The Labor Shortage and Selling a FedEx Ground Route

Is now a good time to sell your FedEx route? Well, it could be. We are in the middle of what many are calling the “Great Resignation” where many people are quitting their jobs and looking for something new. A lot of them are looking to become entrepreneurs and take more control of their own careers. This means that selling a FedEx Ground route could be a great move right now.

But what does selling your route now mean, and what things should you be ready for?

A FedEx Route is Not for Everyone

First, it is important to understand that FedEx route ownership is not for everyone. If you have an expansion or extra route to sell or if you have your own reasons for wanting to sell your FedEx Ground route, you know what it takes to run one. If someone has no experience in the logistics or delivery industry or if they aren’t cut out for physical work, FedEx route ownership may not be right for them.

Also, your buyer will need to understand the investment they need to make, the financing they need to have in place, and the FedEx approval process. While this may be something you did for yourself long ago, keep in mind that for your buyer, this will all be brand new.

Understand that selling your route will take time, no matter who your buyer might be.

Be Prepared to Offer Transition Support

Of course, if you are selling your route to a current FedEx route owner looking to expand, you might not need to offer too much transition support, but you will need to offer some. You’ll have to train the new owner or driver on your route, introduce them to your regular business customers, and ensure they are ready to take over where you left off before you leave entirely.

You may want to negotiate your wages to stay on as part of the sales deal, or you may want to bring the new owner and driver on before the sale is final to make sure they are familiar with the route area and the various customers they will be dealing with.

It’s not as simple as handing the keys to your truck and a map to a new route owner. Be prepared to offer support during the transition, and find ways you are sure to be compensated for your time.

Be Prepared for Questions when Selling a FedEx Ground Route

Your buyer will have some questions for you about your route and the business you have behind it. Be prepared to share your sales numbers, various costs you incur on a regular basis, and how the route is growing year over year. There will be a lot of things a new owner wants to know and you should be ready. This gives the buyer confidence and trust in you, and the information you provide.

Remember, trust is the basis for any business deal like this, and the more confident you are about the value of your route, the more likely it is that your buyer will be confident as well.

Make Sure Your Route is Ready to Sell

With that being said, before you approach a buyer or a route broker, be sure your business is ready to sell. Have all of your tax records gathered along with your profit and loss calculations, account ledgers, and any other information a buyer might need.

If you are including your truck when selling a FedEx ground route, be sure you have all maintenance records as well, and that they are up to date. The buyer will want to see this and any other documentation related to your vehicle, along with a summary of average costs.

Also, be sure all of your equipment is out of date. An older truck may not sell with a route if the new owner is unsure of its reliability.

Also, even if you have things you don’t like about your route, don’t complain about them during the sales process. Nothing will turn a buyer off faster than realizing you don’t like the route you are trying to sell.

List with a Reputable Route Broker

Does all of this sound like a lot of work? It is. And once it is done, you will have to list your route somewhere buyers can find it. A simple solution is to list your route with a reputable broker. They will help you ensure your route is ready to sell, your paperwork is in order, and everything else is in place that you will need.

Then they will help you connect with the right buyer for your route at the right time and in the right place. They’ll be sure you get a price that’s fair for everyone, and they can even help you with the closing process and the transition of your route from you to the new owner.

When you need help selling a FedEx Ground route, turn to the right experts to get it. At Route Advisors, we sell routes, and we would love to talk with you about how we can help you find the right buyer for your route. Contact us today!

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