EPSON Slashes Ink Prices by 70 Percent
Epson China has reportedly been selling printer inks for as low as one third the price of similar Epson inks sold in Europe and the US. The drastic price cut, say market observers, could shake the printer industry as it could ignite a price war that would hurt manufacturers’ profits worldwide.
The threat of a price war is aggravated by the looming possibility that China’s PC maker Lenovo would enter the printer manufacturing industry, possibly with government backing. This could send the prices of printers and ink tumbling down further.
Printer manufacturers – HP, Epson, Lexmark, Canon, etc. – have long followed the so-called ‘razor and blades’ business model of selling the printer at cost, even at a loss, then bleed consumers through the nose by charging exorbitant prices for the consumable ink, now the most expensive liquid in the world – more expensive, drop for drop, than premium liquor or medicine.
People who argue for the high cost of printer ink say the research and technology that go into printer manufacture justify it. Granted that that indeed is the case, we would never have been able to afford airline tickets if we have to factor in the cost of training pilots and building the airplanes, never mind the cost of fuel. High research and sophisticated technology have to bend to accommodate consumer needs, especially on mass-market products like printer inks. The high volume that will ensue as a result of making it affordable will make a good profit for everyone. Make money on thin profits but large volume; the Chinese have known that for centuries; and it takes Communist China to show us the way.
[Via: VNUnet.com]
epson, china, ink, price, lenovo, price war
February 15th, 2007 at 8:21 am
Help is coming from Kodak
http://www.inkisit.com