
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.
Latest Episodes
Industry Articles + Videos
Before You Buy a FedEx Linehaul Route: Get the Details and Understand the Pros and Cons
There are two distinct types of FedEx businesses: pick-up and delivery (P&D) routes or a linehaul run. Linehaul runs are a lucrative and risky business. Some contractors say linehaul runs are 90% boredom and 10% terror. But they can be an incredibly profitable investment for the right contractor. Are you the right contractor for a linehaul run?
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.
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.
The Fundamentals of Bread Routes
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 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.
How to Finance FedEx Routes
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.
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.
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.
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.
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.
Why Are There So Many Bread Routes for Sale?
Independent bread route contractors play a vital role in the distribution of fresh bread and bakery products to various retail outlets and establishments. Just like other independent contractor operations such as FedEx Ground and Amazon, these businesses can be sold from one party to another. Every business in the world has cycles, and there are many different reasons why a route owner may choose to sell their business. In this blog, we will explore what some of those key reasons are and the factors that contribute to this decision.
Employee Retention Credit
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.