Looking at a FedeX ISP in the midwest

Discussion in 'FedEx Discussions' started by Roadie314, Apr 19, 2018.

  1. Roadie314

    Roadie314 New Member

    I am considering a purchase of an FedeX ISP in the midwest. I am trying to gauge the value and difficulty of running one, hands on, with a manager as well. Looking for insights on how go value the one I am looking at and the possible pit falls of running one. Can anyone shed some light on either or both aspects of these questions?

    I have read old threads and would like some additional inputs.

    Thanks,
     
  2. Operational needs

    Operational needs Virescit Vulnere Virtus

    There are many, many threads on this subject all saying the same thing. What kind of additional input could you possibly need??
     
  3. Roadie314

    Roadie314 New Member

    I am curious if there are current ISP owners who participate in this forum can tell me if it is difficult as I suspect to keep quality drivers? How difficult is it to work with the current FedeX ISP format of combined home and ground compared to the old ground only. How is the move to the 5 route ISP format changing the work and profits?
     
  4. boxed98

    boxed98 New Member

    How many routes are you looking to purchase and are they 95-100% overlapped already?
     
  5. Operational needs

    Operational needs Virescit Vulnere Virtus

  6. Roadie314

    Roadie314 New Member

    5 home and 4 ground, overlapped
     
  7. Roadie314

    Roadie314 New Member

    Daily miles at 185. Seems high
     
  8. It will be fine

    It will be fine Well-Known Member

    Per route?
     
  9. STFXG

    STFXG Well-Known Member

    Piece of cake to run. Get ready to make it rain with all the singles you’ll earn!
     
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  10. Roadie314

    Roadie314 New Member

    Yes the 185 is per route. Not sure what the average nationally, but suspect this to be on the higher side. Is that a bit of sarcasm I hear STFXG?
     
  11. It will be fine

    It will be fine Well-Known Member

    Mine are all around 50-60 miles/day. You'll have to dig in to the books to determine value. Experienced drivers that stick around are getting harder to find. My best new hires recently have been entry level that I train from scratch. It's a big step up for the guys making $10/hr at a retail shop.

    Overlap is easier to operate than Ground, harder than HD.

    Margins get smaller every contract and they are only giving out 1 year contracts right now.
     
  12. bacha29

    bacha29 Well-Known Member

    1. You're buying a contract believing that it will go up in value. Trouble is you're buying it. from someone who is equally convinced that it's go to down.
    2. If your driver pay is consistent with the national average you will then have 3 guys on every route. One coming, one driving and one leaving.

    3. The contract you sign is one that has been unilaterally drafted and implemented . It will be the one and only legal defense of your investment you will have.
    It will permit you to sell just 2 products cheap trucking and cheap labor in a closed market to your one and only customer under "take it or leave it"
    settlement terms.

    In addition, it is a contract whose terms that company has habitually and flagrantly ignored and violated going all the way back to it's origins as a
    subsidiary of Roadway.

    4. Other than that, it's a fabulous deal. A once in lifetime opportunity. Have at it.
     
  13. Roadie314

    Roadie314 New Member

    Thanks for the candid and insightful responses. They echo the feeling that I could not shake. The feeling I would be in constant search for the perfect employee, and the overworking and underpaying him/her. I have moved away from the investment.

    Thanks to all and the best of luck,

    D
     
  14. boxed98

    boxed98 New Member

    Lol scared him away.

    Guys doing 185 miles have different per stop than guy doing 50-80 miles
     
  15. It will be fine

    It will be fine Well-Known Member

    They aren’t necessarily overworked or underpaid. The people I’m hiring now don’t have better options. That says a lot in the current job market. For many of them it’s the best job they’ve had. People with driving experience can find better jobs, that’s why I’ve been focused on entry level drivers lately. They take a bit longer to train but you can bank on them lasting at least a year or two. I don’t think the shrinking employee pool is unique to this industry, it’s everywhere.
     
  16. Cactus

    Cactus Just telling it like it is

    Wise decision.
     
  17. Cactus

    Cactus Just telling it like it is

    [​IMG]
     
  18. Mutineer

    Mutineer Active Member

    There is no such thing as a frigging "shrinking employee pool". That is a myth perpetuated by industries that thrive on cheap, ignorant, easy to abuse labor. There are waaay more than just a few green cards working as drivers at FedEx Ground. And plenty more in the applicant pool. I know this as I am a former California contractor. But then, to be fair, the green cards are just here to do the work that citizens won't do anyways. Right?

    At Express, they like to hire twenty-something y.o. cuckolds and perpetually injured, crabby middle-aged women. Absolutely no shortage of those, either.
     
    Last edited by a moderator: Apr 20, 2018
  19. dvalleyjim

    dvalleyjim Active Member

    haHAHAHAHAHAHAHAHAHAHA!
     
  20. Exec32

    Exec32 Active Member

    Smart move. This should not even be considered an investment. You will be buying a job from FedEx, and eventually you will be paying them to deliver their packages.
    Contractors are walking away daily without even selling these worthless routes.