Capital Route Sales

 Prospective buyers of FedEx P&D routes have numerous questions about the routes, financing, and analyzing potential purchases among other things. Most of the questions probably cover one of those three topics. This post adds to some of the frequently asked questions (FAQs) that potential buyers of FedEx ground routes might want to answer.   How is Package Delivery Volume Changing? It looks like demand will grow, or stay high. In 2022 retail e-commerce sales are likely to top $1 trillion in 2022, a substantial increase over 2021, for example. Many of the sales will be digital products, but most of that money will go to physical products, which will drive very strong demand for package deliveries into 2023. In 2021, FedEx delivered 3.13 billion packages, a substantial increase from 2.54 billion in 2020 (based on figures from Statista.com). So, if volume grows as expected we’re looking at almost 3.5 billion delivered in 2022 and at least as many in 2023. What About Payments...

  As part of your due diligence, you need to estimate the operating costs of a route so you can weigh that figure against the likely revenue and the purchase price. To properly evaluate FedEx routes for sale , you need to consider the various operating costs, particularly fuel and labor. Fuel costs, interest on loans, leasing costs, and labor costs obviously vary over time, but there are some resources to help you get a general idea of what to expect. Estimating Operating Costs You’ll find plenty of general guidance on the cost of running a pickup and delivery route. Capital Route Sales offers estimates along with other information for conducting due diligence. Here are the cost estimates: Payroll: 40% to 50% Repairs and maintenance: 10% to 15% Fuel: 10% to 15% Truck payments: 10% Workers comp and truck insurance: 5% Miscellaneous (scanners, tools, uniforms, office equipment): 5%  So, if you are about to buy a route, keep in mind how transient events like recent gas price hike...