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Investing and Economics Blog

$8,000 Per Gallon

$8,000-per-gallon printer ink leads to antitrust lawsuit

For most printer companies, ink is the bread and butter of their business. The price of ink for HP ink-jet printers can be as much as $8,000 per gallon, a figure that makes gas-pump price gouging look tame. HP is currently the dominant company in the printing market, and a considerable portion of the company’s profits come from ink.

The printer makers have been waging an all-out war against third-party vendors that sell replacement cartridges at a fraction of the price. The tactics employed by the printer makers to maintain monopoly control over ink distribution for their printing products have become increasingly aggressive. In the past, we have seen HP, Epson, Lenovo and other companies attempt to use patents and even the Digital Millennium Copyright Act in their efforts to crush third-party ink distributors.

The companies have also turned to using the ink equivalent of DRM, the use of microchips embedded in ink cartridges that work with a corresponding technical mechanism in the printer that blocks the use of unauthorized third-party ink.

Tip – by a printer from a company that doesn’t rip you off as much for ink: The Kodak 5300 All-in-One Printer, which uses ultra low-priced ink to help you save up to 50 percent. Kodak has made the strategic decision to compete with the entrenched printing companies by not ripping off customers as much.

Related: Kodak Debuts Printers With Inexpensive Cartridges – Price Discrimination in the Internet Age – Zero Ink Printing – Open Source 3-D Printing

December 18th, 2007 John Hunter | 2 Comments | Tags: Financial Literacy, Tips

Comments

2 Comments so far

  1. Gas Price Actually Reducing Driving at Curious Cat Investing and Economics Blog on May 12, 2008 10:21 am

    You might think that increased gas prices lead to less driving, but historically that has not been the case. Gas demand is very inelastic (or gas prices are very elastic): which means demand changes very little as prices increase…

  2. When Companies Can Treat You Like an ATM, Many Will Do So ยป Curious Cat Management Improvement Blog on February 2, 2012 6:51 pm

    This is a combination of companies 1) not being customer focused, 2) short term thinking, 3) very oligopolistic markets (very little competition)…

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