Friday, February 9, 2007

HP vs. Store Brands

An article published in Businessweek (by Steve Hamm) yesterday brings back the debate on cartridge remanufacturing to this blog again.

Mainly, article talks about HP's efforts to phase out store brand inkjet cartridges. There are many claims: HP offers more margin to big office supplies stores. Although Staples does not make a comment on this, they announced that they are going to phase out Staples brand HP replacements while they continue to sell Epson, Canon and Lexmark refills. Office Depot and Best Buy will continue to sell their store brand cartridges, for now...

Some time ago I heard that HP rejects the use of chips in their cartridges. But now, they use a more aggressive marketing strategy to virtually eliminate all alternatives to refill. Consumers are getting smarter, people look at total cost of ownership with printer and copier type of products. OK, they do not like the chips, but what if their long term sales decline because consumers prefer other cheap refill alternatives and buy rival products. I hope all these risks HP taking are calculated risks.

Please read the full article here.

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