Daily News (10/13/08)—When statuesque music icon Grace Jones needed an exotic costume overnighted to London from Brooklyn for a concert a few months ago, her reps didn’t call FedEx or UPS. They rang up a tiny international courier in Chelsea called First Global Xpress.
For a small business startup, grabbing customers can be as hard as flying an airplane in an ice storm. But James Dowd, a 43-year-old ex-DHL exec who founded First Global Xpress, had a mission: to be cheaper and more reliable than his giant rivals.
The idea of launching an international courier service hit the Valley Stream, L.I., native back in the mid-1990s.
While at DHL, Dowd was touring a sorting and distribution facility in Brussels and found himself staring at a giant conveyer belt moving packages. His guide told him that on average about 80 out of 1,000 packages get lost. Dowd saw an opportunity.
“There’s got to be a better way,” he thought.
The shipping giants, FedEx, UPS and DHL, often move packages through various locations before sending them to their ultimate destinations. The more stops, the higher the chance a package might be delayed or vanish, he reasoned.
Flying packages direct from New York to their destination presented a viable alternative. He could contract with commercial airlines to ship packages overseas. By keeping costs low, he could charge less.
While Dowd had a concept and a strategy, he had no funding and only limited experience.
In 1995, he decided to go to work for Mark III, a privately held international courier based at Kennedy Airport. “I needed an education,” Dowd said.
By 2001 he was ready to go out on his own. He’d met John Acierno, CEO of Brooklyn-based Executive Transportation Group, one of the city’s largest car services. Acierno was willing to take a chance on Dowd.
NY Minute Messenger & Trucking, a company co-owned by Acierno, invested about $500,000 and set up First Global Xpress in a 260-square-foot office on Washington St. in Lower Manhattan.
Dowd hit a snag when his former employer sued, alleging he breached a noncompete agreement. The two sides settled.
Dowd plowed ahead, targeting entertainment companies that needed special care for transporting costumes and props. He signed on companies like HBO and, later, publishing houses and law firms. He built his customer base by promising lower prices, faster deliveries and more one-on-one attention.
“They do an excellent job of getting things delivered on time,” said Susan Scattergood, director of operations at Manhattan law firm Fried Frank Harris Shriver & Jacobson.
Shipping everything from legal documents to giant containers of squid, First Global Xpress expects to move 250,000 packages and take in $10 million in sales this year, up 10-fold from its first year.
Dowd made a key hire early on - a young NY Minute exec Justin Brown. A University of Maine grad who was new in town, Brown proved to be an aggressive salesman and quickly rose through the ranks.
Eventually Brown would become so important to the 25-person company that Dowd would agree to make a major change in management. About a year ago, the company’s founder realized he needed Brown’s fresh ideas to make his company stand out amid rivals ramping up service. So he gave up his CEO title to Brown, just 29 years old.
“We made a very big change [and] it was difficult for James to let this young kid in,” Brown said of himself.
Dowd, now chief operating officer, remains majority owner. Brown owns the rest. The two bought out Acierno several years ago.
The new challenge is to keep sales growing in a slumping economy. Lately, customers have been taking longer to pay.
To drum up new business, Brown developed a program aimed at companies increasingly focused on sparing the environment. By using First Global Xpress, which flies packages directly to their destination, businesses can cut carbon emissions by about 30% per package.
Still, taking on the big guys is tough.
“FedEx and UPS are extremely smart and extremely profit-driven companies that are taking their service to ever-increasing levels,” said Daniel Ortwerth, a transportation analyst at Edward Jones. To succeed, he said, a small company must be “reliable, reliable, reliable” and control costs.
Amid the challenging times, Dowd is thrilled with his decision to try to be his own boss.
“I was able to buy a house on the golf course in Rockville Centre this past year,” Dowd said. “If I had stayed at DHL or Mark III, I never would have been able to pull that off.”
This article was written by Phyllis Furman and first published by The Daily News on October 13, 2008. Click here to view the original article.