The Ink Jet Cartridge Book


The Ink Jet Guide For Entrepreneurs

Sample Chapters:

Ink Jet Primer
- Introduction
- Industry Overview
- Industry Outlook
- Ground Floor Opportunities
- Profit Margins
- The Office Products Recycling Industry
- Industry Trade Shows and Associations

12 Step Startup Guide
- Research Your Market
- Perfect Your Methods
- Select Goods and Services to Offer
- Create Your Business Identity
- Identify Target Markets
- Build Core Customer Base

Sales & Marketing
- Identifying Niche Markets
- Office and Desk Space Rental Service
- Aligning with Service Companies
- Getting Referrals

Growing Your Business
- Ink Jet Cartridge Processing Machines
- Cartridge Retrieval Systems
- Adding Printer Service to Your Business
- Adding Dot Matrix Services
- Selling New and Used Printers

  The ink jet guide for entrepreneurs

Part One: Ink Jet Primer

Chapter Five: Profit Margins

What makes ink jet remanufacturing so appealing as a business is the high profit margins. The average cartridge will return a markup of 500\% to 800\%! This means that if your total cost to remanufacture a cartridge is about $2.00, you can expect to sell that cartridge for $10.00 to $16.00, depending on the model. Remanufactured cartridge prices are almost always governed by the cost of a new cartridge to the consumer. In general, companies charge one half the cost of a new cartridge for a remanufactured one. For instance, a Hewlett Packard (HP) cartridge that sells in the store for $21.95 will usually be priced at $11.00-12.00 for a remanufactured one. With labor and material cost to remanufacture at $1.00-2.00 each, it is not hard to see where these high profit margins come from.

How many businesses can you think of in which the margins are so high? Generally, in retail sales, markups of 100\% or less are typical. Perhaps in some service businesses, margins are higher than 100\%, but none that I know of come even close to the 500\%-800\% margins available to the ink jet cartridge remanufacturer. This important fact should be all one needs to be convinced that this is a great business to go into. Recurring income occurs when the same initial sale produces future, repeating sales, usually with a fraction of the cost needed to obtain the original sale. Like the insurance agent who makes a commission every month when you make your life insurance payment, ink jet cartridge remanufacturing also produces recurring income. Indeed, not many users are going to use a recycle cartridge just once. No, they are going to pay you each time that cartridge is empty, to refill it again, as long as you have done a good job in remanufacturing it. Any business that produces recurring income deserves to be looked at seriously when you are choosing what business to start.


[Cartridge Transport Clips][Tools and Supplies][Premium Ink Jet Inks]
[Ink Jet Books][Packaging Supplies][Refill Kits][Ink Jet Packages]
[Compatible Replacement Cartridges][Automated Equipment][Home]


719-578-0506   800-688-0129
Fax: 719-578-9722
sales@rjettek.com

© 1999 R-Jet Tek, all rights reserved.