Batteries included in this powerful business plan
By Ambrose Clancy
Friday, November 9, 2007

The average American is battery-operated, so Thomas Renner is looking to cash in.

Renner - owner of the month-old Batteries Plus store in Huntington Station along with his brother, Bill - says average Americans use up to 13 recyclable battery-operated devices from the time they open their eyes in the morning to the time they start their car. He lists some of the devices groggy Long Islanders grope for in the morning with the satisfaction of a man counting money: "The alarm clock, your watch, cell phone, laptop, PDA, car door opener, remote car starter, garage door opener, the remote for the TV . and I haven't even mentioned the toothbrush."

Renner has laid out somewhere between $400,000 and $500,000 to open the Batteries Plus franchise, one of 310 across the country. Batteries Plus is listed in the top 25 nationwide franchises by the Wall Street Journal.

In addition to the Huntington Station launch, Renner plans to open two more stores within the year in Nassau County and Queens, and has secured franchise rights for the Island, the city and Westchester and Rockland Counties. He believes his investment is not only sound, but could be a gold mine.

The battery industry is a $24 billion-a-year concern, growing at a 6 percent clip with new devices invented and manufactured seemingly every month. "This is a perfect niche in our technology-oriented world," Renner said, "and we've bought in."

The franchise has a database of batteries for every device manufactured since the 1960s. Consumers can expect to save up to 30 percent on batteries purchased at Batteries Plus (the "plus" are products such as chargers for batteries, flashlights and storm preparedness devices, as well as safety and emergency lights and laser pens).

Attorney Harold L. Kestenbaum, an expert on franchise law with Uniondale's Ruskin Moscou Faltischek, noted the first and perhaps greatest challenge to opening a franchise on Long Island is cost, especially sky-rocketing real estate and construction costs. Batteries Plus corporate lists a total capital investment of anywhere between $145,000 and $300,000 before a franchisee opens the door. Renner said real estate and build-out costs added another $200,000 to his investment.

Kestenbaum said another challenge the new store will face is that "it's brand new."

"People assume they can get all the batteries they want at the supermarket or 7-Eleven," he said, so aggressive marketing will be key to getting Batteries Plus rolling.

Renner said a major print campaign is "in process" and he's planning ads on Cablevision. He's also looking to boost corporate business; corporations use a huge amount of battery-powered devices, he said, and "they're only resources has been to get batteries from device manufacturers who are charging a fortune."

Renner listed facilities that use battery-powered devices such as floor scrubbers, elevators, emergency lighting, security systems and every bolted door lock in hotels, as well as offices that open with card keys.

Down the road, Renner would like 80 percent of his business to be with corporations, he said.

Not that he'll turn away walk-in customers, of course. And if you can't find it in the store, don't worry: "We'll make it," Renner said, adding his staff can also rebuild batteries, such as packs that power hand tools. That saves customers, who would otherwise buy new tools, up to 30 percent, he noted.

One recent request came from Connecticut - batteries for two-wheel children's scooters manufactured in the 1960s. Renner checked the database but came up empty, so he asked the customer if he could take a look at the vehicles. Not long after, four scooter batteries - priced at $170 each - were powering the vintage scooters, along with the smiles of the riders.