“Batteries are a growing business with endless potential; it’s not a novelty product or service. Everyone needs batteries today,” says Battery Zone founder Charlie Carter.
As the global consumer battery market figures show, it’s a booming business. The market was valued at the equivalent of $37.25bn in 2023 and is set to nearly double to $64.63bn in 2032*.
And despite some current brand restrictions, electric vehicles are providing another revenue stream for battery retailers as Aussies ramp up their use of EVs (electric vehicle sales more than doubled in 2023**).
Charlie prides himself on the capacity of the Battery Zone business to meet any battery demand – except for e-bikes, because of safety concerns.
So a typical Battery Zone store will stock about 200 batteries to fit everything from a smartphone to a truck. However, store owners have access to a staggering 8,500 items from national Australian suppliers.
“If we can’t get it, it’s not available!” Charlie says.
Over the 20 years the family firm has been trading, he has built up a robust network of battery suppliers.
“When we set up a new franchise store, we set up accounts with all the suppliers. The franchisee can order items direct through the Point of Sale system,” he says.
“We do a lot of business-to-business sales and offer a discount structure for mechanics, but the consumer market is where the profit lies,” he says. “And you can make a good profit on selling batteries.”
Battery Zone franchisees power up Aussies
While customers need batteries year-round, demand does fluctuate. Aussies power up for a summer of outdoor leisure and activities, says Charlie.
“It gets busy in October with school holidays. Football has finished, and everyone is getting ready for the summer season and camping. All the toys come out – they are getting out their jet skis, and their boats,” he explains.
“We get a lot of repeat business because customers are happy with the service. We strive for the best people as franchisees and the best service, and customers keep coming back.”
Every franchisee operates within a designated territory, about 15 to 20km from the next Battery Zone store.
A main road location is ideal. “This is not a business for back streets or industrial areas. Passing traffic is important for customer flow,” Charlie says.
He admits finding the right premises is a challenge, and it can take up to 12 months for a signed-up franchisee to get into their store.
“I’m pretty up-front about this. Our franchisees are willing to wait, they’re not in a hurry,” he says.
A turnkey business model
Battery Zone provides everything for the franchisee, who only has to turn up and turn the key to their new store.
“Everything is inclusive, apart from royalties and rent, and the costs of running the business.”
Franchisees need about $160,000 to finance the purchase. This covers $120,000 of franchise costs including a $20,000 franchise fee. The remaining $40,000 typically includes a bond and first month’s rent for the store, and about $20,000 working capital.
Battery Zone also provides a business plan template that can help franchisees plan how they will meet the annual sales target.
A business development manager, Shane Ryan, brings years of in-store experience to the role of supporting franchisees at store level.
“He checks out the stores, the PoS, ensures the stock is good, and helps franchisees solve any problems,” Charlie says.
Building a Battery Zone business
Rather than operate a marketing fund for national advertising, Charlie invests in helping franchisees market their brand-new business.
Promotions vary from flyers and newspaper ads to hosting car clubs and barbeques on-site.
“We do a generic marketing plan and chat with the franchisee about what suits their market. In blue-collar areas we tend to do Instagram and Facebook posts; newspaper ads and flyers work well in white-collar suburbs,” Charlie reveals.
The business creates social media content for franchisees – from corporate videos to funny clips.
“Each franchisee has their own social media page. Generally, they want to buy a business and work locally, it’s a lifestyle choice, so they know their market well.”
Battery Zone also provides franchise recruits with membership to their local BNI (Business Network International) group as part of the package.
“This is a great way for them to get to know local business owners, and as with the Battery Zone business, they get out what they put in,” Charlie says.
This is very much a hands-on franchisee role, rather than an investment model.
“Franchisees have to be self-motivated, friendly, and willing to work on the business. An owner-operator will put in the effort to make sure it’s successful,” he says.
With four franchisees already trading, and two waiting in the wings, Charlie is keen to double the “Battery Zone numbers within the next 12 months.
*https://www.fortunebusinessinsights.com/consumer-battery-market-105526 **https://electricvehiclecouncil.com.au/wp-content/uploads/2024/03/EVC-Australian-EV-Industry-Recap-2023.pdf