Editorial

Your Niche in the Booming Technology Market is Here!

In March, while customers were lining up in stores for first-day sales of the Sony PSP – the latest in portable entertainment technology – Batteries Plus stores around the country already had replacement batteries on their shelves. Sony Entertainment Corporation recently announced that they expect the shipments of the PSP units to reach 12 million this year and to quadruple yearly. Imagine having even a little piece of that gargantuan pie.

One can forgive Batteries Plus CEO Russ Reynolds if he gets a bit excited when talking about the battery business. The technology sector not only continues to grow exponentially but manufacturers are reinventing their products at a rapid pace. And every portable piece of technology – from camcorders to laptops to digital cameras to cell phones – requires a battery. The market for all types of replacement batteries is not only hot, it’s positively ripe for plucking!

According to Reynolds, the company founders spotted the trend years ago and opened the first Batteries Plus store in 1987. Franchising since 1992, Batteries Plus has headquarters in Hartland, Wisconsin, which is a suburb of Milwaukee. Currently in over 40 states and Puerto Rico, Batteries Plus will have about 250 franchise locations by the end of 2005.

A Unique Franchise Concept

“We have a unique concept for several reasons,” says Reynolds. “First, we are in an exploding industry with little competition. The retail battery industry is already over $20 billion today and grows at 6-8% pr annum.

“Next, we offer all types of batteries – we sell consumer products, everything from watch batteries to AA batteries to car batteries. We also sell products to the industrial sector, including bulk packaged products. Finally we offer OEM products, such as replacement parts for branded products like laptops.”

Batteries are unique as a product because there are so many different types for so many different applications. “They have a shelf life,” says Reynolds, “and each model of every brand may use a different lead configuration, different chemistry and different size.

“Something we see over and over,” adds Reynolds, “is the customer who comes into our store with a cordless handset which he hands to us saying, ‘Help!’

“And that’s another way we are unique,” says Reynolds, “because we have a detailed online catalog and cross reference database which has 3 ½ million battery records. We can identify and find a battery for almost any electronic device. And if we don’t have it on the shelf, we can usually find it.”

Reynolds says that customers are often referred by other stores, including electronic and technology stores, because Batteries Plus is such a great resource for hard to find items.

As for those new items that make headlines, Batteries Plus stores strive to have replacement batteries on shelves as soon as the product hits the market. Then, down the road, they may introduce a replacement battery or even several models at lower prices.

Portrait of a Batteries Plus Franchisee

“We’re a little different than most franchise companies,” says Reynolds. “We actually prefer people who are a bit more entrepreneurial. I like to explain it this way: If you describe a franchise system as a sandbox, a successful franchisee in our system will use the whole sandbox, not just sit in the middle. Our franchisees need to explore the edges of the sandbox, as the market is rapidly evolving and changing.

“The successful Batteries Plus franchisee will also leverage all of the support systems we offer. They are eager to try new things. And we have a lot of support systems for franchisees to use. For example, we have online point-of-purchase and sales sheets they can print off and we have full marketing support,” adds Reynolds.

While specific technology experience is not a prerequisite, a Batteries Plus franchisee will need business acumen and also must be equally comfortable with the retail business aspect and with perusing business to business sales.

Superior Franchisee Support

According to Reynolds, Batteries Plus provides a “full kit” for new franchisees. “From the beginning we work with the franchisee to assist in site selection and lease negotiation. We then have a store development department who will plan the layout and physically set up the store prior to the grand opening.”

“We have a commercial sales specialist assigned to the new franchisee to help them develop their business customers,” says Reynolds, “and we have an internal marketing program to plan yellow page placements and to coordinate the grand opening media plan.

“At Batteries Plus our in-house marketing department has graphic designers and media buyers so we can do national marketing programs and help a franchisee with local media planning and buying. We also place the ads for franchisees and do a post-buy analysis to make sure our strategies are working as they should.”

Your Invitation

Chances are you have a PDA, cell phone, watch, portable CD player, cordless phone, camera, and laptop computer so you know how important the battery of each device is to you personally. As the technology sector grows, so does our dependence on portable power sources. As a Batteries Plus franchisee, you have the opportunity to provide a valuable resource to your community while attaining your own goal of financial independence.

As Reynolds says, “The Batteries Plus opportunity is your chance to be a part of a rapidly growing, uncrowded industry, one which offers both retail and commercial clientele, and where the franchisor is aggressively investing in the support and success of their franchisees.”

Reasons for the Success of the Batteries Plus Franchise System

Depth and Breadth of battery products – everything a customer may need
Services both retail and wholesale
Provides technical expertise through highly-trained sales personnel
Offers customer service at a level not possible at big box or discount stores
Lack of competition – no other business offers these products at a national level
Internal marketing program covers everything from graphic design to media placement
Intensive three-week training program for new franchisees
Additional on-line training program for new employees
National help desk
On-going support from field consultant