Note: This is Part 2 of a four-part series. Look for our other posts on Why You Should Invest in FedEx Routes for Sale, How to Distinguish Yourself as a Buyer, and How to Leverage Route Consultant’s Services.
Now that you know why you should invest in FedEx Ground routes, let’s consider how to best find FedEx routes for sale.
Not All Listings Are Created Equal
It should come as no surprise to you that the best and easiest way to find FedEx routes for sale is online. However, not all online listings are created equal.
Some times you will find FedEx routes for sale via a route broker. Respected brokers in the FedEx Ground space list routes after having done initial due diligence. Here at Route Consultant, we work extensively with our sellers and potential sellers to ensure that they represent the breadth and depth of their business accurately. We also help them understand their responsibilities as a seller and encourage them to get their financials in order for a buyer to conduct their own due diligence. Finally, we work with sellers to price their routes so that they reflect accurate market value.
Other times, you may find a massive number of route listings in one location and you will notice the information from one route to another is inconsistent. These large listing sites are simply billboards on the web. The listings are not verified by industry insiders and the quality of the routes varies dramatically. It can feel helpful to see so many listings in one space, but more often than not it’s stressful trying to pick out the stronger listings from the heap.
Our advice for you as you evaluate online listings:
Beware of routes that advertise incredibly high profit margins; as we’ve stated before, a healthy P&D business typically demonstrates profit margins of 15-25%
Look out for routes that are overpriced; approach with caution if a route is listed for more than 70% of revenue
We highly recommend using established brokers to buy a route.
Further, we think there’s incredible value in working with a broker that specializes in the type of route you are interested in and has actual contracting experience. This type of deep industry knowledge is invaluable to you as you navigate a new investment.
Another way you can leverage brokers’ experiences is by hiring them on a consulting basis. Helping new investors navigate the field is one of our strongest service offerings.
How can we help you as a new buyer?
We can start by helping our clients understand how FedEx Ground operates as a whole and what to expect as you get started as a new contractor. We can also help you evaluate routes for sale: we can use our experience to do a “sniff” test and see if the listing appears viable, the seller is representing their business accurately, the financials are strong, and whether or not the operation is priced appropriately. As contractors with operations across the country, we also know a lot of other current contractors. In many cases, we can seek out opportunities in markets you are interested in, before they ever even make it online via brokers.
Once you are in the purchasing process or operating as a new contractor, our consultants can help you think of ways to make your business more efficient (and more profitable!). We can also talk you through vehicle maintenance and acquisition strategies. And we can help you think through opportunities for business growth.