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Blake Fuller learned a harsh business lesson in 2012: The difference between a customer who needs a product and a customer who wants a product can be a costly sales gulf.
That was the case at Fuller's company, Sarasota-based Braille Battery. It was initially a good problem, and it went back a few years, when demand for the firm's lightweight, lithium-ion high performance car batteries soared.
The firm assembles the patented batteries, mostly for racecars, out of a Manatee County office and production facility. Many suppliers and vendors are local firms. Clients include teams and manufacturers in the IndyCar, Nascar and Formula 1 racing circuits, in addition to high-end car owners.
“We sell to a group where weight and performance are worth something,” Fuller says. “We cater to the cost-is-no-object racer and the cost-is-no-object exotic car owner.”
But demand came so fast last year it outpaced the firm's ability to provide timely products to everyone. That's when Fuller discovered customers, no matter how much they like a product, will move on to a competitor if the need is urgent enough. “We just had so many orders we couldn't keep up with it,” says Fuller. “We lost a good deal of sales.”
Fuller declines to release annual revenue figures for the 25-employee company, only to say it's a multimillion-dollar business. He did say, however, that the 60% annual sales growth the company had in 2012 easily could have been 120% if the lost sales were realized. Braille Battery products are priced on the high-end of the industry spectrum, in the $1,400-$3,000 range — up to 10 times more than standard car batteries.
One significant reason for the missed sales, Fuller concedes, is the company didn't have enough capital to move fast enough on orders. A main private investor backs Braille Battery, and Fuller, 33, says he's put at least seven figures of his own capital into the business over the past decade.
There were other factors in the missed sales, too. Some of the vendors the firm uses for parts and supplies struggled in the recession, for example. Some good ones scaled back or went out of business, says Fuller, while others raised prices to capitalize on market opportunities. “It's hard,” says Fuller, “when you use local” vendors and suppliers first.
Fuller, in an attempt to avoid under capitalization in the future, has spoken with several potential outside investors. In the meantime, he projects Braille Battery sales will grow up to 50% in 2013, with a 70% increase in profits.
Fuller founded the business in 2002, when he saw a need in the marketplace for a lightweight battery that improved performance. A racing buff and a onetime successful competitive racer, Fuller says the industry generally considers a battery a boring part of a car. Fuller, though, says he and his team were able to “turn the battery into more of a lust object,” because of its success.
Braille Battery, says Fuller, is named after the concept that weight reduction in racing is felt, not seen. The gist of the Braille Battery concept is to use lithium power cells, which are lighter and last longer than lead acid batteries.
Fuller faces several more challenges with Braille Battery in the near future. Competition from China, for one, is an ongoing concern. Regulations in the energy sector are another issue. Finally, even after a decade, Fuller says the company still has to make sure clients can differentiate Braille Battery's lithium-ion products and the more traditional batteries on the market.
“When you are a pioneer in the industry,” Fuller says, “you have to do a lot of education.”
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