*NEWS*INK REFILL SRVC,GAINING MRKT SHARE

  • 2toner1-2
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • ces_web_banner_toner_news_902x1776
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • banner-01-26-17b
  • 4toner4
  • ncc-banner-902-x-177-june-2017
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
  • Print
Share

*NEWS*INK REFILL SRVC,GAINING MRKT SHARE

 user 2006-02-07 at 10:36:00 am Views: 73
  • #14063

    Printer cartridge refill services gaining market share
    Even
    as computer prices have steadily dropped, the cost of printer
    cartridges are so costly that printer giant Hewlett-Packard Co. has
    long made more than two-thirds of its profit from selling them.
    Now,
    in a move that could save consumers hundreds of dollars in replacement
    costs, several major retailers are starting to offer speedy refill
    services that replace the ink rather than the entire cartridge.
    Early
    next week, drugstore chain Walgreen Co. plans to announce an ink-refill
    service — at less than half the cost of buying new cartridges — in
    1,500 of its stores, with the rollout starting in mid-March. With an
    eye toward launching a national service, office-supply chain OfficeMax
    Inc. is pilot-testing an ink-refill service in 40 stores in the Chicago
    area. And Office Depot Inc. is also testing an ink-refill service in 15
    stores in Minnesota and North Carolina.
    The new services allow
    consumers to get their cartridges refilled quickly while they shop,
    rather than having to fill the cartridges themselves as the
    do-it-yourself kits on the market require. Matt Davidson, 46 years old,
    a pharmaceutical salesman in Norwalk, Iowa, says he has been going to a
    Walgreens store that has pilot-tested ink refills for the past six
    months. The drugstore, located a mile from Davidson’s home, refilled
    his black-ink H-P cartridge within minutes at “half the price it would
    normally cost me for a new cartridge,” he says. “It was easy.” Davidson
    says he has returned for four other ink refills and has stopped buying
    new H-P cartridges.
    The new services strike a blow at a major profit
    center for companies such as Lexmark International Inc. and H-P, which
    rely heavily on ink for recurring revenue and profits. Indeed, H-P
    actually loses money on its printers — money that it recoups through
    new ink and toner sales. H-P won’t say what its margin on cartridges
    is, but analysts estimate the margin to be at least 60 percent on both
    ink and toner cartridges.
    Each year, about 1.3 billion ink
    cartridges are sold world-wide, according to market watcher Lyra
    Research. Such sales generated $30.1 billion in revenue in 2005. But
    the market share of refilled and re-engineered ink cartridges is now
    projected to hit nearly 29 percent in North America by 2009, up from 23
    percent in 2005, according to Lyra.
    Tuan Tran, an H-P vice president
    of ink and toner supplies, says consumers should be wary of refills,
    however. Since H-P designs its printers and its ink cartridges to work
    together as one seamless system, a refilled cartridge may not be as
    reliable and can cause streaking on printouts, he says. With a refilled
    cartridge, “there’s a big sacrifice in terms of quality,” Tran says