FedEx is a name in the carrier, delivery, and logistics space you are already likely familiar with, but it is also an abbreviation for Federal Express. Federal Express is more than just a delivery company. It is a route ecosystem that delivers packages in a short amount of time. The FedExRoute tracking system, one that provides real-time updates, helps located packages that are lost or stolen as well.
In addition, FedEx is now a new business model’s name too. Since the American corporation innovated in carrier services, other firms started to do the same. Many truck routes and residential and ground routes are owned by independent contractors: business owners who have their own place in the logistics giant.
To start or purchases a FedEx route, they must implement organized systems and make a rather large investment. While profitable, like other businesses it’s not easy to run and certainly isn’t the answer for everyone.
So when you are an owner, and you have decided to sell, there are several key pieces of information to keep in mind before setting your asking price. This quick guide will help you sell your FedEx route for the maximum value and the greatest profit.
What is your Route Worth?
FedEx routes are considered established businesses. This is good news for a seller and a good thing to pass along to your buyer. They are purchasing a business with established customers, an established geographic area, and a partnership with one of the largest and most well-known logistics companies in the world.
Also, as the population grows in the United States, more and more routes will be created to service that demand. FedEx routes come in at one of the lowest risk investments a new business owner can make. This makes a FedEx route very appealing to buyers of all types.
Whatever your reasons for selling your route, You need to transition from simply running your business to learning how to sell it for maximum value. Look at these metrics to help you determine value:
- What are the consistent numbers of pick-ups and deliveries on your route? How much gross income do you get from those customers?
- What is the profit? Subtract your expenses, including drivers, vehicles, and other costs to get your net profit.
- What are the growth trends? Is your route growing? Will it need to split soon? Are more customers shipping in your area, and more customers receiving packages on a regular basis?
- What is driving this growth and is that sustainable?
- What channels do new customers come from and what is the breakdown of each channel? How are people learning about FedEx, and what kind of businesses and customers are being added to your route?
- What is your market position? What is the potential competition from other carrier services?
- How reliant is the business on the owner? Do you have loyal drivers who will stay on with a new route owner?
Many of these are easy to answer when it comes to FedEx routes but don’t be surprised if your buyer has a lot of questions you will need to be able to answer. They will often want to know why you are selling and will definitely want to look at your financial records like profit and loss statements and even your company tax returns.
Be prepared to be transparent when you are looking to sell your FedEx route, just as you would be with any other business.
Who Will Buy Your FedEx Route Business?
If you are wondering about the buyers that can be interested in your FedEx Route, don’t worry, there are many possibilities. From first-time entrepreneurs to businessmen interested in new opportunities, you could sell to almost anyone interested in the lucrative logistics industry. In the carrier industry, many buyers already have experience in a similar field, or are already owners and operators of routes, and want to expand their business.
No matter what, finding a buyer for your route can be a relatively simple process. Then it is your job to show them what your route is worth and to assist them through the transition process as smoothly as possible.
This may seem a bit complex. The good news is, we are here to help you. When you are ready to sell your FedEx route, contact us at Route Advisors. We will walk you through every step.