Healthy fedex route businesses demonstrate profit margin ranging from 15% to 45%. Where you fall within that range depends on the type of routes you own, the composition of those routes, and how efficiently you manage your business expenses.
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.
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.
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.
The standard minimum down payment for a conventional bank loan is 25%. For an average priced route ($850,000), you would need a down payment around $212,500. This is a hefty amount of cash on hand. Plus, we recommend holding back approximately $50,000 of additional liquid funds as working capital.
If you are wondering about options to minimize or reduce your down payment requirements, you’re not alone.