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    9 Replies Latest reply on Nov 16, 2014 12:56 PM by dom777inick

    Help re Fedex!

    mrklnr Newbie

      Hi,


      I am looking for FedEx route/s and understand the Ground routes contract on a yearly/renewal basis...if FedEx changes there business model...or moves a terminal or what else?...what protection do I have from losing the route and my investment?

      What are the chances a union will take over?
      What are the chances the labor board will consider us employees and our drivers... which will increase costs to make the business unaffordable?
      Also, I am hearing that the routes usually sell for .8 X annual gross...is that correct?  If not what is the right multiple?  or 2 X Net Income?

      Please advise...

       

      much appreciated

       

      Mark L

       

       

        • Re: Help re Fedex!
          Guide

          Hi Mrklnr,

           

          You are not the only member to post this question. I am including an older link for you to browse through in hopes that you will gain valuable information that you could use. Maybe another member can offer something a little more current on this topic. Good luck!

           

          Re: Have funds to purchase FEDEX ground routes. Risks involved ?

           

           

          Melinda

            • Re: Help re Fedex!
              routetycoon Wayfarer

              I have been in a similar boat of trying to find unbiased info about routes, especially FedEx routes. I took a leap about 5 years ago into the FedEx contractor model and with some lucky decisions, I was very successful. That doesn't mean FedEx routes don't have their risk.

               

              Also though, there are free articles there that may help you and also listings of all the FedEx routes across the entire country compiled from the 6 largest business broker sites all in one place. Let me know if I can help in any way.

                • Re: Help re Fedex!
                  chicagocio Scout

                  Am I correct in assuming these are routes that you run, i.e you deliver packages along these routes?  You said there is a listing of routes compiled from broker sites?  Where do you find this listing?  Just wondering if this compiled data could be organized or presented in a way such as maybe in a website or some kind of reporting to help contractors identify routes and analyze risk and profitability.    Not sure what kind of information is available or how technology might be able to help.

                    • Re: Help re Fedex!
                      routetycoon Wayfarer

                      Chica - The contractor may deliver packages himself or have an employee doing it. The listing of FedEx routes for sale is a service I provide for the people that I consult and help purchase routes, but it's available to everyone for free at www.RouteTycoon.com under the "for sale" tab. You mention a good idea about having a site for everyone to see the routes for sale to determine risk/profitability, but unfortunately, the info isn't so readily available due to the terrible quality of most (not all) brokers in the route industry. You should read the "Why your broker probably sucks" under the Articles tab and it'll explain what I'm talking about.

                        • Re: Help re Fedex!
                          chicagocio Scout

                          Hey route tycoon, I read your article about those brokers.  I can't see these guys providing very good data if any at all.  Sales organization are typically pretty terrible at IT and data in general. I work for one here in Chicago and it's taken a lot of effort to improve their data. Let's just call it a work in progress .  So I could see working with these brokers to get data would be big headache plus you'd have to offer them a bigger commission to even give them incentive.  But I wonder about the owners.  Suppose you had an online broker website that required a lower commission?  Then the owners could skip the middle men and people like mrklnr could find what he needed faster?

                            • Re: Help re Fedex!
                              routetycoon Wayfarer

                              Brokers can be a huge headache for sure, and just because the majority are awful, doesn't mean they're not bringing huge value to the table. I've helped sellers get *much* more money (ever after my commission) than they could have gotten alone. The sellers have a business to run, employees to manage, and are busy and want to relax in the evening and weekends. A good broker knows that's prime time to talk to sellers. I'd say 90% of inquiries are just tire kickers, 5% really want to do it but are scared of leaving the comfort of a steady paycheck (whomever has been laid off knows there's no such thing as 'comfort'), and 5% of people that make something happen in their life and try to buy the route asap. A route owner is also usually just that, a business owner - not a salesman. A broker can bring the sales skills to the table to deal with questions that may seem "stupid" to the contractor. In the end, using a good broker makes the owner usually win. However, your idea of a online broker website is a good one and actually already is being done successfully by Ron Slusser - he has a website that drives traffic, and funnels all the leads to the seller at a discounted commission (because he funnels all the time wasters, tire kickers, ill informed to be dealt with by seller). If you have tons of extra time to talk to bad (and good) leads, want the marketing presence of Ron (as opposed to advertising yourself), and have sales skills, it's a great way to go. So, don't let my article at RouteTycoon.com mislead you to think that I hate brokers - I don't. Brokers bring great advantages to sellers AND buyers *when they're good*...That's why I broker routes, or at least recommend a company like Mr Route as well, b/c the amount of good brokers out there is pretty abysmal. Who doesn't like beating easy competition?! haha. Let me know if I can continue to help!

                                • Re: Help re Fedex!
                                  Moderator Berta Guide

                                  Thanks for explaining, routetycoon.

                                   

                                  ~Berta

                                  • Re: Help re Fedex!
                                    dom777inick Adventurer

                                    I am looking to buy a Fedex ground route in the NY area. My main concern with these routes are that, there seem to be more available and I am worried with the recent ruling in California about the teamsters that all these routes will be taking over by Fedex themselves and hire you as a driver. Can someone that owns a ground route please ease my concerns?

                                    Heard rumors that Fedex also wants owners to own multiple routes?

                                    I have been in the trucking business for the last 8 years in the medical field and this business has change drastically. Currently my customers make me wait 90 days for payment but all my vendors and employees get paid bi weekly and with 30 days. Looking for a more stable environment with weekly pay outs that's why I am intrigued with Fedex, also looking at an Arnold Bread or Tropicana route.

                                     

                                    Any advice, please share your experiences

                                     

                                    here is my email

                                    dom777inick@yahoo.com

                                    Thanks

                        • Re: Help re Fedex!
                          bigsmiles Wayfarer

                          Hi Mark:

                           

                          Did you ever find out what is the real-life multiple for a route ?  I currently see some routes being sold for about 3X net.  Does that sound too good to be true ?

                           

                          Thanks in advance.

                           

                          Tuan