Buying route as o/o with FedEx?

[miko]

Read an ad in the local paper to buy a route from a o/o, incl. van going from my home town in a 50 mile radius. Route delivers about 120 packages and such a day. pay is $1.25 + FSC and various pay per stop/pick up.
Revenue is sopposed to be $109.000. Work is physically demanding.

What do you think out there? Is this real or a joke?
How much would this route cost?
What would be the overhead costs?
Is anybody out there who is doing this?
Or would it be better to apply at FedEx Express going over the road?

I'd like some honest opinions please!

 

[Driveguy 207]

check out fedexaminer.com

 

[fastman_1]

It's the real deal,Price of the Route Depends on the Area your at.Hard Work you bet.I looked into this in The Cleveland Ohio Area.After alot of thought on it.I passed on it.It seemed to me that FedEx would have to many hands in my Business.







































Owner/Operator since 1979
Expediter since 1997
B Unit
Somedays are Diamonds and Somedays are Stones

 

[terryandrene]

I had a lengthy talk with a FedEx Ground Home Delivery O/O last week. He delivered 5 pkgs to my house and received $1.25 for the stop and $.27 for each package. He'd been with the company since the beginning, about six years and was happt withthe deal. I was surprised to learn of the payout he had to make which totaled about $200 each week. As I recall, he called the products he paid for each week as a productivity package. That scanner device they use, part of the package. the routing directions from door to door to door, also included. Insurance and $3.00 weekly truck washes also included in the productivity package. After you buy the truck and fuel and repairs, you have to schlep a lot of packages to get past the $200. Loading your own truck: priceless.

 

[geo]

if you decide you want to take a day off you have to have someone cover your route and have to pay them to, and they have a big hand in your pocket to
so i would check that out

with most of expediters you come and go as you please they would
like alittle notice that you are taking a couple of days off
so they can cover and plan for your being off etc
with this it's like the mail it's got go

 

[miko]

@terry&rene:
I went to the hub and got some more info. I noticed that the info is different than what I was told when I called. I was told that I should ride along with the current owner of the route to see how it works and if it was for me. I had left my card, but so far the owner has not bothered to give me a call. I had some worries myself, and after reading the other posts, I guess it is not for me.

As far as FedEx in general, I am wondering if I should check with them for a owner/operator opportunity with a cargo van. I ran into a guy today, who makes decent money and is with the company for some years now. When I compare his average to mine, I think it is really time to find another solution. You guys are with them for quite some time too, isn't it? You must be very happy there after all. I have reached a dead point with my company and things don't go any better and I am not happy anymore.

 

[terryandrene]

As far as FedEx in general, I am wondering if I should check with them for a owner/operator opportunity with a cargo van.

Miko:

You'll find that not all companies are good for any one person and not all people are good for any single company. Rene' and I have been with FedEx Custom Critical for over 16 years and we are comfortable with their policies and procedures. Many of our colleagues feel the same and have done quite well over the years. Many others, including several EO members, started with FedEx, left for greener pastures and have improved their financial standing and are otherwise happier elsewhere. We've also known many folks who started with FedEx Custom Critical (or the former Roberts Express) and lost their trucks and house as they moved from carrier to carrier until they hit bottom with the least popular carrier. My point here is that you should not rely on the comments or advice of any one person to determine your future in expediting.

I think you might find some value in attending the Expedite Expo at the Detroiter Truckstop at Woodhaven, MI during August 10-11.. There will be many recruiters, owners and drivers from all of the major expedite companies in attendance and by talking to them you may draw the conclusion which carrier suits your requirements.

Hope to see you there

Terry

 

[ACE]

I delivered for Fed Ex Ground Home Delivery back in 2001 for a short time. This was after I left Fed Ex C.C.

The work is demanding you load your own truck in the morning. The route directions are good. Finding the houses can be a pain because not every one has numbers on them. Apartments are the worse you are advised not leave an item that can be signed for because you are responsible for it. So you are knocking on doors to find someone to sign then you need to leave a card on the door letting the customer know were the package is. Then you have residential area's that have Dogs that are loose and not welcoming. People expect you to carry the packages in the house and set them down [example computers,monitors,etc.]

Saturday any packages left in your vehicle needed to be taken back to warehouse.

Some Days started at 8:30am and finished at 9:30pm 40% of the time.

This was my experience.

 

[Drluvv]

I know a guy who used to drive for Ground, he'd tell me there was money to be made but only if you had a good route. If you didn't then the work you put into delivering your loads wouldn't feel worth it. The most I heard of anyone working for Ground was grossiing $1200 to $1500 and by the end of the week they were exhausted. If I loved to lump my own loads, drive in traffic, get out of the truck for every stop, come home late at night, and give my employeer a cut of what I was making, I'd do it.

 

[raceman]

I can not speak for the deal you are looking at. I can speak for what two of my trucks are doing. My daughter and her husband both run for them and do very well. They recently, last month paid me off for the last vehicle. One is a step van and one is a cargo van. They are currently in the process of buying a third route. At this point I am not well informed on their plansd to staff that route but they are doing very well. My son in law has been running with them now about 5 years and my daughter going on 2.

If it would help I can put you intouch to talk it over with them.

Raceman
OTR O/O

 

[woobergoober]

Miko, I was a P and D Contractor (Pick up and delivery) for Fed Ex Ground, for 3 years, out of the Detroit terminal.

I got out because (as somebody already suggested) they have too much control over you.

I can tell you anything you need to know- to start with, the weekly deduction for the scanner, truck washes, etc is called the Business Support Package, and that was 55.00 a week. I cant remember how much they charged for insurance, but I am thinking right around that amount as well. Regarding the insurance, every year that I was with them, we got a substansial kickback from the insurance company (about 500.00) if the terminal did well as a whole, and if you did not personally have any accidents.

To be completely honest with you, that 109,000.00 a year sounds very off, to be quite honest. I believe we are talking about Fed Ex Ground, correct? If not, then it is Home Delivery- In my experience, the Ground guys made more than the Home Delivery guys.

Anyways, getting back to the "Buying a Route" issue- During my three year tenure at the Detroit terminal, I heard that term used many a time, but generally, it meant nothing more than a person coming in and taking over a route, and taking over any truck payment that the contractor had, on his truck.

Now, if his truck was paid off, that is another story, but unless that terminal is in some area where the unemployment rate is super super high, there is no real money being exchanged for the "purchase" of a route.

When I was there, the turn over rate was probably a couple a month- so if you wanted to work for them, it was only a matter of a month or two to get in, as long as you were qualified.

When at Fed Ex Ground, I had one of the top three routes in the entire terminal. I ran the Grosse Pointe areas- this is where your Bill Fords, Edsel family members, Art Van (Elsander), many players from the pro teams, etc. lived. I did an average of 125 stops/pick ups a day, and dumped around 200 packages. My yearly income was between 80- 90,000.00

If this person is claiming 109,000.00 I would be definately asking for pay stubs, because the logistics of that number, would be more than a human being could actually do.

Anyways, just a little food for thought. PM me, or I will keep an eye on the thread, should you have any other questions.

Scott

 

[miko]

I think I pass on the business opportunity. For one, the guy does not call me back, and for two, based on the info here, it is not worth it.
Also, I saw the guy yesterday in my town, and he did not make the greatest impression on me. But thats another story.

And as far as leasing my van to FedEx Express, I checked that out and found they are not hiring in any area right now.
The only reason I mentioned it was because I talked to a guy who drives for them since a couple of years, is very happy there and makes a decent amount. What interessted me the most where the details about my area and how they are planning to expand. But according to the recruiter, that is not the case. Of course I will not look into a company based on one owners experience, but for me it is important how long folks stay at one place. Usually that should give one an idea how satisfied people are with their carrier. If there are only complaints, thats probably not a good sign. Just my thought.

I keep looking.

Miko

 

[DannyD]

Hiya,

Just my 2 cents here, but if you're going to have a route, the US Post Office might be a good way to go. They're tough jobs to get, but if you can the pay is pretty dang good.

You start out at $17.80/hour. Anything over 40 hours is time & a half. That's $26.70 hour. Saturdays are also time & a half. Any work done after 6PM pays a 10% premium. That's $19.58/hour. I think the after 6PM thing is more for inside help though.

I didn't quite understand how Sundays are set up. From what the site said, it pays 25% extra. I'm not sure if that's on top of time & a half or base rate. They also include health insurance, life insurance, & something similar to a 401K program.

Finally, paid days off are incredible. You get 13 sick days no matter how long you've worked. Vacation days are as follows:

1-3 years = 13 days off
3-15 years = 20 days off
15 & up years = 26 days off.

I believe, but don't know, that if you're not sick you can use those days as paid days off. If that's true, you start out w/ 26 paid days off per year. WOW!!! Then you get 10 paid holidays. Maybe if you're not sick you can take the pay. I'm not exactly sure on how that works.

A friend of mine just talked to his mail carrier. I know I'm getting into 2nd & 3rd hand talk here, but the carrier said he'd been there 8 years & made $64,000 last year. I ran some numbers & that's not to far fetched w/ even reasonable pay raises & a little bit of overtime.

I realize most people on this site probably want to be out on the road. If you're looking to do a route though, I'd think the Post Office would be a better way to go than buying a Fed Ex route (or anything similar) where you're locked into it, no time off unless you find someone, have to use your own vehicle, & have to pay for your own insurance & such.

Best of luck to ya,
Danny

 

[miko]

@DannyD:
Thanks for your research. I am wondering where you got that info. I am sure for a bigger city it might be very reasonable, if you get the foot in the door. First are the minorities, and then some. In my town, I am almost certain I will not get that kind of opportunity. On the other hand, I would have to drive 100 miles+ to get to another city, and I am not going to do that. I can not say that my area is small, it is growing like crazy, but to get a good paying job theese days, you have to have the connections around here, and I don't have them.
I've come to realize that I will not look into buying a route, it will simply not work out for me and I am not going to work 356 and risking to be fired as a o/o when I am not able to find a relieve person.

 

[DannyD]

Hiya,

I wrote a reply to this earlier, but I guess it didn't post. So here's the reply again. If the original reply shows up, well I guess there will just be 2 of em.

Anyways, I got the original info from a friend about what the mailman made. I went to USPS.com (the US Post office site) & I was able to verify everything except the starting wage. Because everything else seemed to line up w/ what I was told, I took the $17.80 starting wage at face value. That also seems about right because I know that all in all, government workers tend to do ok in terms of salary.

Make sure that you don't go to any site other than USPS.com. There's a fair amount of sites that promise help w/ "government jobs" & even kind of look official. In a lot of cases, these sites are frauds. The Post Office (or any government branch) will not charge you to be trained or anything like that.

Many of the jobs available are that of a Regional Route Carrier. These jobs aren't the full time jobs that I alluded to earlier, but I believe it's a way to get your foot in the door.

They also may need truck drivers, depending on your area. I posted the one of the ads they had w/ my last post, but it didn't post on here. Maybe it's because that advertisement was on there, I don't know for sure.

So the best thing I can tell you to do is go to USPS.com & check out the jobs section of it.

Good luck to ya,
Danny

 

[LDB]

When I was in college I took the test for the post office. I scored a 98.3 on it. If you are a veteran you are awarded 10 or 15 points, I forget which, but I was not. If you are not caucasian male you are awarded the same 10 or 15 points for discrimination... I mean affirmative action. When there is a vacancy they are required to go to the person with the highest total score and work down the list from there until it is filled.. at least if it's still like it was then. The test was partly memorization and partly attention to detail. For anyone willing/wanting to stay near home it's a good gig.

Leo
truck 4958

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