Digital BW, The Print

Hi Walt.

They're only visionary if it works. Apparently it didn't :(

Your friend is a perfect case in point. If the average Joe can figure
out the dodge and bust them, and folks inevitably will, they can't
continue making the money. That also goes for Lexmark, HP etc. You
have to have something else in the mix beyond completely giving the
hardware away. Buying market share is a viable strategy only if you
can ensure you can keep enough of it to profit by the purchase.
Also, Xerox simply isn't fiscally strong enough these days to toss
money around without generating profits coming back right away.

By the way, why didn't your friend buy 3rd party for even less?
If the printer with cartridge costs less than an ink cartridge
independently, you have to be a bit dim to expect to sell many 
separate carts. 

Regards
Duane


--- In DigitalBlackandWhiteThePrint@yahoogroups.com, Walt Mucha
<wkm@k...> wrote:
> 
> 
> >No one considering prior history at Xerox would for a second have
> >thought they could count on ink sales for all the profits.
> >Of course that presupposes common sense on the part of the
> corporate
> >animal, something often in short supply.
> >
>   
> 
> Well, then how do you suppose Lexmark, HP, Canon and Epson
> make thier money? They use that very same business model. I
> would consider Xerox as visionary rather than lacking in
> common sense.
> I have a friend who bought a cheap Lexmark printer because he
> could buy the printer with cart for less than the ink cart!!! 
> 
> Regards, Walt
> 
> http://www.kauaiphotos.biz