The news that the Cartridge World founders have sold 90% of their business for $60 million is great good news story for for an Australian IT company.
I have to admit I'm surprised at how well Cartridge World has done. I've always found customers to be sceptical of refilled and generic cartridges. However, given Cartridge World specialise in this field, it gives them a expertise advantage over the big chain stores, Australia Post and newsagents.
Mark Fletcher at the Australian Newsagents Blog mentioned yesterday how he's reducing shelf space for generic cartridges. I guess this shows how different markets buy through different channels. While someone who buys from the local newsagent wants the name brand, there is a big enough market to sustain a specialty refilling business.
Byran Stokes and Paul Wheeler deserve a real pat on the back for how well they've built this business. But I imagine a thirty million dollar payday will suit each of them just fine.
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