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WALL STREET JOURNAL May 6, 2005 Cartridges for a Cause Schools Collect Empty Inkjets And Sell Them to Brokers, Who Resell to Be Refilled By PUI-WING TAM Staff Reporter of THE WALL STREET JOURNAL David Wood makes a good living by asking people for their empties -- empty printer cartridges, that is. To make his business pay, Mr. Wood does a lot of asking. Every three months he visits about 345 schools and as many as 20 churches dotted across his home state of North Carolina. He also phones about 15 schools a day, as well as several Boy Scout and Girl Scout troops. These schools, churches and other nonprofit groups comprise Mr. Wood's grass-roots army of collectors, helping him gather a total of about 9,400 empty inkjet and laser cartridges a month. He pays an average of $2.50 for each inkjet cartridge. Then, his Raleigh, N.C., business, called Kartridges for Kidz, resells the empties for an average $5.50 apiece to remanufacturers who will recondition them, refill them and offer them for sale at 30% to 50% less than new brand-name cartridges. "I'm basically asking for other people's trash, which is the beautiful thing about this," says Mr. Wood, whose business brings in monthly revenue of about $60,000. Mr. Wood is one in a growing cadre of cartridge brokers that helps nonprofit groups raise funds, encourages recycling and supplies a network of mostly small remanufacturers that offer consumers a lower-cost option for running their printers. It is a win-win proposition in many respects, except for the big printer makers such as Hewlett-Packard Co. and Lexmark International Inc. Brokers like Mr. Wood and the remanufacturers they supply are pinching the printer giants, which rely heavily on profits from repeat sales of new cartridges. The printer companies also are beginning to feel a squeeze from office-supply outlets that sell do-it-yourself refill kits and chains such as Cartridge World and Island Ink-Jet, which are setting up across the nation as cartridge-refilling stations for consumers. In the past five years, the share of the global ink-jet-cartridge market held by remanufactured cartridges has risen to 17% from 14%, says imaging-industry tracker Lyra Research. Lyra expects that to rise to 24% by 2008, even though Consumer Reports and other consumer watchdogs consider remanufactured cartridges inferior in quality. H-P and others have responded by suing some remanufacturers for patent infringement or other alleged offenses. They also encourage consumers to return used cartridges for recycling by packaging post-paid return envelopes with new cartridges. John Solomon, a vice president in H-P's imaging division, says the company is trying to help the environment, not thwart remanufacturers. "We welcome competition," he says. Mr. Solomon calls the cartridge collectors "a cottage industry" and says that while H-P's own cartridges are more expensive, they are of better quality. "... "... Demand for empty cartridges -- sometimes called "cores" -- is skyrocketing. A used black-ink cartridge for an inkjet printer can fetch an average of $5 from a remanufacturer, up from $3 a year ago, according to Lyra. Research firm InfoTrends/CAP Ventures expects Americans to go through 86.5 million laser-toner cartridges and 604 million inkjet cartridges this year. Cartridge brokers are mobilizing their collectors to hunt for these cores. Only "virgin cores," or cartridges that have been used just once, are considered worthy of remanufacturing. Because good-quality cores aren't easy to find, brokers are often willing to pay handsomely -- in some cases more than $20 for a used laser-printer cartridge. FOR FULL ARTICLE: http://online.wsj.com/article/0,,SB111533674004326330,00.html _________________________ Peter Anderson, President RECYCLEWORLDS CONSULTING 4513 Vernon Blvd. Suite 15 Madison, WI 53705-4964 Ph: (608) 231-1100 Fax: (608) 233-0011 Cell: (608) 698-1314 eMail: anderson@no.address web: www.recycleworlds.net |
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