Trying to buy a contractor out

lesslulpo

New Member
We have this one contractor at our terminal who always need help from us. Especially during peak. We have been trying to buy his routes, but he's not interesting in selling. He or the terminal always come to us for help. We have his ground area and he has our HD area. Sooner or later, when 2020 comes around, the engineer will make a split of those area. Before it gets to that point, we are trying to get his route. Any tips fellow contractors?
 

It will be fine

Well-Known Member
We have this one contractor at our terminal who always need help from us. Especially during peak. We have been trying to buy his routes, but he's not interesting in selling. He or the terminal always come to us for help. We have his ground area and he has our HD area. Sooner or later, when 2020 comes around, the engineer will make a split of those area. Before it gets to that point, we are trying to get his route. Any tips fellow contractors?
Change your user name if that's your real name.
Stop helping unless he sells.
 

bacha29

Well-Known Member
We have this one contractor at our terminal who always need help from us. Especially during peak. We have been trying to buy his routes, but he's not interesting in selling. He or the terminal always come to us for help. We have his ground area and he has our HD area. Sooner or later, when 2020 comes around, the engineer will make a split of those area. Before it gets to that point, we are trying to get his route. Any tips fellow contractors?
The going price for a set for routes in my area is a case of Colt 45, a bucket of chicken and a white woman. Seriously, IWBF is 100% correct when it comes to whether or not to help him. In you haven't personally experienced it yet then be advised of the fact that that damn company has a nasty little habit. Stopgap measures often become permanent solutions.
Focus on your own core responsibilities . If you have to commit additional assets to cover all of your G boxes then he'll have to do the same when it comes to covering his entire HD area. Chances are the engineer might just split up the overall territory along the geographic boundaries the two of you have already established for yourselves if you are currently in mutual agreement as to where they are..
 

Jkloc420

Do you need an air compressor or tire gauge
The going price for a set for routes in my area is a case of Colt 45, a bucket of chicken and a white woman. Seriously, IWBF is 100% correct when it comes to whether or not to help him. In you haven't personally experienced it yet then be advised of the fact that that damn company has a nasty little habit. Stopgap measures often become permanent solutions.
Focus on your own core responsibilities . If you have to commit additional assets to cover all of your G boxes then he'll have to do the same when it comes to covering his entire HD area. Chances are the engineer might just split up the overall territory along the geographic boundaries the two of you have already established for yourselves if you are currently in mutual agreement as to where they are..
you dont got enough money for me
 

lesslulpo

New Member
The terminal is somewhat forcing us to help him. We have a great relationship with the terminal, with him not so much. I'm not even sure how is he still contracted under Fedex since he has a poor operation.
 

Cactus

Just telling it like it is
You shouldn't have to help him at all (well, unless you really want to) but isn't this supposed to be "your business?"

Let the other contractor fall flat on his face and have X rip up his contract once he fails too many times, then you can buy it.
 

OrioN

double tap o da horn dooshbag
How did cactus know this?!? I actually saw that happened years ago before the isp transition in 2 terminals... free routes!
 

dmac1

Well-Known Member
How did cactus know this?!? I actually saw that happened years ago before the isp transition in 2 terminals... free routes!

Happens all the time- which is why buying a contract to service areas is so risky. Failure is only one of the many reasons that fedex can simply cancel the contract. Even if it turns out that they wrongly terminated, you have little recourse, and still a big loss even if you win a case for wrongful termination.
 

bacha29

Well-Known Member
The terminal is somewhat forcing us to help him. We have a great relationship with the terminal, with him not so much. I'm not even sure how is he still contracted under Fedex since he has a poor operation.
if this guy's performance is as you say poor then it might be attributable to a poor revenue stream. If that's the case then what makes you so certain that you'll do any better than he can.

Remember the old saying......"Be careful what you wish for......you might get it" .
 
Last edited by a moderator:

STFXG

Well-Known Member
The terminal isn’t forcing you to help. You’re accepting their plea and you are bailing them out. When you save their service you are saving their bonuses. Stop helping. Let him fail.
 

It will be fine

Well-Known Member
The terminal is somewhat forcing us to help him. We have a great relationship with the terminal, with him not so much. I'm not even sure how is he still contracted under Fedex since he has a poor operation.
If you want his stuff, let him fail and let the terminal give it to you. Seems easy to me. Make up an excuse for the terminal, if really want to, why you can't help anymore, guys on vacation, truck maintenance etc. It's very rare I help anyone out anymore and when I do it's planned by me and the other contractor in advance. Not sure why the terminal would be involved anyway.
 

bacha29

Well-Known Member
They should be holding the failing contractor accountable, not finding solutions for him.
Now what do you contractors have in common? You're all greedy and want it all for yourselves and it's that greed that is driving you straight into the trap XG has set for you. Playing you guys off against one another fueled by the dumb assumption that you can produce better results in a given area than the other guy while never once asking yourselves the question....." how can I extract myself from this nightmare under terms I can live with"? The panacea that you all cling to is the belief that there will be a boat load of cashing waiting for you at the end....... Wishful thinking.
 

It will be fine

Well-Known Member
Now what do you contractors have in common? You're all greedy and want it all for yourselves and it's that greed that is driving you straight into the trap XG has set for you. Playing you guys off against one another fueled by the dumb assumption that you can produce better results in a given area than the other guy while never once asking yourselves the question....." how can I extract myself from this nightmare under terms I can live with"? The panacea that you all cling to is the belief that there will be a boat load of cashing waiting for you at the end....... Wishful thinking.
I don't consider it a nightmare, so you're off base. You don't seem to grasp that other contractors are more successful than you were in hillbilly country.

The OP asked for advice on how to get the HD from an incompetent contractor that refuses to sell. Bailing that contractor out won't likely get the results OP is looking for. If the bad contractor is perpetually understaffed and terminal management allows it through the good will of OP nothing will change. There need to be consequences and failure to force a change. OP can use the promise of help as leverage to force a sale or free acquisition of the desired area. Helping just to help out doesn't benefit OP.
 

bbsam

Moderator
Staff member
The contractors in my building always help each other out from time to time. But a failing contractor is a failing contractor and that is the terminal’s problem.

I think we all understand that there are limits. I won’t actively try to make someone fail but I’m not there to save them either.
 

bacha29

Well-Known Member
I don't consider it a nightmare, so you're off base. You don't seem to grasp that other contractors are more successful than you were in hillbilly country.

The OP asked for advice on how to get the HD from an incompetent contractor that refuses to sell. Bailing that contractor out won't likely get the results OP is looking for. If the bad contractor is perpetually understaffed and terminal management allows it through the good will of OP nothing will change. There need to be consequences and failure to force a change. OP can use the promise of help as leverage to force a sale or free acquisition of the desired area. Helping just to help out doesn't benefit OP.
I take umbrage with that remark. It is a NATIONWIDE carrier and there are parts of this country where there is enough affluence allowing this business model to function well. At the same time there are just as many if not more areas where the area itself is simply too depressed has too little in the way of population and discretionary income to work with any degree of consistency . BUT, somebody has to go out there and provide the service.
The trouble the multi routes had was that they never took into consideration the weakness of the economy in my area and the limitations therein. Therefore the greedier they got the more they set themselves up for failure.
There are parts of this country where the best management practices in the world simply will not overcome a bad economy when the entire business model is consumption driven.

In this situation the OP should not be immediately pointing the finger at the contractor calling him "incompetent" instead he should be looking first at the economic conditions of that particular area Why? Because the amount of money they give you people to operate on is based on their operating cost assessments which are always based on a best case scenario.

In fact IWBF it wasn't more than a couple of weeks ago when you were "waaing" about the money.
 

It will be fine

Well-Known Member
I take umbrage with that remark. It is a NATIONWIDE carrier and there are parts of this country where there is enough affluence allowing this business model to function well. At the same time there are just as many if not more areas where the area itself is simply too depressed has too little in the way of population and discretionary income to work with any degree of consistency . BUT, somebody has to go out there and provide the service.
The trouble the multi routes had was that they never took into consideration the weakness of the economy in my area and the limitations therein. Therefore the greedier they got the more they set themselves up for failure.
There are parts of this country where the best management practices in the world simply will not overcome a bad economy when the entire business model is consumption driven.

In this situation the OP should not be immediately pointing the finger at the contractor calling him "incompetent" instead he should be looking first at the economic conditions of that particular area Why? Because the amount of money they give you people to operate on is based on their operating cost assessments which are always based on a best case scenario.

In fact IWBF it wasn't more than a couple of weeks ago when you were "waaing" about the money.
OP is taking about the HD that overlaps with his Ground. I'm guessing he understands the local economy.

The money is tight, the overlap contracts are bad. Many small contractors are being squeezed out. I'll keep on rolling same as I've always done. What I won't do is blame any issues I have on the local market location I set up shop in. It's not rocket science that a service company located where people need service will be more lucrative than one out in the boonies.
 

bacha29

Well-Known Member
OP is taking about the HD that overlaps with his Ground. I'm guessing he understands the local economy.

The money is tight, the overlap contracts are bad. Many small contractors are being squeezed out. I'll keep on rolling same as I've always done. What I won't do is blame any issues I have on the local market location I set up shop in. It's not rocket science that a service company located where people need service will be more lucrative than one out in the boonies.
Right , so what are you actually doing? You're delivering products to people. Therefore, you have to have large numbers of people in a concentrated area and more importantly have a lot of discretionary income at their disposal if you have a chance to succeed. Having an area with one person per 20 square feet and making above average income is a a hell of lot easier to operate in than one with 1 person for every 20 square miles living entirely on Social Security.

Just as you refuse to blame issues on your local market conditions which certainly makes sense given that you're in one of the best markets in the nation instead accusing those who are struggling just getting by because they are operating in an area that's just getting by of having what you believe to be management skills inferior to yours........ well that is something that is indeed "off base" because if they weren't out there doing what they doing today as best they can in an area for which this business model was never designed you wouldn't be doing what you're doing to day.....I guarantee it.
 
Top