Everyone knows the drill. You buy a desktop printer for next to nothing, then mortgage your house to buy the ink cartridges.
Well, Kodak, is reversing that system, according to “The Pricing Advisor,” newsletter of the Professional Pricing Society. Kodak recently introduced a new line of printers priced about $50 more than usual, and Kodak is pricing its replacement ink cartridges at half the going price – and offering more ink in each cartridge.
“Using these discounted print cartridges and volume paper packages, Kodak claims that its prints can cost as little as 10 cents each – which is much lower than the 20-cent cost of current home printers and 19-cent retail store prices,” states the newsletter.
“The Pricing Advisor” compares Kodak’s new pricing strategy to the Costco model – pay more up front and receive lower prices on every shopping trip.
Interestingly, the newsletter says that analysts predict Kodak will not start making money from this new pricing structure until a customer has purchased four printer refills.
One end result of the new Kodak strategy, according to “The Pricing Advisor,” will be deep discounts for future ink refill prices. “And for Kodak, even if rivals come close to matching prices, its high quality still makes it a strong contender in the inkjet printer market.”
Makes you think, doesn’t it? Have you considered your pricing recently?