| Why Do Ink Cartridges Cost So Much? |
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| Date:2010-08-12 |
| At $22 per quarter-ounce, a Hewlett-Packard color ink-jet cartridge is more expensive, by weight, than imported Russian caviar. Observing such high prices, Connecticut research consultant Zel Dolinsky wants to know the reasons for them. "How come, with printer prices falling, ink prices are still so outrageous?" Dolinsky asks. "Im appalled." 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 dont 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. That leaves consumers in printout purgatory. They must either pony up for name-brand ink, or risk substandard printouts by buying replacement ink jet cartridges from a generic distributor. As PC World has found, however, plenty of worthy third-party replacement ink jets are also available. The big-name vendors say that the third-party ink is inferior to brand-name versions. And certainly, the brands dominate; together, Canon, Epson, HP, and Lexmark account for 84 percent of the ink replacement market, Lyra Research reports. Recently, the controversy has caught the attention of overseas regulators. Trustbusters in the United Kingdom and at the European Union (news - web sites) are examining the way Canon, Epson, HP, and Lexmark price ink and do business. In the United States, at least one state is attempting to protect consumers right to purchase third-party alternative goods. 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. |
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