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Schedule L
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.
Fleet Strategy for FedEx Routes
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?
Creating an Employee Handbook
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.
Linehaul Fleet Strategy
Many contractors overlook the importance of a good fleet strategy. In the linehaul space, this becomes especially important since you’re dealing with very large, very expensive pieces of equipment that can make or break your business if something goes wrong. Creating a strong fleet strategy will not only improve the efficiency of your organization but save you a massive amount of money in the long run.
Startup Costs When Closing a FedEx Ground Business
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.
Peak Season for FedEx Ground Contractors
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.
How to Raise Capital and Fund the Purchase of FedEx Ground Businesses
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.
P&D “Qual Cert” Driver Training Program
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.
How Are FedEx Ground Contracts Structured?
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.
How Linehaul Operates During Peak Season
Peak season is the time of year when contractors see additional package volume coming into the network, typically between the beginning of November and the end of December. FedEx has three incentives in place to encourage linehaul contractors to take on the additional volume while remaining profitable. These include peak mileage incentives, bonus points, and temporary run assignments.
How to Find and Retain the Right Manager for Your FedEx Ground Business
When purchasing a FedEx Ground operation, you should always be prepared to have your manager give notice. Your manager will not be contractually obligated to you, so it is important to secure a window of support from the seller in case you lose your manager.
How to Retain Your Best FedEx Ground Drivers and Handle Driver Turnover
Difficult days on the job are part of every job. They can feel particularly stressful for your drivers. And they have options to go elsewhere if they are stressed too often. Be sure you have an atmosphere where team members feel respected and can be open with management about their concerns.
How FedEx Ground Drivers Are Paid
For the vast majority of FedEx Ground contractors, payroll is the largest operational expense. It’s no exaggeration that how you pay your drivers and manage your payroll expense will have a material effect on the profitability of your business as well as the productivity of your team.
What to Expect In Expenses for FedEx Routes for Sale
FedEx Ground routes have predictable revenues with few variables. It’s what makes these businesses such solid investments!
If your revenue is predictable with few variables to significantly change it, then how do you impact your Net Operating Income (or take-home pay)? You focus on Total Expenses.
How Much Money Do Amazon Routes Make?
Understanding the valuations of an Amazon DSP business is a hot topic of conversation right now. With the constant growth of e-commerce, the transportation industry is skyrocketing.
What is a Labor Market Analysis?
As we continue to face labor shortages, contractors struggle to recruit drivers for their operations. To help combat the challenges of finding drivers, we have partnered with Bright Flag Recruiting. One of the biggest challenges contractors face when buying or operating in a market is determining what they need to pay to be competitive when recruiting and retaining drivers.
Can I Lease My Fleet?
What many contractors don’t know, however, is that there is a strong argument for using full-service leases in some cases. If you have routes that travel 35,000 miles a year or less, a full-service vehicle lease may be the best option for you.
How Fuel and Fuel Cards Impact Expenses
Fuel cards are the way your drivers will pay for fuel (if you enroll in a fuel card program). These cards look like a credit card, but there are important differences between a fuel card and a credit card.
Are Electric Vehicles Viable in the Package Delivery Industry?
Electric vehicles (EVs) are all the rage in today’s consumer market. Many cities and states, particularly on the east and west coasts, are edging ever closer to lowering emissions and adopting a more electric vehicle friendly environment. FedEx Ground has vowed to be fully carbon neutral by 2040. EVs will certainly be a big part of that initiative.
How to Get a New FedEx Ground Driver Approved
With an ever-increasing demand for transporting packages, drivers play a significant role in the overall success of your business. Without drivers, you are unable to meet the obligations of your contract for your Customer Service Area (CSA).