Global courier firm calls Napier home

By IRENE CHAPPLE

Its incubation in Napier was by chance. But now, with business in 15 countries, Fastway Couriers is comfortable that its global headquarters has stayed put.

"It doesn't matter where we are based," said founder Bill McGowan.

Board meetings are conducted through video conference, the company's financial details are on the intranet system and "Napier is great".

Tonight, that is where 200 Fastway staff and customers will gather to celebrate the company's 20th birthday.

Back in 1983 Napier emerged as an ideal spot to start a global courier empire.

Now it is the biggest franchise of its kind in the world with the parent company worth between $25 million and $30 million.

McGowan, a 49-year-old originally from Whangaparaoa, started the company after buying a Hawkes Bay securities company for access to its three transport licences.

These, and the close proximity to Hastings and a mix of industries, made Napier "the perfect place to test the market".

Fastway's business model had already been painstakingly researched.

McGowan took a year to investigate the market and surveys revealed a niche for a low-cost courier service with high turnover customers.

The company introduced timetabled courier pick-ups and pre-paid courier stamps, which meant no call centre, no need for customers to order a courier and no need for an accounting division to chase up bad debts.



"Courier companies were charging $12 [for an inner-city courier] at the time," said McGowan.

"Our cost model showed it would cost $1.25 for each parcel."

The low-cost, high-turnover model is now used in 15 countries by 1200 franchisees.

McGowan's family owns 43 per cent of the parent company, the master franchise in New Zealand and Australia and all or part of franchises in Sydney, Auckland, New Plymouth and Whangarei.

The franchise set up enabled the fast growth and McGowan is now based in an apartment in the South of France from where he researches further European expansion.

"If we owned Fastway outright we'd probably just be moving out of Australia now," said McGowan.

In Australia and New Zealand husband and wife franchise teams work best. In Morocco or Malaysia, such business arrangements are out, with Muslim beliefs keeping the women at home.

In Spain, courier timetables were juggled to fit the Spanish working day of 10am to 10pm, interrupted by an afternoon siesta.

The parent company makes about 1 per cent of each franchisee's dollar, with an initial fee to the master franchise used to cover training expenses and support.

"It takes a long time to get return on our investment," said McGowan.

"The fee covers training and support ... so it's in our interests to help them grow."

Next step is moving in the Americas, then McGowan plans to introduce cross-country courier services.

McGowan's leadership during Fastway's expansion across the world has necessitated a life of travelling.

He was in Australia for 10 years before moving to Europe just over three years ago, and doesn't know when he will return to New Zealand.

Moving around has been tough on his three kids. One is studying in New Zealand, another is in Australia and the youngest is with his parents.

Dinner tonight will see the children and his wife, who is also involved in the business, all together. That, said McGowan, "is great".