Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
The Competition
FedEx Discussions
Overlap plan
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="NYCFXG" data-source="post: 3362042" data-attributes="member: 56621"><p>I have assisted in negotiating 4 contracts that were new overlaps. Every single one had to fight tooth and nail just to get back to equilibrium. There is an ignorance about the supposed benefits of overlap. None of our buildings have co-lo yet. However, X is negotiating as if they are. So, these guys are getting crap contracts as if they were running in the same terminal but need to have a manager in each or have a manager in one. They have to split their spares and sometimes are 20-30 mins away from their other terminal.</p><p></p><p>The point I made about loss of equity is simple. We lost equity value with ISP because you can't sell routes to an owner operator. Each route used to have a much higher earning potential for the buyer and therefore got a higher resale value. With the next move (overlap), both segments think their routes are worth 100k but when they are combined they aren't going to be worth 200k. They will be worth less. Loss in equity, 6 day a week business, etc. etc. This is a lose for the contractor and a benefit to X. </p><p></p><p>I got out. I am happy I am out. I see a lot of broken hearts in the near future. Much bigger losses are incoming for contractors with overlap. Where maybe it was a few single truck or two truck guys losing their routes... there will be 5-6 route guys losing their contracts for the sake of overlap.</p></blockquote><p></p>
[QUOTE="NYCFXG, post: 3362042, member: 56621"] I have assisted in negotiating 4 contracts that were new overlaps. Every single one had to fight tooth and nail just to get back to equilibrium. There is an ignorance about the supposed benefits of overlap. None of our buildings have co-lo yet. However, X is negotiating as if they are. So, these guys are getting crap contracts as if they were running in the same terminal but need to have a manager in each or have a manager in one. They have to split their spares and sometimes are 20-30 mins away from their other terminal. The point I made about loss of equity is simple. We lost equity value with ISP because you can't sell routes to an owner operator. Each route used to have a much higher earning potential for the buyer and therefore got a higher resale value. With the next move (overlap), both segments think their routes are worth 100k but when they are combined they aren't going to be worth 200k. They will be worth less. Loss in equity, 6 day a week business, etc. etc. This is a lose for the contractor and a benefit to X. I got out. I am happy I am out. I see a lot of broken hearts in the near future. Much bigger losses are incoming for contractors with overlap. Where maybe it was a few single truck or two truck guys losing their routes... there will be 5-6 route guys losing their contracts for the sake of overlap. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
Overlap plan
Top