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Purchasing FedEx Ground route - advice and feedback on impact of ISP conversion
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<blockquote data-quote="It will be fine" data-source="post: 1450304" data-attributes="member: 55017"><p>1. Drivers are important, pay them as well as you can, but have plenty of backup plans. The job is tough and they will leave.</p><p></p><p>2. Truck costs will vary a lot based on age of vehicle and skill of the mechanic. Check out multiple mechanics and negotiate better pricing with the best one. A fleet of 7+ trucks is enough to get a break from a shop. Don't just go with the guy who happens to work at the terminal. </p><p></p><p>1. ISP contract gives you more control over the business. Read and absorb the agreement. Know it backwards and forwards, it will protect you from management abuse. </p><p></p><p>A. $ is worse in ISP. I'd guess 7-10% unless PGH figured out that doesn't work out too well, doubtful. They expect you to be more efficient. </p><p></p><p>B. "Routes" go away in ISP. You just have a CSA, service area. Put on as many trucks as you want, but your compensation will remain the same. </p><p></p><p>C.?</p><p></p><p>2. Depends on the geography and the driver. I try to keep them under 120 on their heavy spike days. Volume goes up and down through the week. Budget for the slow days, contingency plan for the heavy. </p><p></p><p>3. 6 routes, you can survive with 1 extra truck. I'd recommend 2. Depends on the age of vehicles. If they're older then plan on one at a time being in the shop half the year so you'll need a backup when your spare is on a route. It's hard to scramble a rental in the middle of the day. </p><p>Good rule of thumb is one extra driver for every 5 regular ones. If you budget well this will give your guys plenty of vacation, which helps with burnout. </p><p></p><p>PM if you want more info.</p></blockquote><p></p>
[QUOTE="It will be fine, post: 1450304, member: 55017"] 1. Drivers are important, pay them as well as you can, but have plenty of backup plans. The job is tough and they will leave. 2. Truck costs will vary a lot based on age of vehicle and skill of the mechanic. Check out multiple mechanics and negotiate better pricing with the best one. A fleet of 7+ trucks is enough to get a break from a shop. Don't just go with the guy who happens to work at the terminal. 1. ISP contract gives you more control over the business. Read and absorb the agreement. Know it backwards and forwards, it will protect you from management abuse. A. $ is worse in ISP. I'd guess 7-10% unless PGH figured out that doesn't work out too well, doubtful. They expect you to be more efficient. B. "Routes" go away in ISP. You just have a CSA, service area. Put on as many trucks as you want, but your compensation will remain the same. C.? 2. Depends on the geography and the driver. I try to keep them under 120 on their heavy spike days. Volume goes up and down through the week. Budget for the slow days, contingency plan for the heavy. 3. 6 routes, you can survive with 1 extra truck. I'd recommend 2. Depends on the age of vehicles. If they're older then plan on one at a time being in the shop half the year so you'll need a backup when your spare is on a route. It's hard to scramble a rental in the middle of the day. Good rule of thumb is one extra driver for every 5 regular ones. If you budget well this will give your guys plenty of vacation, which helps with burnout. PM if you want more info. [/QUOTE]
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