Potential Route Owner Looking to Talk with Existing ISPs/Contractors

Discussion in 'FedEx Discussions' started by YouDontSay, Jun 18, 2013.

  1. YouDontSay

    YouDontSay New Member

    Hi there,

    I am considering purchasing an ISP and came across this forum while doing research. Needless to say, I have found much of the information here interesting and useful. If there are any existing ISPs or contractors that would be willing to talk to me about their experiences, I would greatly appreciate a PM.

    ​Many thanks.
  2. ImWaitingForTheDay

    ImWaitingForTheDay Annoy a conservative....Think for yourself

    Just lie to your drivers..you will fit right in with this slime called a fed ex contractor.
  3. YouDontSay

    YouDontSay New Member

    Not my style, but thanks for sharing your view.
  4. Epoisode7

    Epoisode7 New Member

    Not an ISP, nor a contractor. I was however a Ground driver for a year, and also the business contact for the contractor here. You sound like a genuine person looking to make a profit in an ethical way. I can't offer you anything in terms of the technicalities of contracts and the like. I like the other posters enthusiasm, and I could add plenty of vile things about Ground, but it serves no purpose. The only thing I could say of worth (maybe) is that, even in a good terminal, this is a cut-throat business. From square one you are backed into a metaphorical corner. You have FedEx (terminal manager and up), customers, drivers, and mother nature (vehicle breakdowns, accidents, weather, injuries, etc) to deal with. That's a lot to contend for anybody. If you work out of a large terminal with many different contractors, just be up front with the drivers you hire. If you can't offer much in terms of pay and (lack of) benefits, just be honest. Lying about these things may get you better candidates, but their loyalty will taper later on. If you can buy a route with existing drivers, even better. IMHO, it wouldn't hurt to toss them a small raise just to show you mean business. A small bonus or paltry raise is pennies compared to the work drivers do on a daily basis. Not sure if any of that is worth anything, probably not. Good luck to you.
  5. YouDontSay

    YouDontSay New Member

    That is a very helpful perspective. It seems to me that successful ISPs need to keep their drivers happy as well as keeping FedEx happy. Thanks.
  6. I'd say go find something more profitable. Or less profitable and less stressful. Ive been a courier and work now as a ground driver, and it sucks. Im good friends with my contractor and a few other big ones. Their too far in to sell and if they did they wouldnt make a profit. They do okay financially but it took them years to get there, and many dont make it, or dont make a decent living. Invest your money in something else. If not, be prepared for some major turbulence. If you buy a route, i highly suggest getting yourself put through the fedex system so you can cover for drivers. if you drive it yourself, you can make good money. if you dont have the driving history, just make it up. have a friend vouch for you. i see ground drivers all the time get told by contractors to lie about their driving history and just find a picture of the vehicle on google images. the contractor then pretends to be the former employer, and bam, they get hired. no one wants to work for ground that has 1 year of driving history in the last 3 yrs anyway. we dont make crap
  7. bbsam

    bbsam Moderator Staff Member

    So Groundisahugescam, why are you still there?
  8. Nick9075

    Nick9075 Member

    I agree with the above but you can't really lie about driving history if you have any issues on your MVR and at least at my terminal they will do everything possible NOT to approve new drivers..
    and after expenses you will be lucky to make break even.. You really need to have a primary source of income, driving your own route after having a professional career? doesn't look that great on a Resume when you sell and want to go back into your previous career
  9. Nick9075

    Nick9075 Member

    You better toss them a small raise (at least an extra $100 a week) or they will likely quit on you. There are so many other options in this economy (which is expanding at a decent clip) and you are pretty much limited what you can offer because FedEx does not offer much and it is set up so it really isn't possible to make much money as a contractor... It is a cut throat business, many don't make it and they lose there investment when they get their routes & contract taken away (and then these routes are given to one or two favored contractors for nothing)
  10. YouDontSay

    YouDontSay New Member

    Here are some of my more general questions. They would be in the context of a relatively large ISP with a mix of HD and Ground routes. Thanks for any thoughts.

    • What would you estimate the percentage for contract renewals vs non-renewals based on what you have seen?
    • In those situations where contracts were not renewed, did the reasons seem fair or was it arbitrary (or worse, intentionally unfair)?
    • How many people at FedEx Ground would be involved in a decision not to renew? Who would they be?
    • How do most drivers get paid? By the hour/day/week? By stops/packages? What are some normal pay ranges in major metropolitan areas? Is there any consistency across ISPs in your area?
    • What are the top two or three things that good performing ISPs worry about?
    • What are the biggest risks for ISPs that you see?
    • How are routes are valued when they are sold? What values as a percent of gross revenue have you seen routes get sold for?
  11. MrFedEx

    MrFedEx Engorged Member

    Yes, but keeping FedEx happy is quite the chore. I would do some heavy research, talk with some Ground drivers on the road (away from the terminal), and get the advice of an experienced ISP like bbsam. He seems to "get" Ground, and doesn't have any delusions about the way FedEx (the corporation) operates. They are demanding masters, and if you can meet or exceed their demands, you will do well. If you don't have experience in the transportation industry, you need to do your homework on vehicle costs and operating expenses.