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CTS - 2006 :: Cartridge Expert promises 50% savings and bumper profits

by Bob Crabtree on 15 May 2006, 12:18

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Like a lot of HEXUS readers, we buy our replacement inkjet cartridges over the net and opt for low-cost, third-party alternatives, rather than expensive originals. But, from time to time, we do end up getting caught short and have to buy in store, and it hurts. But a huge number of people still buy from shops all the time - and that's why Cartridge Expert came up with a refill system that cuts the cost for consumers and allows store owners to make a whacking profit with a clearer conscience.

Inkjet printers are stupidly cheap, for one reason only - their makers draw their profit from the inflated prices of replacment cartridges. Indeed, it's not  unusual to see deals where the printer costs much the same as a set of cartridges. Is this a scam? We'll let you decide but it is no coincidence that printer makers have followed the lead set long ago by the makers of razors and razor blades and which also acted as a model that's been followed by the makers of consumer electronics hardware, including Sony and JVC, who bought their way into the movie and music businesses.

Cartridge Expert's Recharger system consists of "easy-to-use" refiller modules each dedicated to particular ranges of cartridges from a particular  big-name maker. The main lines are HP and Lexmark but some Dell models are also included and we'd expect that range to grown as the US-based PC giant further expands its printer sales. Epson is not included and nor is Canon, replacements for Canon already being available ready-packed for extremely keen prices - sometimes under £1.

Company director Max Lehrain says it can advise stores about the best mix of modules to buy - and the modules are sold, not leased or rented - so they can get the maximum return from the smallest number of modules. As you can imagine, downtime could be a big problem but Max reckons that a swap out takes less than a minute for the shop-owner to carry out and the modules are exchanged via courier.

So what exactly is in it for the shop owner and the consumer? According to Max, the companies operating rechargers earn an average 80 per cent return on sales - £8 net profit for every £10 of sales - and have to carry less stock. He also claims that customers often tend to buy additional products while they're browsing in store waiting the short time it takes for cartridges to be topped up.

For customers, the savings are reckoned to be around 50 per cent compared with the cost of printer makers' own brands. Max also says that they avoid the uncertainty and delay that can happen with internet sales and mail order and claims that there is a perception of quality because what's being filled is a fresh, empty cartridge.

As you can see from the pic below, the Recharger doesn't need to take up a lot of space in store (bigger groupings are also available, too, of course). Mr L  also reckons that the system requires little skill to use and is very safe - needing only a standard 13 amp electric supply, using inks that are water-based and involving no high-air-pressure systems.




Cartridge Expert instill refill cubeClick for larger image

Got any thoughts about Cartridge Expert and inkjet cartridge prices generally. Why not share them with us in the HEXUS.community?

HEXUS.links

Cartridge Expert - Home page
Cartridge Expert - List of local retailers
CTS 2006 - All the HEXUS coverage



HEXUS Forums :: 13 Comments

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sounds like an interesting idea, could be handy, only concern would be ink quality and of course could the avg joe not make a hash of it…
Sorry, I think I might have handed you the wrong end of the stick.

The carts aren't filled up by the end user but by the store staff - and the whole business looked to me to be utterly trivial to carry out.

Do I need to revisit the piece and make that clear?


Bob
Bob Crabtree
the whole business looked to me to be utterly trivial to carry out.

Don't even get me started on this thing, I'm not sure what legal issues there might be if I did. :undecided

Benji
… Go on
'lo *

A quick word of warning to any persons interested in purchasing one of these, bear in mind I can't go into a lot of detail as I know things with potential legal implications. They cost a bomb to buy. You may be thinking of this machine as a potential new revenue stream, if you have a pre-existing business with staff that you expect to now take on the job of re-filling, be prepared for lots of inky mess all over their hands / clothes, etc. The ink ‘recharging’ process takes up to 7 mins (bear in mind that many carts need to be drilled before they can be filled), depending on cartridge, and you _have_ to stand around watching, in case something goes wrong and the thing begins dribbling ink all over the place (which it invariably does on many occasions).

Reliability is a big problem in my experience, with panels (the machine has vertically loading panel assemblies that recharge a certain series of carts) continually failing. They have to replace panels usually due to defective sensors (they require lots of maintenance).

Overall, I doubt that you could make a viable business venture out of this machine alone, given your competition (cartridge world and the plethora of remanufactured carts on the market, which will become increasingly cheaper as time progresses).

The business problems are thus:

1/ Your target market instantly thinks; “yipee! I'll take all my 10 year old carts to be filled, never mind that they're clogged beyond unclogging.”

2/ Customers are rarely truthful about how old a cart is, mainly because they don't remember / care. If you actually weigh carts, you'll find many are just clogged and are actually not empty. It's up to you whether you kindly unclog the cart for the customer (which you have to do in order to re-charge, anyway), or you drain all their expensive ink and replace it with yours.

3/ What do you do when the re-filled cart doesn't work properly? You can either have a room full of printers to test them, or you can offer refunds (you lose time and money).

4/ You've bought an expensive bit of kit, and you can only buy your consumables (ink, cleaning fluids, little gel seals for the bottom of each cart, etc, etc, from one company. Given the poor reliability, there is also the issue of maintenance costs when the thing is out of warranty…

5/ Every time a new series of carts come onto the market, you have to purchase a new panel in order to recharge them.

I would seriously think twice before getting involved with this thing. If they sort out the reliability issues, it becomes cheaper, and you just employ a monkey with latex gloves and a lab coat to re-fill carts, then there's a possibility it could be profitable, although as I said before, given the competition, I doubt that.

Just my 0.02p


Fony