JGear’s three brothers run a unique footwear business...and thrive

Story by John R. Ingrisano

AT JGEAR’S SOLE FOOTWEAR STORE in Fond du Lac, the Braganza/Baganz brothers found that they could save about 50 cents on each pair of boots they shipped by switching from boxes to bags. Their get-outside-the-box thinking (in this case, literally) is just one example of how the three brothers have built their retail footwear business from scratch in 1997 – yes, actually starting in one of the brothers’ garages – into a projected $7 million enterprise in 2010.

Still, they have only one brick-and-mortar location, do not yet sell internationally, get the bulk of their business from individual sales, continue to do more business in their Fond du Lac retail store than from online orders, and live in three different locations (one in Fond du Lac, one in Stevens Point, and one in Houston, Tex.)

In short, they do it their way, not so much defying conventional wisdom, but more like relentlessly looking for good, better, best ways to do business. “Our philosophy is to always test the boundaries and move away from the norm,” said Barry Braganza, who had to think a bit about his title and finally decided “it’s probably chief marketing officer.

“We test ideas constantly. We test everything, including our philosophies,” Barry said in an interview from his Texas home. 

Though they have a Web site, they are not a virtual company. Instead, JGear has one location, a super-size warehouse outlet in Fond du Lac, where they stock 40 brands and more than 4,000 styles of footwear. “We’re a brick and mortar business,” said Barry. “We do sell on the internet, but most of our sales are from our Fond du Lac location.” In the past, he explains, approximately 80 percent of sales came from the store and 20 percent from Internet orders. Today, the mix is about 70 percent from the store and 30 percent online.

The driving force behind the company is big brother Shane, who began working for Merrill-based Weinbrenner, a footwear manufacturer, when he was in college. Weinbrenner primarily sold to large companies. Shane saw an opportunity to take advantage of individual sales. To avoid a conflict of interest, his brother Jodi began JGear as a part-time enterprise, operating out of his garage. Today, the majority of JGear sales still come primarily from individual orders.

From garage to the Inc. 5,000

FROM THE PART-TIME, GARAGE-BASED BUSINESS in 1997, JGear grew to $1.6 million in revenue in 2006 and then to $4.3 million in 2009. Projected 2010 sales, estimated Barry, are pushing the $7 million mark. They also rank 1,834 on the Inc. 5,000 list of the country’s fastest-growing companies.

When asked to explain the company’s explosive growth, especially from just one store, Barry said that “repeat customers have fueled our growth. We keep customers. We have one of the lowest costs out there for our footwear.” 

They also do repairs at the warehouse outlet. “We have an A+ rating for service with the Better Business Bureau. So, I guess you could say that our success has been built on low cost, wide selection and customer service. As I said, we keep our customers. Our customers come back.” 

Even the recession hasn’t slowed them down. “A number of our competitors on the Internet have gone under,” said Barry, who gives full credit for their business efficiency to his brother Shane. “Shane is so determined to save a buck that he always analyzes how we can save money by either procedures or different ways of working to save or make more money. 

“We were making those cuts before the recession hit,” he added, allowing for net margins to be higher even with significantly lower prices. “We’re also investing in shipping technology to save time and money. So, we don’t have to cut employees.” In fact, he said , “we’re actually hiring.”

JGear depends heavily on word of mouth for sales. Still, they do some marketing, including billboards and online advertising. They also study the competition, including stores like Rogan’s shoes.

Business in their blood

EACH OF THE BROTHERS has his own business style. While Jodi is a fulltime firefighter in Stevens Point, he goes to the store on his days off and also handles server security. 

Barry logs about 60 to 70 hours a week, working out of his home in Houston. “I work hard at finding balance between work and family time,” he admits, and appreciates his wife’s patience. He added, however, that his brother Shane is much worse. “Shane works long hours. Last year he got a hotel room next to our business in the winter. I don’t think he went home for a week…and he doesn’t live that far away. 

When asked what motivates him, Barry admits that the question stumped him at first. “It’s just what I do,” he finally admitted.

When it comes to the perils and pitfalls of business, his response is similar. “I guess I’ve been doing it for so long, I really don’t give it a thought. It’s just what I do. Our parents were in business, as is a sister.” 

He also said that he doesn’t worry all that much. “If there’s something to do, do it,” he said. “If not, don’t worry about it.”

Shane is the opposite, he said. “Shane, on the other hand, will worry about everything. But to give him credit, that helps him come up with ideas and solutions.”

What’s next?

THE BROTHERS HAVE A THREE-YEAR PLAN, said Barry, adding that business changes too rapidly these days for five-year projections. “We don’t want to get too many irons in the fire.” However, he does say that plans for the future likely include more on the retail end, possibly additional outlets. He also expects online sales to grow and says they are discussing having Web sites in other languages, part of a goal of going international in their sales.

As part of that, JGear has added a customer service manager, Stacy Jones, and a retail manager, Ed Burns. “These people have made a difference,” Barry said. “They have turned us into a more stable company, with real managers. Now Shane can actually leave for a day or two and it won’t fall apart.” 

“I have a number in my head,” he said, “that I want this company to achieve in sales. That number,” which he declined to share at this time, “is actually on my wall. I’ll let you know when we hit it.” 

It would be no surprise if they hit that number soon and kept right on going.

John Ingrisano is a Wisconsin-based business journalist, marketing strategist and public speaker. If you would like John to review your company’s needs or do a presentation for your business group, contact him at john@thefreestyleentrepreneur.com or call (920) 559-3722.