Selling Under ISP sucks

XEQaF

Well-Known Member
In my case, I took over a contract to service a city of 120,000. Previous contractor only went so far and was able to contract far rural stops to Post. When I took over new rules were being placed on me. Deliveries in some Zip/Postal codes for these areas could range from being 5 miles out to 50 or more. In order for me to maintain my city center I had to service the rurals.
They also offered me a new PSA but the catch was they wanted me to service a community that was an hour away even if I only had one delivery in that town for the day.
I didn't like it but had to do what I had to do to grow. The only thing is a wise number cruncher can see that rural runs cost more to maintain then they yield and FedEx knows this but still wants to service them and will push them on the contractor that is the closest to these areas bundling them in a creative psa package. If you refuse or alter the offer, well then they make life hard on you with their tactics.
 

Cactus

Just telling it like it is
In my case, I took over a contract to service a city of 120,000. Previous contractor only went so far and was able to contract far rural stops to Post. When I took over new rules were being placed on me. Deliveries in some Zip/Postal codes for these areas could range from being 5 miles out to 50 or more. In order for me to maintain my city center I had to service the rurals.
They also offered me a new PSA but the catch was they wanted me to service a community that was an hour away even if I only had one delivery in that town for the day.
I didn't like it but had to do what I had to do to grow. The only thing is a wise number cruncher can see that rural runs cost more to maintain then they yield and FedEx knows this but still wants to service them and will push them on the contractor that is the closest to these areas bundling them in a creative psa package. If you refuse or alter the offer, well then they make life hard on you with their tactics.
FedEx is good at changing horses after the fact. Especially if it means more work for somebody. What a smile**y deal.
 

zeev

Well-Known Member
After Amazon left they have moved freight from ground to express this can’t be good for contractors.
 

bbsam

Moderator
Staff member
In my case, I took over a contract to service a city of 120,000. Previous contractor only went so far and was able to contract far rural stops to Post. When I took over new rules were being placed on me. Deliveries in some Zip/Postal codes for these areas could range from being 5 miles out to 50 or more. In order for me to maintain my city center I had to service the rurals.
They also offered me a new PSA but the catch was they wanted me to service a community that was an hour away even if I only had one delivery in that town for the day.
I didn't like it but had to do what I had to do to grow. The only thing is a wise number cruncher can see that rural runs cost more to maintain then they yield and FedEx knows this but still wants to service them and will push them on the contractor that is the closest to these areas bundling them in a creative psa package. If you refuse or alter the offer, well then they make life hard on you with their tactics.
I don’t know if it’s fair to look at it like that.

Not every delivery or pickup I have is profitable. A lot a real pin in the ass.

Overall though, it does pretty well.
 

bacha29

Well-Known Member
In my case, I took over a contract to service a city of 120,000. Previous contractor only went so far and was able to contract far rural stops to Post. When I took over new rules were being placed on me. Deliveries in some Zip/Postal codes for these areas could range from being 5 miles out to 50 or more. In order for me to maintain my city center I had to service the rurals.
They also offered me a new PSA but the catch was they wanted me to service a community that was an hour away even if I only had one delivery in that town for the day.
I didn't like it but had to do what I had to do to grow. The only thing is a wise number cruncher can see that rural runs cost more to maintain then they yield and FedEx knows this but still wants to service them and will push them on the contractor that is the closest to these areas bundling them in a creative psa package. If you refuse or alter the offer, well then they make life hard on you with their tactics.
The largest incorporated borough in my sector had a population of 5,800 but that zip also contained 480 miles of rural mail carrier mileage that was not factored in the core zone. Those RD's and the slow pace given what they call roads makes for an impossible situation.

On the morning of the announcement that Bezos was going to haul is own boxes CNBC talked to Donald Broughton considered to be one the transportation industry's best analysts . He said in a live interview that Bezos would only take the easy in town stuff while still expecting the Big 3 to continue to haul his junk out to the bum friend*#ks for free. Anybody see anything that say's he was wrong?

Perhaps Fat Freddy saw what was coming and took the easy way out......Simply let the contract expire.
 

bacha29

Well-Known Member
FedEx is good at changing horses after the fact. Especially if it means more work for somebody. What a smile**y deal.
Once again it comes back to the same reality. You have a unilaterally drafted contract handed to you that cannot in any way shape or form be made binding upon that company . With no governing legal authority in place to make it binding the only option you have left is arbitration , good luck with that because it's spelled right out plain as day in the contract that X reserves the exclusive right to choose the people who will sit on the arbitration board. So if you think that you'll be going up against an biased arbitration board.....then you've been seriously mislead.
 

Fred's Myth

Nonhyphenated American
Once again it comes back to the same reality. You have a unilaterally drafted contract handed to you that cannot in any way shape or form be made binding upon that company . With no governing legal authority in place to make it binding the only option you have left is arbitration , good luck with that because it's spelled right out plain as day in the contract that X reserves the exclusive right to choose the people who will sit on the arbitration board. So if you think that you'll be going up against an biased arbitration board.....then you've been seriously mislead.
Your sentence structure is so atrocious that you end up saying the exact opposite of what you’re trying to say.
 

bacha29

Well-Known Member
Your sentence structure is so atrocious that you end up saying the exact opposite of what you’re trying to say.
I see it now mister self appointed enforcer of spelling and grammar . However, it doesn't change the fact that the contract you sign isn't worth the paper it's written on. I saw countless examples of it and it's bad enough that it's their own contract but what do you have to look forward to if you have no means of holding them to it?
 

59 Dano

I just want to make friends!
Once again jumping over preceding events. You applied for that unspectacular and inconsequential employment. It isn't like they stopped you along the street somewhere.

Guess what happened after I applied and interviewed? THEY GAVE ME AN OFFER.

Nonetheless, if you want to look at it that way, I applied for that unspectacular and inconsequential employment that came with a nice benefits package; you bought rather unspectacular and inconsequential employment that came with no benefits package.

Congrats again, I guess.
 

bacha29

Well-Known Member
Guess what happened after I applied and interviewed? THEY GAVE ME AN OFFER.

Nonetheless, if you want to look at it that way, I applied for that unspectacular and inconsequential employment that came with a nice benefits package; you bought rather unspectacular and inconsequential employment that came with no benefits package.

Congrats again, I guess.
It's good to know that you applied and were granted employment buy an established company You would have never lasted very long as a contractor with a start up company and a start up station. You had to be productive enough and determined enough to buy the equipment to have borne all the operating expenses, buy your own health insurance, fund your own pension and pay both the employer and employee share of FICA. This is why contracting is not something for you.
 

dmac1

Well-Known Member
Ya, ALL FedEx has to do is fundamentally change their entire business model. Lulz, sorry contracting didn’t work for you. It’s not for everyone.

Doesn't have to be a fundamental change for fedex to be able to unilaterally cancel your contract without notice. Going from contractors with single routes to the ISP model was an example of the type of change they can make. That forced many people out, and they were only lucky that fedex wanted to avoid litigation, and gave most a chance to adapt or sell.

Point was, and you missed it, that the contract can be unilaterally changed whenever fedex wants. They can decide at ANY time to use an employee model, and the next day you would lose any value your contract has. There is no insurance you can buy to protect against that.
 

bacha29

Well-Known Member
Doesn't have to be a fundamental change for fedex to be able to unilaterally cancel your contract without notice. Going from contractors with single routes to the ISP model was an example of the type of change they can make. That forced many people out, and they were only lucky that fedex wanted to avoid litigation, and gave most a chance to adapt or sell.

Point was, and you missed it, that the contract can be unilaterally changed whenever fedex wants. They can decide at ANY time to use an employee model, and the next day you would lose any value your contract has. There is no insurance you can buy to protect against that.
Spot on. With earnings and stock price going in the wrong direction for the past year with little sign of improvement at least not in the near future the company will eventually have to take decisive and perhaps unpopular measures in order to tailor it's operations to better fit a changing environment .
With the prospect of something along these lines growing with every under performing quarter contractors should be more mindful of the precarious position they're in especially their contract's complete lack of economic protections.
 

It will be fine

Well-Known Member
Doesn't have to be a fundamental change for fedex to be able to unilaterally cancel your contract without notice. Going from contractors with single routes to the ISP model was an example of the type of change they can make. That forced many people out, and they were only lucky that fedex wanted to avoid litigation, and gave most a chance to adapt or sell.

Point was, and you missed it, that the contract can be unilaterally changed whenever fedex wants. They can decide at ANY time to use an employee model, and the next day you would lose any value your contract has. There is no insurance you can buy to protect against that.
WDFD. It’s called risk, that’s part of running a business. If you thought the ISP transition was without notice you weren’t paying attention to the half decade prior to its announcement.
 

59 Dano

I just want to make friends!
It's good to know that you applied and were granted employment buy an established company You would have never lasted very long as a contractor with a start up company and a start up station. You had to be productive enough and determined enough to buy the equipment to have borne all the operating expenses, buy your own health insurance, fund your own pension and pay both the employer and employee share of FICA. This is why contracting is not something for you.

As I said a couple of months ago, you're like the guy who digs ditches with a shovel making fun of the guy who digs them with a Ditch Witch.

Contracting is not for me because I'd never waste my time or money buying one route, just as you'd flop if you had anything other than one route.
 

bacha29

Well-Known Member
WDFD. It’s called risk, that’s part of running a business. If you thought the ISP transition was without notice you weren’t paying attention to the half decade prior to its announcement.
The level of risk a person can assume in this economic space is tied directly to the economic vitality of their service area and it's future prospects. That zip I mentioned earlier also included a 300 square mile school district with 9 elementary schools when I started servicing that area . How many of them are still there?.....Zero. They took a handful of class rooms at the junior high building and made it the new elementary school. The future prospects of a service area limits the amount of risk a person can sensibly incur.

When it came to the ISP transition I don't know where you found out about it but I found it in an obscure little paragraph buried in the back pages of the 2008 annual report. The entire process got started following a couple of state courts that ruled that single route contractors were in the eyes of the court employees. And in some states the transition timeline granted by the courts was in some cases a matter of only weeks And beginning with the IRS mandated contract changes in 1993 the company has been grudgingly giving ground from the standpoint of contractor autonomy but there's still a long long way to go and they're not going to give up any more without a fight.
 

bacha29

Well-Known Member
As I said a couple of months ago, you're like the guy who digs ditches with a shovel making fun of the guy who digs them with a Ditch Witch.

Contracting is not for me because I'd never waste my time or money buying one route, just as you'd flop if you had anything other than one route.
Buy a route?. Yeah, you're somebody who would do that but I didn't pay a single dime for my route just lease vehicle and get going and as time went by numerous other routes were offered to me again completely free of charge. turned them all down. Instead of paying a guy everything the route makes just to go out there and chase RD's all day and half the night you might as well just give them the route. Whatever they got out it they could keep. I knew it was going to be hard for them and so they deserved the opportunity to take whatever they got out of it home with them.....It was simply a matter of fairness.
 

dmac1

Well-Known Member
WDFD. It’s called risk, that’s part of running a business. If you thought the ISP transition was without notice you weren’t paying attention to the half decade prior to its announcement.

I don't know how you keep doing it- missing the point. Is english your second language??????
The point is that FEDEX is NOT required to give ANY notice, and that people were lucky they got notice of the ISP transition.

Maybe you aren't missing the point in your zeal to shill for FEDEX. You constantly deflect, seemingly intentionally, on issues and facts that put FEDEX in any sort of bad light. I know FEDEX used to reward contractors who supported them on these types of forums. Is that what is happening with you? Just curious, because without shills, FEDEX wouldn't have any support for potential employees or contractors and would not have the steady stream of the uninformed who are seeking out unbiased information outside of FEDEX control.
 

It will be fine

Well-Known Member
I don't know how you keep doing it- missing the point. Is english your second language??????
The point is that FEDEX is NOT required to give ANY notice, and that people were lucky they got notice of the ISP transition.

Maybe you aren't missing the point in your zeal to shill for FEDEX. You constantly deflect, seemingly intentionally, on issues and facts that put FEDEX in any sort of bad light. I know FEDEX used to reward contractors who supported them on these types of forums. Is that what is happening with you? Just curious, because without shills, FEDEX wouldn't have any support for potential employees or contractors and would not have the steady stream of the uninformed who are seeking out unbiased information outside of FEDEX control.
I’ve done business with them for decades. They’ve never made changes without plenty of notice. It’s a strange thing to be concerned about. They are my customer, if they decide they want a different service from me, I can provide it or stop doing business with them. You guys that are so upset don’t seem to grasp the relationship properly. That’s probably why you don’t contract with them anymore.
 
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