I read an interesting article about Battery Plus. Their mainly in Canada but now expanding to the USA. I’ve heard of this franchise before but never really investigated the business. 
I have bought many after-market batteries for laptops and digital cameras before on eBay and Amazon and from miscellaneous stores I found on PriceGrabber for 75% under retail. It is true everyone uses batteries, and I think the store could work from a concept standpoint (I haven’t seen any financial numbers though). Most people don’t know where to go for batteries besides the limited selection at Best Buy and Circuit City. But, the biggest negatives I see are:
- high advertising costs to overcome the current zero brand recognition
- battery inventory turnover is probably quite low because there are such a wide array of electronics and computing devices
- mall kiosks seem a more appropriate cost effective way to sell these items and they will get free walk-by advertising
- storefronts can’t be dinky closest-like in size and feeling, so lease expenses will likely be higher than needed
- are batteries a commodity?
- Radio Shack seems in a much better position to capture this lucrative market
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
I have bought cheap batteries online too. If Radio Shack would offer an assortment of batteries (do they already?) it may be a tough go for Batteries Plus.
Radio shack has an extensive battery collection. I should have mentioned it in the article. Online they have a Battery Finder that can find batteries for most products.Â
I don’t see how they can sell enough batteries to make money. You’d have to own multiple franchises but those hundreds of thousands would probably make a better return in the stock market and you wouldn’t have to deal with all the headache operational issues.
I agree with you, Ryan. A kiosk would be a much cheap alternative and you’d probably sell almost the same volume.
Thanks Nora. I agree, this would be a perfect kiosk business in a mall.
Batteries Plus has been franchising in the US since the early 1990s. They sell much more than laptop, car, and digital camera batteries. The commercial market for batteries is much larger than the retail market. My family owns several stores and has done quite well, despite all the typical BS from the franchisor (fees, support, system changes). Some franchisees do run kiosks in addition to their stores, but the mall-shopper type of sales are a very small portion of total sales.
Hi fritz:
I’m about to buy a battery plus franchise but some more of you feed back will be appreciatted to hear from someone that has living more closely the experience in battery plus.
I have some quiestions do they dispose of used batteries?
what is the projected time for ROI?
wnats is the annual profit?
do they gave regional protection ?
any other comments are welcome