SmartCompany50 rank: 10
Revenue: $26.4 million
Growth: 88%
Founders: Mark Langford, 49
Based: South Australia
Employees: 4, franchises 40
Industry Retail trade
Website: www.gametraders.com.au
Gametraders continues to be one of Australia’s fastest growing companies, doubling revenue in the last year to $26.4 million from $13.7 million. The aim? To exceed $40 million this financial year.
All on the back of a very simple idea. In 2000, Mark Langford saw a niche to start a business selling, trading and renting pre-played computer games consoles and accessories. Langford had no experience in retail and in fact had never worked in a retail shop in his life.
One big mistake was not to see in time the trend away from pre-played games to new games when Playstation2 was released, and so sales rose only 6% while gross profit fell 3%. It was then difficult to force franchisees to go into new games.
It did not take long for competitors to move in and prices are dropping fast. The main opposition is EB Games and GAME, both large overseas corporations. The company also focused on making sure it was the only retail model in Australia that deals in every single video game format ever made, which has resulted in a huge following. Fortunately the demographic of gamers has broadened with people from 5 to 40 now playing regularly, and the female market has also ballooned in the last five years with 25% of gamers now female.
There are now 40 franchises with more than 95% profitable. Langford plans to roll out the Gametraders brand into every major shopping centre in Australia.
Key success factors:
- It doesn’t matter if you don’t have the relevant experience. A good idea based on a new trend can carry a start-up.
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