
Industry Insights
with Route Consultant
Welcome to Industry Insights with Route Consultant—your front-row seat to the fast-moving world of logistics and beyond. Each week, we bring you game-changing insights, real-world strategies, and fresh perspectives to fuel smarter investments and build stronger businesses. Join us as we sit down with expert guests to explore emerging trends and pressing topics across a wide range of industries.
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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.
Structuring a Deal for FedEx Ground Routes
Buying a FedEx Ground route business is more than just agreeing on a price—it requires careful deal structuring to ensure the terms protect both buyer and seller. How a deal is structured affects risk, cash flow, financing options, and the long-term success of the operation.
Truck Types and Leasing Options for Bread Routes
For entrepreneurs exploring the bread route industry, one of the most important operational decisions you’ll make is selecting the right delivery vehicle. The type of truck you use impacts route efficiency, supplier approval, maintenance costs, and overall profitability.
Truck Types and Leasing Options for FedEx Ground
Whether you’re a first-time buyer or scaling your current FedEx Ground operation, one of the most important components of running a successful logistics business is your fleet strategy. The types of trucks you purchase—or lease—and how you manage them will have a direct impact on your costs, efficiency, and long-term profitability.
Diversifying Into Waste Management Routes
Waste management is an essential industry that plays a crucial role in keeping our communities clean and safe. Whether you're considering entering this field or simply want to learn more about it, understanding the dynamics of waste management routes, capital requirements, and the opportunities it offers can provide valuable insights.
Understanding the Financial Terminology of Waste Management Routes
In the ever-evolving realm of waste management, environmental consciousness, regulations, and technology continually shape the landscape. Understanding the fine lines within financial terminology, particularly regarding financials and valuations, is vital for those hoping to attain sustainable and enduring success. Whether you’re just entering the waste management industry or looking to expand an existing business, the ability to navigate and comprehend financial metrics, valuations, and financing options is a major advantage. These financial pillars, when firmly understood and leveraged, serve as the foundation for your profitability, growth, and long-term viability. Waste management routes don’t have to be difficult. Unraveling the pieces sheds light on the opportunities for success in this demanding and changing sector.
What Determines List Price for FedEx Ground Routes?
If you're evaluating FedEx Ground routes for sale, one of the first numbers you’ll look at is the list price. But how is that number determined?
Understanding what drives the valuation and list price of a FedEx Ground business can help you make a smarter investment—and avoid overpaying for an underperforming operation.
Fundamentals of Bread Route Ownership
Bread routes are a vital part of the bakery industry, ensuring the timely delivery of fresh bread and related products to retail establishments. If you're curious about how bread routes work and are considering venturing into this industry, this blog is for you. We will delve into the fundamentals of bread routes, covering their structure, operations, and key considerations. Let's explore the fascinating world of bread routes!
Fleet Strategy for FedEx P&D 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?
How Much Money Can You Make Owning a Bread Route?
Operating a bread route can be an enticing business opportunity for individuals seeking entrepreneurship and independence. However, understanding the potential net operating income is crucial for evaluating the financial viability of such ventures. In this blog, we will explore the factors that influence the net operating income of bread routes and provide insights into the earning potential.
Pros and Cons of Bread Routes
Owning a bread route can be an appealing entrepreneurial opportunity, offering a stable customer base and potential for growth. However, like any business venture, it's essential to consider the pros and cons before diving in. In this blog, we will explore the advantages and disadvantages of owning bread routes, helping you make an informed decision about this exciting business opportunity.
Fleet Strategy for FedEx Linehaul
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.
Why Listing Price as a Percent (%) of Revenue Matters
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.
Insurance Requirements for FedEx Ground Routes
Owning FedEx Ground routes comes with significant business opportunities, but also specific compliance requirements. Among the most important of these is commercial insurance. If you’re considering buying a FedEx route, understanding the required insurance coverage is essential for protecting your investment and maintaining your contract with FedEx.
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 Are Amazon DSPs Paid?
Buyers often ask how an Amazon DSP receives compensation. Like FedEx Ground, DSPs receive a weekly settlement statement paying them the revenue they earned the week prior.
Amazon Delivery Service Partners Profit Margins and Other Details
Amazon DSP businesses have very different profitability and valuation structures compared to FedEx Ground routes. Learn more about the profit structure of Amazon routes and where you can go to learn more about the last-mile logistics space in general.
The Differences Between Amazon Routes and FedEx Routes
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.
Understand How Geography Impacts FedEx Routes for Sale
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.