How Much Money Can I Make Owning a FedEx Route?

When you own a FedEx route, you have an amazing opportunity to run your own business with the comfortable backing of a worldwide brand that has trusted service and a loyal customer following.
Like owning another type of franchise, you become a steward of that brand and have the potential to earn a great living along the way. What about the expenses? How much can you really expect to profit? Owning a route is an investment, so before you put your money where your mouth is let’s look at some numbers.

The Expenses of Buying and Owning a FedEx Route

First, let’s look at the facts. Just like with any other business, you will have expenses when you own a FedEx route.
While you definitely do not have to worry about marketing, brand recognition, or other administrative costs, there are some expenses that come with owning your own FedEx route. The main ones include:

  • The capital you will need to buy the route in the first place. Of course, this is a one-time expense, unless you finance the route and make monthly payments on a business loan.
  • The vehicles you will need to put on the road.
  • Paying and retaining the drivers who actually run your routes and interact with your customers. This is vital because they are the face of your business to the public.
  • Other equipment, like dollies, rain bags, and, gloves, uniforms, and other regular expenses.
  • The ongoing costs of fuel, oil changes, and ongoing maintenance.

The average FedEx route costs approximately $100,000. Depending on the number of routes you own, whether you run one yourself, and how many drivers you need, you can expect to employ approximately 1.5 to 2 people per route. From there, it’s all about the little things: trucks, uniforms, decals, and the software you will need. While it might seem costly at first, it is now your business, with a consistent process, regular customers, and brand that is here to stay.

Revenue Potential from a FedEx Route

When you own and operate a FedEx route as a contractor, you can get paid in multiple ways. This means that as the shipping market ebbs and flows, your business remains profitable. Here are the ways you get paid:

  • Payments for the services you provide your customers (whether for delivery or pick up).
  • A flat annual rate just for being a contractor and running your route.
  • Bonuses based on performance (like customer service).

Taking all these into account, the average annual profit for a FedEx route has been reported at between $30,000 – $40,000. While it might not seem like you’re on your way to becoming a millionaire, there are things you can do to grow your revenue and expand your business.

  • You can own more than one route. The best business people usually own multiple routes, even in different locations with several employees.
  • You can grow your routes. If you are in a growing industrial area, you can even talk to business owners about shipping with FedEx, and the advantages of working with you. Often, you can get your current customers to switch some of their shipping from other carriers to you.
  • You can split routes. Besides buying routes, if your current route gets large enough and is making enough revenue, you can split it into two routes, and in the long run you will make twice as much money.

In short, if you learn to work your routes and even sell your service to current and new customers, you can continually profit from business in different areas. All of a sudden $40,000 can start to look a lot like $400,000 or even more.

Making Money Owning FedEx Routes

The best part about owning your very own FedEx route is that it’s yours. You get to own it, you get to run it, and you get to reap the rewards of your success. That is why FedEx routes are so great for both new and experienced investors.

Have the ability to hustle and love working for yourself in a fast-paced, ever changing environment? Believe in your work ethic? Well, then owning FedEx Routes may be the answer you have been looking for.

How much can you make owning and running FedEx routes? It’s up to you. If you’re interested in finding out more, contact us today!

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