HP FIGHTING INK RIVALS BY THE BARREL

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HP FIGHTING INK RIVALS BY THE BARREL

 user 2006-11-16 at 12:29:00 pm Views: 55
  • #17224

    HP Fighting Rivals Who Provide Third-Party Ink By The Barrel
    Hewlett-Packard’s
    most serious competition these days may not come from Dell or Xerox. It
    might just be coming from third party ink cartridge suppliers who are
    cutting into HP’s highly profitable supplies revenue.

    Vince
    Ferraro, vice president of worldwide marketing for the HP LaserJet
    Business Unit, writes ……Have you noticed all of these printer
    cartridge refiller businesses popping up in strip malls across the
    country? You know, those places where someone uses a syringe to re-fill
    an ink cartridge (almost sounds like an addiction) or where used toner
    cartridges are opened and colored plastic is poured in. Many people
    think they are saving a lot of money by buying remanufactured printer
    cartridges. However, there are costs that these users probably haven’t
    considered.Primarily, those costs are in quality, he writes: “Put in
    another light, the cost of using remanufactured cartridges can be more
    than just the price of the cartridge. Our printed output represents the
    quality of our work and ideas. To have this output disparaged due
    having the colors look wrong is hardly worth the perceived cost
    savings.”But it’s those very cost savings — perceived or real — that
    rivals are going right after. For example, a press release from a
    company called OfficeSupplyOutfitters crossed the transom today.
    OfficeSupplyOutfitters provides, among other things, unbranded or other
    third-party toner and ink. Included in the press release (really more
    of a marketing pitch than a press release) was this passage:”Compatible
    brand toner cartridges and inkjet cartridges are a great savings for
    any consumer and are now becoming a mainstream purchase,” says Mike
    Gardner, the company’s president . “A decade ago it was a ‘build it in
    your garage’ business and the quality of your generic toner cartridge
    would be questionable at best. Now, publicly held companies are
    manufacturing these cartridges by the millions and with the same
    quality controls employed by the first party toner andinkjet printer
    manufacturers.”Visit a Walgreens, Staples or Office Depot and you will
    find their generic brands right next to the first party brands. Next to
    an HP brand toner cartridge you may see an Office Depot brand
    cartridge. Having the office supply superstores endorsing compatible
    toner and ink products provides a tremendous amount of validity to the
    compatible lines, says OSO.Ferraro didn’t mention it in his item, but
    solution providers have said that they’ve found luck and
    differentiation through HP’s Scalable Printing Technology, which it
    rolled out almost a year and a half ago and which, HP contends,
    introduced Moore’s Law to print head technology. The technology and
    consulting tools have helped them make an ROI argument to customers,
    convincing them in many cases to stay away from third-party ink.