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 Monday, October 11, 2004

What if I told you there was an industry that sold 10 cents worth of product for $50 at retail stores? And that consumers were usually forced to buy it every few months at those inflated prices?

And they intentiionally made each version of their product incompatible with previous versions to make life more difficult for both consumers and competitors? And they came out with new versions of their product almost every month?

And that they developed technology so that their product would stop working when a competitor's product was used with it?

Some of you may have already guessed what industry I am talking about. Others may think I am dealing with something only Tony Soprano and the mafia could dream up -- a racket to ensure you make tons of money and everyone else gets screwed, especially the consumer.

Well, the industry is computer printers. The scam is that they sell the printer to you for $89 or so. And that printer comes with very little ink - the minimum required by law. Then they got you to the tune of $100 every few months as you replace your ink cartridges ($40 for black, and $20 each for three color modules). But what's so special about their ink? A cartridge of ink costs only a few cents. Even with all the fancy packaging, it's only $1 or so. Why do they jack up the price to $20-$40 per cartridge?

And what about this anti-competitive technology? Inkjet cartridges these days have little computer chips, and the printers have little chip readers. The cartridge keeps track of ink levels, and is hard-coded to go down, never up. The printer will stop working when it thinks the ink is too low - even if there is still ink left in the container. And try using a no-name or third-party ink cartridge, and your printer will not work at all.

The other thing that kills me is that there are, like, 100 different models of inkjet printers by each company. And each printer takes a different size and model of ink cartridge. That is why the computer stores contain aisles and aisles of inkjet cartridges. There is NO GOOD REASON why each printer requires a different model cartridge besides to make life more difficult for competitors and by extension consumers. If Epson makes 100 different inkjet models, then anyone who wants to make a cheaper ink cartridge needs to make 100 as well, which raises costs.

It's a big scam. Governments should step in. If the Department of Justice wants to stop anti-competitive behavior, this is a PRIME EXAMPLE. Do you think companies can get by with having two or three model printers, and keep selling them for a year or two? Do you think companies can get together and settle on a standard inkjet cartridge size? Yes. Of course they could. But then, they would be forced to compete, and that would be bad for business.

Tonight I didn't break any laws, but was made to feel like I did. I refilled my own inkjet cartridge. After a few minutes trying to get it to work, it did. I don't feel so bad though - these companies have been ripping me off for years.

 

Monday, October 11, 2004 2:32:17 AM (Eastern Daylight Time, UTC-04:00)  #    Comments [1] -
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Scott Duffy
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