Fedex Ground Owner Operators?

Yeah coal .. But a established business is different than a dedicated run that could go away or be taken away at anytime by dictation of the company .. In this example your buying BLUE SKY that you have no control over .. It's freight controlled by FEDEX and whether or not you purchase a lane does not matter to them . In the end they make the call on this therefore I think the acess ment is waaaayyy off kilter ..

Now .. Coal has a business and his own customers and wants to sell that to US Marine for 1.5 annual gross that's a totally different thing that selling a customer base and customers that the buyer can control and that would be worth up to 1.5 AG or even 2.5 depending on the market nitche and other aspects ..

Can you loose your butt on either example ? Yes .. The main difference is control of the operation in which in the FEDEX option you have no control it's dictated by the company in essence you bought a job or a number on a board

 

You buy a business on net profit not gross sales.

 

You're right USM, it does seem like it would be a tad risky being that FedxG holds all the cards, not sure how the ones who do that manage with it. Was just saying that's in the ballpark how to figure the worth of a company, although it's based off net profit not gross revenues which makes perfect sense...

 

Just like buying/selling contracts with some of the national cleaning company's. They still own the customer.

 

If you buy out a guy selling from fedex ground. Yes you are buying his current lanes or dedicated routes. However if fedex cancels that lane they replace it with something similar in pay. Plus you and other contractors bid on new routes whenever they become available. Im not a contractor for fedex ground but I know one. He does pretty good for himself plus the 50 people he has working for him. He has bought out quite a few old timers and turned a profit every time.

 

The value in FXG contracts is the points system they use to assign dedicated routes and guranteed mileage. The longer a tractor has been in service the more points it accumulates. New routes or higher mileage routes are bid on by each contractor. The contractor with the most points who wants the route gets it. That includes adding additional tractors in addition to keeping the route you already have - if you so choose. Yes, FXG holds all the cards, but there is value. It just depends on what fits your needs. 1x net income is fair plus the value of the tractor anything more and you're paying a premium. If you're going to buy a route and want to grow your business, buying a route with alot of points puts you right to the head of the class. Otherwise, save your cash and get in on the ground floor.

 

Rarely is a business bought and paid for in cash. The way most businesses are paid for after they are bought is in payments. No business = no payments. All you're really risking is the down payment. I always heard that 1 and a half times 1 year's net is a good buy for an existing business.

 

can someone tell me what fed ex ground pays per mile? i call the hub in bedford park (chicago) and no one ever tells me, i know a lot of the drivers run deadicated runs to and from there and sleep in there own beds every night,like to get into that as i have young kids and its hard being away from home all the time,any info from drivers with them thanks

 

Why not just go to RoadRunner? Screw Fedex. Im not buying a route.

 

I work for fedex freight and what i hear is ground does not pay well at all. Just saying!