Now hear this: Decibullz cranks up headphone sales

LOVELAND – Decibullz LLC is on a roll, raising more than $100,000 through crowdfunding and earning accolades in consumer electronics circles as the Loveland startup aims to seize opportunity in the headphones market.
Decibullz makes custom-moldable earphones that founder and chief executive Kyle Kirkpatrick says are meant to stay put during physical activity. Made by Pro Mold Associates LLC in Berthoud, For just a year, Decibullz has sold earphone molds that fit on existing earphones, and Kirkpatrick plans to release a new product in March with tiny speakers that snap onto the plastic molds.
Kirkpatrick, a gymnastics coach, began tinkering with custom-moldable earphones when he couldn’t find anything on the market that would stay in his ear during rigorous physical fitness. He developed a thermoplastic through trial and error and “a little bit of chemistry.”
“These are really the only headphones that will stay in during … gymnastics and really extreme-movement type activities,” Kirkpatrick said.
Earphone enthusiasts have taken notice. Decibullz raised nearly $113,000 in equity from more than 2,300 backers in a recent Kickstarter campaign. The company hit 180 percent of its goal – it had only asked for $40,000 – in just one month.
The company’s new earphone product, known as Contour, won a Consumer Electronics Show Editor’s Choice Award from Reviewed.com as well as a 2014 International CES Innovations in Design and Engineering Award. The company also received coverage from USA Today.  
Decibullz is attempting to find success in what market research firm NPD Group Inc. said was a nearly $2.3 billion market in 2013, up from about $2 billion in 2012.
Ben Arnold, executive director of industry analysis for NPD, said the 15-percent growth rate was driven by smartphone and tablet purchases. About 60 percent of households have smartphones while 50 percent own tablets they use to watch long-form content such as films.
“A natural consequence of that is we want better listening devices,” he said. “We don’t want to be just locked into the ear buds that come in the box with the device.”
Arnold said he has not seen anything quite like Decibullz’ headphones, adding that “They’re on the right track.”
Several companies sell headphones with ear fittings that may not work for everyone with varying ear-canal sizes, he said.
“It really seems like the interchangeable tips that you get from headphones now could be improved upon,” he said. “It makes sense that somebody is working on that.”
Major headphones maker Bose Corp. sells several pairs of headphones with ear fittings for improved stability during exercise for $100 to $300.
“These have been designed to conform securely and comfortably in the ear, and come in three different sizes: small, medium, large,” a spokeswoman said.
The company does not, however, sell a product that custom-molds into the ear, she said.

Besides Decibullz, Arnold said that a couple of other companies have tried the custom-molding concept. He said the challenge will be to make headphones that fit better for a lower price.

Kirkpatrick believes he can meet that challenge: Consumers buy the ear buds, heat them in the microwave and then fit them into their ears. The molds that consumers can fit on their existing earphones sell for less than $15; Kirkpatrick will sell the Contour for less than $50.

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While major players such as Bose, JVC Kenwood Corp. (OTC: JVCZY) and Sony Corp. (NYSE: SNE) dominate the headphones market, Arnold said, some opportunity for entry exists. He pointed out the success story of Santa Monica, Calif.,-based Beats Electronics LLC, a startup established in 2008 and co-founded by rap artist and producer Dr. Dre that quickly gained popularity – and market share.

“I don’t think that you necessarily have to have this legacy in electronics or even a legacy in audio to have some success in headphones,” Arnold said. “It’s harder in the premium space because Beats and Bose loom so large, but below that, there are pockets of opportunity for new, upstart companies.”
Kirkpatrick has begun to realize that his market extends beyond athletes to include people who just want earphones that fit.
“Our market is kind of everyone,” he said.