Last March, George Vicente stood outside his company’s new 25,000-square-foot Huntington Beach headquarters and wondered if he made the right decision.
Vicente’s business, Mesa Safe Co., a maker of depository and fire safes, outgrew the 5,000-square-foot Tustin building it had operated out of for three years. His business, which generated about $2 million in yearly sales at the time, started to nab bigger customers including Costco, Sam’s Club and Staples.
Vicente thought it was necessary to prepare for growth by moving into something bigger. But as he stood before the giant building, he wondered if he had gone too big.
Looking back on the move now, Vicente said he made the right choice. Sometimes a small-business owner needs to take a risk in order to get big results, he said.
Since moving Mesa Safe’s headquarters, the company now is able to make, package and warehouse more safes. Beefing up production and stock has helped Mesa Safe nab large orders. The company expects to hit $5 million in sales this year. It’s even looking to outgrow its Huntington Beach operation next year, Vicente said.
“I gambled and it paid,” Vicente said.
Mesa Safe employs about 18 workers, with a good chunk of them making small batches of cash boxes and safes out of steel and other materials that are sourced from local vendors.
The rising cost of fuel, energy, labor, insurance and real estate has pushed Mesa Safe to outsource production to South Korea and China to keep costs down on larger orders for customers such as Costco, Vicente said.
“We’re able to manufacture some of our items in Orange County but it’s more cost effective for us to outsource production overseas for the larger orders. It’s just too expensive to do everything here,” Vicente said.
Mesa Safe’s products are packaged and warehoused in Huntington Beach and shipped to retailers through third-party carriers.
The safes sell from $300 to $2,000, Vicente said.
Vicente, who is of Cuban heritage, owned a locksmith business dubbed George’s Lock & Safe for several years before starting Mesa Safe in 1980. He ran both businesses for years and stopped making safes in the 1990s to concentrate on his locksmith business, which grew to five stores in OC.
Vicente came back to Mesa Safe in 2003 when he saw that few safe makers were selling their products in chain stores.
“I saw an opportunity to fill a niche,” Vicente said.
Coming back to Mesa Safe had its challenges, he said.
Times had changed from when Vicente originally started making safes in the 1980s. Vicente had to overcome the challenges of rising material costs and limited help. He also had to learn how to manage inventory. Competition from other companies that make safes, including New Jersey-based Honeywell International Inc., Fontana’s American Security Products and New York-based Gardall Safe Corp., made it difficult for Mesa Safe to garner attention from stores in the beginning.
Vicente knew that he wouldn’t be able to sell safes to Costco or Sam’s Club right off the bat. He had to start small.
The company made batches of safes in OC and sold a few at a time to independent stores around the county. With Vicente’s son Russell Vicente’s help, Mesa Safe started making cold calls to buyers at large chains. It took the company nearly three years to get into Sam’s Club, Costco and Staples, Russell Vicente said.
“Getting into these large accounts wasn’t an overnight success. It took a lot of persistence and patience,” Vicente said.
Vicente said the company plans to enter more retail chains this year. It’s targeting stores such as Home Depot and Lowes, he said.
“We need to hire more workers in order to keep up with the rate that we’re growing at,” Vicente said.
For now, Vicente said he wants to concentrate on growing the business amid California’s expensive business climate.
The company has considered keeping its corporate office in OC but moving its production, warehousing and distribution out of state to Nevada or Arizona, Vicente said.
“California is a very expensive place to own a business,” he said.
A move of this kind isn’t likely to happen for a few years though, Vicente said.
Mesa Safe has had interest from investors and other companies looking to buy Mesa Safe but Vicente said that he has yet to receive one serious offer.
He said his exit strategies include passing down the business to his children, an acquisition or going public.
Posh Pet Supplies
Martnel Bonacquisti is a sucker for animals.
While climbing the corporate ladder at drug maker Amgen Inc. of Thousand Oaks, the canine lover spent the past 30 years rescuing homeless and neglected animals.
When it came time for Bonacquisti to make a career change, she decided to do something that she loved.
Bonacquisti owns Dogma, an upscale seller of dog and cat supplies with stores in Newport Coast and Irvine.
The company, which is privately held and doesn’t disclose sales figures, employs nine workers in its two stores.
Dogma isn’t like your typical PetSmart or Petco.
Gourmet and natural foods, nutritional supplements, toys, clothes, grooming supplies, strollers, beds, car seats, portable staircases and other accessories for dogs and cats can be found at each of Dogma’s 1,200-square-foot stores. Products sell from $20 to $250.
Dogma specializes in carrying the “hard to find” items that you can’t find at your typical pet or grocery store, Bonacquisti said.
“I’m always on the look out for fun, interesting and upscale products that you can’t get anywhere else,” she said.
Bonacquisti is the second owner to run Dogma.
She bought the company in 2006 from Jerry Carter, who opened his first Dogma store in 2002 in Newport Coast after he couldn’t find high-end supplies for his Yellow Labrador named Pebbles. He opened the Irvine store in 2004 and decided to cash out a few years later.
Bonacquisti is mum about how much she paid for the business and how much it generates now in yearly sales. She did say that Dogma’s stores are profitable and that she plans to open a third store near Coto de Caza in the next few years.
Dogma isn’t the only upscale pet boutique to pop up in the county. Others include Newport Beach’s Muttropolis, Bark, Bath & Beyond in Laguna Beach, and Three Dog Bakery in Newport Beach and Corona del Mar.
Bonacquisti tries to distinguish her stores from the rest by making it what she calls “a hang out for pets and their owners.”
The stores’ loyal customers often stop by in the morning to pick up a treat for their dogs after a morning walk, Bonacquisti said.
“I like to think of Dogma like the show ‘Cheers,'” she said. “Everyone knows you by your dog’s name.”
Bonacquisti’s business has generated interest from investors who have wanted to open more locations or turn the company into a franchised operation, she said.
Bonacquisti has also received buyout offers.
“I’m not ready to let go. This is my absolute passion in life,” Bonacquisti said.
Girl’s Best Friend
Jewelry always puts a sparkle in JJ Williams’ eyes. The former marketing executive loves wearing it and buying it. So when it came time to make a career change, she decided to sell it.
Williams owns Laguna Beach-based JJ Number 8 Inc.
The year-old company designs necklaces, bracelets, rings, earrings and other jewelry with 18-karat gold and precious and semi-precious stones such as diamonds and emeralds.
Every JJ Number 8 piece is designed with figure eights, a symbol that is often used to represent unlimited happiness in Eastern cultures, Williams said. Figure eights can be found in the cut of the jewelry’s stone or in its engravings, she said.
“I wanted to make jewelry that had meaning. I wanted to make something that was pretty but could also make someone feel good,” Williams said.
The company buys its materials from local suppliers that source their jewels from Brazil and other parts of the world. JJ Number 8’s jewelry is assembled and warehoused locally.
JJ Number 8’s collection sells from $1,500 to $17,000 and can be found at Pure Laguna Beach Art Gallery.
Starting a jewelry company required a lot of money and learning about gems, which wasn’t easy, she said.
“It has its challenges but when you’re passionate about it, it’s not that bad,” Williams said.
Williams runs the show alone. She makes sales calls to buyers at higher-end department stores such as Neiman Marcus, Saks Fifth Avenue and Bloomingdale’s with hopes of getting her jewelry in their stores.
“It takes a lot of persistence,” she said. “I’m doing everything I can to spread the word.”
Williams said she would like to hire employees this year but that could depend on how much buzz her jewelry generates. So far, she’s already caught the attention of celebrities such as former “American Idol” finalist Katherine McPhee.
Williams plans to court investors this year to help grow the company, she said.
