Stupid arguments about the Ground business model

[Fred's Myth]

You personally could have an MBA or a PHD for that matter and it still won't change the fact that Fat Freddy has got you by the balls. You can do whatever you want but there was no way in hell I was going to continue to let somebody wield that kind of power over me while at the same time demanding that I put even more money at risk secured with absolutely nothing more than the sheer hope that Fat Freddy will continue to have a need for the one and only service product I had to offer. A service for which he alone would be the only customer and a service that is readily available from a multitude sources including his own.

So, your enmity for 'Fat Freddy' is what keeps you alive.

Whatever bakes your cake.

 

[AB831]

Where did you earn your MBA again?

Same place you earned yours

 

[oldrps]

You personally could have an MBA or a PHD for that matter and it still won't change the fact that Fat Freddy has got you by the balls. You can do whatever you want but there was no way in hell I was going to continue to let somebody wield that kind of power over me while at the same time demanding that I put even more money at risk secured with absolutely nothing more than the sheer hope that Fat Freddy will continue to have a need for the one and only service product I had to offer. A service for which he alone would be the only customer and a service that is readily available from a multitude sources including his own.

So you didn't want to take the risk and left, which is the business decision you made. Someone else makes a business decision to invest and take the risk. Why do you care, you have no stake in it anymore.

 

[falcon back]

So you didn't want to take the risk and left, which is the business decision you made. Someone else makes a business decision to invest and take the risk. Why do you care, you have no stake in it anymore.

bacha is the forum business genius. He reads the markets and tells investors on when and what to buy. He tells anyone that will listen how smart he is and how his ideas are better than anyone else's.

 

[It will be fine]

Exactly. The more money you've placed at risk the more control Fat Freddy has over you. The more beholding you are to him and the more willing you are to put up with whatever Fat Freddy decides to do to you no matter how unjust or contrary to the already sparse language found in that contract that is totally nonbinding upon Fat Freddy Contractor scale of operation never has and never will impact the decision making process of that board. The guy with 500 trucks has no greater power nor more influential on future decisions that the guy with 5 trucks. Fat Freddy isn't going to worry about what happens to Mr.. Big Scale IWBF if he has another way to get the job done cheaper and puts him in a more competitive position which includes cutting rates paid to Mr. Big Scale if he chose to do so and there ain't nothing Mr. Big Scale can do but eat it and smile.

A larger scale lowers the cost to maintain a single vehicle. Had you built a business and hired drivers you could have paid them more than they’d net as a single van contractor. You didn’t do anyone any favors giving work away all those years.

 

[bacha29]

So you didn't want to take the risk and left, which is the business decision you made. Someone else makes a business decision to invest and take the risk. Why do you care, you have no stake in it anymore.

I simply pointed out that the risk factors are widely varied due to the equally varied demographics between regions. It's like one terminal manager said to me..."Cat, this model doesn't work very well around here". I said, " Of course it doesn't . It's a business model that was designed for a metropolitan area in a warmer climate, with flatter terrain , a modern highway system, much higher population density, much higher per capita consumption, much higher incomes and naturally much higher discretionary spending. You have none of that around here. So when you go to your next assignment make sure you're going someplace where these conditions exist".

Sure guys like IWBF can pass judgement on the success or failure of others but it's based on his experiences operating in the Boston Metro area that has nearly all of the advantages needed to operate successfully. Take away those advantages and compatibility with the business model the going would no doubt have been much tougher.

Here's an example . One small part of my work area consisted of a 300 square mile rural school district. When I started there were 8 elementary schools scattered across that 300 square mile school district. Guess how many there were when I left?....0 !. The enrollment had fallen to the point where they were easily able to take a section of the junior high school and make that their elementary school operation.

So what does that leave you with? An ageing and declining in number population more thinly spread across the area with a growing number of people on fixed incomes. It's like a manager told we contractors. " I don't know how you guys do it. The demographics of this are terrible but never the less we are a nationwide carrier and the bad areas going right along with the rest".

 

[bacha29]

A larger scale lowers the cost to maintain a single vehicle. Had you built a business and hired drivers you could have paid them more than they’d net as a single van contractor. You didn’t do anyone any favors giving work away all those years.

Once again your logic only applies if scale is available and there are a sufficient number of areas that are not only profitable enough to service but to be able to pay somebody enough to keep them on the route. And in expansive depressed rural regions such areas are few and far between Once again you're basing everything on conditions that exist in the Boston Metro area you serve. Then too you talk about scale allowing you to pay drivers more. If that's the case then why are the drivers who remain at the terminal I was at being paid the same amount as what was being offered 5 years ago and in some cases less than what was offered 5 years ago?

And BTW. You talked about being able to sell for in your own words..." millions and millions of dollars". I wouldn't be too sure about that. The other day I checked the for sale boards and of the 17 newly listed contracts, do you know how many were asking for volume?..... 3.

 

[It will be fine]

Once again your logic only applies if scale is available and there are a sufficient number of areas that are not only profitable enough to service but to be able to pay somebody enough to keep them on the route. And in expansive depressed rural regions such areas are few and far between Once again you're basing everything on conditions that exist in the Boston Metro area you serve. Then too you talk about scale allowing you to pay drivers more. If that's the case then why are the drivers who remain at the terminal I was at being paid the same amount as what was being offered 5 years ago and in some cases less than what was offered 5 years ago?

And BTW. You talked about being able to sell for in your own words..." millions and millions of dollars". I wouldn't be too sure about that. The other day I checked the for sale boards and of the 17 newly listed contracts, do you know how many were asking for volume?..... 3.

On a per truck basis it’s cheaper to maintain 10 trucks than 1. Where are you getting lost?

 

[vantexan]

On a per truck basis it’s cheaper to maintain 10 trucks than 1. Where are you getting lost?

With the demographics he described he was never going to get to ten trucks. Why not just admit it's easier to make the model work in your area? That the company wants contractors in areas like his to just deal with it, not pay extra to keep them, and the service, viable. AFAIK they may be doing just that now, but doesn't sound like that was his experience.

 

[It will be fine]

With the demographics he described he was never going to get to ten trucks. Why not just admit it's easier to make the model work in your area? That the company wants contractors in areas like his to just deal with it, not pay extra to keep them, and the service, viable. AFAIK they may be doing just that now, but doesn't sound like that was his experience.

Rural contractors generate much more revenue than urban ones. The model compensates for the additional mileage. If he dealt with corporate the ways he describes it here, it’s not surprising he couldn’t get a better deal. My guess is he just wasn’t very good at the business side of operating. I’m sure he could deliver boxes just fine but it takes a different skill set to thrive in this model. There are countless successful rural contractors.

 

[XEQaF]

Rural stops may generate more per package or stop but the additional costs associated with these routes and more often than not, less package density, is far more disadvantageous compared to a stop dense urban center.
ie filling a fuel tank everyday compared to every second or third day outweighs a core zone premium

 

[vantexan]

Rural contractors generate much more revenue than urban ones. The model compensates for the additional mileage. If he dealt with corporate the ways he describes it here, it’s not surprising he couldn’t get a better deal. My guess is he just wasn’t very good at the business side of operating. I’m sure he could deliver boxes just fine but it takes a different skill set to thrive in this model. There are countless successful rural contractors.

How was the mileage compensation when he was contracting?

 

[XEQaF]

also I'm glad Bacha is on here talking about the other side of contracting. It isn't all balloons and cupcakes, and anyone coming on here to get insight into what's in store should see both sides. FXG tries to make contracts and framework to be universal across the board but does not take into account the variety of issues and challenges that contractors face from differing regions, cities, towns etc. Most failure is due to FXG lack of understanding and rigid 'dont give a s#*t' policies and attitudes

 

[falcon back]

also I'm glad Bacha is on here talking about the other side of contracting. It isn't all balloons and cupcakes, and anyone coming on here to get insight into what's in store should see both sides. FXG tries to make contracts and framework to be universal across the board but does not take into account the variety of issues and challenges that contractors face from differing regions, cities, towns etc. Most failure is due to FXG lack of understanding and rigid 'dont give a s#*t' policies and attitudes

bacha is a genius. We are lucky to have him on here.

 

[Working4the1%]

And this is relevant how?

That Biden is adamantly in favor of the working class..not scam corporations hiding behind trickle down economics. Thank you Georgia

 

[It will be fine]

How was the mileage compensation when he was contracting?

Ya got me. It varied by zip code back then. If you knew how the game is played you could get your core zone payment increased. That was a flat rate you got daily to cover unique circumstances of the zip code. My guess is Bacha wasn’t very good at playing that game to get his core zone up to an adequate level to make good money. Engineers don’t like truck drivers telling them how stupid they are for their trips to the FedEx mind control and re-education camps.

 

[Working4the1%]

Can you please explain the reason for your displeasure. I don't believe I am aware of the reason you are so bitter. Please enlighten us. Go into deep details and don't hold back.

Somebody needs to inform you of what retirement is all about...l couldn’t imagine giving a ... about FedEx after I leave. Defending a $65,000,000,000 company on a message board..sad

 

[bbsam]

That Biden is adamantly in favor of the working class..not scam corporations hiding behind trickle down economics. Thank you Georgia

Wake up. You’re dreaming of a seismic shift in how this economy runs. You’re hoping Biden is the socialist that conservatives have been trying to paint him. He isn’t. Very little will change with economic foundations.

 

[vantexan]

Wake up. You’re dreaming of a seismic shift in how this economy runs. You’re hoping Biden is the socialist that conservatives have been trying to paint him. He isn’t. Very little will change with economic foundations.

The economy runs on fossil fuels. Looks like he's well on his way to changing that.

 

[bbsam]

The economy runs on fossil fuels. Looks like he's well on his way to changing that.

Really? Think we’ll all be electric in 8 years? Honestly, I’d LOVE to have an Electric pickup truck with incredible torque and a straight line acceleration curve. Mass produce all that and sell at comparable prices to fossil fuel vehicles a d in a generation internal combustion engines would be as common as dial up internet service.