The Reason That Name Printer Ink Companies Like Dell Dislike Third Party Vendors
Maybe you have noticed that during the last year the prices for name inkjet printers among them being Dell inkjet printers, have been dropping and have become somewhat low. But you still need to purchase their Dell ink cartridges and these are really expensive. Check out the Internet and read about which printers are most cost effective before you buy one.
In fact big companies in general some to all stand by the logic of selling their products low but putting a big price tag on the replacement parts, like with Dell ink cartridges and razor blades. But consumers are becoming less and less happy about the prices they have to pay for the replacement cartridges when they buy a burned name printer like Dell and Hewlett Packard. All these brands together dominate the markets. If you were to combine Canon, Epson, Hewlett Packard, and Lexmark you would account for as much as 84 percent of the ink replacement market, a recent article in PC World Magazine reported.
But now we have other sources for these replacement cartridges called independent third party vendors. They are taking advantage of this vast $21 billion dollar market for replacing Dellink cartridges and are providing ink refill kits. It only makes sense that where there is a demand for cheap reliable inkjet cartridges there is going to be a supply. The big companies are responding by saying that the ink being offered by the replacement Dell cartridges suppliers is inferior to their own brand-name versions. But the research seems to indicate otherwise.
A research study by Neil Slade reports that a long-term study of a variety of inexpensive compatible Dell ink cartridges found that none of them failed in the form of clogging the print heads. This was especially true of the G&G ink, which Slade says that he has been using for a year and with which he has printed tens of thousands of documents. He found only one brand that failed due to poor ink flow but even that one didn't clog the head. Reports indicate that gross margins on Dell ink cartridges can sometimes be greater than 60%. The Dell and Epson printer companies of course deny these percentages. If this is the case then why you might ask are they going through all the trouble of providing a special chip to be placed inside their cartridge making it impossible for other third-party replacement Dell ink cartridges to work without this chip. Because this would completely eliminate the market for compatible Dell ink cartridges. The reason that the name brand manufactures are using to justify the high cost of their replacement cartridges is that they must invest a lot in the cost of technology in order to bring about improvements. Their company representatives will say that the cost of their replacement cartridges is not really that ho when the expense of research and development along with the manufacturing of the equipment is factored in.