March 9, 2011
Oil, gas, and food prices in the last few months have been going up and for the short term at least the question remains, how high will they go? The one thing rising prices have in common is the rising price in oil. With rising oil you have rising transportation and manufacturing prices. The question remains how will this effect cartridge prices for printers?
If you look back at the last time oil and gas shot up like they are now, that summer, prices for cartridge raised on average about 15-20%. The prices that people see today when they buy an HP, Lexmark, or other brand name cartridge are the prices that were an effect of oil prices hitting $140 a barrel. People may ask why, but here are the factors to remember.
- Cartridges are made out of plastic, plastic is made out of oil. And while the brand name companies may lock in their component prices for a while, dramatic increases like we saw can not be avoided.
- Transportation cost rose up. Since there are very few cartridges made in North America (there are a few plants in Mexico), all the cartridges must be transported in from Asia.
- Brand name cartridge companies like HP, Lexmark, Canon and the others are greedy. Remember that the price of oil did drop down, and for a few years was below $70 a barrel, but prices for OEM cartridges did not go down.
So the question remains, what will happen with cartridge prices this year with oil going up? I would be almost willing to bet that if oil stays at current prices or even increases to say $120 a barrel, OEM cartridge prices could see an increase in prices of an average of 10-15%. This means that a HP 56 cartridge that cost $23.99 today could end up costing around $27-28 and an HP 42X toner cartridge could go from $249 up to $260-285. I am sure we will find out by the end of June if the prices are going up or not. To be honest I would be shocked if prices did not go up.
Now as for myself and for O-ink, we almost hope for a price increase from the OEM’s. If they raise prices by say a flat $2-4 per inkjet and $10-25 per laser cartridge, that would mean that our prices would be $1.50-3.50 cheaper for inkjets in addition to the savings we already offer. For lasers it would be around $9-$22 cheaper. The reason I am not saying the 2-4 range or 10-25 range is I would expect our shipping cost to go up.
Please keep in mind, I hate high gas prices. However, the last time this happened, I actually guessed about 5% lower on the price increases that happened. I do hope I am wrong.
December 23, 2008
I would like to first thank all our readers and say Merry Christmas to you and a happy new years. If you follow another religion, I hope your holiday is good to you.
2008 has been a great year for us and interesting for our industry.
The big new this year was the price increases by almost all the printer manufactures. Even with the price of oil dropping, I don’t think they will lower their prices.
All of the other news is normal stuff, new cartridges and new printers. It will be interesting to see if Lexmark can turn their inkjet division around and how Epson takes to refillers (there are still people selling the compatibles, which are mostly illegal).
We have our two websites up and running. The latest one is www.samedayinkjet.com and our old reliable www.oinkinkstore.com. Check them out if you get a chance
Until 2009, have a great holiday.
November 4, 2008
This has been the year of price increases for printer cartridges. First Kodak, then HP, followed by Lexmark, Xerox, and IBM. I just received word today that Brother, Canon, and Oki are being added to the list.
Oki was kind enough to inform us that prices are going up a flat 5%, but Brother and Canon have not stated a rate of increase yet.
Out of the major players in the inkjet and consumer laser market, this just leaves Epson (we do not consider Dell a player due to the fact that Lexmark makes Dell’s products). Which in the next couple months, I expect them to increase as well. While our initial price increase were off a bit, we were right in that there would be a price increase.
The strange thing is that Oil has now dropped around 50% since the high back in July. I doubt that any of the manufactures will lower their price increases since the drop in oil. I think they will keep them high to make it better for the shareholders.
Once again at O-ink we have been able to keep our prices on our compatibles and remanufactured cartridges low and have not made any price increases this year.
October 27, 2008
How would you like $100 in gas?
For the week of October 27th through October 31st, anytime you make a purchase from O-ink at either our Mt. Pleasant Store (600 S. Mission St. 989-779-7227) or our St. Johns Store (1073 S. US-27 Next to T-bones, 989-227-8066) you will get one entry to win a $100 gas card.
Drawing is held on November 3rd, and winner will be notified by phone. You must make a purchase to enter, phone orders do qualify. Must be able to pick up gas card if winner and provide photo id to verify name. Not valid with orders on our website. One winner per location (two winners total). Must be 18 or older. Not valid to O-ink staff, family, or vendors.
June 3, 2008
This is a follow up post to my post at the beginning of May (here is the link). I have noticed some interesting things happening in the past month that I thought were a few months off.
- Prices have already started to go up. I have checked two local Walmart’s and the prices for their cartridges have already gone up about 10% roughly. Now this is not a nation wide affect yet, but for our local Walmart’s the prices are staying.
- More people are looking to save – We have seen our sales keep going up. Granted in May, June, and July we are usually slow, however, our slow down this year has not been the same as in years past. We are seeing higher traffic from people who want to try and save some cash.
- The cartridge manufactures are starting to increase their prices. Here is an article from Kodak. With them increasing prices, that means that their black cartridge will increase by about $2 and color about $3 if the prices affect the cartridges. Their printers, which are mentioned in the article, will go up from $20 to $40.
We personally have seen small price increases in our OEM products, but not in our replacement and refilled products. In fact, as for the next 6 months, O-ink should not have to increase our replacement or refilled prices, of course barring a major increase in prices.
With that being said, I am going to change my outlook for the year. The prices will probably go up from 5-10% to 10-30% by years end.
Also, if you are looking for Kodak Cartridges, here is the link for our replacements.