Insights into financial performance, and the best way to accelerate revenue growth
Batteries Plus Bulbs franchise profits are affected by many variables. Your time investment, work ethic, dedication to customer loyalty and store location will all have an impact on the revenue you generate. While we are unable to predict the exact amount of revenue your unique store will produce, here are some averages:
$1,394,889: The average revenue for the top quarter of our stores. This represents 158 of the 633 stores open for all of 2018.
53.5%: The average merchandise margin for these stores.
More financial details are available in Item 19 of our Franchise Disclosure Document, or by downloading a free franchise report.
Strong ROI and stable demand
Dustin Myers has been a Batteries Plus Bulbs franchisee for 15 years. He started his first store when he was 24 and now owns four locations.
“I looked at many different franchises. When I boiled it down, Batteries Plus Bulbs was a clear winner because it provided the most potential revenue at the lowest cost, while servicing customers with products that they can’t live without.”
80% of locations are owned by multi-unit operators. That’s because, once franchisees begin to experience the return on investment potential, many reinvest by opening multiple stores. Myers is a great example. He initially only imagined himself owning one store, but he soon realized there was a bigger opportunity available.
Batteries Plus Bulbs has had 30 years of store and sales growth . As revenue grows, costs remain largely fixed. Franchisees don’t need to hire a lot of extra people to increase sales. They just need more customers. And franchisees have a great way to build revenue by targeting specific customers from Day 1.
Multiple revenue streams
Franchisees have multiple opportunities to generate revenue:
- Business accounts
- National accounts
- Light bulbs
- Device repair
- Key fobs
Business accounts are a key to accelerating growth
Other aspects of the business are driven by advertising and consumer self-discovery. Historically, these revenue streams have grown over time as customers find your store while looking for a solution, become repeat customers and spread the word about the brand.
Business accounts, on the other hand, grow based on the relationships franchisees build with the organizations in their community. Myers admits that his first Batteries Plus Bulbs store was in a less than ideal location. He saved some cash up front by choosing a “C” location, but that resulted in less foot traffic. He says it was a blessing in disguise, because it forced him to focus on growing his commercial revenue streams. Fifteen years after he opened his first store, commercial accounts still make up 55% of his revenue.
“One thing about battery customers is they tend not to have a lot of turnover, not a lot of churn, meaning I still have customers I’ve been servicing for 15 years,” he says. “That’s not true of a lot of other industries. Batteries are usually running a critical component of a plant, factory, retirement community, school … whatever it is. You want to have a good battery supplier so when you have a problem, you can get taken care of quickly.
“By being able to establish all those commercial relationships, I’ve been able to really build over the years, and then add additional revenue with retail as time went on and we became more well-known. With some new franchisees, retail picks up more quickly and that’s where they spend their time. My advice to anyone new is to devote the time to executing the plan or growing commercial business. Make time to make the calls, make the visits, identify the pain points of potential customers, and let them know that even if they are happy with their current vendor, you are there for them if they ever find themselves in a pinch. The sales cycle can be long, but once you establish the relationship, it is very stable.”