StarterGenerator.com started in2000 as a DBA with Aeroval,Inc. Its role was to identify, de-velop and brand the starter gen-

erator-related portion of the totalbusiness. Meanwhile, international busi-ness for this company has grown fromless than 5% to about 75% of today’s to-tal revenue. “Our brand growth is evi-dence that a trusted global internet brandis a key element for penetrating nichemarkets,” explains Garrett W. Schwarz.The headquarters of StarterGenerator.comis in The Woodlands, Texas, about 20miles north of Houston, within strategicreach of that Texas-Louisiana GulfCoast which sees such a high con-centration of helicopter operations.“We continue to see internationalgrowth,” continues Schwarz.“That is supported by an apparentmigration of mature and legacyplatforms for pre-retirement over-seas duty, along with some inspiredbuying on the strength of many in-ternational currencies against theUS dollar. We have also seen in-creased market penetration and unitintroductions of Unison starter gen-erators into the aftermarket over the lastfew years. We expect this trend to con-tinue for the foreseeable future.”

When asked what prompted him tosucceed in a profitable niche for hiscompany’s products, Schwarz com-mented that the focus on starter genera-tors evolved from recognition of theregular maintenance and AOG natureof this component. “Even though it’sonly a single component, there arethousands of turbine aircraft that rely onthem, so we decided to build a businessaround starter generators and marketthem globally,” says Schwarz. “Do onething and do it well.”Our man at StarterGenerator.comexplained that the website and the brand

go hand in hand and their growth anddevelopment remain the top priority inthe marketing budget. Equally impor-tant are the breadth and depth of theinventory and the support programsoffered with them. “If these elementsare aligned in harmony,” notesSchwarz, “we believe our business willcontinue to grow. Value pricing andoutstanding customer service are agiven. Everybody has to offer thosebenefits to compete. Webelieve that you alsohave to own a com-

p r e h e n s i v e

and focused inventory and you shouldpackage it with a trusted brand to dis-tinguish yourself among your peers. Wemake great efforts at this challengingtask because we know that operatorshave plenty of choices, especially in theUS, where most of the aircraft plat-forms we support have been around foryears.”

Much attention in our industry isdirected toward starter generators, notonly because of their cost but becauseyou’re not going anywhere if your air-craft doesn’t start. Demand is steady.Even operators with only one aircraft

will keep a spare starter generator.“Strategically then, starter generatorsmake a good entry product to build onand they can provide synergy for addi-tional support offerings in the future,”adds Schwarz. “Whether outright sale,exchange, overhaul, upgrade, trading,piece parts or buying cores, therealways seems to be plenty of actionwith starter generators.”

Originally, the company focused onoutright sales and avoided the exchangebusiness because of the final price mys-tery associated with traditional after-market exchange transactions. Being adealer of exchange units which are opento the potential of “bill backs” can beprecarious. The middle man may besqueezed from both sides and will haveto make that unwanted call to the oper-ator, asking for more money, some-times as much as 60 days after the orig-inal part shipped. Then you have theBeyond Economical Repair (BER) situ-ations. As the starter generators current-ly in use begin to age, major subcom-ponents begin to wear out and fail at a

higher rate. These components willrequire repair or replacement.

Failure of bearings and otherinternal components can causesignificant damage to surroundingparts. In many cases, these matureand legacy platforms are nolonger supported by their OEMs

with the same enthusiasm as 10 or 15years ago. That means extended leadtimes and higher prices for the cus-tomer. “This situation can mean a repaircost that is BER,” recalls Schwarz.“That kind of transaction, with so muchuncertainty, did not appeal to us.

In late 2003, StarterGenerator.combecame an Aircraft Parts Corp. autho-rized distributor and, about a year later,Unison Industries announced its agree-ment to acquire APC. Unison’sresources and leadership have inspiredfresh ideas which have yielded the valu-able OEM-backed aftermarket supportprograms currently under way. Amongthe

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Steady Growth Comes From Specializing

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recently launched programs are theUnison Exchange Program and theUnison Upgrade Program. “We areexcited about these programs becausethey address all the concerns and uncer-tainty which kept us so uninterested inthe exchange business before,” com-ments Schwarz. “Not only do they offeroutstanding value to our customers, butthey add revenue streams not previous-ly enjoyed. They also increase invento-ry utilization. It’s a win-win situation.The Unison Exchange Program has vir-tually removed the undesirable ele-ments common to most industry stan-dard exchanges. Unison’s flat-rateexchange price is very competitive andit has no surprises. In the rare case of aBER core, the factory option is a pleas-ant surprise. There is no more uncer-tainty associated with bill-back chargesand outrageous BER quotes. Off-the-shelf stock eliminates downtime wait-

ing for armature rewinds and expensiveparts to arrive. When you consider theOEM quality and program featuresoffered, this program represents a clear,exceptional value.”

Initial response to the Unison pro-

grams has been solid. The company hasplaced additional blanket orders todeepen and expand inventory (for facil-itating the anticipated market expan-sion and future demand). The startergenerator rotable pool will approach300 units (all manufacturers) by theend of 2007. “We believe this repre-

sents the highest concentration ofUnison starter generators in the after-market,” says Schwarz. “We will con-tinue to reinvest aggressively to ensureour ability to provide the best-in-class“off-the-shelf” distribution in the worldfor Unison starter generator solutions.

Looking ahead, StarterGenerator.comintends to elevate its marketing efforts tothe helicopter industry, especially inNorth America, believing that they havebarely scratched the surface of opportu-nity within the helicopter markets forlaw enforcement, air ambulance, and theoil/gas sector. The company will contin-ue to purchase excess starter generatorinventory and cores applicable to allmanufacturers with the chosen marketniches. In 2008, the company will havean upgraded website and will exhibit atHAI2008 Heli-Expo and ALEA2008,both in Houston, Texas, and NBAAOrlando, Florida. �

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