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Saving Money and Improving Profits Through Tax Savings and Titling Strategies for FedEx Ground CSPs — Transcript

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0:01[Music]
0:07hello everybody Welcome to the route
0:09consultant weekly webinar uh I'm Leah
0:11Nelson I work on the Education team with
0:13Josh who is our frequent route
0:14consultant webinar host you've probably
0:16seen him before I'm kind of our numbers
0:18role in the team I primarily work with
0:19financials and business valuations for
0:21both FedEx and our silos and really
0:23everything in between uh you know
0:25looking at Market Market values market
0:27trends really just anything numbers
0:28related that falls to me so uh for our
0:31regular attendees welcome back uh if
0:33you're a new attendee welcome so whether
0:35you're brand new to this industry or
0:36you've been a contractor for years and
0:38years uh we want the webinar to be a
0:40place where we can come together and
0:41answer questions and just learn a new
0:43topic each week and have a good time
0:45with it so before we get started I do
0:47have to read a quick disclaimer as we do
0:49every week so route consultant is not
0:51endorsed by and is not recommended by
0:53Federal Express Corporation FedEx ground
0:55or Amazon Rock consultant is not
0:57sponsored by is not approved by is not
0:59associated with and has no connection
1:01whatsoever with Federal Express
1:02Corporation FedEx found or Amazon so
1:05basically all this means is that you
1:06won't hear any materially nonpublic
1:08information on the webinar today but uh
1:10we do hope you hear some helpful and
1:11useful information
1:13nonetheless uh one quick note before we
1:15get into the content for today uh for
1:17all of our viewers so we'll go over
1:18content for a little while and then
1:20we're going to have a Q&A session at the
1:21end of the webinar so if you do have any
1:23questions drop them in the Q&A function
1:26at the bottom of the screen do not put
1:28them in the chat feature if you put them
1:29in the chat feature Fe I probably won't
1:30see it also if you raise your hand I I
1:33it's hard for me to know what your
1:34question is can't really call on you so
1:35make sure you're dropping any questions
1:36that you've got in the Q&A function on
1:38the screen and if you are watching
1:40online on YouTube or wherever later on
1:42and you have questions about today's
1:44content uh email us at info@ rout
1:46consulting.com we can get all of your
1:48questions answered so on that note today
1:51we are going to be chatting about ways
1:53that you can uh increase your bottom
1:54line by Saving on sales taxes which is
1:56always a really fun topic and with that
1:58we're going to bring on Alex who our
2:00resident lineol expert hey thanks Leo so
2:03um yeah the opportunity to save money
2:05and avoid paying taxes legally is very
2:08attractive to me and I think it should
2:09be attractive to everybody else as well
2:12um you know I have an opinion that the
2:15government is a very
2:17poor uh user of my funds and my my
2:20dollars and so I think I can more
2:22effectively use them more you know than
2:24the federal government or the state
2:26government so any opportunity I can I
2:28will minimize my tax burden um you know
2:32there are a lot of different uh things
2:34you can do I would definitely talk to a
2:36CPA but some of the Tax Strategies that
2:38you should look at um are the following
2:41so one of them is where you decide to
2:43buy your vehicles um two is where do you
2:46decide to title your vehicles um you
2:49know if you are a FedEx contractor and
2:52you know you decide to go the uh base
2:55plate route where FedEx provides your
2:56base plates that's something else you
2:58don't have to worry about but that would
2:59be another area where you could take
3:01advantage of um states where it's cheap
3:03to register your vehicle but since we're
3:05all you know by and large utilizing
3:08FedEx provide us with base plates um you
3:11don't have to worry about that so as you
3:14know when you buy a vehicle you can
3:16either buy it brand new or buy it used
3:18you are going to pay a federal excise
3:20tax on top of that you're going to pay a
3:23sales tax so if you're buying a $200,000
3:25vehicle and you have a 10% sales tax in
3:28that state you could be paying upward of
3:30$20,000 on that vehicle so it's really
3:33important that you know if you are
3:36effective and you you you do it
3:38correctly you can buy vehicles in states
3:41where you don't pay a sales tax and then
3:43on top of that then you can Title
3:44vehicles in states where you don't pay a
3:46tax on that as well and so that's a
3:48really important way because I mean this
3:50can add one to three basis points or one
3:52to three% to your uh to your bottom line
3:56and improve your margins so if you're
3:57talking about a company that does say
3:5915% margins on a million dollars worth
4:01of Revenue and you're able to increase
4:04it by 3% that's $30,000 that's hitting
4:07your bottom line um that improves your
4:09cash flow and makes life a lot better
4:11for yourself so um let's get out of the
4:13way and talk about uh sales tax and then
4:16we can talk about some other strategies
4:18that you can look at so States not to
4:20buy vehicles in Okay the reason why is
4:24because you have to pay a sales or use
4:26tax and those are Alabama Arizona arkans
4:29Aransas Colorado Indiana
4:33Massachusetts uh Mississippi Missouri
4:36Nevada New Mexico Oklahoma Oregon and
4:39West Virginia kind of weird right A lot
4:40of them are red States some of them are
4:42blue States you wouldn't really expect
4:44that mix you know like some of the best
4:46states to uh title a vehicle in like
4:49Illinois it's a phenomenal state to
4:52title a vehicle all you have to do is
4:53pay I think the fee now is
4:56$155 to title a vehicle there so that's
5:00really cheap um other states will you
5:02know won't require you to uh pay a sales
5:06or use tax or give you a rolling what
5:08they call a Rolling Stock exemption
5:10another state that does that is for
5:12example Michigan um California of all
5:15states gives you a Rolling Stock
5:16exemption um Connecticut so these are
5:19really blue States um you know there are
5:21plenty of red States out there too
5:23Louisiana Kansas um Kentucky um
5:27Tennessee but things to real look at
5:30when you're looking at this um is making
5:33sure you understand the requirements not
5:35to pay that sales and use tax or what
5:37are the requirements to get your vehicle
5:39titled there so uh for example for me I
5:42I I happen to live in Colorado my
5:45business is organized in Illinois I'm
5:48Incorporated in Illinois um don't ask me
5:50why um and then I have operations in
5:53Kentucky Mississippi and Tennessee so I
5:56buy a lot of my vehicles in Kentucky or
5:59in Tennessee because I don't have to pay
6:01a sales or use tax there now I title
6:04them in Illinois because if I title them
6:08in Illinois I don't have to pay a
6:10titling fee I just have to or a title
6:12tax so I just pay $150 now you might ask
6:15well why don't I title them in Tennessee
6:17or in Kentucky well one of the issues
6:19with
6:20Kentucky um is that if you decide to
6:23title there then you have to actually
6:25get the vehicles VIN verified which is a
6:28pain in the butt you have to actually
6:29take your vehicle to a location where
6:31they'll actually look at the VIN and say
6:33yes this tractor trailer and this Vin
6:35match so you literally pay a guy to look
6:38at your VIN look at your vehicle and say
6:40Yep they're the same kind of stupid but
6:44it is what it is um in Tennessee if you
6:47don't if you decide to tidle the vehicle
6:50in Tennessee um then you actually uh
6:53after 3 days you have to pay sales and
6:55use tax on it so by buying vehicles in
6:58Tennessee and then entitling them in
7:00Illinois I don't I can avoid having to
7:02pay that sales and use tax now one of
7:05the really fun things to do is buy
7:07vehicles and title them in um uh sorry
7:12buy vehicles in in Tennessee Title them
7:15in Mississippi and then operate them in
7:17Tennessee now why would you want to do
7:19that well so if you title so in
7:22Tennessee you don't have to pay income
7:23taxes but you have to pay an asset tax
7:26in Mississippi you pay income tax but
7:28you don't pay asset tax so if you title
7:30your vehicle in
7:32Mississippi um and then operate it in
7:35Tennessee you can avoid paying income
7:37tax and paying the asset
7:39tax um so these are all things that you
7:41should be thinking about when you're
7:42going through the process of thinking
7:43about how you're going to organize your
7:45company you know I wouldn't go through
7:47the process of organizing in Illinois
7:49Illinois has a lot of disadvantages in
7:52it for being a blue State like I have to
7:54report the number of my drivers that
7:56take sexual harassment training on an
7:58annual basis um you know other things
8:01like that but there are some advantages
8:03you know when it comes down to titling
8:04and registering um the other thing from
8:07there what you can do is then there are
8:09certain states where you don't have to
8:10pay sales or use tax on replacement
8:14parts um and on labor for maintenance so
8:18for example in Kentucky I can apply to
8:22get a sales tax account which I'm never
8:24going to pay sales tax for because I
8:26don't collect any sales tax but then by
8:29then what it allows me to do is if I
8:31report all the repair parts and
8:33maintenance I get I conduct on a
8:35quarterly basis then I am exempt from
8:38paying um maintenance and or exempt from
8:43paying sales tax on maintenance and
8:45labor in Kentucky other states EXA have
8:49that they have a Rolling Stock exemption
8:51on repair and maintenance Michigan does
8:52that um Washington for certain um um new
8:59so Georgia Kansas Kentucky Maryland
9:02Minnesota's a partial Michigan Missouri
9:04New York and North Carolina have a
9:07partial exemption from paying sales and
9:09use tax on repair and maintenance so
9:12these are all things to think about when
9:13you're operating and when you're
9:15conducting you know if you have a team
9:17that's on the border of Ohio in Kentucky
9:20it might make sense to you know to try
9:22to limp that vehicle into Kentucky if
9:25you can apply for that Rolling Stock um
9:27exemption on sales tax because if you're
9:29doing a $5,000 repair you know and
9:32you're looking at a 10% sales tax in
9:34Ohio versus Kentucky I mean that's $500
9:36and it adds up if you're running 30 or
9:3840 Vehicles a year so these are all
9:41little tricks of the trade about how do
9:43you improve your margins uh and what you
9:45should be thinking about when you're
9:47looking at like higher level of like how
9:49do I get my business to grow and how do
9:51I make it more advanced and more
9:53productive and and improve my efficiency
9:56so you know maybe not something that you
9:58should be worried about at the base
9:59level um but it can have an impact about
10:02where you decide to organize your your
10:04company like you like like I said I mean
10:06I live in Colorado I don't need to have
10:09my company organized in Colorado I can
10:11have it organized in Delaware of all
10:14places if I wanted to um I'm actually
10:16looking at you know opening up a new
10:18entity and running it out of Wyoming and
10:21these are all reasons for tax advantages
10:24so this is something that you should be
10:25talking about with your accountant talk
10:27about with other contractors talk about
10:29it with your lawyer so you understand
10:31the implications but these are ways for
10:33you to the money that you spend talking
10:35to your lawyer and your accountant is
10:36going to save you 1 to 3% on an annual
10:39basis going forward for the life of your
10:42business and that makes a meaningful
10:43amount of money because if you're saving
10:453% on your business over 10 years on a
10:47million dollar business you're looking
10:49at
10:52$300,000
10:54so um I know it's very boring you know I
10:58like you know looking at way I like
11:00looking at tax laws I like looking at
11:02tax you know I like I like getting into
11:03the numbers and trying to figure out way
11:05so I can make money or make more money I
11:08mean I think the reason why we all
11:09become small business owners is because
11:11we want to make money and we'll all look
11:13for every single lever legally that we
11:15can do to make more money if we
11:18can yeah absolutely I mean that's the
11:20whole point of owning a business is to
11:21into is to increase those margins and
11:23too I know we kind of talk about this a
11:24lot really the more you increase your
11:27your margins your noi you know the more
11:29you can also sell your business for
11:30later on so not only do you get
11:31immediate benefit from you just you know
11:34having extra money in your pocket all
11:35the time you know it shows that your
11:36business is making more money and then
11:38that it's more valuable and that buyers
11:40should buy it for a higher price so
11:41that's kind of you know particularly
11:42working with valuations myself is
11:44something that I like to preach is not
11:45only do you get that immediate benefit
11:47you do get kind of long-term benefits
11:48from saving money as well I know that
11:50some of this is is you know buying
11:52trucks and stuff really is under you
11:54know it's capex so it's under the bottom
11:55line but still shows you know shows up
11:57particularly if you do the repair and
11:58maintenance
11:59stuff that shows up above your bottom
12:01line and impacts your noi and and really
12:03can save you a lot of money well it does
12:05also have an impact on your leasing
12:07because there's certain there's certain
12:08states where if you lease it in that
12:10state you're going to pay sales tax on
12:11it so you should definitely look at
12:13where the leasing laws are dip different
12:15from the financing or acquisition laws
12:18so definitely talk to whoever you're
12:19leasing from if whether it's Ryder or
12:21arel or Pensky have a conversation and
12:24understand what are the implications if
12:26I lease in Tennessee versus leasing
12:28Wisconsin versus Leasing and I mean I
12:30think they like to run a lot of their
12:31leases out of Wisconsin because I think
12:33there's a tax advantage there for both
12:35them or for example RL I think they run
12:38a lot of their leases out of um
12:40Wisconsin because there's a tax
12:41advantage there for both them and for
12:44you as a contractor um and then the
12:47other thing just to remember is that you
12:49can title your vehicle wherever you are
12:52able to get your vehicle titled you do
12:55not have to title your vehicle like I
12:57operate in Kentucky I do not have a
12:59single one of my vehicles titled in
13:01Kentucky I I actually I don't have any
13:04Vehicles titled in Tennessee either all
13:06my vehicles are either titled in
13:08Mississippi or in Illinois and I am
13:11planning on starting to Title vehicles
13:12in Ohio and we've talked about it in the
13:14past Ohio is a very advantageous state
13:17to Title vehicles it's a it's all online
13:20um you don't have to actually deal with
13:22the DMV because I believe it's county by
13:25county counties deal with titling
13:27instead of dealing with it the
13:29department of motor or the buau I think
13:30it's called the BMV the buau of Mo motor
13:33vehicles um and so it's a little bit
13:35less onerous than titling it in Illinois
13:38so it's one of the things that I think
13:39I'm going to save myself you know maybe
13:42$50 or $100 per truck by titling it in
13:45Ohio versus titling it in Illinois and
13:47while
13:49that's you know not a lot of money you
13:52know when you add up 35 trucks a year
13:54that I'm titling it makes a big
13:56difference Abol I was I was going to ask
13:58what kind of the process is for titling
14:00your vehicles in a different state than
14:02you operate because I'll admit I've only
14:04gotten my own titles through the
14:05dealerships of the cars so uh so in
14:09Illinois and Mississippi uh you have to
14:11have an either an employee or yourself
14:14who has a Happ happens to have a
14:15Mississippi or or an Illinois driver's
14:18license um then you need to have I'm
14:20actually in the process of pedling a
14:22vehicle right now you need to have a
14:24bill of sale um and then you actually
14:26need to have the old title
14:29um and you need to the old title has to
14:31be signed over to you and then you take
14:34this and you submit it with an online
14:36application um to Illinois or
14:39Mississippi um and then I highly
14:42recommend that you take a copy of that
14:44before you actually submitt it in so uh
14:46PDF the whole thing um and then submit
14:49the PDF to FedEx to prove that you've
14:51applied for your title um and then
14:53submit it in and you usually get your
14:55title back I typically get my titles
14:57back from Illinois within about 6 days
15:00uh
15:00Mississippi can be as fast as 30 days or
15:04as slow as 90 days depending on how
15:06backlogged I usually go to doto County
15:09um they seem to be really efficient um
15:13so uh that's be terribly hard except for
15:17maybe having someone with an address
15:19there well I mean you you don't necessar
15:21they have to have a license in that
15:23location that's what it is um because
15:25you can always get it sent to a po. box
15:28so and you know getting a PO Box in
15:31Mississippi cost you maybe I think I pay
15:34$300 a year for a PO Box in Mississippi
15:37I mean that's my business address even
15:39because I have to have a I have to have
15:41an address in in every location that I
15:44operate in you know you have to have a
15:47address in for your uh your foreign
15:49entity license or your alien corporate
15:52or your corporate alien registration
15:55depending on which state you know what
15:56the rules are so I I'm organized to
16:00operate in Illinois and then I have a
16:01foreign entity licensed to operate in
16:03Colorado Kentucky Tennessee and
16:05Mississippi um actually I also have one
16:09in Ohio and in
16:11Arkansas because um in order to pay
16:16child support payments for employees who
16:17work for me I needed to have an a
16:20corporate account with those states to
16:22be able to remit child support payments
16:24to those uh those States and you as you
16:27is you grow your business uh and you get
16:30employees who live in Arkansas or
16:32Missouri or wherever you know you're
16:34going to find that you have a lot of
16:36drivers who have garnishments um who
16:38have trial support payments um you know
16:41or you know for whatever reason that you
16:45you're going to be you know getting
16:47letters or or you know mail from these
16:50states saying that you owe money on
16:52behalf of this employee to the state and
16:54so generally it just makes it more
16:56efficient if you or if you organize and
16:58it doesn't cost you any money to to file
17:01with that state especially if you're not
17:02generating any Revenue there so you
17:04don't have to file any any income
17:06returns or anything like that you just
17:07need to file um and you just need to
17:10file a you need to provide them with
17:12your certificate of good standing
17:14usually and that's all you need to do on
17:15an annual basis and maybe I think
17:18Kentucky had to pay a $35 licensing fee
17:20on an annual basis so not bad doable for
17:23all the money that you'd save doing all
17:25the other stuff too it was it gotten
17:27that bright in my office
17:30yeah and too if anybody has questions
17:32about registering as a foreign entity
17:33and things like that we can help with
17:34that here at Ral yes I would definitely
17:36reach out to rck consultants for a
17:38number of different things I mean one
17:40understanding the uh nuances about uh
17:42where I can title my vehicles what what
17:45ve what states are more sufficient uh
17:48for titling uh they can advise you on
17:50buying Vehicles like what are the
17:52advantages of buying a vehicle in
17:53Georgia versus Florida highly recommend
17:55Georgia versus Florida you think that
17:57Florida would be a great state but it's
17:59uh they don't give you a Rolling Stock
18:01exemption so definitely take a look at
18:03that um obviously Florida is a great
18:06state to operate in because you have no
18:07income tax there so those are things to
18:09think about like where is it a g uh
18:12Delaware why is it good to op to
18:14organize in Delaware you don't pay any
18:15income tax there Texas you don't pay any
18:18income tax but you pay an asset tax
18:20Tennessee you don't pay any income tax
18:21you pay an asset tax Wyoming I don't
18:24know the rules Alaska you don't pay any
18:26income tax you know there are states out
18:28there where you pay know income tax so
18:30um definitely you know if you reach out
18:32to rock Consultants they can put you in
18:33touch with the the right CPAs um and the
18:36right lawyers to help you organize your
18:38company appropriately to um minimize
18:40your tax burden I think that's the right
18:42the appropriate
18:43language it is it is yeah again any
18:46savings that you can get really in any
18:47way is it's always advantageous so I
18:50mean and that's what I mean as a
18:52business owner that's a lot of what I
18:53spend my time doing either looking for
18:56ways to save money I mean for example I
18:59have one of my managers call me up today
19:00and say hey I want to buy 50 gallons
19:02worth of oil I wanted to buy 35 gallons
19:05worth of antifreeze and winch wiper
19:07fluid and he's like I find this great
19:09deal on Amazon I'm like I'm pretty sure
19:11that Amazon is not going to be the best
19:13place for us to buy 50 gallons worth of
19:16motor oil you know let's go to this you
19:18know let's go to Granger and see what
19:20Granger offers let's go to like these
19:22other industrial versions of Amazon and
19:25see what they offer and I went to this
19:27place called um um it's actually called
19:32Imperial um I have an account with
19:34Imperial what is it called
19:36Imperial Imperial supplies sorry so they
19:40are an aggregator of like Granger and
19:43other industrial um um producers of
19:47motor oil cleaning supplies uniforms
19:50tires Tire irons and stuff like that and
19:53I went to them and I said hey I need to
19:55buy 50 gallons worth of 15 w40 you know
19:58what's the best deal you could do and
19:59they they gave me a couple great deals
20:01free shipping just like Amazon and I
20:03saved myself I think
20:05$150 you know so it was great you know
20:08and I bought I bought all the all the
20:10motor oil I needed all the antifreeze
20:12and all the windsh wiper fluid to
20:13prepare my business for winter because
20:15it's October and I'm starting to say
20:17okay hey what is what are the things
20:19that my vehicles need to have to get
20:21through the winter so my vehicles that
20:23operate in the mountains I need to make
20:24sure that they all have tire chains um
20:26my vehicles that operate in the South I
20:28want make sure that they all have a bag
20:30of sand um in their in their uh crew
20:33compartments that they have 15 w40 they
20:35have antifreeze they have coolant my
20:37vehicles nor I make sure they all have
20:39heater cords uh so this is something
20:41that you should know diesel engines
20:43don't start really well when it's really
20:46cold outside so we do something called
20:48we heat up the engines the engine blocks
20:50what you do is you plug the engine into
20:53an outlet um and so and they heat the
20:56engine and they keep it relatively warm
20:58compared to the outside temperature so
21:00your vehicle will turn over when you try
21:02to fire it up on diesel oh that's good
21:05to know I didn't know that that's I knew
21:06about the buying bulk buying bulk is
21:08something we recommend doing if you if
21:09you can you have a big enough business
21:10that you can afford that um can have a
21:12lot of savings there I did not know that
21:14about heating of engines yeah so like in
21:15Noki for example every single vehicle is
21:17assigned a parking or in my
21:20operations every single so my entire
21:22business is signed I have 25 or 24
21:25trucks up there um each of my vehicles
21:27has a parking spot that is assigned to
21:29me um so they all park there and then on
21:32top of that if you look at the uh they
21:35have these um colums uh behind every
21:38parking spot and each one of those has a
21:40has a an outlet in it and that
21:42specifically is for I mean it's great
21:45for me to be able to use it to like to
21:48you know for an impact wrench or to plug
21:50in like that kind of stuff but
21:51realistically the reason why is that in
21:53the winter months from November through
21:55March every single one of my vehicles is
21:57required to be plugged in every
22:01night the I pay the last driver in my
22:04fleet you know a couple extra bucks to
22:06walk the line and make sure that every
22:08single vehicle's plugged in at you know
22:1010 p.m. or 11: p.m. when he gets home
22:13yeah yeah it gets cold up there know not
22:17super cold but cold enough I'm not
22:19compared to Colorado I guess it's
22:20definitely not like Minnesota or or
22:23Montana I mean you know the guys up in
22:25are like Buffalo I
22:27mean it's a different story when you're
22:29working out of you know underneath 9et
22:31of snow in
22:32Buffalo yeah my threshold for cold is
22:35low though Tennessee Natural native so
22:37you know anything north of this is I'm
22:39like man too cold for
22:41me so perfect um yeah so we can go to
22:47question or we can go do
22:48your I uh if anybody has any questions
22:51go ahead and load those in the chat at
22:52the bottom not the chat I'm sorry in the
22:54Q&A function do not put in the chat Q&A
22:56function um and we do have I'm going to
22:59go ahead and read some listings and some
23:00events for this week so we've got one
23:02new listing this week it is out of
23:03Middle Tennessee it's 13 p& routes
23:06listed at $950,000 which is about 62% of
23:09Revenue it does have just shot of a 15%
23:12iida 16 employees and two managers it is
23:16a low mileage operation in a great
23:18territory um it's the two managers they
23:20are full-time so they you know they
23:22pretty much handle the daily operations
23:23of the business uh low mileage with low
23:26Sim miles and then there is some
23:27assumable truck assumable truck debt to
23:30help kind of with that Finance of the
23:32purchase a creative strategy if you need
23:33a little a little bit to close the gap
23:35there and it does have a new newer modal
23:37vehicles in the fleet and uh as far as
23:40our events go um we do have our new
23:43virtual new investor Summit virtual
23:45course uh that we have available if
23:47anyone wants to sign up for that it does
23:49come with a visit to our national office
23:51so a a dayong course here at our
23:53Nashville Office where you can meet the
23:54team uh and meet other people who are
23:56you know entering the FedEx industry
23:58indry and um our next one is actually
24:00this coming Friday October 25th at 9:00
24:03a.m. so if anybody wants to get in on
24:04that at the last minute I I we may have
24:06some spots left I'm not really sure but
24:08and that's also just a little bit of
24:10warning there but our next one is going
24:11to be on November 15th so if anybody's
24:13interested in signing up for that
24:14virtual new investor Summit you can come
24:16to the office and visit us we normally
24:18have them about once a month whatever
24:19works best for your schedule um and that
24:22is that's all the events we've got if
24:23anybody has any Q&A let me see here
24:29it does not look like we have any
24:30questions right now so I'll talk I will
24:34say one thing I think that you know
24:36we're it's October 23rd right now
24:39generally I what I'm doing right now is
24:41preparing for Peak and one of the other
24:43things I'm doing is preparing for
24:45inclement weather so um I'm making sure
24:47that all my drivers have cold weather
24:49gear um so for me since I operate um in
24:53with the I mean I generally operate in
24:54the South but my drivers do go north and
24:57there's you know even if they operate in
24:59the South there is still risk of
25:00Mississippi freezing over um that
25:02happens at least every other year they
25:04get a big ice storm um so I'm making
25:07sure that all my vehicles have a gallon
25:09of antifreeze um all my vehicles have a
25:13a gallon of motor oil um and and all my
25:16vehicles have a gallon of windsh wiper
25:19fluid um that can operate under cold
25:22weather to it has deiser in it um what I
25:25do is I take milk jugs I put them all uh
25:27put all these things into a milk jug and
25:29I put the milk jugs if it's in a team
25:31vehicle I put it in the underco
25:33compartment that goes underneath the
25:35sleeper um if it's a day cab uh we strap
25:38it underneath the passenger seat um
25:40there's usually enough space where you
25:41can actually fit a milk jug with all
25:43those things in there other things I do
25:45is I make sure all my drivers have uh
25:47gloves um because the last thing you
25:49want is a driver having numb hands
25:51trying to hook up a dolly and smashing a
25:54finger and then you have a workers's
25:55comp claim um I like to provide my
25:58drivers with uh jackets so all my
26:01drivers on a either on an annual or
26:03semiannual basis they'll either get
26:05hoodies or sweatshirts or jackets so
26:07this year I did um I did jackets um and
26:11they say they're high VI jackets they're
26:13bright yellow with reflective gear on
26:15them and they all say Alpha kilo on them
26:18um in the years past I've done beanies
26:20as well I do um you know just things
26:22like that to try to C care of your
26:24drivers you know show them that you care
26:26about them um and making sure that they
26:29um are prepared for winter and then the
26:30last thing is all my team trucks whether
26:33they operate in locations that might
26:36have snow and ice or not uh every single
26:39one of my vehicles has to have safety
26:40chains inside of or it has to have tire
26:42chains inside of them because you never
26:43know when you're going to get so much
26:45snow that you need to have tire chains
26:47so even my guys who go up and down the
26:49Eastern Seaboard where they're not
26:50supposed to have tire chains they have
26:51tire change in their vehicles just in
26:53case they get trapped by a snowstorm on
26:55I95
26:59yeah it is that it's that time of year
27:01so getting there and it does look we
27:03have some questions so okay um so Daniel
27:06ask are there any potential savings with
27:08the
27:08IFA so uh for anybody that doesn't know
27:11IFA stands for international fuel tax
27:14Association um which is part of the
27:16international registration plan so if
27:18you uh decide to take base plates from
27:21FedEx um so FedEx so just from the start
27:24FedEx provides free of charge if to and
27:28base plate for you um I am a participant
27:31there is a lot of mixed feelings about
27:33whether or not you want FedEx to do your
27:35IFA and your base plates I'm a big fan
27:38anything that I can get free is a free
27:40option to me it means that I'm making
27:42more money um so FedEx doesn't charge
27:44they just um they just do this uh for
27:47your benefit um you know there are there
27:51are arguments to say that you can
27:52actually save a little bit money by
27:54doing your own base plates and doing
27:56your own IRP because when you do base
27:58plates for FedEx you're doing it for all
28:00lower 48 states um and if you can if you
28:03only operate in two states or three
28:04states there there might be less
28:06registration um because you don't have
28:08to spread out your registration across
28:10all 48 states um the IFA um with a grain
28:15assault that FedEx does make mistakes I
28:17I find that FedEx is fine doing my IFA I
28:19just have to review my quarterly IFA
28:23statements on a regular basis to make
28:24sure that FedEx doesn't make any
28:25mistakes uh when they do I usually
28:28submit um the mistakes to FedEx or you
28:31dispute the IFA Bill and then you get
28:34your you usually get it reimbursed
28:36within it's usually never longer than
28:38two to four weeks and you don't actually
28:40have to pay it until you agree to the
28:42amount um and the way I've structured my
28:45IFA is that I generally get a
28:47reimbursement um this is a little bit
28:49more of a more higher level complication
28:52or strategy but what you want to do is
28:55you always want to buy Fuel and the most
28:58expensive States you can because FedEx
29:01reimburses you based off of the gas you
29:03buy or the diesel that you buy and the
29:05taxes that you pay so for example if you
29:09run uh for example I run from Kentucky
29:12to Champagne Illinois on a daily bases
29:15um I tell my driver to I I drive most of
29:18my miles in Kentucky and in Indiana uh
29:22and then we do about I think it's about
29:2349 miles that we do in in Illinois I
29:27always tell my driver to buy gas in
29:28Illinois because the the fuel tax there
29:31is 74 cents a gallon versus 50 something
29:34in Indiana and like 30 something in
29:36Kentucky now the way IFA works is that
29:40um they reapportion you the G the taxes
29:43that you pay versus the number of miles
29:44that you drive in any state so if you
29:46drive more miles in a low tax state but
29:50you pay more taxes in a high tax state
29:52where you don't drive a whole lot of
29:53miles you're going to get a refund
29:55because you you know you're only going
29:57to pay the 74 cents gallons a 74 cents
30:01per gallon tax in Illinois based on uh
30:04based on a pro rated versus the number
30:05of miles that you drove in Illinois so
30:08while it's kind of you know it's kind of
30:10a you know the minutia of the IFA plan
30:12it's a way for you to make more it's a
30:14way for you to get a to be more tax
30:17efficient you know in operating your
30:19business so California Illinois New
30:22Jersey Pennsylvania are all high tax
30:25states so if you run in those States you
30:26want to buy you know as much gas as
30:28possible in those States um and by
30:31extension you
30:33know I think like Kentucky Tennessee
30:36Arkansas or some of the cheaper States
30:38uh whether it comes to um fuel
30:45taxes all right looks like that's it for
30:48today awesome if anybody does have
30:50questions if you're on now again or on
30:52YouTube later on watching and you come
30:53up with some questions about uh you know
30:56titling or or really anything we cover
30:57today feel free to reach out to us at
30:58info rout consultant.com and we'll be
31:00happy to help otherwise thank you Alex
31:02as always a very informative session and
31:04we will see everybody next week oh and
31:06Daniel your last question yes I do I do
31:09it through Leah so please reach out to
31:11Leah or through Josh um and they will
31:13set you up with uh they will set you up
31:15uh to do Consulting
31:17Services yes yes absolutely sorry I
31:19didn't even see that I asked it out yes
31:20we do Consulting Services I know I got I
31:22jumped the gun uh we do Consulting and
31:24services we've got lots lots of packages
31:26available to suit your needs and anybody
31:29on the route consultant team is happy to
31:30help connect you with us yes definitely
31:32all right awesome thanks everybody bye
31:36[Music]

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