You've been at this a long time. Enough to know that since " you're going that way" they'll throw it on and in fact expect you to do it for nothing with no adjustment in your revenue stream until it's time to 'negotiate" another contract.
I can't see this working out well. For it to make sense for fedex they would be paying us less than postage rate. I read somewhere their average cost for smartpost was $1.15/package. If they are offering less than that I don't care how dense an area is, you're not making money.
Don't lose sight of the fact that they are the world's most city minded company. They think the whole world is a city. If the contractors out in the rurual areas have to haul Smartpost they have no chance of survival.
See what i mean about hauling it for nothing or next to it and you ground guys won't like every other time you won't be given a choice. There is no question that there will be soon be heavy pressure on your margins if it isn't already ongoing.
We've been doing that for years here. Any small post office gets all their smartpost delivered to them that way. Now that we can scan their barcodes sometimes boxes fall out of those bags and accidentally get delivered by my guys.
That's bs but unfortunately not surprising.
Six bits per stop ,huh?. Leave it on the dock. With the small but more numerous and less controllable single route contractors all gone the larger but powerless ISP's are now fair game for X .Rest assured future "negotiation"s" will no doubt result in a revenue package just enough to keep you above the grass but will no doubt come at the expense of your equity. I'm saying this to you as a friend. Don't stay in this too long. When the first unsuspecting slug comes along with an offer you can live with, take it.
