As we head into the 2024 peak season it’s time for logistics professionals to roll up their sleeves and get ready. Two recent “Wednesday Webinars” hosted by Josh Gregory, VP of Education at Route Consultant, provided invaluable insights from industry experts Ken Davenport and Amy and Dave Buers. 

The Schedule L announcement comes with two major changes: New quarterly incentives and disincentives based on an all-new safety ranking system, and an update to the accident indemnification amounts for contractors. With these changes, contractors can see impacts on quarterly revenue anywhere from +2% to -3% based on their safety performance. This new system ranks contractors in a new “class” of 1-10, with 10 being the best.

Our team of actual FedEx contractors worked through the math of new FedEx trucks versus used FedEx trucks in our own operations. We always want to make the most efficient choice for our fleets. We have compelling data that shows new trucks are the superior option for routes that are 150 miles per day or less. Why is this the case?

Running a successful company starts with having a solid team. An employee handbook is a critical factor in creating company culture and guidelines for your employees. Whether your employees are part-time, seasonal, or full-time, having some form of agreement in place is essential. An agreement establishes clear expectations and regulations for your team members.

Many buyers have questions about using traditional and creative financing options to fund the purchase of FedEx Ground routes. The two most common types of loans are a Small Business Association (SBA) loan or a conventional banking loan. We will teach you everything you need to know about your financing options as well as some creative financing structures that can add massive value to both parties in a deal.

When looking at FedEx Ground routes for sale through Route Consultant, you can expect valuations to be presented as both a Multiple of Earnings and as a Percent of Annual Revenue. This allows you to better compare listings in the market instead of relying on a single value. In this blog, we will discuss some of the reasons why metrics can be misleading and how the Listing Price as a Percent of Annual Revenue can give you a better gauge on the potential of an operation.

There are additional costs that come with purchasing a FedEx Ground delivery business beyond just the purchase price. When negotiating a deal and calculating your expected costs to be fully operational on your first day, you must consider additional startup costs.

In our industry we refer to the period of time between the beginning of November and the end of December as peak season. Inside of peak season there is a critical three to four weeks—roughly from Thanksgiving to Christmas—of exceptional package volume. Some contractors make one-third of their annual profits in peak season.

With the increasing growth in the e-commerce delivery space, many potential FedEx Ground investors often ask if Amazon is a threat to their success. The answer? No.

As you evaluate potential FedEx Ground routes for sale as an investment, you need to consider the financial implications of each route’s geography. Routes that are more rural or more urban have specific challenges and benefits. Planning for the geographic impact of a route in advance will better position you to maximize revenue.

Route Consultant partners with Silicon Ledger to support contractors in applying for the Employee Retention Tax Credit (ERTC) or applying for Remediation. The ERTC is a stimulus program introduced and passed into law as a result of Covid-19 and the Cares Act. The ERTC essentially compensates you for payroll spent on employees during 2020 and 2021.

Entrepreneurs seeking opportunities in the e-commerce logistics and package delivery industries often come across various types of delivery routes, including FedEx Ground routes and bread routes. While both offer unique advantages, it's essential to understand the key differences between them to make an informed decision. In this blog, we will highlight some of the specific differences between FedEx Ground routes and bread routes, exploring their operations, requirements, and potential for success.

Every FedEx Ground terminal serves a defined geographic territory. FedEx Ground closely monitors—and prevents via scale requirements—any contractor/entity from growing too large or too small within a single terminal. They do so by prescribing the number of daily stops an entity can make as a percent of all terminal stops.

FedEx Ground businesses range in price depending on the number of routes, demand, profitability, and the health of the fleet. Knowing how to raise capital to fund FedEx operations is key to growing and being successful in this space.

Driver recruiting is a challenging part of being a Contractor, especially finding candidates who meet FedEx Ground’s requirements. FedEx Ground has announced new changes to Schedule I of the ISP Agreement regarding qualifications that P&D drivers must have to operate behind the wheel.

At any given time, about 5% of the entire network is for sale on the open market. The market inventory can and will fluctuate throughout the year, but overall this is not a concerning number.

You are charging FedEx for your services. You will negotiate each of the following charges with FedEx. All of these charges combined account for money flowing into your business. It’s critical you understand how and when those charges occur. And how you can increase your cash flow! Following is a quick overview of the charges you will negotiate as part of your Independent Service Provider (ISP) contract.

Perhaps you are considering a partial sale to manage growth in your organization? Or, maybe you are starting to think about retirement? Whatever your reason, thinking proactively about the value of your business is critical to maximizing your return on investment. If you understand the present-day worth of your operation, you can make necessary edits so you don’t leave cash on the table when it’s time to sell.

One commonly overlooked aspect of investing in FedEx Ground routes is the due diligence process. While this can be a lengthy and intimidating endeavor, it does not have to be! Whether you are looking at entering the space for the first time or expanding your existing operation, you should know what you are buying.

Healthy Fedex route businesses demonstrate profit margin ranging from 15-45%. Where you fall within that range depends on the type of routes you own, the composition of those routes, and how efficiently you manage your business expenses. strong P&D operation typically has a profit margin between 10-25%. Linehaul operations have a wider range of profit margins; typically, linehaul operations demonstrate margins between 20-45%.