The lack of a state income tax and Reno's well-established distribution sector convinced Kelly Fitzpatrick, owner of Big Happie Hair, to move her growing business from Fresno to Reno.
Big Happie Hair, which began selling the Bumpits volumizing hair accessory in May of 2007, leased 15,000 square feet at 5470 Louie Lane last month. The larger space allows Big Happie Hair to procure enough Bumpits accessories to meet upcoming Christmas demand, Fitzpatrick says.
The company imports its product from a manufacturer in China and sells wholesale to accessory stores such as Claire's and Icing, and to beauty supply giant Sally's Beauty Supply.
"Up until now I haven't been able to keep up with demand," Fitzpatrick says.
After a conversation with her accountant during which Fitzpatrick learned she would have to pay as much as 20 percent in state income taxes, she scouted locations in Nevada, Florida and Texas. She settled on Reno because of its network of distribution and transportation services.
"It is set up for distribution centers here, and Fresno isn't," Fitzpatrick says. "But mostly it was the business climate there is no state tax, and I think it is pretty darn cool. We would have to pay as much as 20 percent in state tax in California once we reached a certain threshold, and we didn't want to make that kind of donation; that is too much."
Seven employees made the move from Fresno, and Big Happie Hair hired an addition seven people locally through a staffing agency. With new products in development, the company has room to grow in northern Nevada, Fitzpatrick says.
"Saving all that tax money is going to be huge. We are developing new products, and we can focus more on that instead of paying taxes. And if we want to grow there is warehouse space right across the way. When new products come out we have the space we require."
Dan Oster of NAI Alliance Industrial Properties Group brokered the lease for Big Happie Hair.
