Business of Cartridge Refilling
Have you seen the Hoarding of AB Cartridge offering free copiers with the option to pay per print basis. Imagine how a company can offer free printer if we buy cartridge from AB Cartridge. Rack your brains on that. Recently I wanted to refill and fix my printer toner. First I thought of calling the famous one in the industry Cartridge World for enquiring. They said you need to shell out 1750 bucks for full refill of my LBP 2900B Printer Toner. Then I thought of calling Re-feel. They too had similar pricing preposition.
I thought to try out local refill centers to fit into my budget and quick service. I handed over toner to the person at refill center. He took some printout using the toner. His evaluation took about 3 – 4 minutes. He quickly quoted me Rs. 250 for refilling, Rs. 350 for Drum (this one does actual printing job) & Rs. 150 for PCR (this one collects excess ink powder). So total of Rs. 750/-
Rs. 750 according to me was high. I, like my dad, (he is a great bargain hunter) thought of bargaining. I asked him to do the job for me for 500 bucks finally there was mutual agreement between us to do the job for Rs. 550 which is approx. 27% less then his quotation. A thought ran through my mind how much this people are making that he easily allowed me a discount of Rs. 200.
This is how I came up with this article to reveal cartridge refilling business.
The search begins for locating wholesale market for Printer consumables which ended at Modi Street located in Fort Area in Mumbai. At Modi Street one can find many stores selling printer & toner consumables and also new toners at wholesale price. The study was conducted for Toner of Canon LBP 2900B. The facts of the study are listed as below:
Main Parts in Toner that need to be changed: Ink Powder, Drum, PCR, Magnet, Blade
? Ink Powder ranges between Rs. 45 – 60/packet depending on quantity. E.g. 80 gms powder will cost Rs. 45 while 100 gms. Powder will cost Rs. 60
? Drum ranges between Rs. 110 – Rs. 140 depending on quality
? PCR available between Rs. 40 –Rs. 45
? Magnet ranges between Rs. 40 – Rs. 55
? Blade ranges between Rs. 40 – Rs. 50
Comparison between Wholesale Price, Retail Price and Price of Chain Cartridge Refilling stations:
* It is assumed that 100 gms ink powder is used for refilling and all other products used are of best quality hence higher rate is considered for calculation purpose. In wholesale price Rs. 350 is for changing all the important parts (as mentioned above) of cartridge & refilling while the retail price is Rs. 1060 for same and Rs. 1750 is for changing all parts at Chain Cartridge Refilling station.
Analysing above numbers tells us that cartridge refilling is 200% Margin business even if you are a local retailer with one store. Imagine the margin of chain stores. Also starting up with cartridge refilling business is easy. You need a small shop or stall at good location and material worth Rs. 5000 to start with. Of course you need to have certain amount of technical and mechanical knowledge. It is advised that you buy dummy cartridges & toners from market and try your hands on that before taking up customer orders.