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Hewlett-Packard Company Message Board

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  • DowDanny DowDanny Aug 11, 1998 10:35 PM Flag

    CARTRIDGE MANUFACTURERS

    >> but the ink refillers are giving them
    all hell - taking the wind out of their lucrative
    business models. <<

    hate to agree, but of
    course this is exactly right.

    Lexmark, even
    Xerox, moving more and more to be first-choice in
    filling up those H-P printers.

    I've asked, on this
    board, several times if there are any decent plans to
    fight off the low-ball cartridge replacements. Price
    war, service contract limitations, new design,
    better-value (longer-lasting) cartridges, ...
    anything.

    So far, when not totally ignored, the best response
    is "H-P is the best company in the world and people
    will always pay for quality". Problem is, when it
    comes to items like printer supplies (the high-margin
    cash cows for H-P), most people will go with 'low-bid'
    everytime.

    Our lovely new 5si's are sitting on top of table.
    Below table are boxes and boxes of 3rd-party
    replacement cartridges. I don't think that we're special (or
    worse than normal) that way.

    Any ideas on how to
    fight back and protect this lucrative portion of the
    business ? After all, somebody has to make the profits to
    allow the continued investment (yuck) into the
    low-margin, low-end desktop PC biz that H-P is pushing so
    hard.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • You asked how HP might be fighting back. Well the
      new series of printers like the 4000 use 5 micron
      toner particles instead of 7 to 10 used in the
      competition printers and 3rd party cartridges. The new toner
      shows up in better quality and better imaging. So if
      quality doesn't matter....

    • I think you only have to look at the stock market and it will tell you what is going on. They sank 30 points in one month. I beleive they will lose even more, perhaps 40.00

    • Maybe HP should break down and sell their own refill kits. People still might rather buy an HP refill than a generic brand, if the cost is right.

    • Couldn't HP be guilty of "tying" their ink
      replacements to their printers if they tried to use some sort
      of two-key cryptographic system to ensure all
      customers purchase their inkjet products?
      I thought of
      this before when I worked there ...

      Anyway -
      the bottom line is that when it comes to SUPPLY CHAIN
      and MFG OPERATIONS and MARKETING - HP BITES ROYALLY!
      I mean their out-dated socialistic management has
      no clue whatsoever! They are great at R&D - bringing
      products to bear - but by indirection, their R&D
      ultimately goes to the benefit of their competition - who
      with the tip of the hat, pocket HP's market share.
      Then they try to outsource manufacturing - but they
      get reamed there too.

      That's why I say HP has
      no future til Lew gets an AXE and CHOPS some HEADS!
      Heads gotta roll down before HP can sail up
      again!

      YODA

 
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