Considerations When Buying a Home Delivery Route in Roanoke

Did you know that FedEx routes are owned by more than 12,000 independent business owners? Each owner is in charge of the pickup and drop off of packages within his or her respective territory. Owners of such businesses enjoy flexibility, minimal marketing and sales costs, and steady growth. However, as with any business, there are several drawbacks as well. If you’re considering buying a home delivery route in Roanoke or Lynchburg, read on to learn more about this lucrative industry and determine whether it’s the right fit for you.

Benefits of Buying a Home Delivery Route in Roanoke

Before buying a route of your own, review the following benefits to determine whether or not this industry is right for you.

Day-to-Day Operations of a Home Delivery Route

Although the business model might seem straightforward, there is much more that goes into running a delivery route business than just the deliveries themselves. In addition to overseeing deliveries, owners must also manage day-to-day operations including training employees, maintenance of delivery trucks, and logistics. One thing owners are not in charge of, however, is marketing and sales. As contractors of sorts, owners are responsible for the safe and timely delivery of packages, while FedEx is responsible for the marketing of its services. Being able to count on these savings when it comes to marketing and sales is a significant benefit for many owners.

If you’re looking for an opportunity that allows you to manage and grow a business through effective logistics management and attention to detail, a home delivery route in Roanoke may be the right investment for you.

Home Delivery Route Industry Growth

As consumer spending increases and e-commerce expands, the delivery route industry is seeing steady growth. From 2012 to 2017, the industry saw 3.2 percent growth, and according to IBISWorld’s analysis of the delivery service industry, this progress will continue to build momentum over the next five years.

Revenue Growth in the Delivery Route Industry

Thanks to the increase in consumer spending and e-commerce, delivery route owners are seeing an increase in revenues as well. Well managed routes typically make money the following three ways:

• Fixed Annual Rates;
• Payments Per Load; and
• Bonuses.

On average, home delivery routes’ profits range from $30,000 to $40,000 per year. Profits will vary depending on the location of the route, loads handled, number of drivers, and more.

Drawbacks of Buying a Home Delivery Route

Although the delivery route industry is enjoying widespread growth, there are several drawbacks to this business that one should consider prior to buying a home delivery route in Roanoke.

Expenses Associated with Home Delivery Routes

While you might be saving on marketing and sales costs, there are a number of other expenses associated with owning your own home delivery route. Expenses you should expect to incur include:

• Leasing, purchasing, and maintaining delivery trucks or vans;
• Fuel for delivery trucks or vans;
• Insurance;
• Hiring and training employees;
• Taxes;
• Uniforms;
• FedEx equipment and software; and of course
• The cost of the route itself.

High Driver Turnover

Unfortunately, because delivery route drivers’ wages and benefits are modest, it can be hard to not only properly manage them, but also to retain them as employees. Many owner-operators express frustration with this aspect of the home delivery route business.

Is a Home Delivery Route in Roanoke Right for You?

If you’re looking for a hands-on business opportunity that allows you to utilize your management and logistic skills, a home delivery route business might be for you. Plus, with industry and revenue growth projected over the next five years, now is the time to buy!

For more information on buying a home delivery route in Roanoke, and to learn about home delivery routes for sale in Roanoke, contact Sunbelt Business Brokers of Roanoke and Lynchburg. Our business brokers have years of experience helping buyers find business opportunities to fit their interests, goals, and budgets. We’ve even helped a number of clients find and close a deal on home delivery routes in Roanoke and Lynchburg!