Lexmark cartridges price slashed by 15%

Vinita Suvarna-Bhatia

MUMBAI: Lexmark International has decided to bring down the prices of its
cartridges by almost 15 per cent, in a bid to increase its brand share in the
country. The new pricing will be effective from mid-April 2002.

As a result of the new pricing, its 40 ml cartridge which costed Rs 1,900
will now cost Rs 1,550. In comparison, HP's cartridge costs Rs 1,250 for 40 ml.
Epson and Canon cartridges are available at Rs 1,300 for 20 ml and Rs 950 for 10
ml respectively.

Says Lexmark International channel manager-India, Vivek Mehta, "Our
cartridge has a higher ink volume compared to other brands. This means that the
customer can print more pages at an economic pricing."

Lexmark hopes that the new pricing will help increase its supplies business
by at least 50 percent. Currently the company is selling only 18,000 cartridges
per month. Adds Vivek, "Right now our priority is to establish a good
distribution network and bring in all the models of printers, including the
all-in-ones."

With the slashing of supplies prices, some partners expects their Lexmark
business to go up by 25 percent. Says Sunil of Sound Systems, "Lexmark
products are technically superior, but the company was not very aggressive in
the market. By slashing prices, the company has shown that it is now ready to
get down to serious business in India." Presently Sunil sells 150 Lexmark
printers and 2,000 cartridge packs per month.

According to Sandeep Gupta, Country Manager, NCR Systems, which
re-manufactures Lexmark cartridges, the decision to bring down prices will help
Lexmark make inroads in the Indian market. "We have Lexmark's cartridges in
our international product offering, but have not introduced it in India. Once
the installed base of Lexmark printers increase, we might consider selling these
cartridges in India," he adds.

Lexmark is also trying to identify channel partners who will qualify as its
authorized retail outlets throughout the nation. Says Vivek Mehta, "We want
partners who have the floor space and initiative to sell and support our
products. We will extend complete branding and marketing support."

The company has also recently launched its service initiative called the Lex
Express for the home and SOHO users. This initiative offers free toll line in
over 16 cities.