HP to Region-code Cartridges

prostoalex writes "Looks like the printer cartridge manufacturers will be borrowing techniques from Hollywood. HP introduced region coding for some of the newest printers sold in Europe. HP's US location and US dollar sliding lead to the situation, where cartridge prices in Europe are significantly higher than those in the States. In the Wall Street Journal article HP representative in Europe claims the company doesn't make any money off regional coding for cartridges, and that consumers will win once the US dollar rises over Euro."

Comments

Greedy?

[Anonymous Coward]

I think I speak for everyone when I say, "Damn greedy bastards!"

Oh.. and don't try to fool me into believing that you don't earn anything from catridges.

Why are they doing it?

[Alioth]

If they claim they don't make money off region coding cartridges, why are they doing it? Sounds like bullshit to me.

Re:Why are they doing it?

[FrYGuY101]

Technically, they're not making money off the region encoding itself. Rather, they maintain the ability to price-discriminate in varying economic climates, which in turn allows them to make more money.

Classic spin.

Re:Why are they doing it?

[JaredOfEuropa]

If they claim they don't make money off region coding cartridges, why are they doing it?

If the dollar drops against the euro, and we buy cartridges for the same euro amount, then HP gets more dollars. However, we can just buy cartridges in the US ourselves to take advantage of the strong euro, screwing HP out of their extra profit. Region coding takes care of that little loophole. Conversely, if the dollar becomes rather strong, we will not win out like HP claims. In that case, I suspect they raise the euro price of cartridges... they'll have to, since not doing so will eat directly into their normal profit margins.

So it's very simple: they want to pass off any disadvantages of the exchange rate to us customers, while pocketing the advantages. The first is only natural, but they can only get away with the second if they can prevent us from buying in the US.

Re:Why are they doing it?

[miu]

A barrier to trade can only be enacted by a state, this is just a multi-national corporation using superior mobility.

This also a beautiful illustration of why multinationals are the real winners in globalization, they can use labor cost differentials to make a killing and legally backed technological guards to enforce market separation for consumers.

Mental note to self...

[thrill12]

...buy Canon next time...
Buy Canon...

This'll also save me time from taping of my 40ml black cartridges to use on my HP Deskjet 970C, instead of the default 20ml ones...

Comsumers lose

[Kjella]

In the Wall Street Journal article HP representative in Europe claims (...) that consumers will win once the US dollar rises over Euro.

I call bullshit on this. You always introduce regions to make consumers pay more than before (in total), hence the consumers lose. Naturally, some customers pay less than others (how else could it be price discrimination), but overall that is simply false.

Kjella

Where's AntiTrust when you need them?

[beh]

It is kind of strange to see these things happening.

As ridiculous region coding is for DVDs, there I can see a minimal reason (the publishers not wanting a DVD to make it into a market where the movie hasn't even been in the cinemas yet... But as cinema release dates for the big global productions inch ever closer to each other all over the globe, this reason is going away fast - leaving the only "good" thing of the region codings that they can charge more in Europe.

But for an inkjet printer manufacturer - this is pure rip-off. What would I gain by, say, buying an ink-cartridge for a printer that hasn't even been released here from the US? Nothing. I would only waste money.

But - since HP's pricing has gone worse over time anyway, I think it's time to ditch them for good and no longer buy their products... (and just hope that this whole thing doesn't catch on in the printer industry).

Re:Where's AntiTrust when you need them?

[squiggleslash]

Given most DVDs are region encoded, regardless of whether they're for movies that came out in the cinema six months ago, or for movies that were released before video taping was ever invented, I think it's safe to say that region encoding doesn't really have a lot to do with cinema release dates.

Re:How Stupid?

[Seumas]

Consumers will win once the US dollar rises over Euro

Unfortunately, those in the know (such as Warren Buffet) are quite certain the US Dollar will continue to decline for some time.

First they came for the DVD's

[Anonymous Coward]

but I wasnt a dvd user, so I didnt do anything

Then, they came for the printer cartriges, but I didnt use a printer, so I never said anything.

what's next?

Corporate Anti-Globalism

[ahodgkinson]

HP is doing this because they feel that the economic damage caused by bad PR will be less that the regained 'lost profits' caused by geographical arbitrage . Corporations do this because they think it makes them more money. They want to be globalized on the cost side, but not allow their customers the same access to the benefits of globalization.

In short, HP has calculated that region coding their cartridges will pay. And it will, unless the public creates enough commotion to affect their bottom line and force a rethink of the region coding.

HP is restricting free the use of products that I own (or in this case, am likely to buy). As a proponent of Open Source I feel this is wrong. If you feel the same way, make your voice heard, either by boycotting the infringing products or helping to create awareness of these bad business practices.

Globalisation

[Siener]

This move by HP is asinine for many reasons, but one has not been brought up in the comments so far:

On the one hand big companies and corporations are lobbying governments to lessen trade restrictions and import/export taxes so that they can benefit from cheap production costs in other countries. Then on the other hand, they add restrictions themselves so that they can still sell the items at high prices. They make sure that they benefit and not the customer.

Try are trying to have their globalisation cake and eat it.

My opinion: Fire Carly Fiorina!

[Futurepower(R)]

My opinion: Fire Carly Fiorina! She can't make money for the company without being adversarial for customers. When a company treats its customers badly to try to make more money, that is an indication that the CEO is desperate.

Reworded: "Where are our anti-trust laws when we need them?" The U.S. government is so corrupt that there is no chance there will be any government involvement. A government that kills other people just because a few people want that certainly will not be influenced by laws.

HP inkjets aren't competitive, anyway, so don't buy them. In my experience, they've been having terrible problems with their printer management programs.

HP's action speaks loud and clear: Try Canon!

Re:My opinion: Fire Carly Fiorina!

[Anonymous Coward]

When a company treats its customers badly to try to make more money, that is an indication that the CEO is desperate.

No, it is instead an indication of a company trying to take advantage of people as the culture itself allows it to do. Being treated badly by corporations is getting to epidemic proportions. Surely you must have noticed this, at least in America. The prevailing attitude is that such behavior is wholly justified since it allows said company be "be globally competitive", or some other such rubbish.

With President Bush's "Ownership Society" scam starting to rise into the public consciousness, people are still likely to choose the performance of their stock portfolios much over the ethics of consumer treatment. HP's latest attack is only setting the stage for the next generation of "business as usual". If you personally don't like it, then:

1. Don't put your money into stocks.
2. Don't buy HP products.

The culture is you. Stop rewarding terrible companies like HP. Have your friends and family do the same. Spread the gospel of populism once again over the land, and then stuff like this cartridge-coding bullshit will stop.

Re:My opinion: Fire Carly Fiorina!

[Nogami_Saeko]

It was only after I wrote this that I realized that the printer I used to really like in school was an HP Laserjet 4. It was built like a tank, had a toner cart that lasted a long time, and was generally a good all-around printer.

What happened to HP? They used to have good hardware that was extremely reliable and which performed well.

When I saw a laserjet 6 around '99 or 2000, I laughed, it was all cheap plastic and didn't last more than a couple months in our office.

How the mighty have fallen...

N.

It's bullshit however you cut it

[FreeUser]

As ridiculous region coding is for DVDs, there I can see a minimal reason (the publishers not wanting a DVD to make it into a market where the movie hasn't even been in the cinemas yet... But as cinema release dates for the big global productions inch ever closer to each other all over the globe, this reason is going away fast - leaving the only "good" thing of the region codings that they can charge more in Europe.

Region codes are bullshit no matter how you slice it. They make a mockery of free markets and free trade agreements. Essentially, the international corporations have decided they like free trade agreements when it means they can outsource their labor to the cheapest markets without restrictions (and in the case of the Bush administration, with tax incentives to do so), but they will artificially fragment the marketplace in order to prevent their customers from shopping competatively.

Free trade for corporations, restricted trades for mortal humans.

Its unjustifiable, regardless of whether it's DVDs we're talking about, or printer cartidges. The DVD justification has always been weak, and typically break down to:

1) MPAA Whiney voice: "But we don't want people buying movies in one market when they haven't been released in another."

1) Sensible citizen's response: "Touch shit. It's a global marketplace. Release your movies globally, instead of fucking with people in market B by making them wait six months longer than people in market A. This whole "second class" market citizenship is vile anyway."

2) Whiney MPAA voice: "But we don't want arbitrage markets forming, where people buy DVDs in China for $3 and sell them in the US for $10 when we're selling the same DVD for $20."

2A) Reasonable citizen response: "Fuck you. If you can make a profit selling DVDs in China for $3, you can make a profit selling them in the US for $3. Anything more is gouging the customer, and quite frankly, no one with a shred of common sense should have an ounce of sympathy for an industry that bases its entire business model on the practice of gouging various sets of customers. Oh, and if you're going to whine about currency markets and shifting values of the yuan against the dollar, a sensible person has but two things to say. One, the Yuan is locked to the dollar, so the specific argument with regard to China is doubly bullshit, and two, in the more general sense (e.g. the US vs. Europe), currency markets are free marktets, and you can accept their results the same as the rest of us. If that means someone occasionally gets a good deal when they travel overseas, more power to them. Its called a global economy ... you've used it as an excuse to outsource our jobs overseas, now get used to us shopping overseas if we like."

HP should be run out of town for this nonsense. The MPAA should be run out of town for this nonsense. But most importantly, the scum-sucking politicians who set up this one-sided regime of free trade for companies, but restricted trade and rights for real, living human beings, should be run out of the country for this nonsense.

Not that I'm holding my breath, mind you.