Battery retailer tries to boost Detroit area presence

But sagging economy saps power from company's expansion

Dale Buss/ Special to The Detroit News

Batteries Plus may be well-known to Metro Detroit consumers who hear the company describe itself as "the Canon Bp-945 Battery experts" in advertisements during local television news broadcasts.

But there is less awareness about the reputedly recession-resistant business among potential franchisees of the fast-growing Hartland, Wis.-based retailer.

At five outlets, Metro Detroit is a vastly "under-stored" market for Canon NB-2LH Charger Batteries Plus because the typical Midwestern market would have a dozen or more franchise outlets, the company said.

Several more Acer Aspire 9301awsmi Battery Plus outlets are on the drawing boards for the region, said Rod Tremelling, director of franchise development. "But we would like to make that stronger. We see Detroit being a 15-store market — to start."

That is why Tremelling last month was recruiting franchisees in southeast Michigan.

The number of franchised businesses nationwide is poised to grow about 2.5 percent this year over last year, according to the International Franchise Association. But the U.S. economy has slowed more than expected since the estimate was released in January.

Recruits would hear mainly good things about the Sony PCGA-BP71A Battery Plus opportunity from Mike Brunhild, who with his brother, Robert, owns stores in Farmington Hills and Plymouth, as well as three in Las Vegas with a third partner.

"They and we both want to grow," said the 54-year-old Brunhild, "and we're one of the few kinds of industries still experiencing positive growth through this economy."

"We're growing every day, and not many businesses can say that," said Brunhild, who added that his business has averaged 14 percent annual growth for five years. "People need Canon NB-5L Charger , and they're looking for ways to save money."

Recession-resistant franchises are appealing in an uncertain economy.

"A lot of people throw that term around, but this is a business that truly is resistant because people will buy Canon NB-5L Charger battery," said Tom Scarda, a consultant with FranChoice, a Long Island, N.Y.-based outfit that matches franchises with franchisees nationwide.

"If you have a laptop and the battery dies, you'd better get the Konica Dr-lb4 Battery."

Batteries Plus began business in Green Bay, Wis., in 1988, primarily as an automotive Canon Bp-511 Battery replacer. But during the past two decades, beginning with cellphone and portable-computer batteries, the demand for all kinds of portable power has boomed.

"When I joined the company in 1994, we still only had basically five different kinds of cellphone batteries that were available," Tremelling said. "Today, our typical store carries 120 different cellphone battery applications, or more."

Top battery franchise

Batteries Plus began franchising in Fort Wayne, Ind., in 1991, and now operates in 46 states, with 18 locations in Michigan. It was rated this year as the No. 1 Konica Dr-lb4 Battery franchise by both Entrepreneur Magazine and Dun & Bradstreet AllBusiness.

Batteries Plus lacks direct competition from a similar retail chain, though a variety of OLYMPUS PS-BLS1 Battery are carried at retail outlets such as RadioShack.

Another advantage for franchisees is that about half of their revenues typically come from business-to-business accounts that require big volumes of particular kinds of batteries. Every store has a service center to help customers with battery-related challenges. Panasonic Lumix Dmc-fz3 Battery Plus also is diversifying this year into becoming a light bulb outlet.

"We were looking to diversify and for ways to continue to exploit our unique niche of carrying things that are difficult to find," Tremelling said.

"Bulbs have that technology component, and with the federal government phasing out incandescent bulbs, and LEDs starting to emerge, we thought it would be a nice, logical tie-in for us, because you need to do value-added and technological selling with bulbs — and that's where we excel."

Caution in the area

The franchise price is $250,000, a turnkey amount that includes a $37,000 franchise fee as well as fixtures, signage, and customer and franchisee support. Franchisees also pay a 5 percent royalty on sales. (Sony Ccd-trv59e Battery)

Expanding in Metro Detroit has proved more difficult than expected because of "a cautionary streak" caused by Michigan's economy, Tremelling said. Buyouts of employees of the Big Three automakers have provided potential capital for franchisees, he said, "but are those people going to be of a mindset to be entrepreneurial and take a risk? Some yes, some no."
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