Paper Exchange is not about competition with merchants

Paul Gannan is conscious of avoiding what others with similar concepts have done, which is move into the paper merchants’ territory, competing head on with them.

“Paper Exchange is not competition for the paper merchants – it is a complimentary service to them. They are just as much my customer as the printer who buys the end products,” he said.

He believes a clear benefit for the merchants is that they gain instant national exposure on the web – rather than the state based process many have traditionally used.

Even with more than 15 years industry experience, Gannan did not predict the demand for his service.

“This was a concept that found me. I had been working for a print management company and knew I wanted to start my own business. While I looked for something that would suit me, a printer friend told me about some indented stock he had sitting on a paper merchant’s floor for the last 18 months. The stock was in perfect condition and just needed a new home”,

“I made a couple of calls and two days later the whole 30 tonnes had been sold. It was a great result all round”, said Gannan. “I then made some calls to the paper merchants and asked them if they had similar problems with wanting to move excess stock on a national basis. They did, and Paper Exchange was born.”

One of the key features of Paper Exchange is that the service is completely anonymous for both the buyer and seller. From the minute stock is loaded onto the site for sale until an invoice is sent, there are no indicators as to where the stock has come from or is going to.

“This was a point I researched heavily. Essentially printers don’t want to buy from other printers and this can jeopardize the sale. Therefore all transactions are with Paper Exchange. The stock on the site is constantly updated and sellers can elect to put a fixed price on their item or open it up to offers, creating a true marketplace environment.

“The only person that can accept or decline an offer is the seller – not Paper Exchange. We will facilitate it and keep both parties updated but will not agree to an offer until the seller has approved it.

While the site was designed with paper in mind, the graphic consumables area has happened by opportunity rather than plan.

“I was asked if I could try to move nearly $1million of prepress supplies for one of the big players who was exiting the industry. As a result, all of the stock is at or below cost representing some amazing savings”, said Gannan.

“If it is related to the industry –we’ll advertise it on the website.

In its first two months of operation, Paper Exchange has already attracted buyers from the Northern Territory to Tasmania and across to the Pacific Islands.

Gannan said, “Paper Exchange has opened up the market even more – as wanting a good deal on paper is not restricted by geography”.

To see the full list of stock, log onto paperexchange.com.au and register. Membership is free.