The Sweet Spot for Inkjet Pricing
by Andrew Lippman · Lyra Research · April 1, 2008 - page(s): 51-52
In 2006 and 2007, ink cartridge vendors appeared to have come to a consensus regarding the best cartridge pricing strategy. Lyra’s fourth-quarter 2006 U.S. home printing survey revealed that the majority of consumers (60 percent) printed an average of fewer than 50 pages per month. For these end users, $30 is too large of an investment for an ink cartridge that will be used only a few times per month. These users often turn to a third-party cartridge brand or try to minimize their printing to save money on ink. Lyra’s market forecast shows that in most cases, average ink cartridge prices are falling in order to find a balance between consumer acceptance and profit margins.
In 2007, Kodak received attention from the press for cutting OEM cartridge price points. However, it wasn’t the only company to do this. Average Epson, HP, and Lexmark ink cartridges prices have been decreasing for many years. Canon OEM cartridges are the only exception to this pricing trend, with a projected price increase between 2006 and 2011. Despite steadily decreasing cartridge prices, Lexmark is forecasted to remain the most expensive brand through 2011. Overall, OEM ink cartridge prices are expected to drop 15 percent between 2006 and 2011.
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