Pack Send business model

Pack & Send’s no-limits business model delivers

Sarah Stowe

Pack & Send operates a no-limits business model in the $10 billion logistics industry and is celebrating 30 years since the doors to its first service centre opened in Parramatta.

Luke Martin, retail network development manager, says “Pack & Send has been able to experience the whole gamut of a recession in the 1990s, the GFC, a pandemic and natural disasters. They have all had some sort of effect on business, yet our franchise partners have not only survived but thrived.”

That is in part due to the dynamic business model, he suggests.

“It’s exciting when people ask what we do because although the name says it, we pack and send, it can mean quite a lot. Our franchise partners are shipping anything and everything from our service centres.

“A franchise partner can look after businesses shipping items of all shapes and sizes, from satchels and small parcels to pieces of artwork, machinery, and IT equipment.”

Shipping solutions

Customer reviews reflect the brand’s high standards.

“Pack & Send is one of the highest rated courier services with more than 26,000 5-star reviews, and a 4.6/5 average rating. This is very high for the freight, logistics, and parcel markets and a testament to our franchise partners who pride themselves on providing exceptional customer service” Luke says.

Every day franchise partners are problem-solving. They provide multiple shipping and logistics services from carrier partners such as DHL, FEDEX, UPS, CouriersPlease and StarTrack to move small or large, bulky or fragile items locally, across the country or internationally utilising the best road, air, or sea freight solutions.

It is a high-performance customer service business with a broad customer profile. Franchise partners are liaising with SMEs, retail customers, e-tailers, start-ups, government agencies, and corporate executives.

So a high level of interpersonal skills and excellent time management are crucial skills for success, points out Luke. 

Smart and substantial tiered training programs enable franchise partners to build up their businesses in a highly structured process.

Investment in technology

“We have now introduced business development and B2B sales focused training programs for franchise partners. They work with their network sales and operations manager to develop their goals and action plan, then structure how they will implement and measure that. Once they are successfully applying the techniques, they move on to the next growth stage of their business,” Luke explains.

The development and growth of the network to its current 125 service centres across Australia, and 22 in New Zealand, is based on continual investment into technology and systems. 

Over the last seven years Pack & Send has invested heavily in proprietary software systems such as a point-of-sale consignment platform GMx. The free e-commerce shipping and order fulfilment solution, Pack & Send Live, which customers can access 24/7, has significantly advanced the business. This continued investment creates a streamlined process for franchise partners who benefit from multiple active and residual revenue streams.

“Our franchise partners have multiple touch points to service their customers, whether it be at the service centre, coordinating orders remotely, or customers accessing our online platforms 24/7” says Luke.

“Franchise partners are utilising their business development skills and acquiring account-based customers, which creates regular revenue and services. Business customers are increasingly important to the business,” he adds.

Pack & Send is rolling out a new customer relationship management (CRM) system in the next few months.

While technology investment has advanced the business, so too has the development of fresh business formats.

Pack & Send boosts business model

Luke reveals a new upcoming concept: a business sales service centre model, designed to build and generate sales, with the operational aspects managed by existing franchise centres.

These smaller footprint service centres will expand the coverage for franchise partners, he says, and retain the asset light focus of the business.  

“This new model will be a franchise in its own right, and we see it being operated by an existing franchise partner. We currently have more than 20 multi-centre owners and this is a strong growth strategy. Franchise partners can secure another territory as a sales centre.”

For people looking at getting into a service-based business, Pack & Send provides additional business planning resources and a brand lead guarantee for new service centres, for 12 months. The franchisor guarantees a minimum number of leads for the franchise partner to convert into sales.

“We are confident in our business model, and this gives a new franchise partner peace of mind. Allowing them to focus on their own efforts to grow the business”

The independently assessed 5-star franchise rating Pack & Send achieved for its high performance and franchise transparency also boosts confidence.

“We were one of the early adopters and recipients of the 5-stars,” says Luke. “We have maintained this rating for five years now.”

The brand is a preferred lender with several banks. 

“This, combined with our affiliation with FRANdata, which operates the Australian Franchise Rating Scale, shows Pack & Send as a franchise model is finance ready,” he says.

It costs from $240,000 (excluding GST) to setup a service centre. The cost encompasses the initial investment, centre fitout and signage.

With 50 new territories just released, Pack & Send is well on its way to its short-term goal of 150 Australian centres by 2025.