7 Reasons to Buy a package delivery Business

7 Reasons to Buy a package delivery business:

  1. E-commerce boom

This past week JC Penny announced that it would be closing up to 140 stores across the nation due in part to Customers Buying more and more online. They are one of the many retailers that hasn’t been able to adopt to the changing world around them. This has resulted in an endless supply of packages coming in every single day for contractors and a steady stream of income.

2. The Employees are trained

When you buy a package delivery business the routes are usually already set up to run in the most efficient manner possible.  Sometimes there are opportunities to improve existing routes to make them more profitable but you must look at them on a case by case basis.  If you have a driver going out with 30 stops per day and getting done by noon, you probably can bust out that route among your other drivers.   But in every case the employees are always trained and know the routes!

3. They’re turning a profit

No more chasing people for money!  One of the beautiful things about the package delivery business is the fact that you have settlements to show the income from the parent company.  Each package that a driver scans is recorded and that gets turned into a settlement.  Settlements come out every Tuesday night for the previous week, and the checks are direct deposited into your account Thursday night/Friday morning.

4. The initial logistics have been done

If you hate the idea of running around and completing tedious tasks, an existing franchise is most definitely the choice for you. While some live for these logistics (and even set up franchises and sell them, just to keep doing the parts they love), others would rather skip them altogether. Find your strengths and weaknesses by looking into various options.

5. When it’s a good deal

For whatever reason, business owners are selling at various points in prices and time. They might be having personal struggles, or are looking to get out of the business for any number of reasons. (Remember that a low selling point isn’t always a red flag – that owner could have made great money for years; ask for profit margins to be sure.)

If the timing is right and the asking price seems fair, you may have stumbled across a great deal.

6. Location, Location, Location

I speak to many Buyers that fall into a trap of comparing Route offering A, with Route offering B.  This is very dangerous to do as each route has its own identity and characteristics.  Look and ask is the owner running their business in the most efficient manner possible?  How long have the drivers been on each route?  How many accidents have they been involved in?  Did you know that if a driver has been involved in 2 preventable accidents and gets into a third preventable accident they will be disqualified?  I would highly recommend getting reports on accidents and workman-comp issues up front so you can properly manage your risks.  

7. Revitalizing a business

Seeing a struggling package delivery business can be a tough sight to see, especially when you know you could do better. Instead of shaking your head at their failed attempts, consider putting your ideas to work, and pulling that franchise out of the slump they have come into. With new ownership, brands can shed their dead weight and take on new, better habits that will allow them to soar.