Cartridge World Franchising

  WiLL-A 13:09 25 Aug 2005

I was hoping to receive a few opinons as to whether anyone thinks that it is worthwhile investing in a Cartridge World franchise.

To be more specific - does anyone think that this type of business has a future? I have noticed that high street competition has increased over the last few years with supermarkets such as Tesco's selling branded inkjet cartridges at less than half the price of what Cartridge World are selling them for and still less than what Cartridge World charge for a refill!

Upon visitng a CW store (acting like an ordinary customer) and mentioning the prices Tesco's were offering, the owner could not offer any thing in his/C.W.s defence and suggested I buy from Tesco's as they were so cheap. He went as far to say that Tesco's selling price was less than what it costs him to buy them for (branded) and that when his stocks were low on a previous occassions he just visted another Tesco store and bought from them.

I understand that competition will always be tough in any retail environment but my confidence, considering the asking investment of nearly £70,000 isn quite as high as it was.

Any comments would be greatly appreciated.

  Al94 13:36 25 Aug 2005

I think you have answered your own question!

  Al94 13:42 25 Aug 2005

I get all my carts here click here good prices and next day delivery, why go out!!

  dave_and_confused 14:20 25 Aug 2005

Our local Cartridge Refill has just closed.

Walk through business wasn't good but was just suppossed to be a bonus. The real money was in dealing with businesses - mainly laser refills. Sadly they have to offer 28 day payment terms and many businesses just wouldn't pay - "oh, haven't we paid that yet? I'll make sure they get a cheque in the post soon".

The fixed overheads are always there so if you don't have money coming in you have no money to buy new stock. Eventually it closed.

You need to get your customers early. Make sure you get plenty of business customers onboard early on and make sure they pay.

Personally i wouldn't bother - they figured they had to make £200 a day to break even.

  spuds 17:24 25 Aug 2005

In my locality there was one store 18 month ago, now there are three, and none of them appear to be busy. I do not know if their printer sales is part of the franchise arrangement, but a short time ago I was after an Epson CX3600. Saw one in CW and asked the price, informed that it was £99.99 and they could not discount it. I mentioned that they must be joking as the same model was available for £63.00 at Ebuyer and £69.00 at PC World. Of course the explanation was that their product was better and CW was not a large discount store. Make of that what you will!.

  WiLL-A 13:38 26 Aug 2005

This is exactly what I was worried about. I have been seriously considering either a cartridge World or Smart Cartridge franchise for some time but the more I research the idea - the more I am am put off.

They just dont appear to be competitive in the inkjet sector. And most toner/laser refills I imagine would be from business customers so why are they located on the high street? You would think a high street shop would get the majority of its business from the general public walking in off the street.

I have also observed the growing list of existing Cartridge World stores that are now up for sale.

Perhaps this business idea worked once upon a time - after all the business did start in 1988 but I am starting to feel as though the future will be tougher for these type of stores.

More feedback on this subject would be appreciated, thanks.

  LastChip 19:46 26 Aug 2005

Personally, I wouldn't even think of using what is basically a cartridge filler. If I want them filled, I'll do it myself. But more to the point, the competition is intense and it is unlikely with business rates and so on you could ever compete with Internet operations, or as has been mentioned, Supermarkets.

If you want to try a business like that, you would be better off (IMHO) creating a slick web site (it's amazing how badly designed some of them are), and trying mail order. But to repeat myself, the competition IS intense!

  joesoaps 21:08 26 Aug 2005

What exactly would you get for £70,000 and what other *extra's* are involved.That is a serious amount of money to invest and in my humble opinion a very risky venture.

The ultimate decision is yours but my advice would be to find a better way of using your investment,I can't see that one paying off.

  dave_and_confused 15:00 27 Aug 2005

And most toner/laser refills I imagine would be from business customers so why are they located on the high street? You would think a high street shop would get the majority of its business from the general public walking in off the street.

My friends had a Smart Cartridge shop - They had to offer free pick up and delivery to local businesses to get the laser cartridge business. That is where the most profit lay though.

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