A blow to refillers & ink suppliers

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Industry Professional

HP has already introduced the "Simple Black" cartridge (http://printer.ink-
cartridge.com.au/hp-simple-black-cartridge-introduced) in China and India
to beat the refillers, but Epson has a complete strategy to defeat
refillers and generic cartridge manufacturers - ultra cheap consumables.
The catch? Consumers will pay more for their printers. Whilst still only
implemented in China, if it's successful there, expect the concept to
spread to all markets.

"For more than a decade, the printer industry has counted on a potent
combination of low-cost hardware that draws in buyers and high-priced
supplies that deliver some of the best margins of any business. But now,
printer manufacturers are running head-on into cost-conscious Chinese
consumers who just say "no" to expensive cartridges.

Epson, desperate to turn around its wobbly printer business, has made
low-cost cartridges the centerpiece of its Chinese consumer printer
marketing strategy. It's a very high-risk move, if it sells printers,
competitors will have no choice but to respond, and not just in China.
If Epson's approach works in China, it almost certainly will work in
other developing countries, and perhaps even in developed countries,
where consumers, although richer, are also disgusted with consumables
costs. The industry could be facing something it has quietly dreaded for
years - a consumables pricing nuclear war that melts the razor-and-blades
model and incinerates the industry's rich profit margins."

There is a free live webcast on the subject on the 16th of January by Lyra

http://www.webcastgroup.com/client/start.asp?wid=0660116073085
 
Industry said:
HP has already introduced the "Simple Black" cartridge (http://printer.ink-
cartridge.com.au/hp-simple-black-cartridge-introduced) in China and India
to beat the refillers, but Epson has a complete strategy to defeat
refillers and generic cartridge manufacturers - ultra cheap consumables.
The catch? Consumers will pay more for their printers. Whilst still only
implemented in China, if it's successful there, expect the concept to
spread to all markets.

"For more than a decade, the printer industry has counted on a potent
combination of low-cost hardware that draws in buyers and high-priced
supplies that deliver some of the best margins of any business. But now,
printer manufacturers are running head-on into cost-conscious Chinese
consumers who just say "no" to expensive cartridges.

Epson, desperate to turn around its wobbly printer business, has made
low-cost cartridges the centerpiece of its Chinese consumer printer
marketing strategy. It's a very high-risk move, if it sells printers,
competitors will have no choice but to respond, and not just in China.
If Epson's approach works in China, it almost certainly will work in
other developing countries, and perhaps even in developed countries,
where consumers, although richer, are also disgusted with consumables
costs. The industry could be facing something it has quietly dreaded for
years - a consumables pricing nuclear war that melts the razor-and-blades
model and incinerates the industry's rich profit margins."

There is a free live webcast on the subject on the 16th of January by Lyra

http://www.webcastgroup.com/client/start.asp?wid=0660116073085
Click to expand...

Bravo to the Chinese who, apparently, are smarter than most North
Americans and just say "no" (as I do!) to overpriced cartridges . My
point is clear on this. I will not buy OEM cartridges until a set of 5
comes down in price to about $20 Canadian ($17 US).

-Taliesyn
 
Taliesyn said:
Bravo to the Chinese who, apparently, are smarter than most North
Americans and just say "no" (as I do!) to overpriced cartridges . My
point is clear on this. I will not buy OEM cartridges until a set of 5
comes down in price to about $20 Canadian ($17 US).
Click to expand...

If they run this model in China and not in North America there will be a
huge business for shipping Chinese spec printers from Hong Kong to the
US/Canada. If this happens, ebay will be the place I buy my next
printer. :)
 
Taliesyn said:
Bravo to the Chinese who, apparently, are smarter than most North
Americans and just say "no" (as I do!) to overpriced cartridges . My
point is clear on this. I will not buy OEM cartridges until a set of 5
comes down in price to about $20 Canadian ($17 US).

-Taliesyn
Click to expand...


It isn't a metter of price, but that the clever Chinese can and do
counterfeit almost anything (heck, they make it in the first place, so the
conterfeits may come out the back door of the same factory that makes the
brnaded product). I understand Chinese pay more for their computers too,
since Microsoft has started virtually giving away a baisc version of
Windows, because discs of that are sold for a few Yuan on the street.

Brendan
 
Taliesyn said:
Bravo to the Chinese who, apparently, are smarter than most North
Americans and just say "no" (as I do!) to overpriced cartridges . My
point is clear on this. I will not buy OEM cartridges until a set of 5
comes down in price to about $20 Canadian ($17 US).

-Taliesyn
Click to expand...

I would hardly call that..."A blow to refillers & ink suppliers". It's
more like a victory although let wait and see what happens to the
Western culture crowd.
It's difficult to see the highly overpaid exe's take a pay cut to sell
more ink.
Did you see where the outgoing CEO of Home Depot got a $210 million
going away bonus?
Frank
 
Industry said:
HP has already introduced the "Simple Black" cartridge (http://printer.ink-
cartridge.com.au/hp-simple-black-cartridge-introduced) in China and India
to beat the refillers, but Epson has a complete strategy to defeat
refillers and generic cartridge manufacturers
Click to expand...
On the surface that sounds good. Tell us more. Sounds exciting
- ultra cheap consumables.
The catch? Consumers will pay more for their printers. Whilst still only
implemented in China, if it's successful there, expect the concept to
spread to all markets.

"For more than a decade, the printer industry has counted on a potent
combination of low-cost hardware that draws in buyers and high-priced
supplies that deliver some of the best margins of any business. But now,
printer manufacturers are running head-on into cost-conscious Chinese
consumers who just say "no" to expensive cartridges.

Epson, desperate to turn around its wobbly printer business, has made
low-cost cartridges the centerpiece of its Chinese consumer printer
marketing strategy. It's a very high-risk move, if it sells printers,
competitors will have no choice but to respond, and not just in China.
If Epson's approach works in China, it almost certainly will work in
other developing countries, and perhaps even in developed countries,
where consumers, although richer, are also disgusted with consumables
costs. The industry could be facing something it has quietly dreaded for
years - a consumables pricing nuclear war that melts the razor-and-blades
model and incinerates the industry's rich profit margins."
Click to expand...

This would sound like a good idea. Pay $50.00 more for a printer and
get $5.00 OEM ink and no more relabelers. Sounds great.
 
Taliesyn said:
Bravo to the Chinese who, apparently, are smarter than most North
Americans and just say "no" (as I do!) to overpriced cartridges . My
point is clear on this. I will not buy OEM cartridges until a set of 5
comes down in price to about $20 Canadian ($17 US).
Click to expand...

I hear what you are saying. OEM is better but you do not want to pay
for it at today's prices but you will at $20.00 cause you know it is
better. Fade less, clogs less and the print quality is better. Well
maybe you would like $15.00 for the generic so you could save a little
more allowance.
 
Industry Professional said:
HP has already introduced the "Simple Black" cartridge
(http://printer.ink-
cartridge.com.au/hp-simple-black-cartridge-introduced) in China and India
to beat the refillers, but Epson has a complete strategy to defeat
refillers and generic cartridge manufacturers - ultra cheap consumables.
The catch? Consumers will pay more for their printers. Whilst still only
implemented in China, if it's successful there, expect the concept to
spread to all markets.

"For more than a decade, the printer industry has counted on a potent
combination of low-cost hardware that draws in buyers and high-priced
supplies that deliver some of the best margins of any business. But now,
printer manufacturers are running head-on into cost-conscious Chinese
consumers who just say "no" to expensive cartridges.

Epson, desperate to turn around its wobbly printer business, has made
low-cost cartridges the centerpiece of its Chinese consumer printer
marketing strategy. It's a very high-risk move, if it sells printers,
competitors will have no choice but to respond, and not just in China.
If Epson's approach works in China, it almost certainly will work in
other developing countries, and perhaps even in developed countries,
where consumers, although richer, are also disgusted with consumables
costs. The industry could be facing something it has quietly dreaded for
years - a consumables pricing nuclear war that melts the razor-and-blades
model and incinerates the industry's rich profit margins."

There is a free live webcast on the subject on the 16th of January by Lyra

http://www.webcastgroup.com/client/start.asp?wid=0660116073085
Click to expand...

Just wait till this business model hits your cell phones. You won't be going
yuk yuk for too long.
 
milou said:
What type of ink do you recommend for refilling a cellphone?
Click to expand...

Any type that allows you to carry over into the next month. That's pretty
much a short list isn't it?
 
I think it would be great if the printer manufacturers began to raise
costs of the printer units and dropped cost of consumables. That's more
how it used to be, and it ultimately makes more sense. Maybe, while
they are at it, they can get rid of all the cat and mouse designs they
came up with to defuddle and ruin the printer or cartridge to thwart
refilling or 3rd party product, all at our expense both in terms of
paying the R&D and cost of implementing, but also in the manpower that
could have been much more productively placed toward really useful
ingenious developments in the printing process itself.

Hope it catches on soon.

Art
 
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