[Trombone-l] Refill 'er up

[Phil Brink]

Now we are forming a new listserv: Inkjet-L! ;-)

Phil Brink

----- Original Message ----- 
From: "Bill Dinwiddie" <billdin at comcast.net>
To: "List Trombone" <TROMBONE-L at server5.samford.edu>
Sent: Saturday, March 25, 2006 8:39 AM
Subject: [Trombone-l] Refill 'er up


> Refill 'er up
> Retailers ready for fierce fight to supply your printer ink
>
> By Eric Benderoff
> Tribune staff reporter
> Published March 24, 2006
>
>
> A new battle is brewing in the technology trenches over a very old 
> product:
> ink.
>
> What was once seen as a grimy task reserved for frugal technology geeks,
> environmentalists and hobbyists is now about to be legitimized in a huge
> way, as at least two big retailers roll out inkjet refilling stations at
> stores nationwide.
>
> Consumers, who now change printing cartridges more often than lightbulbs,
> would be able to save up to 50 percent off the cost of new cartridges that
> are used to print everything from digital photos to term papers and range 
> in
> price from $20 to $200.
>
> On Friday Itasca-based OfficeMax Inc. is kicking off a marketing campaign
> for its inkjet refill services across its 900-store chain. They already 
> are
> available at Chicago-area stores.
>
> Next week, Deerfield-based Walgreen Co. begins a rollout of refill 
> stations
> at 1,500 of its more than 5,100 stores. One already is operating at the
> Walgreens at 1601 N. Wells St., and by May the service will be available 
> at
> 100 Chicago-area stores.
>
> The big chains are joining upstarts like Cartridge World, which has spread
> rapidly throughout the Chicago area.
>
> "We want to be the Starbucks of this industry," said Chris Gallagher, who
> with his brother, Todd, owns two Cartridge World franchises and plans to
> open as many as eight within the next three years.
>
> The refill services offer businesses and home users a no-mess opportunity:
> sharply lower prices for a 10-minute wait.
>
> "I'm of the opinion it's just ink," said Sean Lowry, a senior vice 
> president
> for Pacor Mortgage in Chicago, whose company is hooked on the service. "An
> average cartridge for a good printer or copier is $100. If you're using 
> six
> or seven machines at the office, that's a lot of money."
>
> The printing business is booming. Thanks to the growth of digital
> photography, desktop publishing and affordable color printers, the
> digital-imaging-supplies business will top $100 billion in 2006, according
> to a report released Monday by Lyra Research in Newton, Mass. By 
> comparison,
> the hardware market--think printers--will account for $60 billion this 
> year,
> the research found.
>
> Inkjet cartridges range from basic black for printing simple documents to
> more complex models needed for presentations and photos. Prices exceed 
> $200
> for some color models.
>
> "It can cost about as much as a new printer to buy a set of new 
> cartridges,"
> said Walgreens spokesman Tiffani Bruce.
>
> Burt Yarkin, chief executive at Cartridge World's U.S. business, said 
> that's
> because printermakers follow an age-old business philosophy. "They will 
> give
> you the razors and charge you for the razor blades," he said.
>
> The biggest challenge for his chain, which has about 20 stores across
> Chicago and 370 in the U.S., is to educate people that most cartridges can
> be refilled.
>
> "Walgreens getting into this business legitimizes what we do," Yarkin 
> said.
> "It's a good thing for us."
>
> This emerging market also will put additional pressure on companies like
> Hewlett-Packard Co., where about 70 percent of profit in the printer
> business come from supplies.
>
> HP has "seen their supplies business get slowly eaten away," said Peter
> Grant, a research vice president for Gartner Inc. "About 15 to 20 percent 
> of
> their business is going to these third parties."
>
> But Pradeep Jotwani, HP's senior vice president of imaging and printing
> supplies, dismisses those concerns.
>
> "We've been in this business for 22 years," Jotwani said. "We've had
> competition all along. It's taken various forms at different times. This 
> is
> just another wave."
>
> Today's printers, he said, are used to produce professional resumes,
> wonderful photos and slick marketing materials.
>
> "It is because we've been able to harness complex technology," Jotwani 
> said.
> "We designed it that way and we make it reliable to work with our
> cartridges."
>
> For OfficeMax, the move to add refill stations "is not about saying we 
> don't
> want to sell HP or Lexmark products," said Ryan Vero, executive vice
> president and chief merchandise officer. "There's a customer base out 
> there
> that wants this service. It's not like we are trying to move them away 
> from
> a branded cartridge, but we are giving them a choice."
>
> OfficeMax can refill about 90 different inkjet cartridges. Prices start at
> $12.99 to refill a black ink cartridge and $22.99 for a color model, as 
> much
> as a 40 percent savings over the price of a new cartridge, Vero said.
>
> At Walgreens, customers can drop off an empty cartridge at the photo
> counter, and a technician will refill it in about 10 minutes, Bruce said.
> Prices vary depending on the model, but customers should save about 50
> percent over buying a new cartridge, she said.
>
> The Cartridge World at 2634 N. Clark St. also remanufactures laser toner
> cartridges, a service OfficeMax and Walgreens do not provide. "You can 
> save
> about 30 percent on those," said franchisee Gallagher.
>
> Customers range from home users and small businesses to major companies, 
> he
> said.
>
> "Best Buy is a customer," Gallagher said with a laugh, pointing down the
> street toward the big-box retailer that sells new printer cartridges. 
> "They
> even refer people to us."
>
> If there is a point of contention in this growing business, it is the
> subject of quality.
>
> "We think you can save money, but you take a cut in the quality you are
> getting," Gartner's Grant said. "Many of our clients say they are going 
> back
> to the [original equipment manufacturer] to get the full value of the
> supplies to go with their printers."
>
> HP's Jotwani is not surprised.
>
> "This is not a commodity, it is high-quality ink," he said. "Our 
> cartridges
> and our inks work every time and give you great output quality each time.
> Generic inks can't do that."
>
> All three retailers offer customers money-back guarantees on refilled
> printer cartridges.
>
> "If you print a picture of your grandchild, and it's not as good as it was
> before you had the ink replaced," said Todd Gallagher, "you won't come
> back."
>
> - - -
>
> Filling up on lower prices
>
> Retail outlets for refilling inkjet cartridges, such as Cartridge World,
> OfficeMax and Walgreens, have been growing as consumers find they can save
> up to half the cost of new ones.
>
>
> PRICE COMPARISONS PRINTER INK CARTRIDGE COMPANY CARTRIDGE SAVINGS PRICE
> WORLD PRICE EPSON Stylus C86 Standard capacity black $23.74 $10.99 53.7%
> Stylus CX5200 Cyan $12.34 $6.99 43.4% Stylus C84N Magenta $12.34 $6.99 
> 43.4%
> Stylus CX7800 Yellow $12.34 $6.99 43.4% HEWLETT-PACKARD Deskjet 600 HP 29
> black $29.99 $16.99 43.3% Deskjet 1100c HP 41 tri-color $31.99 $17.99 
> 43.8%
> Deskjet 3320 HP 27 black $17.99 $10.99 38.9% Deskjet 400 HP 25 tri-color
> $29.99 $16.99 43.3% Bill Dinwiddie
>
>
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