Editorial

Worldwide leader in inkjet and cartridge refilling is prepared for major US expansion

Cartridge World Expanding Throughout the U.S.

The greatest printing expense for a business is not in the printer itself, it’s in the cost of buying those pricey ink cartridges. At $30 and up for a black ink jet cartridge, the cost can really add up quickly. Whether you are a buying a cartridge for your home ink jet printer or charged with keeping the color laser printers of a multi million dollar corporation in ink, you are probably aware of the growing cost of those disposable cartridges.

Fortunately, there’s a company doing something about both the cost and the waste. Cartridge World, an international Franchise company started in South Australia in 1988, provides a refilling service for empty printer cartridges.

Burt Yarkin, CEO of Cartridge World North America, says Cartridge World can refill both inkjet and laser cartridges, both color and black ink. Customers can then save up to 50% oer the cost of a new cartridge. “Besides saving money, it’s also a good thing for the environment,” says Yarkin. “Americans throw out something like 400 million cartridges per year, after only one use.” Most cartridges can be refilled, whether they are for a printer, photocopier, or fax.

Growing Worldwide

Cartridge World is a company whose service is needed and appreciated around the globe and therefore is experiencing rapid growth. There are currently 925 stores worldwide, a 68% icrease from the same time last year. They began Franchising in the US early last year and have set up Master franchise areas throughout most of the country. They now have 220 stores open with another 170 stores under construction, according to Yarkin.

“Although we’ve had wonderful success so far, we still feel like were at the beginning of our growth in the US. There is opportunity for about 4,000 Cartridge World retail stores,” says Yarkin. “In fact, we think that any town in America that can support a Wal-Mart store can support a Cartridge World, whether urban, rural or suburban. We’ll open around 300 stores this year and another 400-500 in 2006 and this growth should continue for years.”

The reason, says Yarkin, is that everyone is a potential customer. “Consider the fact that the majority of homes in the US have at least one computer and many have a computer for each family member. Each computer has a printer and, with the popularity of digital cameras, there is a lot of printing going on. Our goal is to become a neighborhood brand, like Starbucks,” says Yarkin.

The same thing is happening in business, says Yarkin. Color laser technology keeps advancing so that printers keep improving in performance and quality and prices are becoming more affordable. That means more business printing is being done in-house increasing the need for affordable ink.

Cartridge World has had to mature as a company to be able to support the growth of franchise partners. They’ve added a 20,000 sq. ft. warehouse facility in addition to their headquarter building in Emeryville, CA. “We’ve also brought on some very senior staff members,” adds Yarkin, “including several people recruited from The UPS Store to help us manage our growth.”

Marketing support has also increased in the last year. “We’ve added a full time marketing department which has developed a grand opening program we administer for each new franchisee,” says Yarkin. “We also have a national ad fund through which we are funding a number of projects including national radio ads and collateral. A franchisee committee was formed to help us with advertising direction.”

An affordable retail business

Cartridge World stores are an affordable way to get into a retail business, says Yarkin, as the total investment is around $150,000. The stores are 1,000 – 1,500 sq. ft. and located in convenient shopping centers and strip malls. The front of the store is a retail center, selling paper, new cartridges and other supplies. The back of the store houses the refilling production area.

“We save companies a tremendous amount of money,” says Yarkin. “It’s all about giving consumers and businesses a choice.”The customer base includes walk-in consumers, small businesses, and large corporations. A franchisee will find a great business in repeat customers and will also offer a pick up and delivery service for larger accounts.

“We help our new franchisees find locations and assist with the build out of their stores. We offer a complete two-week training program and cover all the details of the business including marketing. We are then at the store opening and provide in-depth support as they first begin.”

All equipment and inventory are supplied. The store only requires a small staff and there’s a sophisticated point-of-sale computer system to help franchisees manage the details of their business. An intranet aids in the ordering of products and in connecting with other franchisees. “We’ve put a lot of money into our technology,” says Yarkin, “to support our franchisees.”

Because the business is both retail and B2B, a franchisee should have sales and networking skills, although both training and support are provided by the corporate office in finding business customers. Otherwise, it is a great business for people of all ages and backgrounds.

“Franchisees really get to know their customers and the customers always leave happy because they’ve saved money. Much of the time we are able to refill the cartridges as they wait so they have convenience as well,” says Yarkin.

“There’s probably more opportunity in our business right now than in most franchise systems. If you look at other industries – like food or cleaning, for example – these are mature industries. Our business is right at the beginning of a high growth movement,” says Yarkin. “That’s the exciting thing – that franchisees can get in now and end up having multiple stores because some of the best areas are still available. Over the last year we’ve seen great success stories. We have current franchisees who started with one store and added another one or two quite rapidly. An owner in Tulsa opened three stores and has stores four and five ready to open – all in a period of a year and a half.”

Cartridge World is the largest retailer of ink refilling services in the world. The opportunity is there for potential franchisees to become part of a business that has and will continue to dominate the industry. “This is a fun business with high demand,” says Yarkin, “and we help people save money. It’s as simple as that.”

The Benefits of Owing a Cartridge World Franchise