Quoted News from RTMworld Chinese Cartridge Prices to Rise “Due to the difficulties in finding workers, as well as increased labor costs caused by the COVID-19 coronavirus, several blade manufacturers in China have already announced price increases of at least 10 percent for cartridge components, particularly with blades used in low volume cartridges. Blades used in high volume and color cartridges could face price hikes of up to 20 percent.”
Consulted with some players in the industry and it’s proven that the price of After Market made toner cartridges did increase with several main models. As the prices of After Market made toner cartridges have been in a price war since the past 11 years. The minimum price to be found in the market has come to 2$USD and the current trend of increase on spare parts will significantly create 10-15% of increase even on the prices of monochrome cartridges with big volume.
HYB Sales Professionals started to receive some enquiries from existing customers about our reaction to this and if we will follow the trend to increase the Sales price. The management consider it is important to emphasize the strategy of HYB once again. “HYB never joined the Price War of studied of changes in configuration on our products in order to decrease cost and compete with cheaper products. Our customer base are mainly distributors who are looking for an alternative for their dealers who are used to Genuine toner and that’s why we have a big percentage of selected material such as toner and chips are imported from leading manufacturers. Just like the reason why we didn’t decrease price to meet the market share of regular quality demand, we would keep our price level stable for the same reason. The fact is that copier cartridges manufactured by HYB and composed of self-produced empty cartridges, bulk toner produced in Japan and chips. The rise of prices on spare parts like charge rollers, blades and OPC won’t create dramatic difference to our cost while we will still be affected by the up-to 25% increase on packages price as well as labor cost. The business of our distributors are united with ours and we will keep providing consistent quality, same configuration with stably competitive prices to our customers. ” said Kim Lee, the Sales Director of HYB.
It is a good timing to witness how solid and fragile the sales framework of the manufacturers and their customers in the International Sales of After Market toner cartridges. Some suppliers that have been chasing on low price and low credit line aiming only at market share without profit may get into troubles due to all these changes. Short of material won’t allow components manufacturers who offer long credit terms to cartridges producers but will only provide material to those who have good cash flow and willing to pay for a higher price. This will break of ring of business for some of the suppliers in the market. We will wait and see what these changes will cause to our Industry.