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Print.IT Reseller
Despite OEM defensive strategies such
as smart-chip applications, increased
marketing spend, aggressive pricing,
fast technology shifts and a shortage
of empty cartridges to refill, the UK
is one of the most important markets
for compatibles, with several well-
known brands including Jettec (www.
jettec.com), Armor (www.armor-print.
com) and Katun (www.katun.com),
increasing their share of customer
spend.
According to industry analysts IDC,
as a result of the recession, most OEMs
reported significant drops in sales of original
consumables, with toner sales suffering
the most. Compatibles on the other hand,
thrived in the worsening economic climate,
with all EMEA markets reporting significant
increases in sales.
IDC predict that the ink market is
expected to develop at a CAGR of 1.4
per cent to 2014 while the toner market
is expected to grow at 3.4 per cent. And
whilst OEMs are expected to regain some
market share, those compatible vendors that
managed to establish a strong presence in
the crisis years will continue to perform well.
The OEM stance is that ink and toner
cartridges are the essential ingredient
in printing systems, are subject to high
investment in R&D and are rigorously
Compatible
versus original
tested to ensure the highest quality and
reliability; while compatible manufacturers
are bringing to market products that they say
are OEM-equivalent in yield, toner adhesion,
resolution and other critical performance
areas.
Nevertheless, for resellers, the issues
around quality, endurance and performance
of remanufactured products still remain
and the cost savings achieved through
purchasing compatibles have to be balanced
against any potential repairs arising from
the use of non-OEM cartridges.
Better value
Dexter Harris, UK&I Marketing Manager, HP
PPS (www.hp.com), maintains that Original
HP Supplies are better value.
“While competition is good for
the marketplace, we believe that the
compatible products on offer cannot rival
the performance and value of Original HP
supplies.”
A QualityLogic 2010 study comparing
Original HP LaserJet Monochrome print
cartridges with nine brands of non-HP toner
cartridges available in Europe, Middle East
and Africa for the HP LaserJet P1505 and
P4015 printers, HP 36A and 64A showed
that more than 40% of all non-HP toner
cartridges tested exhibited some kind of
problem and almost 40% of the pages
produced by the tested non-HP toner
cartridges were of limited or no use.
“Consumables should not be regarded
as a commodity sale as they’re hi-tech
products designed for a specific print
environment and we recommend that
dealers offer them as part of a value-added
package of services,” says Harris. “We’re
seeing growth areas in colour printing and
Managed Print Services so dealers need to
understand the markets for colour transition
and how an MPS solution can work within
an organisation to target new business.”
Harris claims that HP’s OEM cartridges
market is still very strong and the majority
of its customers recognise the value and
quality of original supplies. And, despite
the challenging economic environment,
reseller margins remain healthy especially
for those offering value-added services
such as automated supplies ordering and
replenishment.
The consumables market is one that has undergone
dramatic changes over the last couple of years; OEM
consumables which were once dominant are competing
with third party manufacturers who have propagated the
marketplace with more affordable alternatives.
...the issues
around quality,
endurance and
performance of
remanufactured
products still
remain...
35
consumables
MSE, a producer of high quality remanufactured toner
cartridges, has invested in a robotic routing technology
that enables the rapid release and availability of new
cartridge models.
The new technology is a programmable piece of machinery that
has been custom built to enable precision cutting of cartridge cores,
converting older models into newer, more profitable versions.
President Yoel Wazana says: “We are continually re-investing
in technology and capital equipment in an effort to provide a
fast-to-market response with a high quality product. New products
like this are great for our dealers because it allows for quick OEM
conversion, an opportunity which is ultimately what we should all
be focused on.”
www.mse.com
Robotic routing technology