Alex Fees: I am Alex Fees on Small Business Television. We are coming to you from SEMA 2008; that's Specialty Equipment Market Association and joining me here now is Kyle Schwulst, the owner of ElectroJet in Michigan. Kyle, how are you sir.
Kyle Schwulst: Hi!
Alex Fees: Where in Michigan?
Kyle Schwulst: Brighton, Michigan.
Alex Fees: Brighton, Michigan. Alright, what is ElectroJet, Kyle?
Kyle Schwulst: ElectroJet is a small company that's designed a low cost electronic fuel injection system. We are marketing this product primarily to OEMs in company or countries like China, in India to reduce the pollution, increase the performance from those motorcycle products.
Alex Fees: Okay, you said small company. How small?
Kyle Schwulst: We are actually 7 people.
Alex Fees: Really.
Kyle Schwulst: So very small.
Alex Fees: Okay, tell me again low cost --
Kyle Schwulst: It's electronic engine controls. It's the same stuff that everybody has in their automobile right now, but it's scaled down in terms of size in terms of cost to something that both compatible to a carburetor on small engines, primarily motorcycles, ATVs, lawn mowers, even aircraft.
Alex Fees: Tell me about breaking into the OEM market. That's the dream of a lot of small business owners.
Kyle Schwulst: It's certainly pretty difficult.
Alex Fees: Yes, a lot.
Kyle Schwulst: But the benefits are a lot of volume from one customer.
Alex Fees: Absolutely.
Kyle Schwulst: Instead of a lot of mix.
Alex Fees: How long has your company been around?
Kyle Schwulst: We have been around for six years now.
Alex Fees: And how long did it take you before you got to the OEM level?
Kyle Schwulst: Well, we have always been going after OEM, because our market is a little bit different. Our market is really constrained by governmental emissions regulations. So the OEMs have more pain than the consumers. They are the ones who have to meet the regulatory push.
Alex Fees: Which means that you have more pain, because you have got to meet those standards for them, right?
Kyle Schwulst: Correct, yeah. So we meet the new emissions regulations while providing fuel economy, other tangible benefits for the customers. But it certainly takes a while to make those inroads, especially because our largest customers are in China.
Alex Fees: Wow!
Kyle Schwulst: So we have been on the ground in China now for three years and working with many OEMs and hope to start volume production this coming year.
Alex Fees: So you have already accomplished two things that many small business entrepreneurs hope to do. First of all OEM. Secondly, you've broken into the international market.
Kyle Schwulst: Yes, but I would say that the international market has more of a need for our product than North America. Unfortunately, for the type of products that we put our products are emissions regulations are fairly poor in North America. They have been delayed a number of years and then pulled back in terms of effectiveness. So China and India, they all adopted European standards which are much more stringent than what you will find in North America.
Alex Fees: Really! So specifically what kind of emissions are you talking about as far as the ones that your equipment regulates?
Kyle Schwulst: Sure. The regulated emissions levels are carbon monoxide, the hydrocarbon emissions and NOx emissions. Our product has been proven to reduce carbon emissions by 65% to 87%, NOx by about 35% and hydrocarbons by 40%.
Alex Fees: Well that sounds like your product then was made for international markets, but how did you go about that initially when you first decided that's what you want to pursue? How did you go about making those initial contacts?
Kyle Schwulst: Well, we have been fortunate in Michigan to have a number of organizations that we work with. One is Automation Alley. They are a large consortium of companies in the Southeastern Michigan area. They sponsored a trade mission.
So I went to China the first time with them in 2006. It's full business type trade mission where we have politicians, legal, all kinds of support, but they do business to business matchmaking through the Department of Commerce.
Alex Fees: Kyle, tell me about your involvement here at SEMA. What kind of success do you have at a convention like this?
Kyle Schwulst: Well, it's really interesting. We've been invited here for the Green Is Cool exhibit. So our product is green. Obviously, we significantly reduce the emissions, but it is cool, because we add some performance aspect to it and we are able to fit into the spot where carburetor used to be.
Alex Fees: Right.
Kyle Schwulst: So we are getting a little bit of exposure which is always a great thing for a small company.
Alex Fees: So you are presenting here at SEMA 2008?
Kyle Schwulst: Yes.
Alex Fees: Where can people get more information about ElectroJet?
Kyle Schwulst: We have a great website at www.electrojet.org. There is tons of information online and they can even contact me directly through the website.
Alex Fees: Alright, that's electrojet.org.
Kyle Schwulst: .org, yes.
Alex Fees: Alright! Kyle Schwulst.
Kyle Schwulst: Thank you!
Alex Fees: Kyle thanks for being here. I appreciate it. He is Kyle Schwulst; I am Alex Fees on Small Business Television. We are coming to you from SEMA 2008 in Las Vegas.
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