are useless on this forum

Thank you. Your opinion is appreciated.

 

[Exec32]

I have seen this process before. I have owned other businesses before, done very well, until they made the same changes X is doing.
I owned a business in the service sector, almost all my income came from 2 customers. The feds and the state. The service sector had hundreds of providers contracted with individually. The Feds and state decide that they did not want hundreds of providers, so the created difficult regulations and expensive accreditation process that eliminated a large number. They then began rejecting invoices for payment because of technicalities, this knocked off another large chunk. This process played itself out for about 5 years.
Near the end we ended up with a few dozen in the state that continued to provide these services. So,,The feds and State say, "not done yet" at the end they ended up with 3 providers,,,, and check this out none of the three were there in the beginning of this process. They each came from large corporate companies that took all the business from everyone, paid politicians for favors, and were given preferential treatment.

If you think X is ok with ISP and the scale process so far and content on leaving it that way, you will be sadly mistaken. If you think being the contractor that will look out for the TM and screw over any contractor around you will keep you safe,,, what a joke, not going to happen. X does not want 5 contractors per terminal, they dont even want one, they want a large capital heavy, stable conglomerate that will provide everything they want under one command. This will take place by region or state over time. If you believe that garbage about not being overly reliant on one contractor mess, well I guess you should ignore this, however once you reach that scale you will basically be X except in name only.

 

[FedGT]

I have seen this process before. I have owned other businesses before, done very well, until they made the same changes X is doing.
I owned a business in the service sector, almost all my income came from 2 customers. The feds and the state. The service sector had hundreds of providers contracted with individually. The Feds and state decide that they did not want hundreds of providers, so the created difficult regulations and expensive accreditation process that eliminated a large number. They then began rejecting invoices for payment because of technicalities, this knocked off another large chunk. This process played itself out for about 5 years.
Near the end we ended up with a few dozen in the state that continued to provide these services. So,,The feds and State say, "not done yet" at the end they ended up with 3 providers,,,, and check this out none of the three were there in the beginning of this process. They each came from large corporate companies that took all the business from everyone, paid politicians for favors, and were given preferential treatment.

If you think X is ok with ISP and the scale process so far and content on leaving it that way, you will be sadly mistaken. If you think being the contractor that will look out for the TM and screw over any contractor around you will keep you safe,,, what a joke, not going to happen. X does not want 5 contractors per terminal, they dont even want one, they want a large capital heavy, stable conglomerate that will provide everything they want under one command. This will take place by region or state over time. If you believe that garbage about not being overly reliant on one contractor mess, well I guess you should ignore this, however once you reach that scale you will basically be X except in name only.

As someone who has seen that "garbage" first hand and the damage a substantially over scale contractor can do, I can say that I literally could not disagree with you more.

On top of that there is a big difference between govt contracts and private secotor with huge competitors.

 

[bbsam]

I have seen this process before. I have owned other businesses before, done very well, until they made the same changes X is doing.
I owned a business in the service sector, almost all my income came from 2 customers. The feds and the state. The service sector had hundreds of providers contracted with individually. The Feds and state decide that they did not want hundreds of providers, so the created difficult regulations and expensive accreditation process that eliminated a large number. They then began rejecting invoices for payment because of technicalities, this knocked off another large chunk. This process played itself out for about 5 years.
Near the end we ended up with a few dozen in the state that continued to provide these services. So,,The feds and State say, "not done yet" at the end they ended up with 3 providers,,,, and check this out none of the three were there in the beginning of this process. They each came from large corporate companies that took all the business from everyone, paid politicians for favors, and were given preferential treatment.

If you think X is ok with ISP and the scale process so far and content on leaving it that way, you will be sadly mistaken. If you think being the contractor that will look out for the TM and screw over any contractor around you will keep you safe,,, what a joke, not going to happen. X does not want 5 contractors per terminal, they dont even want one, they want a large capital heavy, stable conglomerate that will provide everything they want under one command. This will take place by region or state over time. If you believe that garbage about not being overly reliant on one contractor mess, well I guess you should ignore this, however once you reach that scale you will basically be X except in name only.

From what I understand (at least locally) Airborne Express found out the hard way about being overly reliant on one contractor.

 

[Oldfart]

Most of the time you are useless on this forum

MOST?

 

[bbsam]

MOST?

I'm handy when you want to point to me and call minorities "lazy".