The Printer - A Case Study on Changes in Profitability Model

What is the REAL COST of owning a printer?

Excerpts lifted from http://www.theamericanconsumer.org/2008/11/07/what-is-the-real-cost-of-owning-a-printer-2/. The American Consumer Institute Center For Citizen Research website. Click on the link for the whole article.


Printers are durable goods – that is, products that are not simply purchased and then immediately consumed, but instead used for several years. As such, it is important to know the full cost of ownership – both the upfront costs to buy the product and the annual or lifetime cost of operation. To make consumers aware of the full cost of ownership at the point of sale, new automobile price stickers provide estimated annual costs of fuel. Similarly, Energy Guide labels on new appliances, like refrigerators, show an estimated annual electricity cost to run the appliance. In both cases, the operating cost is much lower than the initial purchase price. In contrast, over the useful life of a printer, the cost of printing can overwhelm the cost of the printer itself. Simply put, consumers require better knowledge of the lifetime cost of ownership in order to make well-informed choices – not blind ones. <end quote, see above link for full article>


Cars follow the same line. Remember the time when you only have to replace the busted bulb, now you have to replace the whole assembly. Instead of just replacing the fan motor, now you have to replace the fan assembly, which includes parts which does not repair.

TV use, especially for commercial purposes, also follows the same line. There is a subtle shift in profitability model for these "durable goods" product. Spare parts, remote control costs, etc are increasing.