Would like to purchase 3-6 Fedex ground routes.
- Thread starter Sharkboy
- Start date
MrFedEx
Engorged Member
One would think they wouldn't want clueless people right off the street, or maybe that's exactly what they want.
The contract is only for a year. There is no guarantee of renewal. If you do not get your contract renewed you basically have forfeited your entire investment. I am being proactive for this reason and in the process of selling my three routes -- I have until end of July
MrFedEx
Engorged Member
Wow. Nothing like taking a risk, eh? So, if you invest in a couple of trucks and own 3 routes, and FedEx does not renew, how much do you stand to lose or gain from selling-out?
overflowed
Well-Known Member
Weren't you on here not long ago asking about ground routes? I may be confused sorry if thats the case.
Yes it was a bad decision but I have six months to find a buyer
overflowed
Well-Known Member
Want to enlighten us and give a general idea why it was a bad decision. If it's too personal I totally understand. Just so no one else has a bad experience. hope all works out Nick.
HomeDelivery
Well-Known Member
he was barely making any profits after expenses... but he's also in an area where the costs of living is high & he needs to pay probably a bit higher if he wants to keep competent drivers that won't cause too many disputed deliveries / customer claims
that's just a guess after reading some of his posts
i was going to be a single owner-operator, but his testimony & closeness to my area showed me otherwise
that's just a guess after reading some of his posts
i was going to be a single owner-operator, but his testimony & closeness to my area showed me otherwise
MrFedEx
Engorged Member
Please enlighten us, and other potential contractors.
Schlepper
Active Member
Getting three to six all at one time would be a bad call. I'd do two at the most, preferably one with an established driver. I know a guy that did just what you wanted to, and ended up getting three routes. He then got a fourth, got a free PSA from the terminal for a fifth. Problem is, his drivers suck and he has two or three of his PSAs split in half running supplements because the people running them can"t handle the entire area. That's the fast track to completely losing your ass. Sad part is, he'll take on additional supplements just to please the terminal in hopes of having those sups turned into PSAs (as if any of those supplements will get converted to PSAs anytime soon...pipe dream).
Long story short, I'd drive for a contractor for at least 6 months so you can see that side of it before you buy in. I had the same aspirations, but after seeing the contractors getting screwed (thresholds raised incrementally, core zones being whittled away at) and seeing how the dudes under the contractors get screwed, it's just not something I'd be a part of. Some guys like it, and if you can find a reliable guy to work for you @ roughly 600/wk you'd probably be ok provided your volume is steady and good. Rural or urban? Distance from terminal? Lots of factors at play here.
The point is, you have the make the numbers work. Supplementals rarely benefit you. Dependent on the PSA you run them off of, you can either help or hurt your core zone. Factor in van availability, etc. and see if you can actually profit with a sup. The best scenario is to get away with running one van per PSA and not splitting it up. As soon as you split one PSA into a PSA and sup you can just watch your profit dissolve. At least drive for a contractor for a while to see what it's all about and get some inside baseball knowledge before you fork over any cash to anyone.
Long story short, I'd drive for a contractor for at least 6 months so you can see that side of it before you buy in. I had the same aspirations, but after seeing the contractors getting screwed (thresholds raised incrementally, core zones being whittled away at) and seeing how the dudes under the contractors get screwed, it's just not something I'd be a part of. Some guys like it, and if you can find a reliable guy to work for you @ roughly 600/wk you'd probably be ok provided your volume is steady and good. Rural or urban? Distance from terminal? Lots of factors at play here.
The point is, you have the make the numbers work. Supplementals rarely benefit you. Dependent on the PSA you run them off of, you can either help or hurt your core zone. Factor in van availability, etc. and see if you can actually profit with a sup. The best scenario is to get away with running one van per PSA and not splitting it up. As soon as you split one PSA into a PSA and sup you can just watch your profit dissolve. At least drive for a contractor for a while to see what it's all about and get some inside baseball knowledge before you fork over any cash to anyone.
Similar threads
- Poll
