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  • Epson to pay up!

    Details at six.

    Gotta run.

  • #2
    It's gone six here

    .
    .

    Sir John , Earl of Bligeport & Sudspumpwater. MBE [ Motor Bike Engineer ] Nottingham England.



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    • #3
      http://www.epsonsettlement.com/
      Free software for calculating bolt circles and similar: Click Here

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      • #4
        i guess their argument that the amount of ink used was the same as HP and the others and the need to protect the printer from an empty cartridge did not stand up in court?
        John

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        • #5
          I am suprised they lost. Their argument is correct. Epson printers do not measure the amount of ink remaining in the cartridge. It is estimated by the number of droplets of each color that have been ordered to be used. If you use a lot of one color for some reason the other colors may still have a lot of ink remaining.

          Also, Epson printers are different from other printers. They use a different print head technology. Instead of building the printhead into the cartridge they build it into the printer. This is because the print head operates on a piezoelectric system instead of a thermal boil-the-ink-and-spit-it-out system. If the print head in an Epson printer goes dry it can take the better part of a new print cartridge to prime it and get it working again. Epson has to make sure that doesn't happen.

          The major advantages of the Epson system are better drop size control and cheaper cartridges. Complaining that you don't get to use all the ink in the cartridge is ridiculous. You pay for a certain amount of printing and if it does that you got what you paid for.

          The entire inkjet cartridge business is a scam anyway as the ink itself is sold with a many thousand percent markup. Cartridges cost less than a dollar to make. None of this would be an issue if the cartridges were sold at a reasonable price. I don't sell printers because they are a loss leader item. All the revenue comes from ink cartridge sales.
          Free software for calculating bolt circles and similar: Click Here

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          • #6
            Epson did not "loose" the case but rather agreed to settle the claim. "Epson has denied and continues to deny the claims and any wrongdoing, but has decided to settle to avoid the cost and inconvenience of litigation." The final hearing/settlement will not occur until at least August 15, 2006.

            Epson has agreed to make statements on their packaging regarding ink supply status but according to the suit, Epson will continue it's current method.

            If you own or did own one of the printers listed below, you may be entitled to either:

            1. $45 credit at Epson's E-store. (Default - No form required)
            2. $25 check and $20 E-store credit.
            3. 25% E-store discount up to $100.

            If you registered your printer, you should have received or will receive a mailing with your "E-store code". When activated, the code will be good at Epson's E-store. If you wish to select one of the other benefits, you must fill out a form and make your selection. If you did not register your printer or have three or more printers that are covered, you must fill out a form.

            Go to www.epsonsettlement.com for information and forms.

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            • #7
              The only reason they would settle would be because they saw it as cheaper than continuing. That must have been because they were advised they wouldn't win.
              Free software for calculating bolt circles and similar: Click Here

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              • #8
                Originally posted by Evan

                The entire inkjet cartridge business is a scam anyway as the ink itself is sold with a many thousand percent markup. Cartridges cost less than a dollar to make. None of this would be an issue if the cartridges were sold at a reasonable price. I don't sell printers because they are a loss leader item. All the revenue comes from ink cartridge sales.
                Evan
                I must assume that your in the business of selling office supplies, and not in the business of making ink cartridges. Who is making them for less than a dollar? I know that HP is way above that. I also know that the tax on a cartridge made in America is almost a dollar. If your in the retail business what percent of that "many thousands of percent" happens between your back door and front door? But I do agree with the old statement that an inkjet cartridge is " Five dollars of scrap to deliver fifty cents worth of ink" That statement is not exact figures but close.
                Lg
                Who was there at the beginning of inkjet.

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                • #9
                  The money is not in the retailing of ink cartridges but in the manufacturing and distribution. If there was ever a price fixing strategy, ink cartridge pricing would be at the head of the line. That's probably why Epson wants to settle--It will keep the cost of the cartridges out of court records.

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                  • #10
                    I must assume that your in the business of selling office supplies, and not in the business of making ink cartridges
                    Nope. I sell hardware. I know what hardware costs to make and what it wholesales at. When I worked for Xerox (23 years) I also knew exactly what price Xerox booked the parts at since that was part of my service rep budget. The usual markup for most parts was between 500% and 1000%. A part that "cost" me $7 sold for $68.00. It was exactly the same for the ink jet cartridges for the ink jet based machines like faxes etc.

                    Epson cartridges are especially cheap to make as they don't contain a print head. The chip that keeps track of usage cost a few cents. The ink isn't 50 cents, it's more like 5 to 10 cents max. The packaging for the cartridge probably costs as much as the cartridge itself.

                    The money is made at the manufacturing end. In my business (computer sales and service) retail markups range from a high of 25% to a low of 10%. My distributor is lucky to make 5%. Computers are a cuthroat business and the margins are really slim on hardware. It's the supplies and accessories where the money is made. Since I don't sell supplies I make my money mainly from repairs at $50 per hour.

                    Check out HP to see where the money comes from. Thier printing division is the primary source of revenue and it's the supplies that are responsible for that.

                    [added]

                    Ken, you are probably correct.
                    Free software for calculating bolt circles and similar: Click Here

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