Cartridge computer discount ink

While the traditional recycling industry, in many ways, has moved away from its image as a way for Boy Scouts to raise money, the fairly rapid development of the toner cartridge recycling industry has happened precisely because entrepreneurs have made pitches to schools, non-profits and other organizations that cartridge recycling can be a way to make money and save on some costs.

The growth has been abetted by the explosive growth in the computer and the desktop printing industry.

While this growth has generated some niche markets for many remanufacturers, refillers and commodity recyclers, in some ways the industry is only now starting to come into its own, moving from a segment of the industry that had flown under radar to one that has developed an effective marketing campaign to offer a wide range of recycling methods.

FROM THE GROUND UP. Russ Thomas, with Rethink Ink, a refiller of copier and primer cartridges, notes that the company has very successfully approached schools to build up its business.

The company, which began in Kansas City, Mo., less than 10 years ago as an experiment with the Kansas City Star newspaper and one school, has now grown to serve mote than 4,000 schools throughout the United States.

Clover Technologies Group, Marseilles, Ill., also has seen its business explode. The company, which began less than 10 years ago, has seen sales jump from $2 million fewer than five years ago to $80 million last year.

The growth in Clover Technologies' business, as well as the creation and/or growth of a host of other companies catering to this niche market, follows the trajectory of the overall computer market.

With more homeowners having home computers and printers, ink jet cartridge demand is growing.

At the same time, the business world has also readily embraced computers.

While the electronics industry has seen some rapid growth in the use of computers and peripherals, the downside to this has been the growth in the amount of obsolete electronics generated.

Many corporations, not wanting to be seen as polluters, have tried to find ways to become more "environmentally friendly," while possibly saving money on new cartridges.

The result has been impressive. From its humble origins only several years ago, ink jet refillers, reclaimers, remanufacturers and recyclers have exploded. While the companies are numerous, concerns are growing about the impact they may have on the overall printer industry.

Hewlett Packard, Palo Alto, Calif., one of original high-tech firms (the company has been in business for 65 years) and one of the companies that has most successfully incorporated the recycling mindset into its overall manufacturing process, has what it feels is a model program to become a good corporate citizen.

What the company doesn't do is refill or remanufacture ink jet cartridges, toners and other printing accessories. Rather, HP runs all the collected material through a more traditional recycling process that separates the plastics, metal and other materials into their core commodities. The separated materials are processed and recycled into other products.

While researching in order to process spent cartridges, the company found that much of the existing equipment it was using to process the cartridges was not suitable. The result was that HP ended up designing its own equipment.

Boris Elisman, vice president of marketing and sales for HP's Imaging and Printing Supplies Organization, says that the company takes a three-pronged approach to supporting the environment. As part of this approach, HP designs its products with the environment in mind. For example, the main objective, Elisman says, is to reduce the number of parts in its laser jet cartridges. "We have reduced the parts by 32 percent over the past 10 years."

Additionally, HP manufactures its cartridges with a snap-on design, making the demanufacturing process much easier.

While these front-end processes make recycling easier, HP has increased its efforts on the "take back" side.

For any company looking to crack into the market, the take-back side is essential, and manufacturers of printers and ink jet and laser jet cartridges are devising methods to have the cartridges returned for repackaging.

As competition heats up for this material, more companies are offering some type of buyback program with incentives, such as offering suppliers of spent cartridges either a discount on their next ink purchase or some type of rebate.

THROUGH THE RINGER. Depending on the model, HP recycles up to 70 percent of the print cartridge by weight. Returned cartridges are shredded and materials are separated into plastics, metals and other components (ink, foam and composite parts.)

Plastics mid metals are further refined and used to make raw materials, auto parts and HP products. The remaining materials are disposed of in an environmentally responsible manner, says Elisman.

Elisman notes that the company strictly recycles the cartridges and does not remanufacture or refill the products. "We do not do any remanufacturing of cartridges. We can't get the quality that our customers demand," he states.

While HP touts its ability to recycle cartridges and toners, other companies have staked their businesses on maneuvering between the two sides

Clover Technologies Group is one of the fastest growing companies in the service industry. In fact, the company ranked 34th in Inc. Magazine's list of the fastest-rowing companies of 2002.

Since 1997, Clover has been a leader in the design, manufacture and distribution of compatible consumable printing supplies, including laser toner and inkjet cartridges: large categories of the rapidly growing digital imaging supplies industry.

Clover's product line also includes compatible laser fax cartridges, copier toner cartridges, thermal transfer fax supplies and other consumable imaging supplies. In addition to manufacturing compatible products, Clover is a leading distributor of OEM-branded imaging supplies to leading dealers and resellers nationwide.

While the company has carved out a sizable portion of the market, it maneuvers between original equipment manufacturers and the much smaller refillers who can serve only a small, local market. Clover Technologies sells what it calls genuine parts, in addition to collecting and remanufacturing spent cartridges.

NUMBERS OF NOTE. According to the International Imaging Technology Council (I-ITC), Freehold, N.J., the worldwide monochrome toner cartridge market in 2002 was $18.2 billion. Within two years, the figure is expected to grow to $23.4 billion. For color laser cartridges, the number is expected to jump from $1.4 billion in 2002 to $2.3 billion in 2006.

The association also notes that there are an estimated 5,000 remanufacturers in the U.S. These companies, the I-ITC estimates, remanufacture about 27 million cartridges each year.

The remanufacturing of cartridges resulted in the reuse of 27 million pounds of industrial grade plastic and 73 million quarts of oil conserved, the association contends.

However, the number that jumps out the most for many remanufacturers, as well as for consumers, is that the cost of purchasing a remanufactured cartridge can be from 50 percent to 90 percent less than purchasing a cartridge from an OEM.

John Santiago, a spokesman for Clover Technologies, notes that the company has grown its cartridge recycling business by adhering to high standards.

Santiago adds that of the cartridges and toner units that come through the plant, about 95 percent of what the company gets is either reused or recycled. While some are remanufactured back into cartridges or toners, others are processed to be recycled into other products. Very little of the material collected by the company ends up being disposed of, he says.

Jim Cerkleski, president of Clover Technologies, notes that despite the fact that the company is very aggressive in its recycling and reuse approach, it continues to invest significantly in research and development.

The company invested about $1 million to improve the quality of its products, he says. "We focus on quality as opposed to prices."

As for challenges in the future, Clover feels it has positioned itself well for the future, since it has invested the time and money to meet the improving quality specifications.

One company that has made its appeal directly to many consumers has been Rethink Ink. The company began as an offshoot program championed by the Kansas City Star newspaper. Initially designed to provide bonus money to schools, the overwhelming success of the program allowed the company to expand its program to a nationwide approach.

Thomas of Rethink Ink. says that since the company began roughly five years ago, it has seen the number of schools participating in its program soar to approximately 4,000.