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Fed Ex Home delivery routes for sale
Posted on 2/8/12 at 3:12 pm
Posted on 2/8/12 at 3:12 pm
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)?
LINK
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)?
LINK
Posted on 2/8/12 at 3:21 pm to Moustache
Does he have the right to sell it?
Can FedEx then just take it away from you with no reasons whatsoever?
Can FedEx then just take it away from you with no reasons whatsoever?
Posted on 2/8/12 at 3:23 pm to Moustache
I'm confused, what's he trying to sell?
Posted on 2/8/12 at 3:47 pm to wegotdatwood
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.
Posted on 2/8/12 at 4:20 pm to Moustache
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
I would think that was some sort of risk protection for fedex in their contract with this guy
Posted on 2/8/12 at 4:32 pm to Moustache
So you also pick up a 800 van note. I didnt know fedex did this.. Sounds fishy
Posted on 2/8/12 at 4:32 pm to Moustache
Well you need to pay someone to run the route unless you're doing it for yourself.
Posted on 2/8/12 at 4:34 pm to Catman88
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
Posted on 2/8/12 at 4:39 pm to Catman88
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.
Posted on 2/8/12 at 4:50 pm to Moustache
So you would deliver the route by yourself or somebody else and fed ex pays you to do that?
Posted on 2/8/12 at 5:32 pm to Moustache
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.
Posted on 2/8/12 at 6:08 pm to wegotdatwood
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.
Posted on 2/8/12 at 6:13 pm to Moustache
So where does the money come from? Fed Ex or are you an independent business at that point?
Posted on 2/8/12 at 6:31 pm to wegotdatwood
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.
Posted on 2/8/12 at 6:36 pm to wegotdatwood
you sign a contract with fedex and you make your revenue based on what the route generates
Posted on 2/8/12 at 11:13 pm to TheOcean
where can I get more info on this ?
Posted on 2/9/12 at 5:51 am to Zilla
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
Posted on 2/9/12 at 6:42 am to TheOcean
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.
Posted on 2/9/12 at 6:43 am to Martini
^this
and like I said...the truck alone will run you 40-45k
and like I said...the truck alone will run you 40-45k
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