Improve Your Search of FedEx Routes for Sale By Focusing Your Price Point
As we discussed in previous posts, FedEx routes for sale vary widely by price. Our average priced route is approximately $850,000. However, we have routes ranging from $200,000 to $3 Million in price.
If you are new this search you may be wondering how you can narrow in on the right price of a FedEx operation for your goals. The answer is by focusing on the down payment you are capable of making and/or your expectations for take-home pay.
If you plan to finance your route, you should expect to make a minimum down payment of 10-25%—this is fairly standard in the industry. For an average priced FedEx route for sale you will need a down payment around $150,000-200,000, plus working capital.
There are a number of ways you can reduce your down payment burden.
As you think about take-home pay, know that a healthy P&D route business has a profit margin of 15-20%. For example, if you purchase a FedEx route with approximately $1 Million in revenue per year, you can expect to pull in approximately $150,000 in profit (or 15%).
Linehaul businesses have a wider range of possible profit margins: from 20-45% based on the composition of the runs.
we invite you to use our new Buyers Calculator to Find Your Target Route PRice
Based on industry averages and our experience in the logistics industry, this calculator helps you focus in on your target route price.
You can use it to explore your options based on down payment or based on your expected take-home pay.