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Should I buy some routes?
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<blockquote data-quote="bbsam" data-source="post: 1265627" data-attributes="member: 22662"><p>25% is unrealistic. I would expect 10 to 13%. That is significantly less and I would tell him so up front. Not that it's a deal breaker, but you really need to get deeper into his expenses to determine what your net could be. You may have avenues as far as truck maintenance that he does not. Look closely at what he pays in work comp insurance. When you get to a reasonable number for ROI, factor in that Ground is an aggressively expanding company. One thing that is not unrealistic is to expect volume growth of 8 to 10% year over year. That also should be evident in his records. When you have a good feel for all that, you should be able to come up with an offer you are comfortable making. He may turn it down. If so, keep his number and call him in a month to see if he's reconsidered.</p></blockquote><p></p>
[QUOTE="bbsam, post: 1265627, member: 22662"] 25% is unrealistic. I would expect 10 to 13%. That is significantly less and I would tell him so up front. Not that it's a deal breaker, but you really need to get deeper into his expenses to determine what your net could be. You may have avenues as far as truck maintenance that he does not. Look closely at what he pays in work comp insurance. When you get to a reasonable number for ROI, factor in that Ground is an aggressively expanding company. One thing that is not unrealistic is to expect volume growth of 8 to 10% year over year. That also should be evident in his records. When you have a good feel for all that, you should be able to come up with an offer you are comfortable making. He may turn it down. If so, keep his number and call him in a month to see if he's reconsidered. [/QUOTE]
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