Lack of hurricanes hurts generator business
Posted on Tue, Mar. 20, 2007
By JIM WYSS
When Gary Urban started offering his no-hassle generator installation service last spring, Florida was all ears.
The state had just suffered a record-breaking 2005 hurricane season, and meteorologists were warning more trouble was on the way. By the time his company, TurnkeyPower, tied for third place in the Business Plan Challenge in June, he had sold about 30 of the $6,000 set-ups.
But as August rolled in without a single storm, his phone stopped ringing.
"By that point people could see what was happening and anyone who was on the fence -- because there is a cost involved -- decided to fall back on the side of the fence of procrastination, " he said.
The no-show storm season sank sales at Turnkey and generator stores across South Florida. But Urban is convinced Turnkey is an elegant solution to a long-term problem.
For about $6,000, the company delivers a 6,500-watt Honda generator and connects it to the client's home or small business through a specially installed 220-volt outlet.
The company also installs a breaker that keeps the generator's power from seeping out into the public electrical grid (a common problem that can electrocute linemen).
The safety mechanism makes the system code-compliant, and the set-up addresses two risks that homeowners know well: The threats of burglary and tripping that come with running extension cords through open windows and doors during blackouts.
Turnkey isn't the only company trying to take the pain out of power outages. A number of generator rental and sales outfits offer on-demand delivery and set-up. The region's largest Honda generator dealership is Rick Case Honda Powerhouse in Davie. While Rick Case doesn't offer installation itself, it subcontracts with electricians.
Judges in last year's contest pointed out that anyone with an electrician's license could poach Urban's idea.
Turnkey is a sideline business for Urban, who is the president of Fabio Perini, a multinational company that sells tissue-making machines.
Because he didn't have money tied up in generators, equipment or staff, it was easy to pull the plug on his advertising campaign once it was clear interest had waned, he said.
But when spring comes, he said he will start powering up for another storm season. But not before then.
"A lot of people love this time of the year because they don't have to think about hurricanes, " he said. "I try to be careful and sensitive to that."
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