Audio Insights by Route Consultant

This episode was created in partnership with Jamie Cantrell at P&D Insurance.

In this episode we dive into fleet strategies that make P&D and linehaul operations more profitable. Such as how you can use long-term leases in linehaul operations and how average daily miles impact a contractor’s fleet strategy. Plus, we answer how long should contractors plan to keep their vehicles? Finally, we touch on the ways we are working with our teams in the midst of the coronavirus pandemic.

In this episode we look at critical route valuation questions: What do FedEx Ground operations sell for? How have valuations changed over time? What are some factors that impact sales price? How can owners increase the value of their business? And, how can buyers get a great deal in this market?

In this episode we talk about normal net profits for P&D routes and linehaul runs with FedEx Ground. We also focus on the areas of operation that increase those profit margins. Finally, we look at industry changes and current events that impact FedEx Ground operations.

In this episode we talk in detail about the future of FedEx, e-commerce, and the related markets. We dive into the rumors about Amazon, Walmart, and Shopify as they relate to FedEx Ground. We also look at the tangible changes contractors are experiencing with 7 Day delivery, the large package network, and SmartPost. Finally we talk about how to value an entity and how valuations have changed since Spencer purchased his first entity in 2013.

At the end of the day, FedEx Ground wants its contractors to succeed, but there are some areas where they have little tolerance. Having a poor safety record is one of the fastest ways to find the door as a FedEx Ground contractor.

Should autonomous trucks be something that we fear as linehaul contractors? The answer is definitely no; autonomous trucks would be fantastic for linehaul contractors. But, autonomous trucks are unlikely to traverse US highways any time soon. Learn why in this episode.

FedEx Ground linehaul contracts include a Per Stop Fuel Surcharge. Learn about how this variable charge is paid per stop in linehaul businesses.

FedEx Ground P&D contracts include a Per Stop Fuel Surcharge. Learn about how this variable charge is paid per stop in P&D businesses.

The size of packages moved by FedEx Ground are far more suitable for an Apache helicopter than a drone. Learn several of the reasons why drones are not capable of covering FedEx Ground logistics needs.

Death and taxes. These are our only certainties in this life. Legally avoiding taxes should be one of your goals in your business and it is one of the advantages of a FedEx Ground route operation.

Without a doubt, the low unemployment rates across the country—exacerbated in particular markets—makes contracting with FedEx Ground incredibly challenging. Learn more about this challenge and others.

This episode does not focus on how much it costs to buy a business, but rather how much money you need access to—working capital—to run the business after you own it. In this business, we help you focus on a line of credit for your FedEx Ground business.

FedEx Ground has an important requirement known as scale. In this episode, learn how scale impacts linehaul businesses.

FedEx Ground has an important requirement known as scale. In this episode, learn how scale impacts pickup and delivery (P&D) businesses.

It's important to understand that your return on investment (ROI) can be looked at in one of two different ways. You can evaluate it via risk or via cash on cash return. Think through these perspectives more in this audio insight.

There are many factors to take into account before you decide between FedEx Ground linehaul runs and P&D routes. Learn about the basic differences and how you can explore your best path forward.

Learn how we value a FedEx Ground route business and the current average multiple we see in the route businesses we sell. Also, learn the primary factors that impact a business valuation.

As an employer and current FedEx Ground contractor, I get asked all the time: If you could go back and do it all again, would you? That answer is a resounding yes! Learn why I say that.

FedEx Ground has been going through a seven year transition for how it pays its contractors. It is moving from the Independent Contractor model to the Independent Service Provider model. Learn why we believe the ISP model is superior in every way.

Amazon can save money by building out their own in-house logistics network to serve their own business needs. What Amazon is not trying to do is expand their market share in general. Hear more about this new Amazon strategy and its impact on FedEx Ground.

This business can absolutely be owned from out-of-state. You do not need to live in the same state where your routes originate to have a successful business. However, absentee is certainly not an appropriate term for this type of investment. Learn why.

How are the other guys doing it? Amazon has a similar model to FedEx Ground (unlike UPS). However, the Amazon DSP profit margins are far inferior to FedEx Ground. Learn more about the Amazon Delivery Service Partners model.

Once you have a signed Asset Purchase Agreement for a collection of FedEx Ground routes, it will be about six weeks before your first day as a FedEx Ground Contractor. There is a lot you need to do between the signed APA and your first day, though. In this episode we highlight what you can expect.

In this episode we quickly dispel the myth that financing is impossible or difficult to secure for FedEx routes. In fact, banks love to lend to individuals on these types of investments. Learn why and how to move forward.

In this episode we reveal that at any given time there are about 5,000 FedEx Ground contractors across the United States. Here, we talk about the percentage of all FedEx Ground route businesses that you can expect to be available for sale at a particular moment.

In this quick episode, Spencer Patton—founder and president of Route Consultant—discusses profit margins for both P&D and linehaul FedEx Ground businesses.