Airline Charged Me $65 - So I built a $250M Competitor | Adam Ewart

The Genesis of Send My Bag: From Baggage Fees to Business Idea [00:00]

• Adam Uertitt was inspired to found Send My Bag after being charged £50 for excess baggage on a short trip.
• He observed many frustrated travelers being overcharged by airlines for minor weight infractions.
• With prior experience in shipping musical instruments internationally, he recognized an opportunity to offer a more cost-effective solution for sending luggage.
• He launched the initial website with a £100 investment and no coding skills, relying on cold-calling journalists to share his entrepreneurial story.
• This early PR effort generated initial customers without any advertising spend.

Early Growth and Entrepreneurial Drive [03:57]

• Uertitt's entrepreneurial journey began at university with a musical instrument business that involved manufacturing in China and shipping globally.
• This experience provided the foundational knowledge of international logistics and freight networks.
• He realized the existing freight infrastructure could be leveraged to ship personal luggage at a fraction of airline costs.
• He secured his first customers by pitching his story to a local journalist, leading to a TV news segment that drove initial traffic to his website.
• The first dozen customers used the service to send items between Northern Ireland and universities in England and Scotland.

Scaling to a Global Brand Through PR and Strategy [07:10]

• Uertitt always envisioned Send My Bag becoming a significant business and, after about three to four years, realized its massive potential.
• He subsequently focused solely on Send My Bag, expanding into international markets like the US and Australia.
• He strategically used PR, including appearances on British television (Dragon's Den) and US business shows like CNBC's Power Lunch, to gain global exposure without VC funding.
• Dragon's Den provided significant publicity despite the offer not being accepted, leading to thousands of website hits.
• The company also secured seed funding from a local successful businessman, which was strategically timed with the Dragon's Den appearance for further PR.

Leveraging Public Relations for Cost-Effective Growth [12:15]

• PR has been instrumental in Send My Bag's growth, especially in acquiring customers with minimal ad spend.
• Uertitt advises founders to understand what media outlets are looking for and to find compelling angles, such as being a young entrepreneur.
• He emphasizes the importance of "putting yourself out there," citing the Dragon's Den appearance as a calculated risk for high visibility.
• Early PR efforts included guerrilla tactics like a mascot costume to draw attention, but later focused on customer referrals and repeat business.
• Targeted PR in new markets, like securing a segment on CNBC's Power Lunch, was crucial for launching into the US market cost-effectively.

Advertising and Marketing Evolution [16:36]

• Initially, the focus was on free or low-cost marketing like PR, but as the company grew, advertising became more significant.
• Send My Bag spends over £1 million annually on Google Ads, partly to protect its brand name from competitors.
• The strategy advises founders to prioritize attention for minimal cost initially, then supplement with advertising as affordable.
• Negotiating deals with media owners is key; Uertitt highlights instances of running TV ads on Christmas Day and securing exclusive in-flight entertainment advertising slots.
• The company now utilizes large-scale advertising placements in airports and other high-traffic areas, often negotiating favorable rates.

Automation as a Core Growth Engine [20:08]

• Automation has been critical to Send My Bag's ability to scale efficiently, handling 250,000 bags with 32 staff and aiming for a million bags with only a 50-70% staff increase.
• Since 2014, the company has invested in developing its own systems for customs processing, tracking, and other operational needs, employing a dedicated development team.
• The philosophy is to manually test and refine processes first, then automate them once proven effective.
• This automation allows a customer service team of around 30 people to operate 24/7 (weekdays) and 7 days a week, with tools like canned response databases assisting agents.
• The company prioritizes using positive cash flow for growth and automation over raising significant VC money.

Navigating Global Logistics and Operational Challenges [24:00]

• Send My Bag operates in 145 countries, managing complex international logistics by partnering with large freight companies rather than owning its own transport fleet.
• The company manages the entire process, including customs clearance, ensuring shipments are treated as personal goods.
• This model works because freight partners often find personal effects shipments "messy" and difficult to process, whereas Send My Bag streamlines this.
• By bringing volume and a structured product to these networks, Send My Bag secures better rates, which are passed on to customers.
• This partnership approach allows for global expansion without the capital expenditure of owning an extensive logistics infrastructure.

Resilience Through Major Global Disruptions [27:00]

• The business has faced numerous challenges, including the bankruptcy of a previous warehouse and the loss of 40,000 shipments annually due to Brexit's impact on UK-EU customs rules.
• During COVID-19, while initially experiencing a spike as people repatriated, the business saw a significant slowdown.
• The company adapted by launching campaigns to help people retrieve belongings left behind, utilizing effective, lower-cost advertising channels.
• The pandemic also led to a prolonged increase in freight prices due to reduced passenger flights and an e-commerce boom, with surcharges lasting until summer 2023, adding significant costs (e.g., $180 on a $300 shipment to Australia).
• Recent challenges include US customs rule changes and visa processing pauses for international students, impacting shipments to the US.

Sustained Profitability and Customer Loyalty [31:03]

• Despite significant setbacks like Brexit and COVID-19, Send My Bag has grown fractionally every year and remained profitable since its inception.
• During COVID-19, no employees were laid off.
• The company managed price increases by passing on costs at cost price or absorbing some of it to maintain customer loyalty, knowing that 42% of customers are repeat users.
• With 85% of customers coming from referrals, retaining customer relationships, even at slim margins, was paramount.
• The strategy of offering the best price, best service, and best customer service has maintained competitiveness and customer retention.

Serial Entrepreneurship and Focus on Send My Bag [41:09]

• Uertitt's early entrepreneurial ventures were broad, ranging from selling records to starting a music business and school, often driven by opportunistic ideas.
• He eventually recognized Send My Bag's global potential as significantly larger than any other venture he had pursued.
• This led to a strategic decision to focus entirely on Send My Bag and expand it globally, aiming to be the market leader in key regions like the US and Australia.
• Currently, his entrepreneurial drive is channeled into expanding Send My Bag's operations in new countries and regions, including Asia, the US, and Australia, as well as through sponsorships.
• He has found that the global scope of Send My Bag offers enough exciting opportunities to avoid the distraction of pursuing entirely new ventures.

Building a Legacy: Persistence and Learning [45:34]

• Uertitt's core advice is to persevere through every experience, viewing failures as learning opportunities that build a knowledge base over time.
• He emphasizes that hard work increases "luck" by creating more opportunities for success.
• His own experience highlights how prior knowledge and skills (e.g., shipping violins) enable the execution of new ideas (e.g., Send My Bag).
• He encourages founders to keep pushing forward, learning from each venture, and applying that knowledge to the next opportunity.
• Send My Bag's consistent profitability and growth over 15 years, despite numerous obstacles, serve as a testament to this persistent, learning-focused approach.