[quote][i]Originally posted by Bugg[/i]@Jul 28 2004, 08:12 AM
[b] I've had clients buy Herr's potato chip or Boars Head cold cut routes. But I thought Fed Ex employees drive the truck rather than have routes. [/b][/quote]
Thanks for replying,bugg.
I thought the same thing. I was looking into buying a route (bread, wise chips, etc), and during my investigation I found out that FED-EX drivers own their routes. I think about 15 years ago FED-EX gave the ground routes top the drivers on the stipulation that they keep the routes for 15 years. At that point they could sell them.
I'm riding on one of the routes I'm looking at this Saturday and I'm sure the driver would answer some questions for me. My concern is that he is SELLING the route so he'll obviously avoid the negatives.
All I have so far is that it's 5 days a week(good for my family time), they offer replacement drivers for vacations(another plus for the fam) and they might offer 401K's.
One negative on this route business is the down payments. For the routes with the higher NETS, the down payments are just out of my reach. The FED-EX route prices are a little cheaper because they WILL provide W-2's. If you ask a bread guy or Boars Head guy to see tax returns they'd laugh till they dropped.
Again, bugg....thanks for the reply. If you hear anything else about them please let me know.
[quote][i]Originally posted by Shadetree[/i]@Jul 27 2004, 12:00 PM
[b] I'm thinking about buying a FED-EX route.
Anybody know anything about them? [/b][/quote]
I spoke with the Fed-Ex driver who comes to our company for pick-ups/deliveries. He would not comment, except to say that the best routes in the NY area never seem to be available. And also that even though it's your route, you still must perform to Fed-Ex standards, or risk losing it. He did not elaborate on that.
But he did say that once you get the route down pat, you have a feel where you need to spend more time, and where you can move quicker. This allows for more break times, longer lunches, etc. Off the record, of course. ;)
Mate, all I know is that FedEx is non-Union. From a my past job (years ago) all I know is that the UPS guy was making 50K+ a year, with full benefits. The FedEx guy wouldn't tell us what he made and what kind of benefits he had.
When UPS went on strike in '94 or '95 the only Company that continued to work was FedEx and to put it midly the guy picking up our packages (we sent 50, 60 plus a day) was none to happy.
My advice. Get the financial numbers if possible. Is the investment worth the return?
I'm again familair with Herr's from one partilcular client. A small part of what they pay him is on a W2(to give him benefits mostly). The rest is 1099s. He's also resposnbile for laoding the truck, as well as cleaning and maintaning it,which they will do for a fee. Herr's takes lots of little fees for displays, uniforms, and other things they require. I'm not sure that helps you much as to Fed Ex. Good luck anyway.
Rode on the route saturday. Fairly easy work. Getting used to the certain area and learning the streets, etc would addd a couple of hours onto my day for the first 1-2 months. Get paid without taxes taken out, so a better/creative small businees accountant would be a must.
I'll ride on a few more routes in the next couple of weeks.