The variety of competitors which resellers face in the computer supplies and accessories category is set to blow out under a new promotion introduced by the local arm of global consumables distributor Daisytek.
Given the name "JumpStart", Daisytek's program is aimed at procuring a slice of the $A1 billion computer supplies market for "a broad range of mass and convenience retailers", according to a press statement.
JumpStart involves situating highly visible and compact product display units, which carry a cross-section of leading consumables, into many convenience retailers. The explosion of computer and printer sales into homes and small business means there is a rapidly growing demand for convenient purchase of the consumables and accessories that they use.
Daisytek's retail channel manager, Tim Ingham, said the type of stores being targeted include "newsagents, service stations, pharmacies, mixed merchandisers and photography outlets" amongst others. These are all regular destinations for "the home computer user, the student and the SOHO professional", which he said are the major drivers of the consumables market's growth.
"The Australian printer population is growing by some 29 per cent a year and will reach the 46 million mark in 2001, creating a $300 printer cartridge market in Australia alone. We believe this could double by 2005," Ingham said.
It is the potential for high returns from minimal shelf space allocation that is making supplies attractive to all sorts of retailers, according to Ingham.
"Computer supply products can deliver a return on investment of up to 30 per cent," Ingham said. "While they may take up little more space than a chocolate bar, a packet of chips or a box of pens, they can generate up to 50 times as much in revenue.
"Our experience is that 99 per cent of inkjet printer owners use four cartridges per year and that 78 per cent of them return to the same store for supplies," he added.
As every business is different and catering to different sorts of customers, Daisytek is lending assistance with the product profiles for individual stores and the trends in the marketplace. They also restock the stands and provide next-day delivery on the full range of consumables sold by Daisytek.
JumpStart was first adopted by Daisytek in the US where three of the six major drugstore chains and over 5000 retailers now sell consumables.