A mtrak rated first on service (48 points out of a
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possible 50) and second on speed (23hr 27min) in our survey (CM 23 December-5 January). The secret of success? "All we do is collect today and deliver tomorrow."
Amtrak's founder Roger Baines likes to think of his business as "Crumbs R Us." He is happy to make good profits on what the big boys leave behind.
In his book profit is all, "So many are not making money because they are too keen on being the biggest," he says. "I hope our competitors do what they are doing for the next 1,000 years. May they never change. It gives me such heart I shout in jubilation."
Baines says he is "one happy dude— business should be fun, it should be enjoyed," but behind the bonhomie is a serious businessman who admits he is a hard taskmaster. "I don't want excuses, it's got to be right."
Picked brains
Baines founded his Bristol-based business in 1987, with his wife as partner, after a short spell at Interlink where "he listened and picked their brains." He has been a transport man since leaving school at 15, including a 10-year stint at United Carriers.
Amtrak receives up to 100 applications a day from would-be franchisees responding to advertisements. Local presentations are arranged and those still interested are invited to Bristol for an interview: "I want them to know we exist."
Franchisees are in two categories—core franchises (depot operations) and mobile franchises (a man with a van). Buying into one of the 130 core franchises can cost up to £250,000 while a mobile franchise can be had for £12,500. The cost of leasing vehicles is extra. Mobile franchisees are attached to depots and there is a demand for many more—Amtrak has taken on 200 in the past 18 months and plans to recruit 12 a month for the next two years.
But how did CM's test parcel reach its Cornish destination next day from a standing start in Glasgow? The local "man with the van" picked up the parcel from our collection point and delivered it to one of Amtrak's nine Glasgow depots.
Each van has a hand-held computer which records the parcel's details. Once at the depot the computer information is downloaded to a main hub in Birmingham so the parcel is expected before that night's delivery on one of a fleet of 45 trunking vehicles, operated directly by Amtrak.
In Birmingham our package was given a barcode and a local depot address label and routed to Amtrak's only Cornish depot at Truro, arriving at 07.00hrs. There the computer information produces a driver's delivery manifest, with order of delivery, in time for the local "man with a van" to collect and deliver—in this case a franchisee based at Redruth.
Uniformity of service is ensured by adherence to the Amtrak manual which sets out specifications on vehicles—including replacement periods. Drivers and office staff wear uniforms; all promotional literature is issued from Bristol, "so that everybody sings from the same hymnbook," says Baines.
Income is variable but franchise depots should clear 35 to 40% of gross income while the ubiquitous "man with a van" with lower overheads keeps up to 60%. Amtrak says it is growing at 36% a year with annual turnover standing at £27m not a bad improvement from its first month's turnover of £1,800 in June 1987.
Baines says the business is very profitable. "All we do is collect today and deliver tomorrow but we have premium prices," he says. "We don't want to be busy fools."