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Mike Warner, R-Jet Tek's president and CEO, vividly remembers one of his company's first exhibitions at a trade show several years ago. Warner recalls being tapped on the shoulder by a competing vendor who invited him to check out the products at her booth. The competitor, now out of business, was showcasing the largest inkjet remanufacturing machine Warner had ever seen in his life:
"It towered over me," he said. "It also retailed for a hefty $23,000, could remanufacture only the HP 51626A, and could only produce one cartridge at a time.''
The machine was so complicated an engineer had to give demonstrations because the sales rep was unable to do it herself. Seeing the competing machine at the show gave Warner and R-Jet Tek a renewed sense of purpose. The company vowed to supply the remanufacturing industry with inexpensive, practical and easy-to-use inkjet remanufacturing solutions.
The company, now a predominant player in the industry, has been true to that promise ever since.
R-Jet Tek has built a reputation as a production partner to the industry. The company's products and multi-level support infrastructure have served as the foundation on which many inkjet remanufacturers have built their businesses. The Colorado-based company has a customer base of inkjet remanufacturing and supporting distributors in more than 100 countries, and serves as a one-stop shop to those customers, offering a complete line of inks and supplies, service and educational opportunities.
With such a broad customer base, it comes as no surprise that R-Jet Tek offers inkjet remanufacturing equipment of all levels of technology and complexity, ranging from manual tools to fully automated, all-inclusive machines. The company's wide selection is designed to accommodate remanufacturing and budgetary needs at any stage of growth.
"We have some customers who fill 10,000 cartridges per month - they'll want to have some automation, and we've designed equipment that meets that need." Warner said "Others like the simplicity and hands-on nature of the manual tools. Customers can then choose to upgrade or purchase additional equipment as they grow, depending on both the size and nature of their developing customer base. Whatever they want, we have it."
Rigid Testing, Flexible Design
The biggest challenge Warner sees for R-Jet Tek is the evolving color market and designing a line of equipment to keep up with ever-changing technology. Approximately 50 percent of R-Jet Tek's product line is related to color in some way, and that number is expected to grow.
The company views the future of color as limitless and is investing heavily in research and development to win the battle against ever-emerging color challenges Warner sees photo printing as an accelerator for the demand of color products.
"You can see the whole world is in a daze for digital printing," he said. "These days, people can buy cheap photo printers for as little as $200."
While consumers can get the printers for cheap, Warner said they often suffer from "sticker shock'' when buying replacement ink cartridges. He believes this is yet another opportunity to educate customers. He stresses to his customers that digital printing is actually a money- saver when compared to the costs of traveling to a store, waiting an hour or more for film processing and paying the exorbitant fees for film prints.
"They pay $34 for the cartridge and think, Wow! That's expensive." They don't realize what a tremendous bargain it really is. With a remanufactured cartridge, they can save 30 to 40 percent. They're much more apt to buy it and save money," he said.
R-Jet Tek strives to keep on top of the latest technology, particularly for color, so its customers can, too. Despite the quick pace at which new products are being introduced by the OEMs, R-Jet Tek's remanufacturing equipment never becomes outdated because customers can buy any R-Jet Tek machine and update it with the cradles appropriate to their own needs.
"We felt from day one that you should be able to have one machine with adapters that can accommodate the different cartridges that are being introduced. A machine we sold 10 years ago is still relevant today through its cradles, and the quality was also meant to hold up just as long, if not longer," Warner said.
In addition to machines specifically designed to refill color inkjets, R-Jet Tek offers color-adaptable attachments for its black-ink machines. These adaptable attachments, or remote cradles, do not fasten to the machine directly but by its air and ink lanes. Though these inter- changeable pieces range in function and price, Warner said they are inexpensive add-ons that "keep a company adaptable to its own market's needs." The offerings include cradles for the HP 96, 56 and 27, as well as the Lexmark 10N and 82 series. R-Jet Tek also has machines and accompanying cradles, though not nearly as popular as its regular line, that refill both the 110- and 220-liter cartridges for some of the challenging wide-format Epson, Mutoh and Mamaki printers.
When a new cartridge is introduced to market, Michael Daivs, manager of engineering, assigns an R-Jet Tek machinist to put the cartridge on a mill to cut it, exacting its specifications down to 1/5,000 of an inch. The company then runs a series of tests on the new cartridge, including print and circuitry tests to examine the cartridge's function and print performance R-Jet Tek's electrical engineer further determines the physics and electronic workings of the cartridge, identifying the switching and multiplexing, the number of resistors It has and more. Once all specifications are determined, the sponsoring engineer then trains staff on the characteristics of the cartridge. From there, the design department either matches the new cartridge with an existing cradle or creates a new one altogether.
Regardless of the increasing complexity of the OEM cartridges, the construction of R-Jet Tek's machines and cradles is purposely sample in design and use mostly non-proprietary replacement parts. All machines, for example, have a standard electrical cord that plugs into a regular wall outlet. Replacement parts, if needed at all, can be found almost anywhere - cities and rural areas alike.
The machines' accompanying instructions also have a sample design, containing many images and minimal wording, specifically, so they can be sold and easily understood by the company's entire customer base, which is spread across 140 countries and dozens of languages. Approximately 40 percent of R-Jet Tek's sales are to foreign companies and the remaining 60 percent of sales are direct to remanufacturing in the United States, Canada and Mexico.
The company's entire Fluidix line of equipment and supplies is produced at R-Jet Tek's Colorado Springs facility. Manufacturing its own machines enables the company and its engineers to directly oversee the quality of both the materials and assembly of its various components on a dally basis. Though this decision ultimately costs the company a few extra dollars than it would to manufacture overseas, Warner is confident it is the right decision.
"We are able to develop our own prototypes, test them for reliability and use, and quickly release products into the market. The quality is unquestionable,'' he said.
The company tests its equipment not only to make sure each machine performs properly, but to protect the safety of its end users - the company's primary concern. Specifically, the company uses third-party services to per- form objective testing to meet CE (European), CSA (Canadian) and UL, or Underwriter's Laboratory (United States), safety standards. R-Jet Tek has contracted with many of the region's third-party electronics-testing companies to run these tests, many of which also serve nearby computer and component companies such as Intel as well as a division of HP. The company also has a select group of customers to beta test both their equipment and supplies.
Long before the machines are sent for external testing, R-Jet Tek conducts its own series of in-house tests. These tests are designed to simulate real-world usage, determined by the company's own proprietary testing equipment. The engineering department also uses dielectric tests on each finished machine.
The first and most important gauge of quality is its functionality - the equipment's basic ability to do high-quality cartridge cleaning. Though it sounds simple, this one step comprises a range of cleaning and testing methods, particularly since each cartridge's individual structure warrants differing ways of cleaning and has to be completed by a single, adapt- able machine. The company also tries to replicate the conditions in which the OEMs initially fill the cartridges, or according to Warner, "to the best our staff can determine, the original cartridge is filled under," specifically for vacuumed and foam-filled cartridges. The company also performs print testing and package testing.
The second tier of in-house testing discerns the machines' reliability. Each component is individually tested in the assembly process, and once complete, the entire machine is further tested to meet ASTM engineering, mechanical and electrical standards.
"There a lot of labor that goes on behind the scenes that allows us to give a high-quality finished product to the consumer,'' Warner said. "They can use the process we recommend so then we can go on to recommend their products, knowing they are produced well."
Support and Education
R-Jet Tek's headquarters and its international distributors not only provide equipment sales, but extensive training and support for all products. The company emphasizes the importance of the customer-manufacturer-distributor relationship for maintaining the company's commitment to high levels of customer service as well as obtaining critical feed- back on the machines' performance.
Customer support is available any time throughout the ownership of the product or supply. This support is provided by the R-Jet Tek staff member who served as the salesperson. This person is able to quickly retrieve the machine specs, test documentation or supply invoice specific to the customer to address his or her exact concerns. Company management believes this high level of staff involvement creates direct accountability for the quality and function of the product and creates long- term, trusting relationships with customers. "Essentially, we look at what people need and go from there. It's all about helping them do what they do best,'' Warner said.
Another way R-Jet Tek maintains high customer service standards is by offering same-day fulfillment and ship- ping on any of its supplies orders. Warner realizes, "A company can't function without its supplies, and we know how important it is to keep business going."
While the company strives to provide excellent customer service, these service standards are maintained by its well trained staff. The company has highly discerning hiring practices and deliberately has a likable and trusted staff in place. The company's high expectations of itself stems from its commitment in having communicative employees trained in multiple technical as well as sociable areas. Many staffers are also multilingual and are able to counsel customers in their native languages, knowing that assistance is only as good as one's ability to clearly and accurately understand and relay ideas. Furthermore, every employee's goal is to ensure that each customer is satisfied with the company's products and services and is excited about continuing to do business with the company. "Our company's success as well as our paychecks come from happy customers, and we do everything we can to maintain these relationships," Warner said.
R-Jet Tek's promise of customer service isn't limited to its readily available staff. The company recently began hosting R-Jet Tek Academy, a hands-on, intensive training course for customers as well as general industry members, offering practical information on the imaging industry's technical and business realities. The first R-Jet Tek Academy kicked off at the 2004 World Expo and has taken place every other month thereafter.
As demand grows, the program will increase in frequency to once a month.
The class cap is nine students, and the sessions are purposely kept small so that each student is able to have plenty of student-instructor interaction. And although the classes are structured to fit R-Jet Tek's own customers' needs, R-Jet Tek also offers customized classes suitable for almost any company.
R-Jet Tek's classes are taught by staffers Clayton Sparks, regional sales manager, and Ramon Cruz, Fluidix support. The combination of the technical support and sales experience the two instructors offer provides practical insight for both new entrepreneurs and those already immersed in the industry.
"Clayton leads discussions about the business aspect while Ramon runs the laboratory's hands-on remanufacturing sessions," Warner said. Additionally, Sparks is multilingual, speaking English, Spanish and Portuguese, and R-Jet Tek offers Academy classes in all three languages. Having classes in Spanish and Portuguese reflects the company's cur- rent push toward extending its already large international reach and embracing a growing South American market.
The first day of classes consists of four hours of general lecture about the imaging industry and a couple of hours examining specific inkjet cartridges and inkjet-related products. Over the next few days, the company spends another 12 hours showing the participants how to refill various types of cartridges and what the pitfalls are of each one. The instructors also show the students how to inspect and evaluate their remanufactured cartridges as well as various quality-control testing methods throughout the entire refilling process. The Academy also has sessions on cartridge prep, the filling process, labeling options for finished cartridges, protecting the products in appropriate packaging and more.
The company's push for industry education, training and support doesn't end there. With so many startups in the company's customer base, Steve Johnson, one of the company's founders and inventor of the company's entire equipment line, found himself constantly being asked technical questions, particularly as new inkjets appeared on the market. The obvious demand for more and more information, particularly as the industry evolved, inspired him to write and publish The Ink Jet Cartridge Book in the mid-1990s. This technical how-to remanufacuturing guide has sold thousands of copies and is estimated to be the most widely used inkjet reference available. According to Warner, "The book is constantly being updated to reflect the latest innovations in inkjet releases,'' and has gone through several versions already.
Vic Johnson, the company's director of communications, was also bitten by the writing bug. Johnson wrote and published The Ink Jet Guide for Entrepreneurs: A Step by Step Comprehensive Guide for Starting Your Own Ink Jet Remanufacturing Business, in 1997. To date, this is the only startup guide written for fledgling entrepreneurs looking to begin an inkjet remanufacturing business and has been a handy startup tool for many of the industry's now well-established companies.
Partnerships Then and Now
R-Jet Tek is a business born of a partnership more than a decade ago and the company continues to value its industry relationships today.
In 1989, Ernst Johnson, one of R-Jet Tek's founders, was running three businesses with help from son Steve. The Johnsons were in the ribbon remanufacturing and PC clone businesses and had many large clients, including Dayton Hudson, Target, Sears and Safeway, as well as many local clients. One of those local clients included Mike Warner, president of the Pro Rodeo Hall of Fame. As Ernst and Warner's working relationship grew, Warner became intrigued by the novelty of the company's first ribbon feinting machine, PC Inker, and John- son's ability to make money from it.
"I thought it was neat to take somebody's used cartridges, keep it out of a landfill and sell it back to them for profit," Warner said.
Business progressed and in 1992 the Johnsons sold Ribbons PLUS Inc., a ribbon remanufacturing company, to Warner. This strategic decision allowed them to focus their energies on the equipment manufacturing company, Ribbon Tek USA. They decided to tackle the emerging inkjet phenomenon by creating a line of supporting, remanufacturing inkjet equipment.
Warner, now fully immersed in the daily operations of Ribbons PLUS Inc., also began to recognize the emerging need for inkjet remanufacturing in his own customer base. He deferred to Ernst and Steve and asked them to build an
inkjet refilling machine to accommodate his customers' growing demands. Steve agreed, solving a mutual problem, but with one caveat: If he spent the time to build and perfect a machine, he wasn't going to build just one. If the machine worked, Steve was going to require Warner to sell them in his storefront. Warner also agreed, and the three men collaborated in the development of their first inkjet cartridge refilling machine. It was then the real lifeline of what would become R-Jet Tek began.
Steve and Mike tinkered every night for six months, and Warner remembered "coming home to my wife late at night covered in ink." Finally, the machine was finished and Ribbon Tek USA's production began on its first inkjet remanufacturing line. The machine sold for $1,900, and the company soon carried inks and other inkjet refilling supplies to complement its new equipment line. In 1999, Warner joined ranks at R-Jet Tek as vice president, overseeing the sales for the company.
Two years later, the company established its first partnership with OCP GmbH, a German ink manufacturer. "Our emphasis in the future is growing partnerships with different groups so that we can be instrumental in their success, and they can be in ours," Warner said.
"We found they had excellent quality. They were the most expensive on the market, but we felt that quality does cost and it was more than a fair price for it. We waited to hang our hat on quality to go along with the equipment side of our company, and so we struck up a relation- ship with OCP in 2001. It's been moving forward since."
The company's latest boost came from a new relationship with Rapid Refill Ink, a growing retail remanufacturing franchise with national aspirations. R-Jet Tek has established subsequent relationships with other remanufacturing chains including Caboodle Cartridge and R-World. Given the majority of the R-Jet Tek's customers are remanufacturing, particularly those with large production needs, Warner believes the decision to strike up a partnership with Rapid Refill seemed "natura1.'' "The next biggest opportunity for R-Jet Tek is at the franchise level," he said.
Dan White, president and CEO of Rapid Refill Ink, called R-Jet Tek to say he was opening a remanufacturing store- front in his hometown of Eugene, Ore., and wanted to know if R-Jet Tek could help him launch his business. The company referred him to Steve and Vic's two books and suggested he study them to determine if he really wanted to proceed. White did just that and eventually purchased remanufacturing equipment from R-Jet Tek. Rapid Refill now uses R-Jet Tek equipment in all of its franchise locations and ordered customized machinery specific to each storefront's needs.
"The Rapid Refill Ink franchise currently has 70 stores with an eventual worldwide goal of 3,330 stores, all of which will use equipment and products from R-Jet Tek," Warner said. "We explained to Dan up front that we had everything we needed to help him carry the company up to the franchise level. Every franchisee of Rapid Refill has a built-in success process because they are using the best equipment and the best ink available.''
Despite any challenges the company faces, R-Jet Tek's long-standing commitment to production, innovation and sup port is a foundation on which many other companies within the imaging industry have and will continue to build their companies. The company's decision to tackle the tough remanufacturing challenges that come with innovation so its customers won't have to is not only a commendable task, but one that keeps its customers' production lines moving. As inkjet use continues to permeate the market, R-Jet Tek plans on continuing its presence as a resource, educator, production partner and supporter for the imaging industry.
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