That's right. Over 21 years I have spent $37000 purchasing routes...that now gross over a million a year. Oh, and I sold one for $100k.
I think you do not know what you are talking about.
Peak advice.
- Thread starter gixxer squid
- Start date
I think you do not know what you are talking about.
STFXG
Well-Known Member
Net 40k.
That's about 5 cents a week for 21 years.Net 40k.
STFXG
Well-Known Member
Sounds about right.
Oh. So I haven't realized any profits off the business? All this time and I've had no income off.the job I bought? Do you really expect people to believe that?
It was my attempt at humor.....I find myself funny!
Mr. STFXG: My core zone was 37 dollars a day.Why? It's based on that straight line from the terminal to the town and on the dumb assumption that every stop will be inside that boro. In fact my total contracted area consisted of 34 zip codes stretched across 4 rural counties and included over 1700 rural carrier miles. Again most of it poorly constructed unpaid road and we often found ourselves trying to traverse logging trails. or crawling up through abandoned strip mines and of course everybody's favorite gas line right of ways. This is a truly depressed rural area and that's where they stuck their house trailers and double wides. Answer your question?
STFXG
Well-Known Member
It does. You should definitely be upset by that core zone. Laughably low. It's actually calculated based on stem miles and area density. Not sure why it was so low... Doesn't make sense.
MrFedEx
Engorged Member
What do you net? I had guessed a few months back $120k.
Thanks STFXG. The problem is that the CZ formula is blind to RD's. In fact when we started up as an RPS operation in 1992 a retired UPS engineer who set up the routes and lived in downtown Mahattan went out with me. Later that day when were out boring around where the buses don't go, he looked over at me and said "What does RD stand for? After I sold out the guy who bought the route immediately had to put a permanent supplemental on to help because nobody was willing to come in at 7AM and not get back until 9PM if you were lucky and do it on a continous daily basis. Fortunately for him the on the route he ran for himself there was only about a 10 stop difference between the first and second thresholds. So he was able to add the supps stops to his route and keep the losses manageable. Have questions don't be afraid to ask. PS. One of the few pickups I had sat out there all by itself in a neighboring county. Had no more than 3 boxes a day and it was a 41 mile round trip.
Approximately.
How many routes?
dvalleyjim
Well-Known Member
Ok so maybe my statement was unfair bbsam. You can make money in this. I have. I supported my family and myself for 18 years, sold 3 crappy trucks and 3 routes that I only spent 20,000 on for 250,000. Sold 5 before that over the years. Have 170,000 coming in a FedEx class action lawsuit. So yeah.
That's the problem, I netted 90-100k with 3 trucks, 3 drivers. That was when I 1099'd them. If you are netting 100,000 off I assume about 8-10 trucks and drivers you have a 10% return. Not bad, you get about 1-2% per route. Seems to me your getting screwed and having to pay your drivers way below the industry standard. If that makes you entrepreneurial OK. I think your getting screwed for the amount of responsibility you have vs. your gross income.
Cactus
Just telling it like it is
Welcome to our world.
UpstateNYUPSer(Ret)
Well-Known Member
You punch in, punch out and are paid for all your time on the clock.
You leave all your worries behind once you walk out the door.
Huge difference.
Cactus
Just telling it like it is
So, what's that got to do with pay?
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dvalleyjim
Well-Known Member
Here's what it's got to do with it. I made my money and now work as a Home Delver drivery. I only have to show up to work and not wreck the truck. This being said I see how it is from this end of the ISP. When I contracted I hired a driver and he could one day get his own route and truck and grow a business. I sold five of my routes to these drivers on payment. The routes they were driving anyway. This path is now gone. So drivers would now have to be paid a competitive wage. It's not fair now to ISP's and drivers. It's only fair for FedEx. The day my TM came to me and told me I would be contracting with FedEx my heart sank. I stuck it out with these clownish control freaks for 11 years. When I could get some money out for my hokey-pokey investment I did.
So you "stuck it out with these clowning freaks" after your "heart sank" but you were willing to sell these routes to your drivers so they could have a similarly sucky experience?
https://www.google.com/imgres?imgur...d=0ahUKEwimxcvkz8jJAhWk6IMKHchcDrAQMwgoKAUwBQ
It will be fine
Well-Known Member
Mostly agree with you. There are other ways for our employees to grow with the larger ISP companies though. They can move into cover driving/management. They can buy in as stock holders of the corp. if the ISP is willing. It's a good way to create an eventual buyer and retain the really good workers. The path forward is not as clear for most drivers, but they do benefit from better stability in the new model.
