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ink for less…SUCCESS !
Amable “Miguel” Aguiluz IX has done something never achieved before by any Filipino at the Harvard Business School in the last 35 years. In June this year, his paper won the Best in Strategy award among the 150 participants of Harvard’s Owners and Presidents Management Program from 20 countries.The award was given to Miguel Aguiluz during the OPM 2005 class graduation in June in Boston, Massachusetts. Miguel is only 35, the youngest in the class where only business owners and company presidents are allowed.
His paper dealt on his company, Ink for Less, the Philippines’ biggest in refilling company with more than 375 stores by now after only three years of operation. It began with only P500,000 in startup capital, money Miguel saved from his previous businesses which included the ACA Video, the largest video rental company, and franchising businesses engaged in the repair of computers, watches, cellular phones and appliances.
The business concept is quite simple. The money in computer printers is not in selling printers but in selling ink. That is why computer printers often cost less than the cost of an ink refill cartridge. So Miguel focused on selling the ink by engaging in ink refilling.
He buys the ink by the ton abroad and retails it by injecting it into empty printer cartridges. He charges a fourth of the price of a brand-new cartridge. The computer owner saves about 75 percent. Just how big the printer business is can be gauged from the P12-billion revenue of HP, the biggest local printer maker. And there are an estimated 12 million computers in the country. The market grows by one million PCs a year. Since there is one printer for every PC, the market for ink refilling is more than 12 million PC owners. They need to refill their ink cartridges four to six times a year, depending on their usage.
Miguel hopes to expand Ink for Less into 650 outlets by 2006, 1,000 by 2008, 1,250 by 2009 and 1,500 by 2010. In terms of revenue, it will grow from P757 million this year to P1 billion next year, P1.5 billion in 2007, P2 billion in 2008, P2.7 billion in 2009 and P3.6 billion in 2010. Considering that the profit margin is about a third of revenue, Miguel conceivably will become a billionaire when revenues hit P1.5 billion two years from now.
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