There are pros and cons of FedEx Ground route ownership just like there are with any other venture. Not every business is for everyone, but it’s important that you know and understand what you are actually buying and getting into when you purchase a FedEx Ground route.
For most people, the pros of route ownership far outweigh the cons, but here are some things to consider.
Delivery is a Physical Job
The pros of a physical job like delivery are that working is almost like working out. With the right physical fitness regimen and diet, you can stay in great shape as a FedEx route owner. You’ll need to be able to lift packages that weigh up to 50 pounds (beyond that a team lift is recommended). And you’ll want to be flexible and strong. While there is some sitting while you drive, many routes have as much walking and time outside the truck as in.
The cons? You’ll have to be careful to avoid injury. As you age, this becomes even more important. Sometimes as drivers get older, the physical aspect of the work becomes a strain. In some of these cases, you can hire drivers to carry the heaviest part of the load or even a driver’s helper to help run packages and lift heavier ones, but this comes out of your profit margin.
The physical aspect of owning a delivery route can be both a pro and a con, and you’ll have to evaluate that for yourself.
Delivery is Seasonal
One of the pros and cons of FedEx Ground route ownership is that work is seasonal. There is the obvious peak season that lasts from the end of October through Christmas, but there are other micro-seasons throughout the year, including back to school, summer vacations, and more.
The pro to these seasons is that they come regularly, and you can plan for time off and vacations around them. This makes your year predictable for you and your family: you will know when you will be busy and when you won’t. Your station lead can also help you with this, and even if you are new, other route owners can help you understand these seasons.
The con to this seasonal work is the peak season itself. It overlaps two holidays annually and is your busiest and most profitable time of year. But it also can be challenging for families around Christmas time. The best way to turn this into a pro is to be prepared. Understand that peak comes every year, hire extra help if you need it, and do your best to keep a good work/life balance even when you’re exceptionally busy.
In addition, think of the downtime you will have in January, and the time you can enjoy in the summer. This will help you see this “con” in a new light.
Income and Expenses are Variable
When we talk about the seasonal nature of FedEx ground route ownership, it also relates to your income. The busier you are, the more pickups and deliveries you make the more you get paid. That means when it is slow, you make less, and peak is your largest income period.
That doesn’t have to be a bad thing, but it could be seen as a con. The biggest key is to have a cashflow management plan in place. Ensure that you have enough cash on hand plus some for emergencies to continue running your business even if your income drops temporarily.
A part of this is understanding your monthly expenses and planning for them. As gas prices rise, be sure you adjust your plan accordingly. This means not only knowing the cost of the fuel you use but the amount in gallons as well. This helps you calculate the new monthly cost of operating your trucks even if prices change.
And of course, the most common emergencies in the delivery business relate to your vehicles. Always have a backup plan and a good relationship with local rental agencies. Renting a truck at the last minute can make a huge difference to your business.
The Pros and Cons of FedEx Ground Ownership
Just as with any business, owning a FedEx Ground route comes with ups and downs, pros and cons. But the pros far outweigh the cons in this rewarding and lucrative business. Are you ready to purchase a FedEx Ground route? Do you have questions? Contact us here at Route Advisors. We’ll be with you every step of the way.