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I looked at a few Fed Ex routes just now and saw some for sale on the East Coast, they start around $75,000 per route and go up to $700,000 for a large multi route transaction. A search provides sites dedicated to brokering these deals, looks like fuel cost would be a risk as well as all the other risks, rules and regulations. I would suggest a 5 year Business Plan instead of a 3 year plan, for anyone thinking about going in to this type of business.
- Two ways of thinking about approaching this could be to outsource and subcontract everything and make money on the management only.
- Someone could also already own land, a shop and office space for dispatch and try to make more profit on having lower operating overhead.
- Either way, be careful planning future fuel cost because right now crude oil prices are low, fuel cost might rise every year from here over the next five years.
Very helpful guidance, Vilnius. Thanks!
Beware that the Department of Labor and the Internal Revenue Service want to treat FedEx Ground independent contractors as employees. That means the cost of labor will increase considerably and reduce profits. Some of the so called FedEx Ground “independent contractors” will go out of business as a result.
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Interesting. It sounds like what the Uber drivers are doing. They want to be classified as employees, not independent contractors. They had some success by suing Uber in states like California.
It will be interesting to see how the FedEx Ground independent contractor situation works out.
- Do you have questions around purchasing or operating FedEx ground routes?
- Tips or advice around running this business?
- Success stories to share with the rest of the community?
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