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Trying to buy package of routes
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<blockquote data-quote="dmac1" data-source="post: 3084361" data-attributes="member: 60252"><p>If you have 5 routes, for example, you better have at least 8 drivers. At some point, you WILL have at least two drivers unavailable at the same time. You are probably better off with a bunch of part-time drivers, maybe vreate 8 part-time routes out of 5 40 hour a week routes, and then you can offer drivers extra hours if absolutely needed. You might even find better people who only want 30 hours a week, and you could have an early and late driver driving the same vehicle, so extra vehicles might not be needed.</p><p></p><p>Same goes for vehicles- you better be ready with extra vehicles whether rentals or owned. Those extra trucks will be needed when you need to make repairs that take longer than a couple hours, or if one of your trucks is in the body shop when fedex decides it doesn't look good enough or your driver side-swiped a building or high curb while going around a corner. Long term, you are going to need those vehicles, and all your vehicles will last longer anyway if you are putting less miles on each of them.</p><p></p><p>If you have a fleet of 6 trucks each worth $75k, and ALL of them run only 60 miles a day, it is still $22,000 a year at TODAY's costs to replace them IF you figure a 20 year life, let alone counting for inflation. That is basically $2000 a month minimum that you are losing either out of cash flow, or out of the value of the business if you don't have a replacement fund. And if you don't have a replacement fund, you will need to borrow when trucks need to be replaced, further reducing cash flow.</p><p></p><p>And your drivers won't care about being easy on the trucks. Coming from HD, I know that regular cargo vans WILL NOT last 400,000 miles when your drivers don't tell you about squeaking brakes, or a squealing water pump, or the smell of burning wires. They will shift from forward to reverse while still moving forward, and vice versa. They will drive over or through construction debris, mud that is obviously too deep, or through tree branches guaranteed to put deep scrapes in your paint, and you will wonder how you got a dent 5 feet or more above ground level. The drivers may be friendly, like you always were to your employers, but they won't be trying to help you.</p><p></p><p>Basically, you are buying a headache. Do you think the owner is selling because it is a no-brain great deal that pours out cash like the golden eggs fly out of a goose's ass?</p></blockquote><p></p>
[QUOTE="dmac1, post: 3084361, member: 60252"] If you have 5 routes, for example, you better have at least 8 drivers. At some point, you WILL have at least two drivers unavailable at the same time. You are probably better off with a bunch of part-time drivers, maybe vreate 8 part-time routes out of 5 40 hour a week routes, and then you can offer drivers extra hours if absolutely needed. You might even find better people who only want 30 hours a week, and you could have an early and late driver driving the same vehicle, so extra vehicles might not be needed. Same goes for vehicles- you better be ready with extra vehicles whether rentals or owned. Those extra trucks will be needed when you need to make repairs that take longer than a couple hours, or if one of your trucks is in the body shop when fedex decides it doesn't look good enough or your driver side-swiped a building or high curb while going around a corner. Long term, you are going to need those vehicles, and all your vehicles will last longer anyway if you are putting less miles on each of them. If you have a fleet of 6 trucks each worth $75k, and ALL of them run only 60 miles a day, it is still $22,000 a year at TODAY's costs to replace them IF you figure a 20 year life, let alone counting for inflation. That is basically $2000 a month minimum that you are losing either out of cash flow, or out of the value of the business if you don't have a replacement fund. And if you don't have a replacement fund, you will need to borrow when trucks need to be replaced, further reducing cash flow. And your drivers won't care about being easy on the trucks. Coming from HD, I know that regular cargo vans WILL NOT last 400,000 miles when your drivers don't tell you about squeaking brakes, or a squealing water pump, or the smell of burning wires. They will shift from forward to reverse while still moving forward, and vice versa. They will drive over or through construction debris, mud that is obviously too deep, or through tree branches guaranteed to put deep scrapes in your paint, and you will wonder how you got a dent 5 feet or more above ground level. The drivers may be friendly, like you always were to your employers, but they won't be trying to help you. Basically, you are buying a headache. Do you think the owner is selling because it is a no-brain great deal that pours out cash like the golden eggs fly out of a goose's ass? [/QUOTE]
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