People regularly ask me even if it is a FedEx course or a bread path is better.The answer is, it counts on her goals.
You are watching: Bread route and pros and cons
But nobody likes the answer, “It depends.”
Because friend still don’t recognize what that ‘depends’ on. Both are great business opportunities, but here’s a side by side comparison the most everything you’ll at first need come consider. For each concern compared, i gaveblueletteringfor the winner,redletteringfor the loser, andblackfor a tie.
Don’t be tricked right into thinking that because one or the various other has an ext blue, that way it’s better. You need to weigh all of the pros and cons to do a decision. If in ~ the finish of this, you’re still not sure or really desire to destruction in deep v your particular situation, we can do that together. You understand where to find me toget the helpyou need.
We’ll start with comparing all the features for bread routes and then to compare those same characteristics to FedEx routes.
So here’s a head-to-head comparison of bread vs a FedEx route:
Company Meetings:Very infrequent. Every few months.Absentee ownership difficulty:Moderate, however can vary relying on route.Financing:Very common.
Bread – Taxes
CPA Expenses:Low. Very straightforward business.Employee Taxes:Sub contracting allowed. Numerous “employees” room 1099.Workers Comp Insurance:Usually not required.
Bread – Trucks
Truck logos:Usually no required.
Truck period policy:No requirements.
Insurance ~ above truck and contents:Full insurance allowance required.
Truck approval:N/A.Use any an individual truck / trailer.
Fear of climbing gas prices:Moderate. No fuel compensation plan, yet usually low miles routes.
Truck Maintenance:Moderate. You require to bring your truck to the shop or discover a mobile mechanic to involved you.
Truck parking in ~ night:Easy. Parked in ~ terminal or at your home.
Truck breakdowns:Low (nicer roads, no homes, no poor driveways).
Effects of poor weather:Very undesirable, but not a potential disaster favor FedEx.
Bread – Income
Verification of paychecks:Many bread routes publish their paychecks ~ above thermal paper and do straight deposit. Can be tough to verify every checks, but usually no necessary.
Fluctuation in weekly income:Low. Monthly variations. Higher the very first week the the month because of gov’t social programs.
Fringe benefits:Expiring product is “free.”Nice for snack routes!
Route growth:Varies. Many bread courses are stable but population growth will impact them.
Supplemental routes:N/A. If the path grows, you’re payment in the same fashion.
Income scalability:Usually no scalable come a big degree.
Average employee wage:$500-$800 a mainly (usually no employed staff taxes)
Employee approval process:N/A. If they can step onto your truck, lock approved.
Ease that employee swapping:Moderate. Chauffeurs know principles of stimulate management. Paths are very similar.
New hire discovering curve:2-4 weeks. Understanding concepts of order monitoring is more important than memory.
Employees acquiring hurt:Low. Exact same common locations that is highly trafficked. (no dogs, etc.)
Unsupervised employee:Moderate. Might need to inspect stores indigenous time come time come make certain they’re being fine serviced.
Using an employee:Discouraged through some companies. Plenty of companies enable them despite now.
Hours worked:Extremely early.4am-3pm.
Intensity that labor:Varies ~ above route. Both the form of route (snack vs bread) and also volume of course are a factor.
Uniforms:Casual mostly. Part companies favor you undertake a company shirt.
New employee requirements:Not applicable for bread routes. You can hire everyone you great within reason and have them occupational immediately.
Company Meetings:Usually monthly.Absentee property difficulty:Easy when controlled properly end a much longer period.Financing:Possible, but rare.
FedEx – Taxes
CPA Expenses:Moderate. Simple business.Employee Taxes:Required to it is in W2 and to pay employment taxes.Workers Comp Insurance:Required.
FedEx – Trucks
Truck age policy:Newer models required in some terminals.
Insurance top top truck and also contents:Full insurance money required.
Truck approval:Must be certain make/model to it is in approved.
Fear of rising gas prices:Very low as result of FedEx fuel compensation plan. No benefit to reduced prices though.
Truck Maintenance:Easy. Commonly mechanic on-site the performs work overnight in ~ the terminal.
Truck parking in ~ night:Easy. Parked at secured terminal or at her home.
Truck breakdowns:Moderate (harsher driving problems for driveways).
Effects of negative weather:Can it is in severe. Great (usually on-site) administration required.
FedEx – Income
Verification the paychecks:Very easy. All paychecks stored virtual from day of ownership. Paychecks bring varying amounts of info as result of ISP.
Fluctuation in weekly income:Very low. Annual variations because that holidays. Potential for variation in states choose Florida.
Fringe benefits:Usually none.
Route growth:Very high. 5-10%. Can sometimes burn out employees.
Supplemental routes:Can do or lose money. Route expansion can cause growing pains.
Bonuses:Many, but can be taken away for plenty of reasons.
Average employee wage:$600-$800 a main (usuallyemployment taxes)
Employee approval process:3-6 weeks native time you discover someone to gift in driver seat.
Ease that employee swapping:Difficult. Each path is really different and has significant memory requirements.
New hire learning curve:3-6 weeks. Great memory required. Usually simply takes time to memorize streets.
Employees gaining hurt:Moderate. Hazard of unmaintained homes, dogs, unmaintained docks, etc.
Unsupervised employee:Easy. Short supervision required for chauffeurs on routes. The scanner keeps tabs because that us.
Using an employee:Encouraged by management. Owners should not be routinely having actually to journey on routes.
Flexible hours:Not flexible.
Hours worked:Normal daylight hours.7am-8pm.
Intensity that labor:Can be an extremely fast paced. Packages approximately 150 lbs allowed. FedEx soil can frequently be an ext intense.
Uniforms:Required because that being ~ above a route. Must regularly be purchased and also a variety of sizes retained on hand.
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New employee requirements:Exceedingly rigorous. Lift check, medicine test, road test, uniforms ordered, recent experienced driving history.