Actual manufactured cost of inkjet printer ink?

[nzo]

There's always lots of discussion about HP etc printer inks vs the cheaper refills, but does anyone have any inside info on what it actually costs these outfits (HP, Canon etc) to manufacture a set of inks for a printer?

I know there are too many variables to answer this question accurately but a ball-park figure would do. My guess is that the $ amount is not even close to the eventual retail cost.

Any insight appreciated, so I know how bad to feel when replacing my ink tanks

[mikesbytes]

The sale price of the cartridges has nothing to do with the manufacturer costs. Basically the printers are sold to you at cost or below cost price so that they can make a profit out of selling you the cartridges.

I suggest you go the US site Megatones and price your cartridges there. Some cartridges are selling for as little as US$1.25, so the manufacturer cost is clearly less than US$1.00

http://www.megatoners.com/

Which printer do you have ?

Edit
How about US$0.99 each http://search.store.yahoo.com/cgi-bin/nsearch?follow-pro=1&vwcatalog=megatoners&catalo.../x%3FPr2kGbrLn

[guns1inger]

Exactly the same model that Sony and M$ use when selling consoles. No money in the base unit, but keep 'em coming back for more afterwards.

[VegasBud]

According to this article:

...a 60 percent gross margin on ink jet and toner cartridges...

Since the quote is from a financial analyst with Bear-Stearns, with no dog in the fight, I would tend to think it's a fairly accurate "ball-park figure". However, that article is more than two years old. It's certainly possible the profit margin has changed since then.

[nzo]

Thanks all. Interesting article vegasbud. I wondered if printer manufacturers base their business model on that of the US miltary; i.e. the $100 'screw', both figuratively and literally

Just bought a Canon ip4000 here, mainly for use in printing inkjet capable CDs and DVDs. Still on the original ink tanks.