COMPATIBLES ISSUE

Partners feel that vendors are being unethical when they propagate that usage of compatibles causes harm to printers. Vendors refute that it is ethical to protect their own business interests, stating that compatibles do not match an original’s quality and reliability.

Quality-wise compatibles are as good as originals...

When it comes to quality, compatibles are as good as originals and we do not
see any of our customers complaining about the same. A compatible manufactured
under strict quality control can give similar print results as an original.

“Vendors spread misinformation that printers get damaged by if compatibles are used”

Rashmikant Modi Proprietor, Prafful Office Products

As against the misinformation spread by vendors, compatibles do not cause harm
to the printer. We sell both, compatibles as well as original cartridges/toners
and even go to the extent of replacing printers, if it goes bad due to the
compatible.

Margins are far better...

Compared to the 3% to 5% margins that we operate on in the original
consumable business, compatibles give us around 10% margins. Also, from the
customer viewpoint, he stands to save 30% and 35% while buying compatibles.
Considering the fact that competition is so fierce in the original consumable
business, there is nothing wrong in promoting compatibles, which are
cost-effective, yet a reliable alternative.

Vendors are ethically wrong...

Ethically, vendors are wrong in discouraging users from buying compatibles.
In an open market, customers should be given the choice of using a consumable or
an original, whichever they feel is best. Instead, vendors resort to tactics of
spreading misinformation that printers get damaged on usage of compatibles.

The fact is that consumables are a major business for printer vendors and
they don’t want it go out of their hands. Hence, they indulge in false
propaganda. If they are scientifically correct about their stand on compatibles,
why don’t they put the same in black and white in their advertisements and
product literature.

Compatibles market size will grow...

In Europe and US, compatibles enjoy decent marketshare. As
the Indian market matures, the compatible marketshare will also grow. Currently,
it is difficult to overcome the prohibitory mindset that consumers have about
compatibles. But in due course, as awareness increases and myths are shattered,
more buyers will go in for reliable alternatives to highly-priced originals.

Also, lot of local manufacturers have brought a bad name for
the compatible industry. If good quality standards are set, compatibles will
gain wider acceptability.

“There are genuine technological issues with compatibles, hence they are not good for printers”

PG Kamath GM, Lexmark India

Compatibles are counterfeits glorified..

Compatible supplies are nothing but glorified counterfeits
and refills. There is no way that it can be compared to the original, both, in
terms of quality and reliability. Compatibles fail to ensure a consistent print
quality, as in the case of originals. And this is not just a vendor propaganda;
there are many customers who will support this fact.

If compatibles are really that good, why are majority of
partners still selling originals? More importantly, why are consumers still
sticking to buying original supplies?

Injustice to consumers...

Partners are trying to sell something as an original which it
is not. They are doing injustice to their consumers. If a pirated software works
as well as an original, it doesn’t mean that selling pirated software is a
genuine business. One can make good margins in the first deal. But, that does
not make up for a customer’s loss of trust, if something goes wrong with the
printer.

Protecting one’s business interests is ethical...

Yes, supplies do constitute a good part of our business. It
is not unethical to protect our business interests without resorting to wrong
means. When we say that using supplies other than originals can harm the
printer, there are genuine technological issues involved.

As far as putting our concerns about compatibles in black and
white, we inform all our partners and customers on every possible occasion about
disadvantages of using compatibles. Just putting a statement to that effect in
the product manual is not going to ensure awareness. Sheer ignorance about the
demerits of compatible supplies prompts users to go for the same.

Originals will command healthy marketshares...

There is no way compatible supplies, refills or any other
alternative are going to threaten the business of originals. This fact can be
verified by looking at instances in various other industries. For instance,
though compatible spare parts business exists in the automobile or electronics
industry, it never even comes close to that of originals.

Only a vendor knows what will best ensure a long life of its
printers. One can come up with an alternative but never a best or even an
equivalent solution.