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Re: [Digital BW] OEM Ink Pricing & Tactics Invetigated by EU Anti-Trust Commissioner

2002-05-23 by Editor P.O.V. Image Service

Bob Frost wrote:

> Loyd,
>
> Hang on a minute. If the EU does stop printer manufacturers trying to make
> their customers use their ink, all that will happen is that the prices of
> printers will double or triple. 


No.. What will happen is that printers will be price realistically 
instead of having the cost shifted to the inks..

That will allow more diversification and innovation in the industry.  

One obvious reason is that to make a profit with the EPSON model, you 
need both printers AND an extensive supply chain/network to be able to 
supply the necessary consumables.  That means only the largest companies 
can make a go at it..

If printers and consumables are priced separately and rationally, then 
each area will have significant competition.. (Look at Xerox copiers, 
toner, and papers).... You can buy lots of different paper, use networks 
of toner suppliers, etc..  Not as easy with inkjets.. WHY?  Because the 
entire life cycle of the product and consumables is under the attempted 
control of the OEM...


> They are not going to continue selling
> printers for little or no profit, if they don't get the ink sales. You 
> can't
> have it both ways!
>
>
No-one is asking for it both ways...

Competition increases innovation and efficiency... Compare the history 
of Mac pricing and PC pricing.. The APPLE model was to control the 
product from cradle to grave.. The PC Model was to standardize specs and 
allow competition..  Generally, the PC has driven innovation and 
technology..

[Keith]
 
 




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