Looking for Current Fedex Contractors to School Us

Discussion in 'FedEx Discussions' started by Cflfdx, Dec 30, 2019.

  1. Cflfdx

    Cflfdx New Member

    Hello. My friend and I are interested in buying fedex routes in FL.

    Looking for a current fedex contractor that would be willing to show us the daily ropes on what exactly a fedex route owner does on a day to day basis inc admin, dealing with fedex corporate how tos on reporting and getting paid, etc. Also, would like to go through the daily motions from loading up the trucks to helping out drivers with deliveries on routes.

    Have read up on some of the things floating around online but nothings like the hands on experience.

    FL or GA would be great but we would be willing to fly out anywhere to learn.

    Of course, we would work for free for anyone generous enough to take us under their wings for a week.

    Please direct msg or shoot me an email with info if ur interested. Thank you.
     
  2. burrheadd

    burrheadd KING Of GIFS

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  3. dezguy

    dezguy Well-Known Member

    In b4 Bacha and mfx.
     
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  4. bacha29

    bacha29 Well-Known Member

    Buy out a FXG contract and the only place you'll be flying to is out of the country trying to out run law enforcement and bank foreclosure.
     
  5. bacha29

    bacha29 Well-Known Member

    Seriously, you're buying a contract with the belief that it's going to go up in value. Trouble is you're buying it from somebody who is equally convinced that it's going to go down,

    If you want to invest your money in something, invest in an index fund that tracks the S&P 500. You can still do 7-8% a year with nowhere near the headaches you'd be taking on trying to deal with Fedex a company that is trying to figure out for itself what it can do to reverse it's ongoing decline.
     
  6. silenze

    silenze Lunch is the best part of the day

    If you want to lose money just buy fedex stock
     
  7. 59 Dano

    59 Dano I just want to make friends!

    Bacha can't really tell you much of anything, but that doesn't mean he won't.
     
  8. OrioN

    OrioN double tap o da horn dooshbag

    Key word... sooooo, the current subcontractors are hopefully balancing the load so their drivers can be done before sundown on New Year's Eve, yas???????

    P.S. I think I heard of a huge investor group on your coast... find out from them, but dunno if they will share since they're cut up with sooo many smaller companies to elude that they're under a huge umbrella Corp
     
    Last edited: Dec 30, 2019
  9. dmac1

    dmac1 Active Member

    You wouldn't be buying routes. You would be buying the right to service a contract only until the expiration date of that contract, plus any assets- like the trucks. Once that contract expires, you need to renegotiate if fedex still want to use your services. And there are terms in the contract that allows fedex to simply cancel the contract if they decide to, with no recourse for you, and no right to any money back from whatever you paid for the 'routes' you think you are buying. Fedex could easily offer you a new contract servicing a smaller area, and give the rest to someone else, leaving you with a lower than projected profit which you based the purchase price on.

    Most business contracts requiring frequent renewal would have some form of reason required for not renewing as a protection. But fedex doesn't need ANY reason to not offer you a new contract. Maybe the managers son-in-law needs a job, or maybe just doesn't like your accent.

    They would need to make up some reason to cancel the contract before it expired or you would be able to go to arbitration to get the earnings you lost from termination through expiration date. You would be owed NOTHING for what you paid to run the routes for some amount of time- just the lost profit. And if you used taxes to decreas your tax liability, and had no or little taxable income, you would be awarded very little or nothing as lost 'profit' in an arbitration case.

    The value of the 'contract' should have some relation to the value of the assets. Real estate is a better investment, because you have a real assets, and in the case of rental property, someone else buying you a property. That is leverage- using some of your money to control an asset worth many times your cash investment. Fedex routes are the opposite- paying full cash value and hoping for enough return over time to recoup your investment.

    If you want to know how it really works, get a job as a driver for a few months, and tell no one you are interested in buying. And if you buy 'routes' where the vehicles have been fully depreciated on the taxes, you lose out on some of the money savings that can make 'routes' look more profitable than they really are. Depreciation is a real expense- not just some tax write-off, so pay attention when you buy. If you have vehicles worth $300k when new, and they have just had their last year of depreciation, you may pay an extra $12000 in taxes this year, out of your pocket, compared to what the prior contractor paid the previous year, even if all income and other costs are exactly the same.
     
  10. OrioN

    OrioN double tap o da horn dooshbag

    That happened to me a couple of years ago... I showed him the ops on the drivers end as a designated peak season trainer... he did just that & he's currently a decent subcontractor to work for.

    I worked for him a few times as a cover driver, but his service areas are way too far from home
     
  11. Cactus

    Cactus Just telling it like it is

    So let me get this straight.....you and your buddy like to go swimming in quicksand right?
     
  12. Cactus

    Cactus Just telling it like it is

    Like you could offer any solid advice. You won't even get your hands dirty.
     
  13. OrioN

    OrioN double tap o da horn dooshbag

    He doesn't know about the 7 day operation at FXG & being compensated less for what was formerly called Smart Post???
     
  14. 59 Dano

    59 Dano I just want to make friends!

    What's with your fetish for dirty hands?
     
  15. bacha29

    bacha29 Well-Known Member

    I can tell you this much pal about a so called FXG contract..............NOTHING'S BINDING!!!. Simply due to the fact that there's absolutely nothing in that so called contract that has enough concrete language to bind them to any of those terms. If they don't simply shove another "eat it and smile" addendum in your face for you to sign they'll simply ignore those terms and go on their merry way.
     
  16. Cactus

    Cactus Just telling it like it is

    Dirty hands = hard work.

    Apparently that's something else that's sailed over your head.
     
  17. bacha29

    bacha29 Well-Known Member

    You've done a good good of laying out in front of the guy all the trappings reaffirming the fact that nothing's binding . Indeed if you are living in a fast growing part of the country housing in all forms is a good place to put your money .

    Given the ongoing stock pullback and slumping earnings putting money at risk especially borrowed money for something route contracting.....well. you're just asking for it.
     
  18. 59 Dano

    59 Dano I just want to make friends!

    When I was a courier, the hardest part of the job was figuring out where I wanted to take my break. It's not like working in a coal mine.
     
  19. Cactus

    Cactus Just telling it like it is

    I ain't buying it.

    Try again.
     
  20. Cflfdx

    Cflfdx New Member

    I appreciate all the replies but are any of you current contractors?

    I'd like advice from some of the owners even if they own nothing but some used trucks and worthless pile of paper.