Chase Eckert on LinkedIn: One of my favorite stories is Fred Smith the founder of FedEx Freight. Who… (2024)

When FedEx's funds dwindled to just $5,000, - Smith realized he didn't have enough to fuel the planes. The company had already gone to many extremes, - from pilots using their personal credit cards to fuel planes to uncashed paychecks.So what's a desperate founder to do? Smith impulsively flew to Las Vegas and played blackjack with the last of the company money.Amazingly, when he came back the next week, he had turned the remaining $5,000 into $27,000 - just enough for the company to stay in operation for another week.In the book "Changing How the World Does Business: FedEx's Incredible Journey to Success - The Inside Story," Roger Frock, a former senior vice president of operations at FedEx, describes the scene when he found out what Smith did. "I said, 'You mean you took our last $5,000 - how could you do that? [Smith] shrugged his shoulders and said, 'What difference does it make? Without the funds for the fuel companies, we couldn't have flown anyway.'"Find out complete details below and do let me know your perspective Do follow me Pranjul Gupta 🍀and get to know really different and authentic contents I would like to thank my mentor Parth Verma for guidance #finance #investing #investmentbanking #linkedin #India

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Did you know that FedEx, the global courier delivery giant, was once saved from bankruptcy by a stroke of sheer luck - or perhaps fate? In the early 1970s, founder Fred Smith took the company's last $5,000 to a Las Vegas blackjack table and won $27,000, enough to cover fuel costs and keep FedEx operational for a few more days. Today, FedEx is worth billions, all thanks to a gamble that paid off against all odds.In its early days, FedEx faced dire financial challenges. Amid rising fuel costs and stiff competition, the company was on the brink of failure, struggling to keep its planes in the air. The $5,000 gamble wasn't just about money; it was a testament to Fred Smith’s unwavering belief in his company's potential. Against the advice of investors and close associates, he doubled down on his vision. The FedEx story teaches us an invaluable lesson about resilience and the importance of deeply believing in our vision.#BusinessSuccess #FedEx #Entrepreneurship #Resilience #Persistence

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I’d rather lose money than harm my reputation, no contest.The root of “the customer is always right” centers around the fact that all businesses (and all people working in them) should prioritize the long-term view.For example, FedEx recently overcharged BCS $2,000 for a direct mailer campaign.Because their fine print says “if it’s not in writing it doesn’t count,” their back office is telling us we’re out of luck (they never gave us more than a verbal quote).Now, we’ll take our business elsewhere - business that, in the long run, will account for probably 10x the amount they’ve held back from us.FedEx won’t go under because of this decision. At scale, it’s feasible they would.But a mom and pop shop would feel the pain much more quickly.Do the right thing. Build your finances so that you can afford to take a small hit when you make a mistake.Your reputation is everything.#reputation #longrun #ups #fedex

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"A Century of Insights - 100 Business Stories in 100 Days " "FedEx Founder's Bold Move: Turning the Tables on Business Challenges ♦️📦"In 1971, Fred Smith faced skepticism over his idea for an overnight delivery service. Despite a discouraging "C" grade, he founded FedEx. Fast forward to a critical moment – rising fuel costs threatened the company's survival. Left with $5000 and a $24000 payment looming, Fred's plea to General Dynamics was rejected.Undeterred, he took an unconventional route. Instead of heading home, Fred flew to Las Vegas, risking it all on a weekend of Blackjack. 🎲 Miraculously, he turned the $5000 into $32000, keeping FedEx afloat for another week. 🌐Lesson Learned: Challenge conventional wisdom and trust your instincts. 🚀Disclaimer: While Fred's gamble paid off, I don't recommend relying on luck for financial solutions. Play it safe! 🙅♂️ #BusinessBoldness #FedExSuccess #EntrepreneurialGrit #RiskTaking #CenturyofInsights

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🚚 Charting Your Course: Steps to Finding and Buying a FedEx Route 🛣️Embarking on the journey to own a FedEx route can be both exciting and rewarding. But where do you start? Here are some actionable steps to guide you on this path:1️⃣ Identify Your Goals: Begin by clarifying your objectives. Are you looking for a specific route size, location, or growth potential? Knowing your goals will help narrow your search.2️⃣ Market Research: Research the FedEx Ground route market thoroughly. Understand the demand, competition, and route availability in your desired area.3️⃣ Financial Assessment: Evaluate your financial readiness. Consider startup costs, working capital, and financing options. Ensure you have a clear budget in mind.4️⃣ Connect with a Broker: Seek out experienced FedEx route brokers who specialize in these transactions. They have valuable insights and can help you find suitable listings.5️⃣ Due Diligence: Once you've identified a potential route, conduct due diligence. Review financial records, contracts, and performance history. Look for any red flags.6️⃣ Negotiation: Work closely with your broker to negotiate the terms of the deal. Be prepared to make a fair offer based on your findings.7️⃣ Legalities: Engage legal professionals to review contracts and ensure compliance with FedEx policies. Protect your interests during the purchase.8️⃣ Transition Planning: Plan for a smooth transition. Coordinate with FedEx, meet the employees, and understand the day-to-day operations.📜 Continuing the StoryMeet Sarah—a determined entrepreneur who followed these steps and successfully acquired her FedEx route. She meticulously researched her options, leveraged a knowledgeable broker, and ensured a seamless transition. Today, her FedEx route thrives, thanks to her strategic approach.🚀 Your FedEx Route AwaitsAs you set your sights on owning a FedEx route, remember that preparation and careful planning are your allies. Each step you take brings you closer to realizing your entrepreneurial dreams.Share your thoughts and experiences in the FedEx route journey. Let's learn from each other's stories and navigate this exciting path together. 🌟💬#FedExRoutes #BusinessOwnership #Entrepreneurship #peakbusinessvaluation #businessvaluationPeak Business Valuation

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https://lnkd.in/dFb4nUEGHere's something to ponder: as many as 300 pilots at FedEx could be facing the prospect of unemployment since the contract is ending. That's a hefty number, isn't it? It's a stark reminder of the importance of adaptability and resilience in the face of uncertainty. Remember, challenges like these are opportunities for growth and learning. Let's keep our eyes on the horizon and our spirits high as we navigate through this period of change. After all, it's not what happens to us, but how we respond that truly matters. Stay focused, stay determined, and keep soaring towards your goals! #mobiledrugtesting #UPS #FEDEX #Memphis #Work #USPS #focus www.drugtesters.net

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Good morning🌞 all... The story of Fred Smith, the founder of FedEx, exemplifies how overcoming ignorance, confidence, and negativity can lead to ground-breaking success. In 1965, while a student at Yale, Smith wrote a paper proposing an overnight delivery service in a computer-driven era. His professor deemed the idea impractical and gave him a mediocre grade, reflecting ignorance of the concept's potential.Despite this early dismissal, Smith remained confident in his vision. He faced numerous challenges, including skepticism from investors and initial financial struggles. Many were negative about his idea, doubting its viability in a market dominated by traditional postal services. Yet, Smith's unwavering confidence and determination kept him focused.He launched FedEx in 1971, and the company initially faced substantial losses. At one point, Smith even gambled the last of the company's funds in a casino to cover fuel expenses. Through resilience and a refusal to succumb to negativity, FedEx eventually found success, revolutionizing the logistics industry and becoming a global leader in overnight shipping. Smith's story highlights how overcoming ignorance and negativity with confidence can lead to monumental achievements.

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So, what do you think about this?! Increasing shareholder value? At a time where we see a contraction on the number of Transcontinental LTL Carriers and a relative contraction in the LTL segment (for now) Another potential sale or spinoff. Don't get me wrong, they could stand on their own and turn a profit, a nice profit, as they absorbed the Watkins System, American freight and Viking Freight . They have the people and the equipment. They could stand alone. Would a PE Group jump in? They also see Value in the pieces and possibly the whole company, but they would want their return quickly. I don't see any of the larger forwarders jumping in. KN should have grabbed Forward Air weeks ago as that would have been a real game changer, they still can't get their road act together. This could be very interesting down the road. Business will bounce back Q3 and Q4 and their busy season starts! #LTL #roadfreight #supplychain #mergersandacquistions #Shareholdervalue #getreadytolayoff #smallpackadoesnotrelatetoLTL

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Once again, FedEx Freight is first out of the gate with their quarterly earnings.And boy, did they unleash a whopper.It was not enough for Fedex Freight to show some very robust gains in profit during this continually-soft freight environment.No, FedEx Freight is apparently now part of their corporate parent’s plans to “unlock shareholder value”.That means FedEx Freight may not be part of FedEx for long.Let’s dive into the details, shall we?🔴Revenue was up just 1.6% over last year, but that was with shipment counts being flat and tonnage down -2.7%.🔴Margins were up an impressive 2.2 points, with their OR dropping from 80.3 last year to an impressive 78.1 this year.Remember, FedEx uses a non-standard fiscal year.So their most recent quarter is March – May 2024.🔴On a sequential basis, shipment counts were up healthy 9.4%, and tonnage was up 8.6%.Revenue was up similar at 8.5%.FedEx may be picking up some of that Yellow Corp business that is still shifting around.🔴Most impressively, FedEx Freight’s OR on a sequential basis improved nearly 6.0 points, from 84.0 to 78.1.🔴The big news from the earnings release was that parent company FedEx Corp is exploring ways to unlock shareholder value with Freight.This could be a sale or a spin-off.A spin-off in late 2024 or early 2025 is the most likely event, as a purchase would be in the range of $30 Billion.Not sure who’s couch has that much change under the cushions.🔴It is a bit odd that just last quarter, FedEx was touting the many ways they were going to find synergies, such as Freight and Ground sharing a linehaul network. 🔴An example is that FedEx noted Freight is now handling 90% of what they call “Trade Volume”, up from 25% last year.Will these synergies be unwound if Freight is spun of or sold. 🔴One interesting wrinkle is what will happen with all of the bundled deals, where FedEx offered up a joint Parcel + LTL Freight program to customers.🔴A bang-up quarter with impressive profit growth while managing costs and revenues. A big yet puzzling announcement.The market reacted positively to the news with FedEx stock shooting up 15% since announced.Is this a sign of the “conglomerate discount” holding back enterprise value such as with XPO spinning off RXO and GXO recently?Regardless, FedEx Freight is executing well right now even though they have been shedding market share as measured by shipments or tonnage.They seem to be very dialed into profit market share.Check out the 🚛Let's Talk Logistics 🚛newsletter where additional management commentary and insight regarding FedEx Freight’s recent quarter results and future plans will be expanded and expounded upon by the LTL Observers. You can check out other LTL carrier earnings news there as well. A link to the newsletter is in the comments.

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In the 1970s, a young man named Fred Smith came up with a bold idea: a reliable overnight delivery service for packages. Many doubted him, calling the concept impractical and impossible. Undeterred, Fred founded FedEx, but success didn’t come easily. The company faced severe financial challenges, at one point nearly going bankrupt.However, Fred believed in his vision and refused to give up. In a decisive move, he used the company’s last $5,000 to gamble in Las Vegas, winning enough money to keep the business afloat for another week. That extra time was all he needed to secure the crucial funding that saved FedEx. Today, the company is a global leader in logistics, delivering millions of packages daily.Fred Smith's story reminds us that belief in your vision, taking calculated risks, and refusing to quit, even in the face of adversity, can turn challenges into triumphs. No dream is too big if you’re willing to fight for it.#monday #mondaymotivation