The Business of Independent Service Provider Contracting

Here we are, finally  on the eve of what will promise to be the really big visible push into Network 2.0 for CSPs.

Many things, mostly unseen, have been underway for years now. Some things, like the transition to the current ISP operating agreement, from the old legacy contract, have been going on for 8 or more years. By the way, make no mistake, it was this transition to the ISP agreement, which forced the relinquishment of proprietary interest in contractor work areas, that paved the way for Network 2.0 to become a reality.

So it could be said that the transition to Network 2.0 has really been in the works for more than 10 years now.

Let’s take a shot at predicting some of what promises to be many significant changes that Network 2.0 will bestow on CSPs as they adapt and survive into the new era:

Topics: Business Outlook, Driver Recruiting, ISP Negotiation, Business, Network 2.0, Margins, low cost model, time definite, transportation business

At eTruckBiz, our mission is simple- to help contractors run the easiest and most profitable business possible. Recently we’ve become aware of a potentially growing problem found within several contractors’ operating agreements. In each case, these were recently negotiated contracts done by popular brokers in the FXG space.

Topics: Business Results, ISP Negotiation, FedEx, FedEx Ground, Business, Contract, Negotiation, contractor, Profit, Agreement, consulting, settlement, Cash flow, brokerage, brokers

Can anything good come from a grim FedEx earnings pre-announcement?

While the announcement and the withdrawal of next fiscal year’s guidance are ominous signs of storminess to come, there may be a silver lining. In recent months, eTruckBiz has seen a 70% increase in renegotiation requests for its clients being granted, signaling that FedEx may be more willing than ever to work with struggling contractors.

As many of you know from attending our many informational sessions over the years, the contractor model affords FedEx Ground the lowest cost provider of last mile transportation services in the industry.

It appears that now may be the time to unleash the power of this competitive advantage.

Topics: Business Results, ISP Negotiation, FedEx, FedEx Ground, Business, Contract, Negotiation, contractor, Profit, Agreement, consulting, settlement, Cash flow, recession, Rates

So it’s not the 2008 financial crisis, but in the FXG Contracted Service Provider world, it could ultimately prove to be worse.

A combination of events has spawned a crisis that we foreshadowed back in August of 2021 in our post:  the Dark Side Of Density.

What we described in that post has ultimately proven to be true, and is now exacerbated by the quickly deteriorating economic conditions.

As business owners, solving problems is a daily occurance. This one however is going to need full attention, for an extended period of time.

Let's begin our look at what to do about all this by analyzing the root causes of why the issues now exist...

Topics: Business Results, ISP Negotiation, Payroll, Business, Contract, Profit, consulting, Money, Inflation, Costs, Holiday Season

Don’t think it matters which MESO you choose when you negotiate?

Wanna bet?

We're sure you know you are gambling with the financial health of your biz when you pick a MESO based on:

• What other CSP's say is the best one to take on Facebook
• The one with the best incentive bonuses
• Thinking they hide the best one behind door #3
• No Research, No Analysis, No Data

This is what the other side hopes for, and knows many CSP's do.

It pays to do your homework and get some expert help to determine what the best offer is based on the unique characteristics of your CSA.

There's too much for you at stake to not give this issue the attention it deserves.

Topics: ISP Negotiation, Management, FedEx Ground, Business, Profit

As of 1/10/2020, it’s a new day for FXG CSP’s.

You may recall we’ve talked about TRANSFORMING your Lifestyle Business into a 

Transportation Compan y for the past several years.

FXG's announcement of the new Financial Health Assessment added a new, critically important component for how they keep score on your business performance, and your value to them.

Engaging a third party, RapidRatings, to examine your financial health, then reporting those findings to FXG will create a measurement (number) that will become just as important as your daily service - if not more so.

As a CSP, you should understand the significance of this announcement and the reasoning behind why it will be so crucial going forward.

Let’s take a look at what is going on here...

Topics: Business Planning, Business Results, ISP Negotiation, Business Metrics, Contract, 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

Some of you reading this have already negotiated your first ISP agreement.

Maybe more than one. Others, still have not gone through the process yet, and are wondering what to expect.

Whether you are a veteran, or going to be a rookie, we thought we'd take this opportunity to share with you what we have learned from helping more than 800 of you (as of August of 2017) successfully get through the process.

Topics: Business Tools, ISP Negotiation, Ground, ISP, FedEx Ground, Business, Contract, Negotiation, contractor

Why is it important to understand and monitor your weekly Driver Productivity Report that is emailed to you weekly from eTruckBiz?

Well, it could mean the difference between surviving in the ISP environment or not. 

I want to take you through the report, and show you why it is of utmost importance and why it matters to you.

First and foremost, it provides a way for you, on a weekly basis, to measure and monitor the performance of each driver to the goals or expectations you have in place for them. You should use it to give your drivers feedback and follow up on their performance.

Topics: ISP Negotiation, FedEx, Business Metrics, Ground, ISP, Business

Now that you know you will be going through your initial negotiation, there are a few things you need to be doing NOW. This it true no matter how far off it may seem. If you ask anyone who has already been through one, they'll most likely tell you that a solid understanding of where you currently stand (number-wise) is the foundation of a meaningful and successful process.

Not only will doing the things we are about to mention help you get more of what you want, but being prepared will dramatically lower your stress levels.

Most of us, when embarking on a journey to somewhere we've never been, get the map out (or today "Google It") to see where it is we are going. We then PLAN on how to get there.

You can PLAN your journey to your ideal ISP Destination by doing the following things:

Topics: ISP Negotiation, FedEx, ISP, FedEx Ground, Business, Contract, Negotiation, model

The time has come to look at the ISP Negotiation process from the contractor perspective. 

First, let's go ahead and call it what it is: David v. Goliath, FBS vs. FCS, Large Cap vs. Small Cap. It's the tremendous resources of FXG vs. those of an individual contractor. I think we can all agree that from the ability to influence, FXG holds the cards.

But that doesn't mean, a contractor cannot conduct a meaningful, and even successful negotiation. It just means that in order to do so, the contractor needs to do some homework, and find some very special tools and help.

Well, now, finally, the tools, and help exist...

Topics: Business Structure, Business Tools, ISP Negotiation, FedEx

Topics: Business Planning, Business Results, ISP Negotiation