Ink refilling: A promising franchise

MANILA, Philippines - There was a time when the idea of computer printer ink refilling was frowned upon because of crude system employed by refillers.

Some 12 million cartridges are used annually worldwide, with only 3 percent being refilled because of fear of damaging printers. Refillers use generic ink, manually use syringes and disregard the need to weigh and change chips, thus causing more harm than good to computer printers.

While most users wanted to cut costs on cartridges and contribute to preserving the environment, they had no choice but to stick with original equipment due to the inefficiency of refilling systems.

But with the advent of modern technology, not to mention the growing need to cut costs and reduce environmental wastes, consumers are beginning to give ink refilling a hard second look. This is evident in the increasing number of ink refilling companies in the country today.

“There is a big market for the refilling and remanufacturing industry in the world, including Asia and the Philippines,” says Bruce Fuller, director for master development of Cartridge World who joined the recent Franchise Expo 2009 held at the SMX Convention Center in Pasay City to explore the prospects of the Australia-based franchise in the local market.

“The estimated global revenue for inkjet cartridges exceeds $31 billion, of which refillers and third-party sellers’ market potential is estimated to be $6 billion,” he enthuses.

A pioneer of the Australian ink refilling franchise which was started in 1997 in Adelaide city, Fuller said that the growing environmental awareness and the global economic slowdown augur well for the business.

He cited that the firm capitalized on these factors and as a proof, the brand has now more than 1,655 outlets in 61 countries and territories, and looks at expanding in Asia and the Middle East.

Voted as one of the fastest growing franchises in Australia, the firm won the coveted Franchisor of the year Award in 2004 and was named Number 1 Toner Replacement Service in the World by Entrepreneur Magazine Franchisee 500 in 2008.

“Cartridge World refills cartridges using the latest state-of-the-art earth-friendly technology and remanufactures most types of toner cartridges, for about half the price of new products. It is also a one-stop shop for all printer needs and carries inkjet cartridges under our own brand which is compatible with printers, with the same quality of a new one,” he said.

He added it is the first franchise to provide a full range of services to meet the printing needs of both consumers and business.

The brand was brought into the Philippines by couple Bruce and Babylyn Decena-Newfield, master franchisees, and opened its first store in Makati in 2007.

She said the franchise package costs P 975,000.00 which includes three-week training for two personnel, refilling machine and equipment, initial inventory and marketing collaterals.

“We are a relatively new franchise system in the country, but based on our experience, the breakeven point is achievable within six months,” she pointed out.

Newfield said that their entry in the local market poses a big challenge in educating customers on good quality and the need to recycle cartridges to preserve the environment. She said that the firm customers are also assured of printer warranties and satisfactory after sales service.

A potential store should have at least a 60-square meter floor space located strategically in a business area which can provide a steady stream of customers.

“We do not operate as a kiosk, and our stores sport a corporate look because of the delicate machines, materials and processes we use. Our technical personnel are trained in Australia to provide customers top-of-the-line technology and service,” she added.

Currently, Cartridge World has five outlets spread out in ideal locations in Makati City, Pasig City, Parañaque City and Biñan, Laguna.

“With a huge market potential, ink refilling is not just a cost-cutting measure, but also a very promising business opportunity,” Newfield concludes.