By Brian Reeves, Reeves Delivery Group
MANAGERS WHO RUN ESSENTIAL BUSINESSES NEED TO BE RECRUITING HUGE NUMBERS OF NEW EMPLOYEES TODAY, JUST IN CASE THINGS GET 50 TIMES WORSE.
Topics: Business Planning, Driver Recruiting, FedEx Ground, Business, leadership
Here's a quote that correctly sums up today's blog post , "The past is in your head. The future is in your hands."
You'll recall that our last blog post dealt with the fact that today's FXG Contracting environment is very different than it was several years ago. More specifically we said what is being done has not changed as much as how it's being done differently.
Topics: FedEx Ground, contractor, Profit, leadership
What was once “wild speculation” has now obviously become reality. As most of you know, we were among the first and few trumpeting the change of your business from lifestyle to transportation company. Now that the transformation is at least halfway complete, it should now be obvious that “what worked in the past won’t work in the future”.
Topics: FedEx Ground, contractor, Profit, leadership
In October 2019, James Sheban, an FXG Contractor, reached out to eTruckBiz about an urgent problem. His company, Sheban Express, had recently failed its VEDR audit. He needed expert guidance to correct the situation. And he knew that his company may lose its contract if the audit wasn't quickly addressed.
Topics: FedEx, Training, FedEx Ground, safety
Did you pay attention to the CEO's quotes in last week's press release? Maybe the rhetoric sounded familiar.
"We demonstrated once again the power of our unrivaled network and our ability to provide solutions for our customers while growing package volumes during our peak period."
"We will continue to aggressively pursue opportunities to generate profitable revenues and drive greater operational efficiencies under our current structure..."
No, the above quotes weren't from FDX. In fact, those were quotes from the U.S. Postmaster General and CEO Megan J. Brennan last Thursday.
Topics: Business Outlook, FedEx, Ground, FedEx Ground, vendor
HOW A COMMUNITY COLLEGE DROPOUT FOUND ENTREPRENEURIAL SUCCESS
You think your market conditions are tough, what about Colorado? According to the latest Bureau of Labor Statistics (BLS) data, the Denver area's average weekly wages are $1,242. Think it's easy to find drivers? The BLS also lists the area unemployment rate at 2.4%. Way lower than the U.S. average.
What made a young guy from out of town who knew nothing about the logistics industry think that he could buy a Ground business to support his growing family? Sure he's smart, but he's so young.
"There's no selling, no advertising, no collecting money from past due accounts. I'm not saying it's easy, but it beats a lot of other options out there," Preston Wengert says.
Topics: Business Structure, Business Tools, Business Results, Management, ISP, FedEx Ground, contractor, Profit
Dustin Franz bought an RPS route twenty years ago in Pasco, WA. Today, he's a successful FXG contractor with multiple routes. He's traveled an interesting path to profitability.
Buying a route was his first time owning a business. Much of how he learned to deliver packages came from his own experiences plus talking to contractors in his terminal.
Others taught him what they had learned from their own mistakes, and they really couldn't teach him how to be more profitable any faster. It was no fault of their own. They hadn't been trained themselves.
Dustin performed some online research and determined he needed outside assistance.
Topics: Business Structure, Business Tools, Business Results, Management, ISP, FedEx Ground, contractor, Profit, coaching
Are your drivers forced to comply with safety rules?
Or do they want to comply?
If you prefer the latter, maybe you should consider Ashiq Mizan’s unique approach.
Ashiq Mizan is a CSP in Philadelphia, PA, who had grown increasingly frustrated with his drivers’ lack of safety training compliance.
Despite the safety training lessons being super-easy, compliance in October was around 5%. Not only did his drivers' indifference put his money at risk, but it also showed that they were missing the bigger picture.
Topics: Compliance, FedEx, Ground, ISP, FedEx Ground, Business, Contract, Selling, contractor, Purchase, safety
YOU CAN'T LET DRIVERS RUN YOUR BUSINESS
Business owners (CSP's) are generally likable. Drivers want to work for them. People enjoy being on their team. Nothing wrong with that. It's a good thing.
However, it's a problem when CSP's are too nice. Tracy Taylor learned that lesson early in his career as a Contractor.
"I had 12 employees, 15 trucks and two operations hundreds of miles apart. My people needed me to make tough decisions instead of letting them manage themselves," he recalls.
Topics: Business Structure, Business Tools, Business Results, Management, ISP, FedEx Ground, contractor, Profit
RETAINING EMPLOYEES IN TIGHT LABOR MARKETS
Steve Ellis has been a contractor for almost twenty years. Many business owners who've been operating that long think their processes work because they've "always done it this way."
However, Steve's openness to studying and changing his processes make his operations exceptionally successful in a state with some of the lowest unemployment rates in the country.
Topics: Business Structure, Business Tools, Business Results, Management, ISP, FedEx Ground, contractor, Profit
THE PERILS OF BUSINESS OWNERSHIP
Marena and Ralph Markel bought their first FedEx Ground route in 2005.
Of course, they were inexperienced owners, but they were committed to their future and each other. Like many couples who work together, each spouse brought different skills and strengths to the business.
After experiencing significant growth, the pair were overwhelmed by the responsibilities of leading a large team of commercial drivers including:
Would the couple remain happily in business?
Topics: Business Structure, Business Tools, Business Results, Management, ISP, FedEx Ground, contractor, Profit
It's a simple question with a simple answer. If you're a FedEx CSP, you may think - of course FedEx decides how much I'll earn because they decide what to pay for my services.
But it's not the right answer.
Focus instead on two key words, "decides" and "earn."
FedEx offers, or negotiates, estimated fixed and variable revenues, but they don't decide how much of that you'll keep.
You will make decisions during the course of the contract determining how much you'll earn.
Don't confuse income with earnings.Topics: Business Structure, Business Outlook, FedEx, Training, Ground, FedEx Ground, Negotiation, Profit
Wayne Gretsky, Isiah Thomas, Magic Johnson, and Pete Rose. Each was phenomenally successful at scoring goals, points, or runs in their respective sports. Coaching others to do the same? Not so successful.
Bill Belichick, Pat Riley, Bobby Cox and Tony La Russa. Polar opposites to the previous four athletes.
"What's your point?" you ask.
Business people, like athletes, don't have to be great players to be great coaches and vice versa. However, great coaches can bring out the best in others.
Topics: Business Structure, Business Outlook, FedEx, Training, Ground, FedEx Ground, Negotiation, Profit
FedEx recently announced that seven-day service will be starting in 2020. This means big changes for FXG Contractors.
"Eight Days a Week" is a popular song written by Paul McCartney and John Lennon in the 1960's about love. According to McCartney, the title was inspired not by love, but by work.
He has been quoted as saying when he asked his chauffeur how he was doing, the chauffeur replied, "Oh working hard, working eight days a week." (Wikipedia, May 22, 2019).
You and your drivers probably feel the same about FedEx' recent announcement to move FXG to a seven-day work week.
Topics: Business Structure, Business Outlook, ISP Negotiation, FedEx Ground, Negotiation
As an FXG contractor, you will soon have, or recently had, the (planned?) opportunity to leave money on the negotiating table.
How much money is up to you, and will be determined by your lack of preparation.
If you're not bothered by leaving money, then simply picking a MESO and moving on with your life is up to you.
On the other hand, for contractors who rely on profits for your livelihood - you may find this blog post helpful. After all, eTruck's mission is to help those who want expert guidance.
Topics: Business Outlook, ISP Negotiation, FedEx Ground, Negotiation