| I used to work for Lexmark, back when they were in the inkjet business. They are perhaps most notable for starting and fueling the race to the bottom in printer price. The theory was that if you could lock the users in, the customer lifetime value would be made on selling profitably prices supplies (i.e. the ink cartridge). There were a few big problems with this: - People often could buy a new printer, with supplies included, for cheaper than a new set of cartridges. - The primary focus of new printer development was on eliminating as much cost as possible. - Refillers and remanufacturers compete with the official supplies. The result was an almost completely customer-hostile industry. Printers became worse over the years. DRM and write-only memory were used to try to stop refilling and remanufacturing. Expiry of the ink was considered a good thing, as it would force customers to buy more ink even if they had low usage. While I was there, Lexmark sometimes made losses by selling too many printers. About a decade ago, they left the inkjet industry, which they had played a major role in wrecking. Laser has come down in price to the point that it has largely supplanted inkjet for light-duty use. The manufacturers in the home/small office laser market haven't been quite as hostile. Interestingly, we're seeing a similar dynamic play out in the venture-backed startup world of the past decade. What's old is new. Companies eventually started marketing higher quality machines, targeted towards power users with broader needs. But the era of the bargain inkjet printers seems to be pretty much over. Also, it took an entire generation, but we're finally much further along towards the paperless office/society. |
Every time one stopped working (probably ran out of ink, or printed poorly because of long delays between printing) he would go to Best Buy, get talked up by a salesperson about a nice new printer, and buy it.
It's just incredible to see this story in action.