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FedEX buying back Ground Routes
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<blockquote data-quote="bbsam" data-source="post: 938735" data-attributes="member: 22662"><p>I would say look closer at the expense side. Scanner lease payments, frequency of vehicle replacement, unemployment insurance, raises. And don't look at the expenses at today's rate when thinking for the future. What kind of growth potential does the setup have right now? That is, if the company grew 20% in 3 years, how much more capital would you need to expend to cover the service area? One more truck and driver? Two? Or can it be absorbed with the resources in place? And if it can be, expect to pay your drivers more for doing more work.</p><p></p><p>And as operations grow, keep in mind that the "Oh crap," moments seem to increase as well. So many times running a business seems like it should go so smoothly and it rarely does. Don't get me wrong. I do like it. But I do spend alot of time planning, contemplating, and positioning for the next truck that breaks down, driver illness, driver family emergency, vacations, late freight, etc., and there is no guarantee that one or more of these things won't happen on the same day. And when they do happen, efficiency goes in the tank and the bottom line can suffer significantly, sometimes short term, sometimes long term.</p></blockquote><p></p>
[QUOTE="bbsam, post: 938735, member: 22662"] I would say look closer at the expense side. Scanner lease payments, frequency of vehicle replacement, unemployment insurance, raises. And don't look at the expenses at today's rate when thinking for the future. What kind of growth potential does the setup have right now? That is, if the company grew 20% in 3 years, how much more capital would you need to expend to cover the service area? One more truck and driver? Two? Or can it be absorbed with the resources in place? And if it can be, expect to pay your drivers more for doing more work. And as operations grow, keep in mind that the "Oh crap," moments seem to increase as well. So many times running a business seems like it should go so smoothly and it rarely does. Don't get me wrong. I do like it. But I do spend alot of time planning, contemplating, and positioning for the next truck that breaks down, driver illness, driver family emergency, vacations, late freight, etc., and there is no guarantee that one or more of these things won't happen on the same day. And when they do happen, efficiency goes in the tank and the bottom line can suffer significantly, sometimes short term, sometimes long term. [/QUOTE]
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