Refilling dents new cartridge sales

Did you know that what you spend on three new printer cartridges could get you a brand new printer itself?

Hard to believe, but it is true.

Today, although the entry-level inkjet printer prices have come down from around Rs 10,000 to around Rs 5,000, cartridge prices are still on the higher side. According to the current market price, HP entry-level printer (HP 656C) is priced at Rs 5,400 (prices will vary from shop to shop by a Rs 200 difference) which comes with a dual cartridge of black and color.

The cost of the black cartridge is Rs 1,200 and the color cartridge is priced at Rs 1,300 (prices quoted here are only average price). However, the cartridges come as part of the printer while buying it. Normally, the life of the inkjet cartridge (both black and color) is only for printing 300 to 350 pages.

"How can you expect a user (company/individual) who prints a minimum of 20 pages per day to spend Rs 2,000 to Rs 2,500 monthly on buying new cartridges," asks Radha Krishnan, Managing Director, Ashcom, which deals with refilling and re-making of inkjet and toner cartridges.

In such a scenario, the refilling and re-manufacturing business is taking off well and heading for a major share in the consumables business. According to market sources, there are 8-10 professional refilling and re-manufacturing service providers in the city, besides 40 to 50 minor service providers.

"Refilling and re-manufacturing service was available from 1996 in the market when the original cartridge manufacturers such as HP, Epson, Lexmark and Canon gave the provision for it in the product. However, the refilling business made a good start only during mid-2000 and we could say lack of awareness, non-availability of professional refilling service providers and materials are some of the reasons for this delayed start," said
Radhakrishnan.

According to market sources, today, on an average 500 to 600 inkjet cartridges are being refilled and re-manufactured per day in the city. "There will be at least 60 toner cartridge refilling/re-manufacturing per day in the city," he says.

The demand for refilling and re-manufacturing service is increasing day by day and cost advantage is the only reason for this. "An inkjet refilling for black cartridge would cost only Rs 150 to Rs 200, while color cartridge service charge would be in the range of Rs 250 to Rs 300 (prices may slightly vary based on the models and brands)," says Radhakrishnan. "Customers will prefer to go in for refilling by spending Rs 200 to Rs 300 rather than buying a new cartridge for Rs 1,200 to Rs 1,500.

Moreover, refilled and re-manufactured cartridges give the same print life of 300 pages, as the new ones would do."
Toner cartridge refilling would cost Rs 500 to Rs 1,000 while the cost of a new cartridge would vary between Rs 3,500 to Rs 4,000.

"All the above quoted prices are charged by professional service providers who use quality imported ink and powder for their service," he says.

According to market sources, a cartridge can be refilled for four to five times and it will give a quality output even after the fourth refilling. "A professional service provider can give this output and there would not be any leak or clog in the product," he said.

In refilling, a service provider changes only ink/powder and does some basic checks before delivering it to the customer. But, in re-manufacturing, a service provider has to do conductivity check, polishing the circuit, change the sponge, check the air system and velocity, before delivering it to the customer.

Refilling and re-manufacturing are legal allowed and anyone can provide the service by following basic principles.
"Re-manufactured cartridges should never carry the original labels and a service provider should make sure to put his/her label removing the original one. If he fails to do it, then he/she can punished under the law," said
Radhakrishnan.

Recently, HP has conducted a series of raids on fake resellers in the city (refer to DQ Week 18-24 March 2002).
According to Radhakrishnan, who is also President of Chennai Inkjet & Toner Refillers and Re-manufacturing Association (CITRRA), "Refilling and re-manufacturing can be done unless it is not presented as counterfeit product. Moreover, refilling and re-manufacturing service providers should follow a code of conduct to lead a healthy business."

CITRRA was formed mainly to identify the professional service providers in the city and give a quality service to the customers. Softline, Image Star, Royal Trading, Ashcom, RNB Ribbons, Inkjet Company and Classic are some of the members of CITRRA, in the city..

"Refilling and re-manufacturing is an environment-friendly business as it stops unnecessary production of plastics by recycling the same. It also helps to save
money for the customer and Forex for the country as it controls unnecessary import of goods," he added.

S Gopikrishna