Epson Corporation is developing a new printer known as EcoTank that nixes the need for ink cartridges.
With many of their customers getting frustrated with constantly having to replace their ink cartridge, Epson has radically transformed their business model by introducing a printer that rarely needs to be changed. The new cartridges will have a yield that can print at least 4,000 documents, and have the capability to be refilled with easy to use ink bottles.
Officials at Epson were keen on reducing the stress of their customers, and just making things more convenient in general.
“It’s a really big advantage to the end user,” said John Lang, Epson’s chief executive officer for North America. “That anxiety and that fear of running out of ink-it’s amazing to me that that was so prevalent.”
The business model they used before is known as the “razor and blades” model, which takes its name from the shaving goods. The strategy is to get people to buy a product that seems cheap on the surface, but constantly needs replacing of a certain, more expensive part. People were so mad about always having to change the cartridge that Epson had to deal with a number of class action lawsuits. In 2006, they awarded customers a $45 credit per printer due to all the troubles.
The cheapest of the new desktop printers will cost around $379, much more than the $60 for the model that needed constant replacing. Customers will find it much more beneficial because it will be more razor, less blades.
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