Operating Cost and Total Costs: Beware of Buy Low and Spend High
Choose the Right Equipment and Supplies for YOUR production line Volume.
The “Best Deal” on your coding equipment means nothing if your supplies costs way too much, or your equipment is always down.
Razor and Blades Model
The razor and blades business model is one in which an item is sold at a low price in order to increase sales of a complementary good, such as a consumable supply.
In the packaging industry, this has become a popular strategy by certain coding equipment manufacturers to help lure customers to buy into their solution. They offer absurdly low hardware prices, only to gouge the same customers on the purchase of consumable ink supplies. This type of dubious business practice tends to backfire over time as customers get tired of paying through the nose on ink cartridges.
Absurdly Low Hardware Prices can mean really high supplies costs – AliBaba Example
At Case Printing Solutions, we meet customers regularly who fell prey to the razor and blades pricing strategy.
One manufacturer with a need for end of line coding, purchased a Korean-manufactured coder from the Alibaba e-commerce site. Not a great start: The coding equipment didn’t even meet the eye-test for durability; however, this is one way the printer manufacturer keeps the up-front capital costs artificially low.
Once the customer started using this Alibaba-sourced coder, that’s when they started realizing the cost of the “locked in” print cartridges. They quickly discovered that buying aqueous inks from the manufacturer costs approximately $100, and the solvent inks are closer to $200. These prices are roughly 2X to 3X more expensive than what customers should expect to pay with most ink jet coders.
Can you even get any support or service?
Additionally, getting service and support for these low-end printers was next to impossible. When they started have difficulty with the coder on the production line, there was no-one to call. Line downtime ate up all the original purchase savings in a matter of days.
Trust in a Vendor that will get the Right System for your Production volume and application needs
At Case Printing Solutions, we help customers buy, operate, and maintain inkjet print systems used in packaging. Our job is to help customers reduce their operational costs associated with coding, while greatly improving the overall level of service and support. Customers who use more than 2 inkjet cartridges per month typically see a payback in less than 1 year.
Contact Case Printing Solutions to discuss your requirements regarding product identification and package coding. We have a TRADE-IN program that enables customers to upgrade their industrial printers. For supplies, we offer affordable cartridges and bulk supplies that make an immediate impact on your budget.
Case Printing Solutions: Great service & support, with affordable pricing.
