Robert J. Hagen
they were, speculators long on courage and verve but short on management
experience and collateral, trying to sell a big-ticket item over
the telephone for cash.
didn't even have showrooms; the customer was expected to lay out
about $3.000 after looking at a magazine ad. And, if that wasn't
enough, it looked as though they were going up against General Motors
and everybody else in the car business
said most bankers, some vendors and a few friends of Gary Courneya
and Dave Fuller when they founded Bradley Automotive. It was indeed,
but that was about seven years ago. Success has since transformed
the outrageous into the enviable.
year the company turned its second consecutive net profit, one
"comfortably into six figures" on sales of about $6 million,
by offering a fiberglass auto body that lets you turn your Volkswagen
Beetle into a racy little sports car.
company's relatively new prosperity means it could sink something
close to $1 million into developing the Bradley GT II, compared
with the back-of-the-napkin brainstorming and $2000 in materials
that went into their first car, the Bradley GT.
means that Courneya, an ebullient salesman from Detroit Lakes, Minn.,
has been able to find the time for skiing and that Fuller, the methodical
designer-engineer, has been able to contemplate other projects.
means that Bradley Automotive can afford to repay loyalty and productivity
by setting up a profit-sharing plan for its 100 employees, and to
carry a few vendors who don't always offer the lowest quote, but
who were patient at the beginning.
finally for Courneya and Fuller it means being able to think back
to that beginning and smile at the warm feelings they have now for
experiences that were unpleasant at the time.
was the late 1960s when Courneya and Fuller, brought together by
a mutual friend, set up shop at 26th St. and Nicollet Av. as Gary's
Bug House to get in on the dune-buggy mania of that period. Fuller,
who had been running his own small fiberglass design business, developed
the dune-buggy bodies, which bolted onto a Volkswagen chassis. They
added some components and Courneya sold them in kits for about $400
the summer, that is. The dune-buggy market froze solid in the winter.
And, to make matters worse, the bodies were so easy to make that
competitors sprouted overnight in nearly every big city, relegating
what was a somewhat faddish product to a small, local market.
an alternative, however, Courneya and Fuller stuck with it. They
began buying and selling used Volkswagens, selling them during the
day and repairing them at night, to sustain themselves while they
worked out their new product: the GT.
they were nearing the final development stage, the dune-buggy craze
began to die out. The formed Bradley Automotive, using Fuller's
middle name, and ran some ads showing the GT and offering to send
a brochure in exchange for $1. The dollar bills came in a steady
stream, leading them to believe that at its headwaters was a rich
and unexplored market.
trouble was, they didn't have any brochures, the car wasn't quite
ready and, like most small companies with growth potential, Bradley
Automotive suffered from a chronic capital shortage.
and Fuller set out to sell 80.000 shares at a dollar apiece and
soon found the vice president of a St. Paul construction firm, who
plunked down $40,000 after one look at the car.
thought that was it," said Courneya "There's nothing hard
about this money-raising stuff, we thought. We've got it made."
took them about six months- until Easter of the following year-
to sell the other half to a couple of dozen individuals. By then
the money was spent, but the car was in limited production and the
brochures and been mailed out. People had become concerned about
the dollar bills they had mailed in.
I recall," said Fuller, "we ate a lot of breakfasts with
1972 they put out a few more ads and were getting a few more leads,
but no sales. Courneya, annoyed by the lack of response, called
a few people who had sent for brochures and discovered that the
product needed a bit more selling.
confident of his ability to sell a car to a prospect who had never
even kicked its tires, Courneya began working the telephones heavily
and got results. Sales went up and the money came in, but sometimes
the sum at the end of the month wasn't sufficient.
those early, starving days," said Fuller, "Gary began
using the name Gary Bradley when he followed up leads on the phone.
It let the prospective buyer think he was talking to 'the man,'
which he was, but it also was a little like, oh, getting a call
from Henry Ford.
not only did it sound nice, but whenever we got return calls for
Gary Bradley we knew they were potential sales. When we got calls
for Gary Courneya or Dave Fuller we could be reasonably certain
that they were creditors and we responded accordingly."
late 1973, however, they needed another infusion of cash. An original
investor agreed to loan them $90,000 if Bradley would devote full
time to sales and let a professional manager come in from the outside
were pretty desperate by then," said Fuller. "We'd have
taken just about anybody at that point. We needed the money."
company was given some structure and was able to get a $250,000
commitment from Community Investment Enterprises, Inc. (CIE), a
St. Louis Park venture capital firm.
my board to make that commitment was the most difficult selling
job I've had in nine years in this business," said Don Soukup,
vice president of CIE. "Bradley lost about $100,000 that year,
had a very poor cash flow and the creditors were concerned.
turned them down two or three times previously, and others were
doing so when I decided we ought to do it. They'd made progress,
their volume was up and they had this unique marketing approach.
In venture capital, you look for something different, and they had
took only $150,000 of the money and paid it back in the fall of
Courneya and Fuller, dissatisfied with what they felt was the company's
increasing top-heaviness, bought out the smaller shareholders, reinstalled
Courneya as president and cut overhead.
controls were installed calling for them to scrutinize nearly every
spending request as if they were gimlet-eyed bankers making a loan
on a hayfield.
still do, but not out of desperation.
the company has executive offices in Shelard Plaza, a long way from
the lawn chairs and card-table furniture and the office in the condemned
building that got them started.
has a sales curve that goes from $250.000 in 1972 straight up though
the recession to $6 million last year and a projected $8 million
it has no debt.
rollers who know a good thing when they see it drop in frequently
and write out fat checks in unsuccessful attempts to buy the exclusive
franchise for Texas, California and half the world.
and Fuller also know a good thing when they see it.
smile and say thanks, but no thanks.