Michael Baez, a former engineer, designed
his own overhead garage storage product after having a negative
experience with a product he purchased at a home improvement
store in 2001. Baez says his design, called TUFFRAX, can support
up to 1,500 pounds and is available in 11 different sizes. Kare,
his wife, joined the company as a partner in 2004. Since he
started selling TUFFRAX in 2003, the revenues of their Carlsbad-based
company has doubled every year.
How do customers and distributors find
out about TUFFRAX?
Karen: A lot of times, people come to us, but this year we are
making a really concerted effort to look for distributors and
dealers throughout the country. A dealer would be a cabinet
company or garage flooring companies that can sell this product
alongside theirs.
Michael: Cabinet companies know people are starting to get smart
about overhead storage. So when cabinet companies go to customers
and they are asking for this, they start to realize they are
going to need an overhead storage system. They like the TUFFRAX
brand, and they start calling us. So we get customers both ways
we go after them and they come to us.
How much does TUFFRAX cost?
Michael: The manufacturer's suggested retail price of the TUFFRAX
overhead storage for our largest size, 4 feet by 8 feet, is
$339. A lot of our distributors are offering it as a sale to
customers for $289, $269, $249.
Had either of you been an entrepreneur
before this?
Michael: We've been married 18 years, and in that time, we've
tried a lot of different things together, but, well, we've kept
our day jobs, let's say that.
Karen: Prior to coming on board with Michael, I had a window
covering company. It was called Above the Sill. In fact, we
both started our companies at the same time, and we both got
so incredibly busy. But with Michael's company and his product,
we saw that it could go national. We could see the potential.
So actually, Michael has been doing this on his own, but last
year I could see he needed help and we were both trying to do
everything at once, so I sold my business to a designer here
in the Carlsbad area.
What are your goals for the company
in the future?
Karen: Besides organizing people's lives and making their garages
uncluttered, what we're also doing is helping other entrepreneurs
put themselves in business. We've created a great living for
all of our distributors and we hope to continue to do that.
It's a business niche that's growing tremendously. Storage and
organization in itself is a billion-dollar industry by all reports
that we read. I think our goal is to be on the cutting edge
on that part of the industry and to continue to develop new
and innovative products.
Michael: We don't know what the future may bring, but we do
have a five-year plan to strive to be the No. 1 high-quality
heavy-duty garage overhead company. Currently, there are three
top National builders that have selected TUFFRAX as their overhead
storage of choice offering to new home owners. These builders
are Shea Homes, Pardee and Lennar. I am sure the list will grow
as more builders learn about us. What makes our patent pending
product unique is the "sliding" front and rear center
supports. These supports add additional strength and stability
at the center of the system.
The competition do not have this center support and I can guarantee
that those systems will show some form of bending when placing
a lot of load on them.
What does your timeline for the future
look like?
Karen: We're already talking with people on the East Coast that
want to carry our product. If it's the right company and the
right people, we could be on the East Coast next month. We have
to have steady controlled growth though because we're self-financed
completely. And so obviously, would we like to grow very, very
fast, very quickly? But do we want to retain control of our
company? Yes, we do. So we want to do it managed and controlled.
How many storage devices have
you sold?
Michael: In the three years we have been in business, with all
of our dealers, we have exceeded our sales goals. Our dealer
get a lot of referral and repeat business from customers' family
and neighbors. With that said, we look forward to break the
100,000 units sold by the end of next year.
David Berlin