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Part One: Ink Jet Primer
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.
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