November 23, 2003

Forbes: Lexmark Sues Ink Cartridge Recyclers

For about half the price of a new laser-printer cartridge, you can get your old cartridge refilled and refurbished.

Brand-name printer cartridges can put quite a financial strain on a company crisscrossed with networked printers and dotted with independent inkjets.

The average business spends 1 to 3% of its revenue on ink and paper every year, according to printer-maker Lexmark. And if the growing consumption of office paper is any indication, that expensive trend is only going to get worse.

So the question is: How can a company slash printing costs? One way is to recycle. (full story)

My spin: Printer manufacturers make their money from ink cartridge sales. Some company coming in and under-cutting the brand name in k cartridge prices is NO good for the manufacturer and interrupts their cash flow and business model - hence the law suite. Sell the printer for $199 (maybe at a loss) and make gravy on years of ink cartridge sales.

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