Make Me An Educated Route Buyer ! - 1 Hour Buyer Consult
DO NOT BUY ANY FEDEX ROUTES OR FEDEX LINEHAUL RUNS WITHOUT CALLING US ! ! ! 240-490-2895. IF YOU DON'T CALL US PLEASE CALL OR CONTACT SOMEONE
Support provides a 1 hour consult to provide you with specific non-financial information and very specific financial information including expense metrics in writing to become an educated buyer and not be duped by a Broker or Seller. There is a myth in the market place that routes hold a 30+% profit margin based on marketing terms Brokers and Sellers use (i.e. Cash Flow). 30+% margins are anything but the truth (10-15% is the best pre-depreciation margin possible)
MyGround Support cannot stress how critical the non-financial information is as well. If you do not know the high level financial and non-financial contractual aspects of FedEx Ground contracting we cannot stress how important it is for you to understand these types of things before making a decision purchase decision. For example:
- Do you understand all aspects of a FedEx Agreement including the Negotiated Rates in P&D ISP agreements, has the Seller even provided it to you?
- Do you know what the Seller or Broker means by Cash Flow?, are they using the accounting definition? (the 2nd question answer is No, do you understand what they are omitting?)
- Do you know how
the exclusive right to renegotiate / renew an Agreement is obtained?,
are you aware P&D ISP Agreements are not automatic renewal?
- Do you know what availability rate you must maintain on a Linehaul run before FedEx Ground takes it back from you?, is the Seller getting close to this rate already?
- Do you know that past financial performance could in no way be indicative of future financial performance given all the changes occurring in contracting terms and service areas right now? Are you aware of all the changing terms and the new vehicle requirements?
- Do you know how important depreciation costs really are in financials in this line of business?, if depreciation is removed from the equation you may find that your pre-depreciation profits aren't enough to cover the cost of a new vehicle.
If you are developing your own evaluation model for due diligence or need to verify information received from the Seller this should be considered "must consult". If you don't use us, please use someone!, going at it alone can leave you with major buyer's remorse.
The consult product includes:
- A one hour phone meeting with you to make you an "educated buyer" from a financial perspective and non-financial perspective.
- A one page "cheat sheet" of all the "real expenses", including those the Seller may not have told you about. This cheat sheet has very specific information and ratios for expenses. You will be able to create a model with the information provided. If you pay a 3-4 multiple of a purported 30+ % cash flow you could possibly make one of the worst financial decisions of your life.
- A one page "cheat sheet" of items you should be requesting and studying in due diligence. The non-financial items are extremely important and if you don't know what they are you shouldn't be buying any routes or you will significantly increase your chances for major buyer's remorse.
In the event you decide you'd like to upgrade to one of our full proprietary Buyer Purchasing Support product we will credit the purchase price of this product to that product.
PLEASE CALL US (240-490-2895) WITH ANY QUESTIONS AND WE ARE HAPPY TO DISCUSS BEFORE YOUR PURCHASE