Looking at FedEx Routes for Sale? Ask These Questions

 Photo by Martin Sanchez

Photo by Martin Sanchez

Questions that will help ensure Success when you buy a FedEx route

 

Do I have business experience? 

Operating a FedEx business requires you to manage all aspects of an independent business: payroll, taxes, maintenance, hiring/firing, insurance, customer service, etc. This is a detailed operation that will require strong problem solving skills and experience helps.

 

Have I previously owned or operated a company with employees?

A significant chunk of your business time will be spent managing employees. You will need to hire drivers and linehaul drivers will be more difficult to find. Once hired, you will need to onboard and train all news employees. You'll also need familiarity with making payroll, addressing employee issues or concerns, and handing employee disputes.

Productive, happy employees makes a sizable impact on your bottom line.

 

Am I comfortable managing customer questions, issues, or concerns?

FedEx uses (customer service incentives) CSIs to ensure high quality service among contractors.

All contractors receive CSIs on a regular schedule (based on a negotiated rate in their contract). The CSI bonus decreases in a given period if there were CSI complaints against that contractor. Your FedEx business profits when customers are happy and suffers when they aren't.

Being comfortable serving customers and addressing their issues (and training your employees to do so as well) is a must for FedEx business owners.

 

Do I understand business financials and the basics of investment?

Buying a FedEx route is more than creating a job for yourself. It's a serious investment with real profit potential.

Have a sense for how you will fund or finance a FedEx route investment. What's your best strategy? How will you pay off any funding or financing? Can you pay off financing sooner than expected?

Think short and long term about your capital costs and your profit margins. How can you improve that margin and bring real, additional cash into your pocket?

WHAT'S NEXT IF YOU WANT TO LEARN MORE?

If you are interested in buying a FedEx route, check out our listing page for operations currently on the market.

If you need more help with the details and navigating contract negotiations, contact us for consulting.

We can walk you through pieces of the puzzle for buying a FedEx route, such as:

  • IC vs. ISP Business Models
  • Overlap Requirements
  • Understanding Contract Terms
  • Optimizing Operations
  • Fleet Management
  • Business Valuation
  • Terminal Relationship Management
  • Driver Recruitment/Training

And, as always, give us a call and we can help point you in the right direction.