07. November 2007

Why Do Ink Cartridges Cost So Much?

I always had a question in my mind that “How come, with printer prices falling, ink prices are still so outrageous?”. Today i did little bit of Search ( Google ,Yahoo, Live Search ) over the internet to find the reason.

I found this great article which illustrates the reason very clearly . Here are some other few interesting things that i found. In fact one of my good friend who used to be my classmate while we did Electronics Engineering is working for a company that makes Printers . And he says they make more money by selling Ink for the printers they make than the money they actually make by selling their first line product “Printers”.

Ink jet and toner cartridges are fanning angry sparks in the ink cartridge replacement market–a $21 billion field, according to Lyra Research.

Consumers are annoyed at the price of authorized replacement ink cartridges, and tempted by third-party substitutes that don’t always work flawlessly.

The major vendors, including Canon, Epson, Hewlett-Packard, and Lexmark, are at odds with independent manufacturers of alternative inks. In fact, some big vendors are suing third-party makers of cartridge clones for alleged patent violations. Meanwhile, second-tier ink cartridge makers say they simply offer consumers a choice–at prices that are sometimes 75 percent below what major vendors charge.

The Real Cost

The printer supplies industry has adopted the practice of cell phone and razor blade sellers: Charge low prices for initial equipment, then make money from ongoing fees for additional needed components. Vendors sell consumer printers at cost, or even sometimes at a 20 percent loss, say financial analysts at Bear Sterns who track Epson and HP. But on the flip side, both firms earn a 60 percent gross margin on ink jet and toner cartridges, says Bill Hand, financial analyst with Bear and Stearns.

Those numbers are not exactly true, the vendors say. HP does make money on its printer hardware, according to Pradeep Jotwani, senior vice president of imaging supplies. In a prepared statement, Epson says that it “makes a reasonable profit on both” printer hardware and ink.

Still, consumers grouse about the “give away the razor and sell the blades” business model. Hence, the birth of a market for recyclers to refill used cartridges, or sell cartridge clones at half the price of the brand-name items.

I found a good site in the meantime which provides ink cartridges and toner cartridges. And if you are in UK ( being a UK site ) it has Free UK Delivery . I found lots of brand of ink Cartridges in this site and gained knowledge too.

 

 

16 Comments

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1. Bill From UNITED STATES (UNITED STATES) Wrote on 08. November 2007 at 11:16 am

I use recycle cartridges and have had good success with a real saving on purchases. I have also tried refilling my own with very poor results but I have talked to others who like to refill and say they have very good results.

We need to look for ways to beet the price.

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2. compatible Ink cartridges From PHILIPPINES (PHILIPPINES) Wrote on 13. November 2007 at 1:04 am

maybe because printers are way way down low in the sales so they get their high revenues from the ink cartridges…

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3. Ink for HP Printer From UNITED KINGDOM (UNITED KINGDOM) Wrote on 25. March 2008 at 7:38 pm

Recycled or remanufactured ink cartridges are a great alternative to paying the high prices of the branded OEM cartridges. Although they have a higher failure rate than OEM cartridges they give far better results than do-it-yourself refill kits. Also all reputable retailers offer a 100% money back warranty on all remanufactured ink cartridges.

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4. low cost gps tracking From UNITED STATES (UNITED STATES) Wrote on 25. January 2009 at 9:38 pm

low cost gps tracking…

As a result, TrackBack spam filters similar to those implemented against comment spam now exist in many weblog publishing systems…..

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5. Alf From UNITED KINGDOM (UNITED KINGDOM) Wrote on 22. August 2009 at 2:26 pm

I use this lot for my ink, have only made two orders but sofar so good 🙂 here you go if you want to take a look Ink Cartridges

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6. ink cartridges From UNITED KINGDOM (UNITED KINGDOM) Wrote on 22. August 2009 at 2:30 pm

not too good with web stuff! That is their link

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7. HP Printer Ink Cartridges From UNITED STATES (UNITED STATES) Wrote on 22. December 2009 at 3:35 pm

Perhaps because the printers are so deep in the sale in order to maintain high income by examining the painting cartridgesWe necessary means for the price of beet.

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8. Umer From PAKISTAN (PAKISTAN) Wrote on 30. December 2009 at 9:45 pm

I use Valueshop and they have good success with a real saving on purchases. Refilling my own with very poor results but some say they have very good results.

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9. wire stripper From CHINA (CHINA) Wrote on 13. May 2010 at 12:21 pm

Fivestar Tools Co., Ltd Specializing in manufacture electrician tools for crimping, cutting and stripping, such as crimping tools, wire stripper, cable cutter, hydraulic crimping tools, hydraulic pipe benders, hydraulic gear puller, hydraulic cylinders, hydraulic busbar processing tools, hydraulic pumps, network tools, cable tie tools, wire stripping machine and hose crimping machines. In China for over 15 years tools manufacture experience with CE authorization.

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10. Thrifty Inks From UNITED STATES (UNITED STATES) Wrote on 13. June 2010 at 7:44 pm

Printer suck customers in with the low cost printers. Customers don’t see the bigger picture, the manufacture makes their money on over priced ink cartridges. That’s why there are some many stores thriving buy selling cheap high quality compatible ink cartridges.

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11. Edward Smith From AUSTRALIA (AUSTRALIA) Wrote on 28. April 2011 at 9:01 am

I usually buy ink cartridges that are not branded in order to save money.

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12. escort ilan From TURKEY (TURKEY) Wrote on 01. May 2011 at 6:21 am

not too good with web stuff! That is their link eyvallah amına koyduğum 🙂

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13. West Palm Beach criminal attorney From PHILIPPINES (PHILIPPINES) Wrote on 23. May 2011 at 9:37 am

This is why I convert my printers to continuous ink. It’s much cheaper and practical. Ink cartridges are just ridiculously expensive.

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14. Live music in Malaga From UNITED STATES (UNITED STATES) Wrote on 03. September 2011 at 10:03 am

Converting your printer to continuous ink is better and much cheaper to have. You can save a lot of money when you do the conversion.

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15. aimee From PHILIPPINES (PHILIPPINES) Wrote on 12. November 2011 at 8:32 am

There are even people who buys empty cartridges here.

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16. Deborah From PHILIPPINES (PHILIPPINES) Wrote on 18. November 2011 at 7:15 pm

@aimee: Your right. I am belong to that people who buy cartridges here in Philippines.

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