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Why printers suck?

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alerty posted on Wed, Feb 18 2009 12:13 PM

It´s normal nowadays to see printers with expensive cartridges. Why is that so? Is there anywhere where someone made a free market look at the situation? All i get is that the companys are an oligopoly that is ripping off the consumer and the government is doing nothing about it.

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read my post again, and think about it. its not the same question you are asking if you can read into context

do we get free cheezeburger in socielism?

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alerty replied on Wed, Feb 18 2009 1:44 PM

Stolz25:

alerty:
So, you are saying that the print and cartridge market is just perfect?

Nothing is perfect, the market strives constantly for equilibrium between supply and demand, but it's impossible to actually achieve because everything is constantly changing.

I think perhaps one of your premises is wrong here.  You're argument would go something like this.

Austrian economics says that supply will rise to meet demand if it is possible.  (I'm not actually sure if this one is true)

People are demanding cheaper printer cartridges, it is possible to produce them, yet the market isn't providing them, therefore, austrian economics is wrong.

Several of these assumptions are impossible to measure.

 

The thing is that you see complains about the cartridge sector everywhere. The European regulators are considering to pass laws to regulate more this market (i don't know if they passed already some law, or what is happening right now). The position that if the profits were so high someone would enter and compete with them don't  work very well with outside people (you don't need to sell me this argument). The questions are, why does it seems that the prices are still so high? Are they really high? If yes, why didn't someone entered to compete? Is there something really wrong about it or people are just bitching about it? Could there be laws that are keeping the prices high, like patent laws? I thought someone here would indicate me to some link where there is a free market analyses about the situation. I couldn't find one, only cartridge monopoly, and government must protect the consumer talk without much real research.

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alerty replied on Wed, Feb 18 2009 2:02 PM

fezwhatley:

read my post again, and think about it. its not the same question you are asking if you can read into context

 

And why is that the cartridge market isn't getting any better? If it is, isn't there some research about it to show it and rebute the monopoly claims people are making? Or is the market very profitable but it don't face competition because of existing laws?

 

 

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alerty:
I thought someone here would indicate me to some link where there is a free market analyses about the situation.

Gotcha, and I have zero idea if anyone has analyzed this specifically. 

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While "Austrians" consistently claim to that human freedom to act solves many economic problems, printing cartridges is of course an exception! Of course! EVERYONE at the Mises Institute understands that exactly these specific items can only be efficiently manufactured by slaves in certain kolchos-Anstalts located near villages with soon-to-have very historic names in Poland...

 However, I personally happens to have bought two printers the last decade, without using it long enough to ever having to change the cartridge. So at least I have made a profit from this deal with "high cartridge prices subsidising low printer prices"-tactic. Otherwise, I actually think that there are expensive printers with cheap cartridges around, if you search (or ask the resellers for a package printer+cartridges deal if you want! who's stopping you ?)

 

alerty:
The thing is that you see complains about the cartridge sector everywhere. The European regulators are considering to pass laws to regulate more this market

Ha ha !

Well, our sovEUt politicians are ALWAYS considering regulating ALL industries, and for NO REASON!

That's no news, and it definately doesn't refer to any economic argument,  but as always only to the argument of our overlords fighting your freedom in order to increas their own power.

It's not fascism when the government does it.

“We must spend now as an investment for the future.” - President Obama

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alerty:
And why is that the cartridge market isn't getting any better? If it is, isn't there some research about it to show it and rebute the monopoly claims people are making? Or is the market very profitable but it don't face competition because of existing laws?

Better compared to what? You're making a subjective valuation that does not belong in economics. Just because you think that print cartridge ought to be less expensive doesn't mean a thing, you cannot suddenly call an industry non-competitive because it does not give the results you want.

I am becoming a Burkean Whig.

          - F.A. Hayek

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people have arbitraged this

http://www.lasermonks.com/

the printer companies have tried to have them shut down and failed.

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alerty:
It´s normal nowadays to see printers with expensive cartridges. Why is that so

In a fantasy world without scarcity, you could have cheap printers, cheap ink, and fast innovation in technology.  In the real world, there is a well known motto in engineering:  "fast, good, or cheap - pick any two."

I think the printer market is a good example of this:

Good + cheap: You can get a basic laser printer for about $200. It will print a gazillion pages per cartridge and last 10 years, so it's the cheapest option.

Cheap + fast: Get a $70 inket printer/scanner combo.  The ink will cost a lot, but you can afford a new printer every year.

Good + fast:  Get an expensive laser or a higher-end high-capacity ink jet.  My printer has XL size cartridges which last several times longer than the cheapo ones.

 

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Some thoughts:

- To expensive according to whom? Clearly not the consumers who keep buying expensive carts

- If there is profit to be made in cartridges then there is more incentive to enter the market with cheaper / more innovative alternatives, which in the case of inkjet printers are: Compatible cartridges, refillable cartridges, refill kits, continuous ink systems etc.

- Printers are actually quite complex pieces of machinery. Stepper motors, complex paper feed system, feedback systems, piezo actuators .. all for what, £30? Inkjet printers are often sold as loss-leaders with the money made back later with consumables sold. So what? If you want cheap running costs, pay more for the initial printer and get a colour laser.

- The only problem I might see in this exampe is printer manufacturers using the law (copyrights, patents, dmca etc) to step on competitors who offer better/cheaper/compatible products.

Base model cars of the world unite! You have nothing to lose but quarter-mile races.

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Answered (Not Verified) MacFall replied on Thu, Feb 19 2009 12:10 AM

If we had an economy based upon savings and not upon debt, things would tend to be far less disposable. We get cheap printers and expensive carts because printer manufacturers know people will have no problem buying a new one in 2 years, and people tend to be that way because the government (and the Fed) have done everything short of making saving illegal.

Pro Christo et Libertate integre!

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