*NEWS*LYRA:TONERS COST MORE THAN PRINTERS

Toner News Mobile Forums Latest Industry News *NEWS*LYRA:TONERS COST MORE THAN PRINTERS

Date: Wednesday July 19, 2006 12:13:00 pm
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    Pricey Brother and Lexmark Cartridges Dampen Affordable Color Laser Fanfare, Says Lyra
    Lyra
    Research, the digital imaging authority, recently investigated the
    “sticker shock” phenomenon that some consumers experience when buying
    replacement toner cartridges for their affordable color laser printers.
    According to Lyra’s Hard Copy Supplies Advisory Service, for two of the
    sub-$500 color laser printers examined, a set of four replacement
    cartridges actually costs more than the printer does. A set of
    replacement cartridges for the Brother HL-2700CN, which sells for
    $499.98, costs 19 percent more than the printer. Similarly, four
    replacement cartridges for the $399.98 Lexmark C510 cost nearly 10
    percent more than the printer. See the complete press release for
    information on replacement cartridges for other printers from Dell, HP,
    Konica Minolta, Lexmark, Oki and Xerox.
    Newton, MA  July, 2006 —
    Lyra Research, the digital imaging authority, recently investigated the
    “sticker shock” phenomenon that some consumers experience when buying
    replacement toner cartridges for their affordable color laser printers.
    According to Lyra’s Hard Copy Supplies Advisory Service, for two of the
    sub-$500 color laser printers examined, a set of four replacement
    cartridges (cyan, magenta, yellow, and black) actually costs more than
    the printer does. A set of replacement cartridges for the Brother
    HL-2700CN, which sells for $499.98, costs 19 percent more than the
    printer. Similarly, four replacement cartridges for the $399.98 Lexmark
    C510 cost nearly 10 percent more than printer. While no other sets of
    replacement cartridges exceeded the price of a printer, several color
    laser printer vendors, including Dell, HP, Konica Minolta, and Lexmark,
    sell a complete set of replacement cartridges for approximately 75 to
    93 percent of the printer price . Cartridges for Oki’s C3200n fared
    best in the comparison, selling for 54 percent of the printer price.
    Cortney
    Kasuba, toner analyst for Lyra Research and author of the study,
    explains the implications, “There has been a lot of fanfare about the
    availability of affordable, sub-$500 color laser printers. Color toner
    cartridges, however, have not followed suit in the downward pricing
    trend. While low printer prices may attract consumers to stores, the
    sticker shock they experience when it is time to buy new cartridges may
    ultimately lead to more conservative color printing habits-consumers
    may opt to print in monochrome more often than many printer vendors had
    anticipated. This development has the potential to disrupt the
    razors-and-blades revenue model in this market segment. Interestingly,
    some of the pricier cartridges actually have relatively high page
    yields, but in this price-sensitive category, consumers are more likely
    to associate value with low out-of-pocket costs.”

    Related Chart Data
    Replacement Cost for Toner Cartridges Relative to Printer Price
    KEY: Printer Vendor and Model, Cartridge Price as a Percent of Printer Price
    Brother HL-2700CN, 119%
    Lexmark C510, 110%
    Lexmark C522n, 93%
    Dell Laser 3100cn, 88%
    Konica Minolta magicolor 2400W, 81%
    HP Color LaserJet 2600n, 81%
    Dell Laser 3000cn, 75%
    Xerox Phaser 6120N, 62%
    Okidata C3200n, 54%

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