Fed Ex Home delivery routes for sale | TigerDroppings.com

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Moustache
Kansas State Fan
GEAUX TIGERS
Member since May 2008
17749 posts

Fed Ex Home delivery routes for sale


I look into these as investment opportunities.

I came across this one below. What possible reason could this guy have to sell this route at $35k when it nets around 73k after expenses (truck, gas, product, etc)?

Usually, these are high dollar routes. What am I missing besides the obvious (he's begin dishonest)?

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Newbomb Turk
Navy Fan
perfectanschlagen
Member since May 2008
9961 posts

re: Fed Ex Home delivery routes for sale


Does he have the right to sell it?

Can FedEx then just take it away from you with no reasons whatsoever?






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Fed Ex Home delivery routes for sale


I'm confused, what's he trying to sell?





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Moustache
Kansas State Fan
GEAUX TIGERS
Member since May 2008
17749 posts

re: Fed Ex Home delivery routes for sale


quote:

I'm confused, what's he trying to sell?



You're buying the rights to the route. Essentially you are an independent contractor. What I and some others do is manage and hire "employees" to run these routes.

FedEx cannot fire or terminate your contract unless you refuse to run the route. You're basically buying the rights to the independent distributorship.






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gizmoflak
Georgetown Fan
Member since May 2007
8960 posts

re: Fed Ex Home delivery routes for sale


does his contract with fedex have a non-delegation clause?


I would think that was some sort of risk protection for fedex in their contract with this guy






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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
39345 posts

re: Fed Ex Home delivery routes for sale


So you also pick up a 800 van note. I didnt know fedex did this.. Sounds fishy





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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
56018 posts

re: Fed Ex Home delivery routes for sale


Well you need to pay someone to run the route unless you're doing it for yourself.





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GregYoureMyBoyBlue
Georgia Fan
Member since Apr 2011
2686 posts

re: Fed Ex Home delivery routes for sale


They're moving away from this "single contractor" model as of right now and moving towards one that sounds a lot like what Mustache is doing. If the Postal Service was ever privatized it looks like FedEx has a make shift model already assembled. And from the sounds of it, it seems pretty profitable. "Seems" being the key word





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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
56018 posts

re: Fed Ex Home delivery routes for sale


quote:

So you also pick up a 800 van note. I didnt know fedex did this.. Sounds fishy


The van note(s) are normal. My family used to manage a DHL/Airborne contract.






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Fed Ex Home delivery routes for sale


So you would deliver the route by yourself or somebody else and fed ex pays you to do that?





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TheOcean
Florida State Fan
Member since Aug 2004
30543 posts

re: Fed Ex Home delivery routes for sale


quote:

I look into these as investment opportunities. I came across this one below. What possible reason could this guy have to sell this route at $35k when it nets around 73k after expenses (truck, gas, product, etc)? Usually, these are high dollar routes. What am I missing besides the obvious (he's begin dishonest)?



big opportunity and big money. I work for a company that does this through DHL but has over 20 routes and 180 drivers across the southeast USA. We pay $1 to rent out the DHL facilities.

Anyways, these FedEx home delivery routes are 100% legitimate and huge ways to earn a great living. One thing you have to remember is that it is $35k to buy the route, around 40-45k to buy a truck, and it is very expensive to maintain the trucks. I'm around DHL trucks all of the time and they constantly break down and need work since they are driving hundreds of miles a day. Obviously the home delivery routes won't put that much mileage on the truck but it'll add up fast.

The other thing is that these are tough routes to manage and are very, very time consuming. It all depends on your current job and if you're going to hire someone else to run the route.

I also have a friend who bought a FedEx route for a while so if you have any questions feel free to filter them through me.






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Moustache
Kansas State Fan
GEAUX TIGERS
Member since May 2008
17749 posts

re: Fed Ex Home delivery routes for sale


quote:

So you would deliver the route by yourself or somebody else and fed ex pays you to do that?



I would deliver it myself at first until I"m comfortable putting someone else in the route.

As far as "fishy" is concerned, there is really good money to be made in this. My dad runs a bread route adn it's really profitable.






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Fed Ex Home delivery routes for sale


So where does the money come from? Fed Ex or are you an independent business at that point?





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Moustache
Kansas State Fan
GEAUX TIGERS
Member since May 2008
17749 posts

re: Fed Ex Home delivery routes for sale


quote:

So where does the money come from? Fed Ex or are you an independent business at that point?


It's kind of similar to owning a franchise. Hard to explain.

You're your own independent business, but obviously you have to abide by contract limitations. i.e. you can't just not run the route one day or just take a week off without having it covered.






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TheOcean
Florida State Fan
Member since Aug 2004
30543 posts

re: Fed Ex Home delivery routes for sale


you sign a contract with fedex and you make your revenue based on what the route generates





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Zilla
LSU Fan
Friendswood, TX
Member since Jul 2005
9904 posts

re: Fed Ex Home delivery routes for sale


where can I get more info on this ?





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TheOcean
Florida State Fan
Member since Aug 2004
30543 posts

re: Fed Ex Home delivery routes for sale


I would call FedEx and see what is available in your area. You can always buy out routes even if they're not for sale. One of our DHL drivers tried to do that with a ground route and the FedEx guy wouldn't even budge at $110,000





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Martini
LSU Fan
Baton Rouge
Member since Mar 2005
27427 posts

re: Fed Ex Home delivery routes for sale


A lot of things you need to consider as well. Auto insurance, general liability, workers comp insurance, fuel, maintenance on vehicle etc...that adds up.





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TheOcean
Florida State Fan
Member since Aug 2004
30543 posts

re: Fed Ex Home delivery routes for sale


^this

and like I said...the truck alone will run you 40-45k






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