Potential Profits

Potential Profits
In most areas of the country today, there are few options for consumers to buy ink cartridges. The consumer can go to a computer boutique shop, an office supply store or a big box retailer. The options there are always expensive.

By offering a refilling service, you will save your customer money for purchases they need to make anyway. This will be a profitable business for the foreseeable future. Today however, there are so few businesses in the refilling market that the potential for very high profit margins exists. Based on a conservative estimate:

10 cartridges ink cartridges filled per day

At an average selling price of $14.99 per cartridge

A monthly equipment lease payment of $700 (for 36 months.)

And taking into account your marginal cost for labor, materials and overhead…

You will be earning $1,100 per month in a new profit center that will be generating additional foot traffic for your existing business.

Now, double the ten cartridges per day estimate by assuming you can do a modest amount of selling to your existing clients and others in your community. If you refill 20 cartridges per day, your profits will be around $3,200 per month.

This estimate is for ink cartridges only, toner cartridges are generally much more expensive to by and thus, you can chare a much higher price per unit.

$14.99 is our estimate for an average price per cartridge. If you refilled for 20%-40% off the OEM price, you would still save your customers a ton of money while earning a far higher margin per unit sold. (example: A given cartridge retails for 49.99 from an OEM. You take off 40% that and charge 29.99 for a refill. The customer will save $20 per unit and you can earn a very healthy margin for providing this service.

Please contact us today and I will send you out a spreadsheet file that will allow you to run calculations based on your own assumptions about:

Your market share potential

Pricing

Labor expense and

Overhead expense

Next>>> Learn about your upfront investment in equipment to refill ink and toner cartridges.