How Big Ass Fans Became a $500 million company
This is an interesting podcast with Carey Smith who started Big Ass Fans. If you don’t know of them they do exactly what the name says, build Big Ass Fans that are 6 to 20 feet across. The fans use less power, move more air and are quieter than a typical fan. They’re extremely popular in manufacturing or warehouse facilities where it’s too expensive for air conditioning. Here’s a few points I found interesting.
They focused on research and development. Even with a simple product this made a difference. For example, most fans just use a wood blade, but they designed theirs to work like an air foil so it moved more air.
They changed their name to Big Ass Fans. Their old name was easy to forget (I can’t even remember what it was), but customers would call and ask if they were the ones that “sold those big ass fans?” so they changed their name to something a bit controversial. They got noticed.
They priced their fans below what a typical maintenance supervisor could approve.
They grew slow at the start. It wasn’t an overnight success.
When they sold their company he told the private equity companies it was $500 million. They came back and said it was worth somewhere in the low $400 millions and he didn’t negotiate. He just told them if they want it, it’s $500 million. Otherwise he’ll continue to run the company. Whoever can walk away has the power!
After selling he gave $50 million to employees.
Anything you can think of that you could make bigger and it would be noteworthy?
Tents
Coolers
Couches
Water bottles
Frisbees
Soccer balls
Grills
Super thick standing mats for employees
It’s an interesting thought experiment. Heck even bike tires that were super wide became a thing.