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Stupid arguments about the Ground business model
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<blockquote data-quote="oldrps" data-source="post: 4713011" data-attributes="member: 36765"><p>I feel that FedEx contractors provide wholesale transportation and that is a business. Wholesale businesses make a little money on each dollar due to they don't have the headaches of finding customers, setting up billing, sales, marketing, etc; FedEx does all that. They do one thing delivery and pickup packages and that is it and they do it over and over. Do things change over the years, yes, like any other business.</p><p></p><p>Only having one customer is not a normal way of doing business, it is extremely risky. The benefit is for them is that FedEx (I assume) still pays timely. That doesn't happen in the business world, try calling a customer every week and having to wait over a year to get paid or never get paid. Run out of cash to pay your creditors due to customers not paying you. You can have someone owe you $20,000 dollars and you can go under because you can't pay your lease/rent payment at the end of the month. With FedEx, you know everyday there will be work that has to be completed, it may slow down or go through the roof, but there is work everyday. How many small businesses wish they had that problem. </p><p></p><p>The risk is if FedEx changes their business model and goes to employee drivers (which is very unlikely), goes out of business, new competition, or the law changes. As long as they provide a good service, there is no reason for FedEx to end the relationship. If the relationship with FedEx ends, they can still startup their own delivery company with the equipment they have, but will have to create everything else that goes with a delivery company. </p><p></p><p>Many businesses go under everyday and they have nothing to show for it either. They may have equipment they have to sell off or scrap. This is not unique, I don't know why most of you think that doesn't make them a business or less than a business. If you own a pizza place and you go out of business and you own a pizza ovens, tables, chairs, drink machine, dough mixer, shelving, pans, glasses, etc. Those items may be worn down as well. What do you do those business owners do with their equipment?</p><p></p><p>From reading the comments on this board, I would venture most have never started and run a successful business full time. Customers will dictate what they want and how they want it and many times it is spelled out in contracts. They give you unrealistic deadlines, get mad at you for not completing something due to their negligence. There is no one that helps you, you are on your own. You get sick, you still have to run your business, no one else will run it for you. Until you own a business full time for a few years, you will never understand.</p></blockquote><p></p>
[QUOTE="oldrps, post: 4713011, member: 36765"] I feel that FedEx contractors provide wholesale transportation and that is a business. Wholesale businesses make a little money on each dollar due to they don't have the headaches of finding customers, setting up billing, sales, marketing, etc; FedEx does all that. They do one thing delivery and pickup packages and that is it and they do it over and over. Do things change over the years, yes, like any other business. Only having one customer is not a normal way of doing business, it is extremely risky. The benefit is for them is that FedEx (I assume) still pays timely. That doesn't happen in the business world, try calling a customer every week and having to wait over a year to get paid or never get paid. Run out of cash to pay your creditors due to customers not paying you. You can have someone owe you $20,000 dollars and you can go under because you can't pay your lease/rent payment at the end of the month. With FedEx, you know everyday there will be work that has to be completed, it may slow down or go through the roof, but there is work everyday. How many small businesses wish they had that problem. The risk is if FedEx changes their business model and goes to employee drivers (which is very unlikely), goes out of business, new competition, or the law changes. As long as they provide a good service, there is no reason for FedEx to end the relationship. If the relationship with FedEx ends, they can still startup their own delivery company with the equipment they have, but will have to create everything else that goes with a delivery company. Many businesses go under everyday and they have nothing to show for it either. They may have equipment they have to sell off or scrap. This is not unique, I don't know why most of you think that doesn't make them a business or less than a business. If you own a pizza place and you go out of business and you own a pizza ovens, tables, chairs, drink machine, dough mixer, shelving, pans, glasses, etc. Those items may be worn down as well. What do you do those business owners do with their equipment? From reading the comments on this board, I would venture most have never started and run a successful business full time. Customers will dictate what they want and how they want it and many times it is spelled out in contracts. They give you unrealistic deadlines, get mad at you for not completing something due to their negligence. There is no one that helps you, you are on your own. You get sick, you still have to run your business, no one else will run it for you. Until you own a business full time for a few years, you will never understand. [/QUOTE]
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