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Anti-Competitive Behavior in the Printer Industry?

Greyfox writes: "Here is an interesting story about the printer industry versus ink-cartridge refillers. Anyone who's bought a low-cost inkjet knows that you can spend over half the cost of the printer on ink. So it was only natural that an industry would spring up around refilling the cartridges. Well the printer industry has apparently been fighting back, trying to protect their market share. As with all good stories, legislation is being considered. Worth a read." Sort of like spyware -- it's a back-and-forth battle.

14 of 438 comments (clear)

  1. more precisely... by tps12 · · Score: 5, Interesting
    Anyone who's bought a low-cost inkjet knows that you can spend over half the cost of the printer on ink.

    Yeah, every time you buy more ink. Over the lifetime of the printer you may well end up spending several times the original printer cost on ink cartridges.

    I don't see what the big deal is. Printer makers have a tough sell trying to get people to pay more to not recycle, and rightly so. One of these companies will eventually have the balls to start making easily refillable cartridges. Their lower margins will be accounted for by their boom in sales.

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  2. HP by vlag · · Score: 5, Interesting

    Gotta love HP. Their new printers use ink refills with "Smart Chips". The chips check ink levels and if they ever increase, the printer refuses to use that cartridge. No more refilling the cartridges. I don't like H-Paq very much.

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  3. Talk to Schick. by Matey-O · · Score: 5, Insightful

    This is the same as: Sell the Razor at a loss, make the profit on the blades.

    I don't understand why something that's okay at the $3.00 range (blades) isn't okay at the $50 range. I mean really, do you think these guys are making a profit on a $50 printer when the _packaging_ for that printer's gotta cost $12?

    Buy a laser printer. The toner doesn't dry out or age. Print 99% of your slashdot articles on it. Buy a cheapie inkjet for the occasional color print you need. Not only is the laser printer faster and easier to read, You'll go 2 or 3 years before needing a new toner cart. (I've got an NEC superscript 870. Bought it in 1997. The first toner cartridge lasted four years and printed 2200 pages with one misfeed. It's on it's second toner cartridge)

    Besides, by the time you need ink on your color printer, the NEW color printer will be higher quality. (or USB, or whatever)

    I'm actually considering buying a dedicated photo printer as that's all I really use color for now anyway!

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  4. Humor - Coming soon, "Inkwrap agreements" by Seth+Finkelstein · · Score: 5, Funny
    I can see it now:

    "This printer is licensed to you, not sold. By printing anything with this printer, you indicate your agreement to use only genuine HI-PRIKED replacement ink cartridges. Any other use invalidates your license. You may terminate this agreement by destroying the printer."

    This will be called a breakthrough in ineffectual property.

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  5. The solution is not new laws. by dada21 · · Score: 4, Insightful

    The solution is all you people who want laws, throw your money into a corporation, and COMPETE.

    If you can do it for cheaper, THEN DO IT.

    I, myself, can not. I looked at the cost of getting it all to work. There is no way to do it. Since they know you won't pay $600 for a printer, and $5 for cartridges, they do it the way they have to do it to make a profit, albeit a small one.

    Epson, HP, Canon, they're not in bed together. This is no boat race. They found out that the average American barely uses their printer, but enough that spending $100-$150 a year on cartridges is not a bad deal, rather than paying $500 for a new printer and $25 a year on cartridges.

    There are numerous other ways to print in color. I bought an HP Color LaserJet 4500. I print everything. The damn thing is a personal printer for me, and it runs ALL the time. The cost over the past year? Maybe $200, including tons of toner (thousands of pages printed). I love it. I will NEVER go back to Ink Jet.

    Go, compete. The market is open. Once the government regulates, you think it'll help us, or help HP and Epson?

    Think hard. I know you can...

  6. Nonsense Argument by freeweed · · Score: 4, Interesting

    "Ink costs half what the printer does"

    Guess what folks? So do an awful lot of things you buy. I can go out and pick up a $30 discman, and the CDs are still $15+. The discman (or printer) is just a delivery mechanism, it's what you put in it that actually matters at the end.

    What I found lacking in the article (and all posts so far) is a biggie for me: most printer manufacturers will void your warranty if you use recycled cartridges, and with good reason. Last time I had to maintain several laser printers, every time some dingbat (read: the boss) went and ordered a recycled toner cartridge, the printer(s) died within a few weeks of using it. Recycled toner and ink cartridges tend to be a LOT lower quality than new ones, they leak all over the place, etc. I'm not even going to start with those needle-injection packages you can buy for the home.

    Although I don't think printer manufacturers should be able to PREVENT someone else selling ink, they sure as hell shouldn't have to pay (because of damage) for someone else's incompetence. Oh, and for those that bring up the old "Honda doesn't force you to buy their gasoline" argument... go pick up a new car and install a 3rd party stereo system sometime, and see just what your warranty covers now.

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  7. Of course they're going to try to keep ink sales by srmalloy · · Score: 5, Interesting

    Look at the economics -- a printer is a one-time sale; you've collected the customer's money, and they've got their printer. Ink is a fungible; it gets used up, and you have to buy more. If a printer manufacturer can come up with a mechanism to ensure that the people who buy their printers have to buy their ink, they have a steady revenue stream.


    Look at the relative costs. Printer prices have been going down almost as fast as memory prices. With some of the low-end ink-jet printers, once you buy more than one or two OEM ink cartridges, you've spent more on cartridges than you did on the printer. And over the printer's lifetime, looking at the OEM costs for some of these ink-jet cartridges, you're going to spend on ink several times what you spent on the printer. Think about what the automobile market would be like if you had to buy your oil, gasoline, tires, and every other consumable or replacement component for your car from the company that made your car. That's what the printer manufacturers want.


    Several companies tried, back when the high-resolution ink-jet printers were first coming out, to achieve that kind of control over the other fungible supply for printers -- paper. They brought out special ink-jet paper 'specially designed for high-resolution printing' and ran ad campaigns suggesting that you would be producing sub-standard printouts if you used non-OEM paper. That lasted until the big paper manufacturers ramped up to produce the same products, and unlike ink cartridges, there was no way for the printer manufacturers to put in mechanisms to force consumers to use OEM paper.


    Printer manufacturers have also claimed that using non-OEM inks would damage their printers, and that using non-OEM inks would void the warranty. However, the manufacturers were required to stop this tactic; under the Magnuson-Moss Warranty Act and general principles of the Federal Trade Commission Act, a manufacturer may not require the use of any brand of ink (or any other article) unless the manufacturer provides the item free of charge under the terms of the warranty. This hasn't prevented salesdroids and tech-support people from claiming that, but they'll fold if you press them.


    It may be an ongoing back-and-forth struggle, but market forces are going to continue to pry fungible supplies sales away from printer manufacturers.

  8. Re:Printers are disposable. by Zeinfeld · · Score: 4, Insightful
    Yes, but the cartreges in the new printer are only half full, so you are doing it twice as often.

    It is actually a rational strategy that over time defeats the printer manufacturers.

    The printer manufacturers strategy appears to be to seel the printer as a loss leader for the cartridge. That strategy starts to become seriously painful for the printer manufacturers if people start buying the printers and not the cartridges. People who treat the printers as disposable are costing the manufacturers $20 or so every time they get a new one. If that takes hold the printer manufacturers will be forced to make it more attractive to buy the refills.

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  9. Epson Chip Resetting Kit by Mignon · · Score: 4, Informative
    I see several mentions of Epson (and other) printers having special chips on their ink cartridges. I have an Epson 777 ink jet. It is pretty cheap (~$80US), but Epson ink replacements (~$45 a pair) are about half the cost of the whole printer.

    So I got an "Epson chip resetting kit" and generic ink cartridges. It's pretty easy to use - you take out the old ink cartridge, pop out the chip with a little plastic tool that comes with the resetter, insert the chip in the resetter. Wait a couple of seconds for an LED to change color, then insert the chip in the new cartridge. Then install the new cartridge as Epson's instructions direct.

    The chip resetter wasn't cheap - $36, but the ink was - $7 and $9 for B/W and color, respectively. I figure the total fixed cost of $116 for printer and resetter is still reasonable, and $16 for a pair of cartridges is much more reasonable. Also, I got my mother an identical printer, so I can just reuse the resetter since I am her official administrator.

    Then again, if I were printing a lot, I'd get a refurbed laser printer. Their per-page cost is way lower than inkjet.

  10. It's about QA by dy_dx · · Score: 5, Informative

    I'm surprised that I can't find any posts explaining why printer manufacturers are against refills (other than the knee jerk "they want all my money" response).

    I had the chance to meet one of the inventors of ink jet printing awhile back, and he explained why the HP "smart chip" would be (it wasn't rolled out yet then), a Good Thing(tm).

    Most ink cartridges today have print heads on them already, which is a big part of their cost. Now obviously, the print head on an inkjet cartridge doesn't last forever. With today's really high printing resolutions, this head is a device which has to spit out pico-liters of ink with very precise timing. The ink must be at the correct temperature so as not to evaporate before hitting the paper or to stay wet on the paper for too long. All this requires a pretty sophistocated print head which wears down with use. After enough use, printing performance actually suffers.

    The only way to guarantee printing quality under these conditions is to make sure the printing head is replaced periodically (i.e. with a new cartridge). By allowing cartridge refilling, there's no way to guarantee the print head gets replaced when it needs to be, and thus they wouldn't be able to guarantee that "an HP printer will always print quality." So there's actually a QA issue.

    HP has developed a separate print head / ink assembly, but generally only very high volume printers use this type of solution (because it's not cost effective for Joe Q. Consumer to buy a gallon container of red ink), and even then they have to separately replace the print head occasionally.

  11. Re:Depends on the company. by Da+Schmiz · · Score: 5, Informative
    I've had a great many inkjet printer get ruined
    I used to be HP Authorized Technician and fix HP computers and occassionally HP printers for a living. I can tell you that you really don't want to get an ink spill inside your inkjet printer. Older HP models (like the original DeskJet and the 5xx series) had a large, important circut board at the bottom of the case, where ink (or any other spilled liquid) loved to collect. I've seen many a printer ruined by people who tried refills and didn't get it right.

    And, as you point out, unless the ink is the exact same consistency, the print head will get clogged or else simply not deliver good print performance.

    Additionally, the reason they make the print heads part of the ink cartridge is (at least in part) so that users will change the heads regularly. For good print quality, you need new heads every few hundred pages anyway, so tying the head to the ink forces Joe Blow not to forget to change the heads.

    Now, don't get me wrong: I believe that this is also a case of the manufacturers taking a legitimate claim and using it as leverage to force the users to pay more. I'm not naive. But that doesn't mean that the manufacturer's claims are entirely without merit, either.

    I think that ideally, the heads and ink should be separate, standardized modules. Each one would have to be labeled with precise information about (in the case of the head) number of jets, jet spacing, voltages, etc. and (in the case of the ink) the types of heads it will work with, the quantity of ink per container, etc. That way, you could (theoretically) upgrade your printer by swapping in a higher-quality print head. If they could legislate that kind of solution, it might work.

    But DIY ink refills are at best a hit-and-miss proposition -- if the government were to legitimatize ink refills, they would have to also regulate the quality of these offerings... something like requiring a warranty, in case the refilled cartridge somehow ruins the printer.

    Oh, and BTW: None of this applies to laser refills, which I have very little experience with. My understanding is that some are very good, and others are very bad. And, having had to clean toner spills out of laser printers, I can tell you that it's not a fun job. But laser is by far the better technology: my printer here is a LaserJet that produces nice, sharp (albeit B&W) pages and that has jammed maybe once and otherwise never given me a problem. Of course, I don't use it as much anymore... I really have no need for hard copies of anything 99% of the time...

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  12. Refills are a bad deal by petard · · Score: 4, Interesting

    It's been more than 5 years now, but I used to work repairing printers, and the refills (for both inkjet and laser printers) were bad news. Part of this can be chalked up to poor printer design. Most printers on the market today have the "print head" and the ink tank bundeled into one package, or in the case of laser printers, the imaging drum and the toner bundled into one package. Refills work on the principle that the print head/imaging drum is more durable than the resevoir, so in theory you should be able to replace one without the other.

    This is true, on a well-designed printer where the two parts are separate assemblies. (Some canon printers operate this way; a replacement ink tank is only a few dollars while a whole cartridge is ~$30 - 50 US.) The problem is that refills, at least in those days, were difficult to perform correctly. I believe that it is even harder today, as cartridges are more complex while the refill technology doesn't appear to have improved. We used to see a large number of printers come into our shop damaged by improperly performed refills. Of course, in those days this was worse news, as a new inkjet was typically around $300 US and a new cartridge was around $30 US. This is true of a good printer today as well.

    In short, if you have a good printer, the refills are not worth it. You most likely will wind up damaging the printer, and of course the warranty does not cover damage from non-approved cartridges/refills. If it's a really cheap printer, the risk/reward scenario is quite different. The cartridges do not last as long on the cheapies, and represent a higher proportion of the cost of the printer. I prefer a nice printer and a lower cost per page, though. If this is your situation, the refills are almost certainly a false economy.

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  13. MOD THIS GUY UP! by fmaxwell · · Score: 4, Offtopic

    Yeah, he's testy, but he's right. I, too, am sick of the Libertarian bullshit of telling me to start a company every time that I voice a complaint about a product or service.

    I'm sick of hearing about how the "free market" will fix everything. The only thing that the free market will guarantee is a lot of companies that are very efficient at generating profits. If the free market is so f****** wonderful, explain Microsoft!

    I'd rather have consumer protection laws passed and enforced by a government with no stake in the transactions than have a bunch of big companies collude to cheat consumers.

    Don't you worry about that evil old government. Enron is working for your best interests.

    1. Re:MOD THIS GUY UP! by fmaxwell · · Score: 4, Insightful

      Consumer Protection Laws that are currently active don't protect the consumer at all.

      I beg to differ. I think that laws against false and deceptive advertising help the consumer immensely. The laws regarding consumer credit are tremendously valuable. They guarantee that a consumer can see his/her credit history and dispute erroneous entries. Laws that require that manufacturers of food products accurately list ingredients not only help consumers, they saves lives (allergies). The Magnuson-Moss warranty act, that prevents a manufacturer from denying warranty claims when you use aftermarket products (e.g., a Fram oil filter in your GM car). Laws against bait-and-switch advertising help consumers. I could go on for pages, but I think you see my point.

      Can you name ONE competitor to ANY of Microsoft's products that works decently enough, that is compatible across the board with the hardware that the average user has, that is easy to teach to the laymen, and that looks and feels good?

      Yes. Opera 6 is a superior browser to IE 5.5. The UI is superior. The security is superior. When there is a rendering problem on a site, it is almost invariably due to some Microsoft "extension" to HTML that was put in to stifle competition.

      How is selling a printer for $50 and cartridges for $30 colluding?

      When all of the manufacturers get together and agree to do it, it's collusion. And I believe that is what happened.

      If I come out with a $300 printer and $10 cartridges, will you buy it?

      Not necessarily, but if it's $200, does not dry out the ink cartridges if unused for a week, and has reliability approaching my laser printer, sure I'll buy it. And so would many others. I'd even think about it at $300 if it had good paper handling, print quality, interface, etc.

      The "Libertarian bullshit" about starting a company won't work well as long as we have all this government protection of "big business."

      I said that consumers needed protection, not big business. I'll agree that we need a lot less corporate welfare.

      But that does not mean that every time I am dissatisfied with a product sector that I should start a company. I don't want to go into competition with Canon, HP, Lexmark, and Epson. I just want an inkjet printer that does not use miniscule, expensive cartridges that are engineered to fail.