"Hey Dad, loan me some money, please, so I can buy a new iPod. I want to fund my college education."
Most parents would look skeptically on that type of request. But Kris Pepper's dad said OK, and the 16-year-old sophomore at Winchester Thurston School in Shadyside used the iPod to start Kokopelli Music (www.kokopellimusic.us), a business that replaces iPod batteries.
Kokopelli Music is not Kris' first business venture. While in 8th grade, he started a business to package and sell macaroon cookies under his own brand name. It seemed like a good idea, but it got difficult when his supplier decided to double the price he paid for the cookies.
Not to be left out in the cold, Kris managed to sell the business for $300 on eBay. The assets included his Web site, business authorizations and a shrink-wrap machine.
Kris knew he wanted to continue in business, but wanted to do something more interesting. He thought the iPod idea would fit the bill -- even though he didn't own an iPod.
So he used his initial funding to buy one, then experimented on it to see what it would take to repair. He found that Apple doesn't make it easy to change a battery -- which probably was good for him -- and that he could find a source for batteries that would last longer than the one that comes with the music player.
During the first three months operating from his home in Verona, Kris already has helped between 100 and 150 iPod users -- either selling replacement batteries or replacing them himself.
Using his dad as a funding source/sounding board and his sister as a graphic designer (important when dealing with image conscious iPod users), Kris put together a marketing position that outdoes Apple and many other aftermarket suppliers -- many of which have much more business experience than Kris.
His key selling points are: 1. His batteries last longer than the batteries supplied by Apple; 2. He repairs and gets them back to the user faster than Apple; 3. While Apple simply replaces broken iPods with remanufactured empty iPods, Kris returns the original iPod with the user's music and setup still in place; and 4. He offers a lifetime warranty. If anything goes wrong with the battery, he'll replace it for free.
Currently he'll work on most iPods, except the Nano, and if the user doesn't mind sending the iPod to Kris, he'll do the work to replace the battery for $20 above the battery cost. Apple hasn't made battery replacement easy. There are a lot of things that can go wrong when you try to open the case and replace the battery because Apple places delicate wires and components in the way. In response to the people who buy the batteries to replace themselves, Kris says, "There are a lot of brave people out there."
He uses special tools and has learned to work gently on the units to ensure no breakage. He has even had customers who bought batteries, then later decided to send the unit back so Kris could do the work instead.
Like mature marketers, Kris is learning the caveats of using Internet marketing tools. He found his Google keyword advertising wasn't doing the trick. So he changed to a combination of Google, MSN and Yahoo! Search Marketing to enhance his reach to the right people. That's when things started taking off.
He's already breaking even monthly. Now he just needs to pay back his dad for that iPod.