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.
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.
By now, it’s easy to see that everyone’s operating margins are being seriously squeezed.
In an effort to force some sort of helpful response, some made a plea to FXG asking for assistance in various areas to solve a worsening financial situation.
Trust us when we say that FXG is very aware of the plight of CSP & TSP’s.
But now, there is another added challenge that has reared its head. This one, along with inflation not seen for generations, is going to create some unprecedented financial problems that will test even the best operators…
Topics: Business Results, Bookeeping, Training, Intelligence, Business Metrics, Negotiation, Profit, consulting, Money, Cash flow, Inflation, Costs, recession, expenses, renegotiation, Financial, Rates
We recently caught up with two guys heavily involved with building successful transportation companies to ask for their insights into 2021.
The first expert is a long-time CSP from the Midwest, Tracy Taylor. The second is the founder and CEO of eTruckBiz, Jeff Walczak. Both have spent the better part of their careers in the FedEx Ground arena. We engaged in a fast-paced conversation to produce our most recent Truck Talk podcast episode.
Some of the insights may surprise you.
Topics: Business Structure, Business Tools, Business Planning, Training, Intelligence, Business Metrics, ISP, FedEx Ground, Business, Negotiation, Metrics, Profit, leadership, safety, coaching, Scheduling
For more than 8 years, we’ve been building products & services to help CSP’s transform the way they approach running their businesses.
Recently, the FXG model itself has been transforming in unprecedented ways. For most CSP’s , the days of being a “hands-on” operator are gone, and the need to provide leadership & management through systems, processes and people are quickly being implemented. The days where you or your BC’s could “jump in a truck” to fix things are gone.
Topics: Business Structure, Business Tools, Business Planning, Timekeeping, Bookeeping, Intelligence, Business Metrics, ISP, FedEx Ground, Business, Negotiation, model, Metrics, Profit, leadership, safety, coaching, Scheduling, Dynamic Route Optimization
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.
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.
"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.
"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.
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.
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.
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: