Re: ISLAND INK-JET SHUTS DOWN ….OUT OF BUSINESS !!!

Island Inkjet and Laser Toners

Island Associate Program

Divisions of The Equipment Leasing Company Ltd.

Unit 5, 1855 Dundas Street East, Mississauga, Canada, L4x 1M1

All existing and past Island Ink-Jet operators.

Sept 22, 2009

We are pleased to announce that the Island Ink-Jet reorganization has been accomplished and the new improved Island Associate Program IAP has successfully replaced the failed franchisor without any impact on the malls valued customer base.  We thank you for your patience in this matter.  

We are very happy that were able to create the necessary support needed by the Associates in the short window of time we had available. We were able to do this because we had the right people with the right skills who felt the urgency of the situation and delivered.

In a few cases, the involvement of the failed franchisor in the head lease created some legal issues that took some time to work their way out. The unit operators have all developed a close and positive working relationship with mall management.  Malls recognized it was not the franchisees fault the franchisor failed and worked with the local unit operator to ensure a speedy transition so as to minimize or eliminate any financial hardship on the franchisee.

The following is a quick overview of our business.

Business Profile:  I believe the best way I can describe our business segment is Repetitive Mandatory Purchasing. The clients in our target market buy when they need to buy, not when we are ready to sell.  When they run out of ink, not getting ink immediately is not an option.  The Associate Program’s primary focus is on two important aspects of this target market; business development and customer retention.  IAP’s business development strategy is to ensure that the unit operators are there just before their clients realize they need to buy.  Our retention strategy is to deliver a quality value added product in a market efficient manner profitably.

Business Format Experience:  The IAP has a strong centralized empowered management team. Our team is qualified by virtue of their formal education, exposure to the industry culture, and practical experience. It is a combination of skills that sets us apart from the other ink and product suppliers. All of them have been in the ink and toner recycling business since its inception in 2001.  They are empowered and our associates deal directly with decision makers.

Product Management: The IAP team has taken advantage of the power of the internet to compliment an efficient communication system to keep a constant eye on product changes, pricing and obsolescence and will communicate this information in a timely and efficient manner that will take full advantage of the e-communication channels. Our team maintains an excellent working relationship with all key product suppliers. It has experience in the design-build-install and relocation of kiosks, inline and plaza locations.

Logistics: The team is experienced in logistics specific to the print consumables business. Its head office, warehouse and bottling facilities are conveniently located in Mississauga. We are pleased to advise we have been able to service the product orders without back orders.

Financial Management:  We have an excellent understanding of banking and corporate finance and understand the financial and accounting needs of the associate network. We have a significant credit line at Canada’s largest bank and existing relationships with B of M and BNS.  We have the skill set to maintain the unique Business Management System (POS) currently operating in many of the units. The unit operators will have an improved cash flow as the IAP is not dependant upon on royalties.

Marketing Support:  We understand all of Canada as we have lived and worked in all provinces in Canada and understand the regional differences. We have a bilingual capability. We have an onsite wide format printer to provide economical and speedy interior and exterior graphic service specifically created to meet our go-to-market strategy. We understand e-commerce and its role in our business.  We expect to have our associate e-commerce beta test site by month end.  This site has a unique customer retention program built in that will give us a distinct and proprietary advantage over other sites.

The branding will remain the same for the immediate future as the franchisor by closing the doors and walking away from the system has abandoned the brand. This is a moot point as it failed to adequately protect the brand over the years.  The signage will change to Island Inkjet & Laser Toners as stores remodel.  The name better reflects the role that Lasers are beginning to play in our target market.  In some cases, franchisees who have de-branded will join the Associate group to share in the group benefits.  They can display our products in a similar manner that a sport shop highlights Nike products.

The system has excellent market penetrations in the home printing segment and has begun to make significant inroads into the B2B business print market without loosing sight of the consumer market.

Being seen as Green still generates a significant marketing advantage. The unit owners marketing efforts successfully introduced the need to recycle in the early part of the decade.  Thanks again for your understanding and patience. I am sure it will be rewarded.

Armin Sachse          arminsachse@eqleasing.ca   Office: 905 629 3210  Cell:  416 779 7350  Home:  705 361 1773