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Question: Is now a good time to buy a FedEx Ground Route?
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<blockquote data-quote="Ricochet1a" data-source="post: 579057" data-attributes="member: 22880"><p>The costs per stop/package to Ground are very close to the costs to Express for delivery (labor only though, NOT vehicle maintenance or managerial overhead). Assuming 13 sph, this is $20/hr for stops. Figuring 1.3 packages per stop, add another $4 an hour. This means FedEx is paying out $24/hr to have packages delivered in a "tight" area. Obviously sph will decrease in rural areas. </p><p> </p><p>What is the purpose of the "matching money to service account"? Is this just a method of granting operator profit outside of a cut of the deliveries?</p><p> </p><p>Multiple route bonus makes sense. It give an incentive to have more routes. It also makes operating just two routes almost impossible. </p><p> </p><p>You make no mention of maintenance overhead. I'm assuming all of your maintenance costs come out of the revenue mentioned. With $24 an hour revenue for a tight area and paying drivers $13/hr, this means about $10 per operating hour to cover everything.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 579057, member: 22880"] The costs per stop/package to Ground are very close to the costs to Express for delivery (labor only though, NOT vehicle maintenance or managerial overhead). Assuming 13 sph, this is $20/hr for stops. Figuring 1.3 packages per stop, add another $4 an hour. This means FedEx is paying out $24/hr to have packages delivered in a "tight" area. Obviously sph will decrease in rural areas. What is the purpose of the "matching money to service account"? Is this just a method of granting operator profit outside of a cut of the deliveries? Multiple route bonus makes sense. It give an incentive to have more routes. It also makes operating just two routes almost impossible. You make no mention of maintenance overhead. I'm assuming all of your maintenance costs come out of the revenue mentioned. With $24 an hour revenue for a tight area and paying drivers $13/hr, this means about $10 per operating hour to cover everything. [/QUOTE]
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Question: Is now a good time to buy a FedEx Ground Route?
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