When you’re looking to buy any business, but especially something like a FedEx route, you might ask yourself “Why would the business owner sell?” If the business is great, and things are profitable, why would anyone want to give that up? So, you ask “Why Would a FedEx Contractor Sell?”
It’s a fair question, but the answers might surprise you. Also, it’s important to remember that in nearly any business sale situation, the reasons for selling are as diverse as business owners themselves. Some reasons have to do with the business itself, and others are much more personal.
Here’s a quick list, but certainly not a comprehensive one, about why a FedEx contractor would sell.
Limits on FedEx Contractor Route Ownership
Most FedEx route owners own more than one route, at least once they have been in the business for a while. But FedEx has restrictions on how many routes a single owner can have in any one terminal with a few exceptions. That means no one owner can own more than 15% of the routes in a single terminal.
That means sometimes, especially if an owner has split their own routes in an area that is growing particularly fast, they end up with a number of routes above what FedEx permits, and so they must sell one or two routes to get back within that number.
The routes they own are still profitable, and often are growing, they’re just too close together for FedEx standards.
Expansion into a New Area
Sometimes a route owner wants to either move or expand their business into a new area. The solution is to sell one or more of the routes they currently own to make room for others in their business model. You can actually get some healthy routes and even ones that are expanding by keeping an eye out for owners selling for this reason.
How do you find these sellers? FedEx has lists, but brokers like We Sell Routes often see and find listings from owners that are harder to spot with a simple web search. Contact us today if you are looking for an excellent route in a certain area.
A FedEx Contractor’s Workload
There are a couple of aspects to the workload of a FedEx route. First, you have a certain area to cover, and that means you must deliver to both business and residential customers and pick up at businesses and other locations. That can mean if your route is growing but is not quite big enough to split and run using two trucks instead of one, you can end up with some long days in order to get your work done.
At the same time, you still have to run the business. You need to do your accounting or outsource it, pay bills, and all the other things that go along with being a small business owner of any type.
Sometimes owners get into the business with the idea that they will be able to handle the workload, but it gets to be too much for them, and so they choose to sell their route, either moving on to another business or into other career opportunities.
Sometimes when the area a FedEx contractor serves starts to grow, they end up with extra routes as they split that area and FedEx approves the change. That means they end up with extra routes. Some route owners don’t want to hire drivers and manage those extra routes, so instead they sell them off.
This provides a great opportunity for those who are seeking route ownership, especially those routes that are growing and have excellent earning potential.
Lifestyle Changes for a FedEx Contractor
Life happens, and there are many circumstances that come along that might make it advisable for a FedEx route owner to sell. From family circumstances and other personal issues to the need to relocate or take time off, life happens to all of us. While owning a FedEx route is a great thing for a lot of people much of the time, life can get in the way.
That’s the beauty of owning your own route. Even if life gets in the way and you have to shift your priorities, you have something of value to sell that can help you transition to what is next in your life.
The delivery business is a physical one. You need to be able to lift, walk, use a dolly and other package hauling equipment, and you’ll be bending, twisting, and moving all day long, not to mention the amount of time you’ll spend in the driver’s seat.
As FedEx route owners age or are injured, often hiring a driver to run routes for them isn’t a practical long-term solution. Selling their route becomes the best option.
When a FedEx Contractor Retires
It’s rare that someone simply wants to work forever. We all want to retire at some point for a variety of reasons, and retirement is actually a common reason for FedEx route owners to sell. Many have been working routes for years, and cultivated relationships with customers during that time. They often know tips and tricks about their routes and FedEx that can be very helpful to a new route owner.
Buying one of these routes can put you on the path toward your own retirement plans down the line while allowing you to make a good living for years to come.
There are any number of reasons a FedEx contractor might sell their route. No matter what their reason to sell, the time for you to buy is now. Are you ready to own your own business? Are you looking for a FedEx route to purchase? At www.routeadvisors.com, we’re here to help. Contact us today to find the route that’s right for you.
For further reading on this topic, you can also see what Tony at Route Tycoon said about this topic. Go Here.