Within the United States, each state has extensive control over its own taxes, workers compensation rules, and labor laws. Further, each state has a different tolerance for employee-employer litigation. These variances make notable differences to a business.
How to identify high growth areas for your next route purchase
Many new investors want to focus their search in on areas that also have high population growth. Population growth does contribute to package growth. However, as we cautioned before, beware of route businesses in cities where outsized growth contributes to low unemployment rates and upward wage pressure. These can be expensive markets with substantial hiring challenges.
Planning on buying FedEx Ground routes in a metropolitan area? What you need to think about.
If you serve a metropolitan CSA you have unique factors to consider. To start, we find that in a strong economy it is more difficult to hire drivers in cities where there are many employers and unemployment rates tend to be low. However, because of the higher wages and deeper pool of talent, route businesses in metropolitan areas have the opportunity to secure smarter, highly capable employees.
What You Need to Know About Buying FedEx Trucks as a Contractor
Our team of actual FedEx contractors worked through the math of new FedEx trucks versus used FedEx trucks in our own operations. We always want to make the most efficient choice for our fleets. We have compelling data that shows new trucks are the superior option for routes that are 150 miles per day or less. Why is this the case?
What are Normal Net Profits for a FedEx Route Business?
What is the FedEx Ground large package network? Why are they called incompatible packages?
One of the ways FedEx Ground stands out among the crowd is its ability to receive and deliver large or incompatible packages. Think about all of the incredibly large items we can buy and sell online today that need some way to get from Point A to Point B: playground equipment, dining room tables, sets of tires, and more.
The Latest Details on FedEx Ground Bonuses and Why You May Read Conflicting Info
Here’s why you’re hearing more than one thing on bonuses: FedEx Ground historically awarded bonuses to contractors. However, FedEx Ground is in the process of phasing out bonuses and so some contractors have them and some do not. Understanding what bonuses used to do, why FedEx Ground is phasing them out, and what comes next is a critical piece of the puzzle as you model future finances.
The Need-to-Know Updates To Your FedEx Ground ISP Contracts
You are charging FedEx for your services. You will negotiate each of the following charges with FedEx. All of these charges combined account for money flowing into your business. It’s critical you understand how and when those charges occur. And how you can increase your cash flow! Following is a quick overview of the charges you will negotiate as part of your Independent Service Provider (ISP) contract.
Preview the Schedule and Sponsors for Contractor Expo + Party 2019
This is a year of huge change for FedEx Ground contractors. How are the largest contractors in the nation preparing for these edits to their operations? Come network with them and learn from them in Q&A panels. You can also connect with dozens of industry vendors and leaders who can support transitions in your business.
How big can my business grow with FedEx?
Every FedEx Ground terminal serves a defined geographic territory. FedEx Ground closely monitors—and prevents via scale requirements—any contractor/entity from growing too large or too small within a single terminal. They do so by prescribing the number of daily stops an entity can make as a percent of all terminal stops.
The Worst Case: How do personal guarantees work?
August Date ADDED! Route Consultant's New Investor Summit
How do the rise and fall of fuel prices impact a FedEx route business?
One of the many ways FedEx Ground ISP contracts ensure sustainable operations is by subsidizing fuel costs. Further, these subsidies correlate with the price of diesel fuel in an operation’s market.
Keni Thomas to Deliver the Keynote at Contractor Expo 2019
FedEx Moves to 7-Day Delivery and Announces SmartPost Integration
Last week FedEx Ground announced 7-Day Residential Delivery for the entire year (not just during peak season). Along with that game-changing notice, FedEx Ground also revealed more about their plans to integrate SmartPost into Ground volume. Finally, the company also announced transformations in their large package or “incompatible package” capabilities.
Are FedEx Routes Good Investments?
Although it feels as if our world is already dominated by e-commerce, the market is not nearly done growing! We predict the e-commerce expansion to rise steadily for the next ten years. The total e-commerce volume will be so significant that we believe there will be enough business for all the current logistics players to sustain themselves and for new players to enter the market and thrive.
Looking to Buy a FedEx Route? Here’s Why You Should Start With P&D Routes
If you are considering investing in a FedEx Ground route for the first time we recommend starting with a pickup and delivery (P&D) FedEx Ground business. For many new contractors, it can be easier to begin with FedEx Ground P&D routes and then scale up so that your entity includes linehaul runs.
Is Amazon Logistics a Threat to FedEx Ground? What You Actually Need to Consider.
Amazon has its own last mile delivery trucks now. Amazon is starting its own delivery business. Amazon has a new fleet of planes. Amazon is investing in drones. Amazon is building a logistics hub in Kentucky. Amazon is a major threat to FedEx and USPS. Amazon is building the Death Star. Amazon hates Ewoks.
Every week we see some version of this story.
What is SmartPost? New Volume and Routes For FedEx Ground
Currently, USPS completes the last mile delivery of these SmartPost packages. However, USPS and FedEx Ground are modifying the agreement so that FedEx Ground will roll out SmartPost last mile delivery across the United States. Most FedEx Ground territories are going to see a significant volume increase—we predict a jump of 25-100% in most markets!
RSVP Now for the Contractor Expo + Party
Route Consultant, the industry’s top route broker, will host hundreds of FedEx Ground contractors from across the United States and Canada for a one-of-its-kind event in Nashville, TN. Route Consultant is paying every contractor that attends $300 cash to offset travel costs. In addition to industry panels and presentations, the event will feature a private concert in the heart of Music City and an open bar.