YOU ASKED. WE ANSWERED.
Welcome to the
LD Gold Line Channel Chat!
A conversational video series answering questions Imaging Dealers are asking about the economy, the state of the industry and the changing dynamic between OEM and aftermarket consumables. In this series, LD Channel Partner leaders share practical insights on macro industry trends and specific questions from over 300 dealer customers. The goal is to help you make informed decisions about the toner products you provide to your customers.
QUALITY
PROFIT
PRODUCTS
IP
GENERAL
QUALITY
QUALITY QUESTIONS.
AND ANSWERS.
Do you use new or re-coated PCU's? - Phillip B
If we understand your “PCU” acronym correctly, Photo Conductor Unit?
We often refer to these as OPC drums (Organic PhotoConductor). In our Gold Line we only use new OPCs & – In fact every component in our Gold Line New builds are brand new – As nothing is reused or recoated you can expect consistent quality, yield and reliability every time because we have removed the inconsistencies typically found in a reman cartridge where several of the critical components are reused.In the remanufactured industry as a whole. When we see a toner fail. Do you feel most failure is component related or a problem/defect in the assembly of the cartridge? - Jesse M
According to our VP Product Quality, Matt Daniel who has 25 years experience in the Remanufactured Cartridge Industry, the split amongst the best remanufacturers is about 60% component related and 40% assembly related. Choosing the highest quality new components can minimize failures, but sometimes it is the reuse of a used OEM component in the cartridge that can fail somewhere in the second cycle. With our Gold Line New Build cartridges, every component is brand new so we have less chance of component failure than in a Reman. In terms of assembly issues, the most common cause of failure is technician mistakes associated with the cartridge disassembly/reassembly processes that lead to leaking or components working themselves loose.
What processes and components set LD Golds apart from lower priced new builds? - Shawn M
(1) In a reman cartridge, between 30-50% of the total cost relates to the purchase price and labor associated with disassembly, cleaning and reassembly of the used core. In our Gold Line New Built product we do not have these costs so we can spend more money on the highest quality components many of which are manufactured by Japanese and American companies like Mitsubishi, Fuji and Static Control.
(2) Our cartridge shells are also easier for technicians to assemble because they don’t have to undertake the processes described above, so there are fewer incidences of assembly mistakes caused by technician error.
(3) Every batch of product is QA’d multiple times before it is sold – (A) all our cartridges are print tested at the end of the assembly line (B) Random ‘pre-shipment’ samples are airfreighted to our R&D lab in Phoenix where they are fully life tested. Once these pass, the shipment is sent via Ocean freight. (C) Upon arrival in the USA, ‘post shipment’ samples are also tested to life. Once these pass, the inventory is booked in and can be sold. If any of these processes are not successful, the batch is rejected and has to be manufactured again.
How does the LD Gold Line product prevent leaking better than the Remanufactured products? - Shawn C
The best way to visualize this answer is to think about an OEM cartridge – Because it is brand new like our Gold Line, the shells are manufactured to the same tolerances every time and the components and the shells fit together perfectly. With a reman there are a number of areas in the re-manufacturing process that introduce the chance of variances (and therefore the chance of leaking) The main ones are:
(1) The condition of the incoming core – Cores are dropped into recycle bins around the country and weigh down on each other. Then they are sent and handled again at processing centers where they are visually inspected for suitability to be remanufactured. From time to time some damaged ones make it into production
(2) The OEMs do not design their cartridges to be remanufactured so the provider has to break into the cartridge – Sometimes they use a large blade tool called a “Splitter” that literally cuts the cartridge in half. If the plastics splinter, this can leave microcaps in the cartridge where toner can leak out in the future.
(3) The cartridges have to be resealed after they are refilled with toner and components – This is done with Glue, plastic welds, or application of a foam gasket and pressure clips holding the two sides of plastic together. These three processes are undertaken by hand with most cartridges so you can understand how inexperienced, inattentive, or tired technicians could seal a cartridge badly from time to time. When producers test the cartridge at the end of the line, they invariably just run a few pages and do not spend much time looking for leaks, many of which are tiny and only show themselves over time. Therefore, if you inspect a printer that is using a reman toner compared to one that is using an OEM or a Gold Line cartridge, you’ll find a lot more toner residue inside the reman printer which eventually clogs the machine up and leads to print quality problems and a service cleaning call.
(4) Remanufacturers prefer to begin with what we call a ‘Virgin Core’ – a core that has not be remanufactured before – One the main reasons is that once a cartridge has been split / resealed with Glue or plastic welds, its difficult to reman a second time and properly seal the cartridge. With the increased popularity of MPS, many older models are remaining in fleets longer than they used to. For example, one of the most popular printer series (Laserjet 4250 / Q5942X toner) was launched in 2004 (15 years old!). The OEM market share for new toner cartridges in this series is very low now, so there are very few virgin cores available. As a result, producers are having to remanufacture a cartridge multiple times and many dealers are experiencing quality issues like leaking with these older series that they never saw previously.
Are the end users still using cartridges rather than the tank type printers? Are we going to see a significant drop on users for the cartridges? - Edison A
While tank type printers (I am guessing you mean business inkjet devices like the HP and Epson series?) are gaining popularity amongst home users and small office environments, the vast majority of business printers still use traditional integrated Laser printer engines. We are working on developing our Gold Line inkjet products and will begin launching products in this category early in 2019.
What's the defective rate of remanufactured cartridge and LD Gold Line New Build Cartridge approximately? - Jimmy L
We collect and autopsy every cartridge that dealers report an issue with. Unlike many leading Remanufactured competitors who often give dealers a 1-2% invoice credit NOT to return faulty cartridges, we believe performing a root cause analysis on every returned cartridge is an opportunity to find out how we can improve our products and service. At the time of writing 10-2-18, YTD we have achieved a return rate of 0.14% and our defect rate is 0.09%. That is 1.4 cartridges out of every 1,000 that has being returned and after analysis we concluded that just under 1 out of every 1,000 is defective.
What is the biggest single difference between a New Build cartridge and a Remanufactured cartridge? - Jolene W
The cartridge Shell is the single biggest difference. A Remanufactured cartridge begins with a used cartridge shell that has to be split open / disassembled and then refurbished , A New Build, is a brand new shell that a 3rd party company designed and manufactured.
A Remanufactured cartridge reuses some of the old components in the cartridge, whereas a New Build cartridge contains 100% brand new components.
Low quality Reman and New Build cartridges tend to select low quality components and high quality Reman carts along with the Gold Line (our New Build) select higher quality components to ensure print output and page yield meet higher level expectations.Is a new-built compatible cartridge effectively the same as a new-built OEM cartridge? In other words, the components are engineered to work compatibly with each other as opposed to a remanufactured cartridge where there is a mix of OEM original and aftermarket components? - David G
The OEM And Gold Line Manufacturing model is the same – all our components are engineered to work properly with one another and because they are brand new, that leads to quality and cost improvements over a reman cartridge such as: (1) Our technicians don’t need to assess the incoming condition of any used components and decide if they are ok to perform another cycle. (2) Some components that are reused inside a reman cartridge connect to a worn out component that has to be replaced. It is likely that one or both components have complex patents related to the functional design that are hard to replicate without infringing the OEM patent and still create a component that can actually perform its task (for example a gear or coupling). In a New Built cartridge like the Gold Line, because both all interconnecting components are new, it is possible to radically change the design of them so that they work properly together, and in a way that doesn’t infringe the OEM IP.
How do yields differ on LD cartridges versus competitors? - Rich L
We can’t speak for every competitor, but we have a guarantee that if a Gold Line cartridge does not meet yield, we’ll replace the cartridge free of charge. So imagine it’s a 40K cartridge and yours runs out at 39K, where other vendors may argue the product was good enough, we’ll replace it free of charge with no hassle / questions.
Another difference is in what we call the Image Density (ID). In most Aftermarket cartridges that we have seen, or at companies our team has worked for over the years, at the start print quality is deep black or rich color. Then, as the cartridge gets into the last 20% of life, the ID starts to fade towards greyer scales / washed out colors. Slight fading is normal towards the end of life, but one problem excessive fading causes for MPS dealers is that customers notice this degradation in print quality and contact their dealer to request a new cartridge when there is still a lot of toner left and before the Remote monitoring software alert is triggered to ship a replacement. Usually the dealer wants to keep the customer happy and sends a replacement. In this case, the dealer loses all the remaining billable pages in the first cartridge, may have an unhappy customer and has to go through the hassles of returning the cartridge to the vendor. Our product is engineered to minimize ID loss in the latter part of the life and our component/toner selection and rigorous quality control ensures that to the human eye there is virtually no distinguishable difference to the ID from the first to the last pages. What this means for dealers is that our product eliminates those early customer requests for new cartridges that eat into your MPS Profitability.
How, specifically does your process differ from other new build manufacturers that cause yours to have such a low defect rate? - James H
The Key differentiators in our process are: (1) Other new build manufacturers produce a low price/quality product aimed at the B2C/SOHO Internet markets. They use low quality components and find every way in their manufacturing process to reduce costs. The Gold Line is targeted at large business end users and the supporting dealer channel, so we use the highest quality components and find every way possible to tighten up manufacturing and quality control process. (2) We manage the Design and Quality Control testing processes in the USA. Other importers of New Builds are not in control of maintaining their quality standards – their vendor is! Every time they buy batches of product, they do not test it themselves and their customers find out if the product quality is bad once they place it with customers and the complaints start rolling in. By comparison, we test every batch of product twice before it is allowed into inventory. First, once the product is produced, our factories airship ‘Preshipment’ samples to our lab in Phoenix where they are tested to yield. If they pass, the consignment is shipped to our main distribution center in California. When it arrives, our warehouse team send ‘Post shipment’ samples to our lab and these are also tested to yield. If these pass, the product is released into inventory and can be purchased by our customers.
Is it true that LD Gold Line new build cartridges have equal to or lower failure rates than OEM cartridges? - Michael C
Honestly, we do not know exactly what the OEM failure rate is, but from listening to feedback from dealers who have been buying our LD Gold Line products throughout 2018, they have told us that our failure rate is in line with most OEM brands and dramatically better than the Remanufacturer or other New Build distributor they switched to us from.
How does your actual yield compare versus OEM and remanufactured? - Matthew C
Most OEMs yield is stated as “Prints up to X,000 pages at 5% coverage”. Our yield guarantee is stated as “Will print X,000 pages at 5% coverage”. Our Gold Line, OEM and Remanufactured cartridges are all produced using the same ASTM standards to measure yields. Therefore, our actual yield is designed and guaranteed to meet or exceed that of the OEM. Leading Remanufactured cartridge producers also aim at the same targets. We do better than the OEM on some models because we produce a range of Extended Yield cartridges that exceed OEM yields and in many cases the yields of leading remanufacturers. For example, the OEM Q5942X cartridge is 20K pages. Leading remanufacturers make 26K and 28K versions. Our Gold Line extended yield is 30,000 pages.
Do your supplies deliver an equal or greater yield than other brands - Brett B
Most OEMs yield is stated as “Prints up to X,000 pages at 5% coverage”. Our yield guarantee is stated as “Will print X,000 pages at 5% coverage”. Our Gold Line, OEM and Remanufactured cartridges are all produced using the same ASTM standards to measure yields. Therefore, our actual yield is designed and guaranteed to meet or exceed that of the OEM. Leading Remanufactured cartridge producers also aim at the same targets. We do better than the OEM on some models because we produce a range of Extended Yield cartridges that exceed OEM yields and in many cases the yields of leading remanufacturers. For example, the OEM Q5942X cartridge is 20K pages. Leading remanufacturers make 26K and 28K versions. Our Gold Line extended yield is 30,000 pages.
What are you doing differently to differeniate your new build cartridges and the added benefits of a higher quality new build cartridge versus a low quality new compatible or remanufactured cartridges; in the eyes of the consumer or end user who really only sees 2 types of cartridges, OEM or non-OEM? - Tommy A
So far, we are at the beginning of this New category of Premium Quality New Builds and we have not yet invested in producing education/marketing material to explain to end users the benefits of our products over lower quality alternative. The reason is that our customer base is mostly Managed Print Services (MPS) dealers and we have focused on explaining the benefits of the Gold Line to these service providers. In MPS, end users do not make the decisions about which toner is purchased – Instead they just buy pages and trust that their MPS provider will buy/supply a high quality product. In time as more transactional resellers become interested in the Gold Line, we will need to produce End user focused marketing material. This is a good question and thanks for bringing it to our attention!
Do each of the LD Gold Line New Build cartridges start with a new shell? - Jay F
Today, with the exception of two skus, (Laserjet 9050 and M806) all our Monochrome skus are New Build, but most of our HP Color is still reman. The reason for this is the increased technical complexity of a color cartridge and the volume of units necessary to justify the investment in building new shells. We have recently launched some Business class color Xerox and Brother skus that are New build and many of our Color HP skus are in the final stages of development and testing. Our current forecast is that in Q1 2019, we will begin refreshing the Reman HP color models in the Gold Line range with New Builds.
With all of the benefits that the LD Gold line new build cartridges offers, why wouldn't anyone in their right mind not switch? - Keith G
Until now there has not been a premium quality New Build cartridge available and resellers have tried lower quality New Builds in the past with mixed results. We invite resellers to try our products free in their accounts and put our benefit claims to the test. We are confident that the results speak for themselves.
With the growth of new build cartridges in the market, is it anticipated that remanufacturers will jump on board? If they do, how will LD continue to dominate in quality, customer service and reliability? - Alan M
Interesting question. Making the switch from Reman to New build is difficult, costly and will require a long term approach if you are an actual remanufacturer today. I think this is why we’ve seen Remanufacturers push back so heavily against New builds and make negative statements about the business model. First, a large part of a remanufacturers supply chain and physical infrastructure is dedicated to collecting, sorting, disassembling, cleaning and reassembling used cores. Not to mention that most remanufacturers keep many months or years of used cores in inventory. If they switch to New Build, this infrastructure/inventory becomes redundant and worthless on their balance sheets. Second, the barriers to entry of changing business models are very high: (A) The investment in plastics manufacturing plant and machinery is huge (B) The change requires further investment and years of learning how to design and produce new plastic shells and small componentry. The successful New Builders who assemble our Gold Line, began their business transformation from Remanufacturing to New Building over a decade ago. I doubt there are few short cuts that can be taken to shorten this time frame.
Why should we consider LD Gold Line New Build Cartridges - Jason P
Higher, more consistent Quality, Lower prices and better end user satisfaction than leading Remanufactured cartridges.
At LD Products we put our money where our mouth is:
(1) Try our cartridges for free in your accounts and see how they perform
(2) Gold Line was the first Aftermarket cartridge to offer a Lifetime guarantee. Now other providers are beginning to follow us
(3) Gold Line comes with a yield guarantee – If the cartridge does not reach its yield (Your RMS Software will tell you if it does / doesn’t) then the cartridge is free!
(4) Dealers that join our partner program enjoy labor reimbursement for any on site calls where they have to go and investigate a faulty cartridge. Our return rate in 2018 has been around 0.1% and we have not been asked to pay for a labor reimbursement call yet!
PROFIT
PROFIT QUESTIONS.
AND ANSWERS.
How do gold line cartridges compare to OEM units in terms of cost and compatibility? - Jason M
We believe they compare very favorably as our manufacturing model and component selection emulates the OEM strategy: 100% brand new components and shells manufactured in highly controlled, clean and automated manufacturing plants. We assemble our products in China (just like HP, Lexmark and most other OEMs!) to keep the costs low and our technicians do not have to worry about assessing empty cores, cleaning and disassembling them, or judging what components can be reused, versus needing to be replaced. These arbitrary processes that rely on Human skill are the foundation of the remanufacturing business model and one the reasons why even the best Remanufactured cartridges incur about a 1% return rate. In 2018, our return rate has been consistently 0.1% – ten times less! Cost? Our product is about 20% less than leading remans, so that puts our product at about 40/50% less than the deepest OEM discounts.
Why would anyone want to sell or purchase a remanufactured cartridge if higher quality new build cartridges are available for roughly the same price? - Tyler Reash
Usually it’s a matter of previous experience and a lack of awareness that a high quality New Build like the Gold Line now exists. New build cartridges were first launched about 10 years ago and for the most part they were low quality/price, had high failure rates and infringed OEM IP. Many dealers in our industry got frustrated and lost customers as a result. However, New builds have improved and some companies like LD Products have reinvented the category and are taking it to the next level. Think about electric cars – In the 1990s/2000s they were not very good. Now its widely accepted that companies like Tesla have developed the electric car concept and now produce vehicles whose performance exceeds traditional Gasoline models. The purpose of this marketing campaign is to engage with potential customers like yourself, learn the questions that are important to your business and educate people that there is now an alternative (The Gold Line) that can surpass the quality standards and performance of a reman cartridge. In order to test our claims, any dealer can simply request free samples of the Gold Line and test them in their service centers, or customer fleets at no charge. Please put us to the test – We stand behind our product and you have the opportunity to increase profitability and customer satisfaction with your end users.
Does the LD Gold Cartridge make as many copies as an OEM? - Paul E
Yes – The Gold Line is designed and tested using the same American Society for Testing and Materials Standards that OEMs use to establish their yields at 5% coverage – ISO 19752 for monochrome cartridges and ISO 24712 for color. LD Products is also a member of the International Imaging Technology Council (IITC) and all our products are produced in factories that have attained IITC Standardized Test Methods Committee (STMC) Certifications. In addition to this we produce a range of Extended yield cartridges that massively surpass the OEM yields and these are commonly used in MPS environments. A couple of examples include: HP Q5942X – The OEM yield is 20,000 pages and we make a 30,000 page cartridge. HPCF281X – The OEM is 25K and we make a 40K Gold Line version.
How Can LD Gold Line New Build Cartridges add value to my MPS business? - Mohan
(1) They will achieve yield, so the profit you calculate from each cartridge will be realized, compared to other cartridges that don’t achieve yield and miss revenue/profit targets
(2) The image density will not degrade visually in the last 20% of pages – This will eliminate the number of end user early replacement calls for a new cartridge – Again protecting your profit margins.
PRODUCTS
PRODUCTS QUESTIONS.
AND ANSWERS.
Are there new build cartridges for the inkjet line of printers? - Colleen M
Not yet, but LD Products is very close to finalizing the development of the HP Officejet X451/X551/X576 series often referred to as the 970/971 series. We expect to launch these in Q4 2018.
Can LD Gold Line New Build Cartridges be co-branded for larger enterprise level customers? - Jim W
Yes – The Gold Line contains no reference inside or out of LD Products – Each box is designed to include a wrap around label that displays the dealers logo, contact information and delivery to desk instructions. See here for examples: https://cpd.ldproducts.com/custom-labeling/
Who created your awesome Gold Line packaging? - Amanda L
We’re glad you like it – Our Goal is to project a professional image to end users on behalf of a dealer. At LD Products we are fortunate to have a very talented in-house design team headed up by Fred Machuca. Incidentally, Fred and the team just won a prestigious Silver medal design award from the globally acclaimed design institution Graphis – See here for more details:
http://www.graphis.com/entry/45f56f5d-7e72-4ca0-a2ef-00377d505348/
Are the end users still using cartridges rather than the tank type printers? Are we going to see a significant drop on users for the cartridges? -Edison A
While tank type printers (I am guessing you mean business inkjet devices like the HP and Epson series?) are gaining popularity amongst home users and small office environments, the vast majority of business printers still use traditional integrated Laser printer engines. We are working on developing our Gold Line inkjet products and will begin launching products in this category early in 2019.
Are LD Gold Line New Build Cartridges made in the USA? - Joshua G
Our Business model is very similar to that of Apple and other technology brands. If you look on the back of your iPhone, you’ll see that it says designed in California, Assembled in China. The high-value processes of our Gold Line like R&D, new product qualification, incoming inventory testing are conducted in Phoenix Arizona and the assembly is undertaken in China to keep costs low and pass on the most amount of savings to our dealers. Incidentally, HP and nearly all other OEMs also do the same. They design their products in the USA or Japan and build their consumables in China.
Does LD Gold make cartridges for Canon MFP? - Santiago J
Some of our A4 Canon MFPs are compatible with similar HP models, but we don’t make any A3 Canon series yet.
Which popular Brands does the LD Gold line cover (are suitable for) and how many different product models are there? - Mindaugas
We have invested in producing Gold Line models for the most popular monochrome and color HP, Lexmark, Dell, Brother, Samsung, IBM, and Xerox printer/A4 MFP devices launched in the last 15 years. Currently, we have over 220 skus and are launching around 10-20 new skus every month. Our HP range includes the normal OEM yields as well as a range of extended yield cartridges that are designed for high volume MPS environments. Our sales team will send you a complete product file by email shortly.
How is LD working with chip manufacturers to help with correct data being sent to DCA tools like FMAudit? We see lots of reman toner or ``jumbo`` toner report at a low state level of 25%, has LD overcome this? - Dustin W
Currently there are no extended yield or “jumbo” chips in the market that our R&D Department have been able to qualify. We are aware that there are chips in development and will test / deploy them in our products if they prove to be demanded by dealers. The industry standard that we and the leading remanufacturers have followed for the last decade is to use the “A” or “X” yield chip with a corresponding extended yield toner cartridge and ensure the toner alerts in the DCA are set below the “toner low” threshold in the device. How a standard chip functions in an extended yield cartridge is similar to the standard yield chip. The printer first estimates pages and toner used based on the pixel count per page. Once it hits “toner low” at 20%-25%, the countdown of the remaining life from the chip stalls until the additional toner to make it a “jumbo” is used and the physical sensing then picks up for the remainder of the toner cartridge. Once the actual toner left is below the toner low level and at the threshold set in the DCA it will then trigger the replenishment alert (eg at 10%, 7%, 5%, etc) to ensure just in time fulfillment. There are chips in the industry for extended yield or “jumbo” cartridges that have the stated yield adjusted in the chip, but it only changes the value the chip reports upon installation (ex. 40,000) and the countdown is still calculated at the standard X yield (24,000). Thanks for the question Dustin as this is a challenge that has been in the industry for many years and it will be interesting to see if/how the chip manufacturers develop a solution.
Will LD be building new build cartridges for the Kyocera brand soon? - Ieif W
We can – One of our team will reach out to find out what skus you are interested in and we’ll ask our R&D team to undertake a Technical Assessment.
Do you carry LD Gold Line new build cartridges for micr ink? - Susan B
Not yet – Product development of a new sku takes around 3 months on average and we have been concentrating on the highest volume skus first. If there are particular models that you are interested in, please let us know and we can add them to our development schedule.
It was stated there is a 10-20% savings between the LD New Build and the Reman cartridge. Is this straight up front purchase cost savings or is this % based on return and failure comparisons? - Ray T
That’s straight up purchase price savings for dealers. We have not yet worked out what the additional benefit is of our lower return/failure rate than competitive products, but this is a great question and an area that we will research further. Thinking it through, processing ten times fewer returns eases the administration burden on a dealers support staff to raise/track replacement orders, chase in credits from suppliers and leads to much higher customer satisfaction levels.
Is there a Gold Line cartridge available to replace Xerox EA (emulsion aggregate) High Definition cartridges? - John W
Yes – While Xerox EA is Xerox’s proprietary formulation, it is a technology of toner known as Chemical Polymer. In the old days toner powder was made by grinding processes known as “Mechanical Pulverization.” Since about 2014, first Color and then Monochrome toner technology has advanced to utilize Chemical toner that has a lower melting point. This translates to faster print speeds and lower footprint size devices. All the Gold Line color models (including Xerox) use chemical toner formulations.
Do you lose out on a standard warranty coverage of a printer if Gold Line are used? - Phillip V
No. OEMs in all industries are prevented from denying warranty to customers that choose 3rd party products (unless that product fails and caused the warranty issue!). This is a long standing legal precedent enacted in 1975 by the Magnuson-Moss Warranty Act: “Simply using an aftermarket or recycled part does not void your warranty,” according to the Federal Trade Commission (FTC). See link here: https://en.wikipedia.org/wiki/Magnuson%E2%80%93Moss_Warranty_Act
Do any of the LD Gold Line New Build Cartridges come in a Jumbo versions? A version that gets twice the amount of pages as the oem High Yield Cartridge so dealers that have Print Management Customers can make substantial profit margins? - Roy O
Yes, We produce a wide range of Extended Yield cartridges for monochrome and color HP and Canon models covering all the models that leading remanufacturers produce. In all cases, our extended yields match leading remanufacturers and in some cases we have a few models that exceed them. Two that spring to mind are the Q5942X – The leading remans have yields of 26-28K. Ours is 30K. CF281X. Leading remans are 34-36K. Ours is 40K.
Which among new build cartridges and reused shell remanufactured cartridges are friendlier to the environment? - Milind G
That is very hard to judge scientifically. On one hand, a New built cartridge uses mostly new plastics and is built/shipped from China. Unless a customer selects a recycling label from us when it is purchased (Cost $8 per cartridge to ship and properly recycle everything to R2 standards) then the empty New build will end up in the waste stream. A reman begins its life as a (usually only once) used cartridge that is then refilled. However, once this product is empty, most end up in the waste stream as Remanufacturers do not want the majority of their empty products back a second time. At face value, a remanufactured cartridge is therefore more environmentally friendly than a new build. However, the collection processes of getting that empty cartridge back from an end user to a sorting/processing center and then damaged cartridges eliminated before they are sent to a remanufacturer has a very high cost of carbon output due to all the shipping processes. It is not understood if these environmental costs outweigh the benefits of recycling that cartridge. In layman terms, it could be that remanufacturers spend carbon dollars, to save carbon cents….. We recently published an article on this that has more detail: https://cpd.ldproducts.com/wp-content/uploads/2018/04/ENX-April-2018-Pepper-article.pdf
Is there indemnification for the dealer against IP infringement lawsuits? - Vincent M
Yes – We take IP compliance as seriously as we do building the highest quality standard. Every customer of the Gold Line receives a legally binding indemnification that in the event of an OEM claim of IP Infringement, LD Products will take over the defense, all legal costs and settlements of that claim. Like most successful companies in the Aftermarket, Remanufacturers or New Builders, LD Products has been involved in a handful of IP lawsuits over the past 20 years. We have never lost a case, have always reached an amicable settlement with the OEM and none of our customers has ever paid any legal fees or damages.
Can the boxes be branded with the company logo? - Mark G
Yes, Our Boxes are wrapped with a label containing the dealer logo, contact info and a free text field that can contain things like specific delivery instructions. See this page on our website for pics of what the label looks like: https://cpd.ldproducts.com/custom-labeling/
What is your process for testing your products prior to stocking in your warehouse? - Natasha C
When a replenishment stock order has been produced, the factory sends ‘Pre shipment’ samples by air to our R&D team in Phoenix where the cartridges are fully tested to life and the Bill of Materials is checked to ensure every component is as contracted. If they pass, the consignment is shipped to us by Ocean freight. When it arrives 3 weeks later, our warehouse pull further ‘Post shipment’ samples and send them to Phoenix for testing. If these pass, the consignment is booked into inventory to be sold.
How is it that you are able to delivery a better product at a cheaper cost vs. remanufactured cartridges? - Bill M
If you think about any recycled product, for example paper, it costs more than new because of all the manual and extra processes needed to recycle that commodity. In Remanufactured cartridges 30-40% of the cost of the finished product is spent on collecting empty cores, shipping them to sorting centers and then onto remanufacturers. From here the cores have to be manually dissembled, or split in half, cleaned of all their waste toner and then glued back together. Typically an empty cartridge cost is around $10-20. In a new built cartridge we don’t have these costs and a new shell plus new gears, pins, bushings, etc costs $1-2. We therefore have more budget to spend on higher quality components than a remanufacturer and can pass on 10-20% savings to our reseller customers.
What is the typical defect rate for each - LD Gold Line, Reman - Denny H
We collect and autopsy every cartridge that dealers report an issue with. Unlike many leading Remanufactured competitors who often give dealers a 1-2% invoice credit NOT to return faulty cartridges, we believe performing a root cause analysis on every returned cartridge is an opportunity to find out how we can improve our products and service. At the time of writing 10-2-18, YTD we have achieved a return rate of 0.14% and our defect rate is 0.09%. That is 1.4 cartridges out of every 1,000 that has being returned and after analysis we concluded that just under 1 out of every 1,000 is defective.
New built toner cartridges obviously increase the amount of cartridges circulating and while LD does encourage its customer to recycle empties, my question is does LD (or does there manufactures) use recycled plastics to make their new build toner cartridges? - Katie P
We use multiple manufacturers to assemble our Gold Line and don’t have data on the exact amount of recycled plastic used – There is some, but It tends to be affected by fluctuating commodity prices and our partners cannot give a solid answer at this time. This is an interesting question and we are going to look into it further to see if we can influence our manufacturers to use more recycled plastic content. Stay tuned.
Is the actual toner/developer used in the Gold Line build OEM? - Jon C
No. Our Toner and Developers are manufactured by the Industry leading 3rd party vendors.
What is LD Gold Line best selling cartridge? - Craig D
HP CF226X
If I am to refer my clients to use your product, what are 3 things I should tell them about why your product is better than the typical remanufactured cartridges that they use? - Bill N
- Cosmetics: For years Dealers have been apologizing and explaining to end users why Reman cartridges often look used / bad condition out of the box. Because our products are 100% new, the out of box experience is similar to an OEM cartridge. Even though cartridges should just be judged on their print quality, everyone ‘buys’ things with their eyes and customers of our Gold Line tend to have more positive comments about the level of detail we have paid to our packaging and the cosmetic quality of the cartridge inside.
- Leakage: End users of Reman cartridges often report that the inside of their printers become more dusty /clogged up compared to using OEM carts, leading to service calls and low satisfaction levels. One of the main reasons is that when you split apart and reseal a used cartridge back together, sometimes the seal is poor and the fine toner dust leaks out. Gold Line New Build cartridges do not suffer from these issues as our manufacturing tolerances are much higher than manual remanufacturing processes.
- Print Quality: Gold Line Blacks and Colors are richer than leading Remanufactured cartridges as we have more budget to spend on the best componentry and toner formulations. Remanufacturers cannot match this as 30-40% of their product cost is eaten up in collecting, sorting, disassembling, cleaning and reassembling used cartridges.
What makes the LD Gold Line out perform the LD standard line besides better toner and components? - Todd N
That’s it! Better Toner and Components – That’s everything that makes a cartridge!
The LD standard line is built to a low price point to compete online for occasional / low volume print user business. It is not good enough for business users.
IP
IP QUESTIONS.
AND ANSWERS.
How are the tariffs being put in place going to affect your pricing? - Tom A
At the time of writing (9-27-18), our product category has not been levied with a tariff in either of the two rounds the Trump administration has levied upon Chinese imported goods.
One of the reasons reported by Actionable Intelligence in September 2018 was the Lobbying undertaken during the consultation period by HP and other printer OEMs who also manufacture the majority of their cartridges in China. Where the OEM and Aftermarket usually are fierce competitors, in this situation we are unlikely partners. If the third round of proposed tariffs are implemented, it is understood that all Chinese imported products will have a tariff added to them (perhaps up to 10%). If this happens, OEM products and our Gold Line will be affected and we already have plans in place to split the increased costs with our manufacturing partners so that we do not have to pass on any pricing increases to our dealers. However many remanufactured cartridges will also be impacted as a lot of the components, toner powder, chips and even finished goods are manufactured by Chinese entities.
GENERAL
GENERAL QUESTIONS.
AND ANSWERS.
How do you prove yield on your cartridges? - Ron M
(1) All our cartridges are designed and tested using the same American Society for Testing and Materials Standards that OEMs use to establish their yields at 5% coverage – ISO 19752 for monochrome cartridges and ISO 24712 for color. LD Products is also a member of the International Imaging Technology Council (IITC) and all our products are produced in factories that have attained IITC Standardized Test Methods Committee (STMC) Certifications.
(2) Our customers can also independently verify our products meet their yields by pulling reports from most Remote Management Software like Printfleet, FM Audit, Print Audit, etc. This software will verify the page yield attained by the cartridge at the end users average page coverage. Our Gold Line is guaranteed to achieve its stated yield at 5% coverage and any cartridge a dealer returns to us that did not, will be replaced free of charge.
With New Build cartridges savings over 20% vs. Reman cartridges what is the number or % of customers switching to New Build, or more specially to LD Product Gold Line? - Neil M
We surveyed hundreds of dealers in 2017 and 2018 and we found that nearly every dealer who use remanufactured cartridges in their business already purchase a small percentage of New Build cartridges. What we found is that they tend to offer the low yield models (less than 2,000 pages) to mainly transactional customers – not MPS clients. The reason is that small yield cartridges are quite technically simple and the failure rates of about 5-6% is absorbable. However, dealers have steered away from larger yield cartridges as the low quality severely affects their profit margins and the number of failures causes complaints within their Business customer base. Gold Line is the first series of Business class printer cartridges available to dealers that combine high quality, yield attainment and significant cost savings over Reman. However, after spending most of 2017 in product development and fleet testing, we only launched the Gold Line into the market in January 2018. Around 10 dealers per month are switching to Gold Line and we trust that as awareness grows and dealers test/ratify the performance of our YTD 0.1% return rate, our market share will grow.
Will all your HP cartridges including color eventually be new build? What do you see as the timeframe? - Jim V
Today, with the exception of two skus, (Laserjet 9050 and M806) all our Monochrome skus are New Build, but most of our HP Color is still reman. The reason for this is the increased technical complexity of a color cartridge and the volume of units necessary to justify the investment in building new shells. We have recently launched some Business class color Xerox and Brother skus that are New build and many of our Color HP skus are in the final stages of development and testing. Our current forecast is that in Q1 2019, we will begin refreshing the Reman HP color models in the Gold Line range with New Builds.
Are there some popular cartridges that are not available through the LD Gold Line at this time? - Ed D
The Gold Line features most HP, Lexmark, Xerox, Samsung and Brother skus manufactured in the last 15 years. There are still some older models that we have not invested in producing. The market population of these really old devices is shrinking as dealers focus on replacing them with newer models.
What proposal tool is available to help dealers secure an MPS deal WITH an MFP transaction as well? - Joe E
We haven’t invested in building or offering a proposal tool yet, but it is something we have planned for 2019. At this time we recommend the EZMPS and Sherpa tools from Compass.
Do I need to worry about LD raising their prices with the proposed tariffs? - Scott V
At the time of writing (9-27-18), our product category has not been levied with a tariff in either of the two rounds the Trump administration has levied upon Chinese imported goods.
One of the reasons reported by Actionable Intelligence in September 2018 was the Lobbying undertaken during the consultation period by HP and other printer OEMs who also manufacture the majority of their cartridges in China. Where the OEM and Aftermarket usually are fierce competitors, in this situation we are unlikely partners. If the third round of proposed tariffs are implemented, it is understood that all Chinese imported products will have a tariff added to them (perhaps up to 10%). If this happens, OEM products and our Gold Line will be affected and we already have plans in place to split the increased costs with our manufacturing partners so that we do not have to pass on any pricing increases to our dealers. However many remanufactured cartridges will also be impacted as a lot of the components, toner powder, chips and even finished goods are manufactured by Chinese entities.From an energy resource utilization, how do new build cartridges impact the environment? Since new resources are used and they are not remanufactured, don't new build cartridges end up in landfills and use the Earth's natural resources to build more? - Brad G
This is a complex question and not one that I think has been studied/concluded scientifically. On one hand the shells of Gold Line plastics are produced from a mix of new and recycled plastics in China and then shipped in bulk for distribution across America. There is obviously a carbon and energy cost to this. When the product is spent, we do not take responsibility for it unless our dealers choose to enroll in our Recycling program which provides end to end collection and R2 certified recycling of all the components. Even within a recycling program there is further carbon output from the collection and shipping costs to return the empty cartridge. By comparison, in the Remanufactured model, empty cartridges have to be collected, shipped to producers and then sorted in order for the remanufacturer to actually have a product to sell in the first place. From my previous experience about 1/3 are rejected as not being suitable for remanufacturing (damaged, not desirable models, not virgin cores, etc). Then, most of the components and waste toner inside that used cartridge are discarded. Some remanufacturers pay to recycle these materials – others do not. Then the cartridge is resold and shipped around the country again. Once it has been used, some dealers/remanufacturers pay to collect/recycle the cartridge, but most do nothing further and I believe a large percentage of spent remans also then end up in the Landfill.
Which business model is most environmentally friendly? I cannot say for sure, but both produce waste, use energy and emit Carbon. My belief is that the responsibility for recycling is a decision each dealer and end user can make by selecting a recycling program. If this is an important consideration for dealer, they can add recycling of our empty products and depending on their choice of bulk collection, or including a recycling label inside each box, the cost is between $2 and $8 per cartridge. We recently wrote an article on this – More detail is here: https://cpd.ldproducts.com/wp-content/uploads/2018/04/ENX-April-2018-Pepper-article.pdf
Are these items available for will call at you Long Beach locations? - Stephen M
Yes and PA warehouse too.
What is the most accurate and effective way to represent LD Gold Line cartridges in marketing campaigns and sales pitches? Specifically are they all new build?... Made in the USA?.... Engineered in the USA? - Shawn M
As of October 2018 we have almost 300 Gold Line Skus. Around 200 monochrome and 100 color.
All but two of the monochrome are New Build (HP Laserjet 9050 and M806 series are the Remans) The majority of Colors are Reman today, but we are in the process of switching these over to New build and should complete this migration by the end of Q2 2019.
The product quality (Bill of Material items) is engineered in the USA. Pre and Post shipment quality control processes and returned product analysis is undertaken in the USA. Components are sourced from USA, Japan and China. Assembly processes are undertaken in China.Is either a new build or remanufactured cartridge better for the environment? - Liz S
This is a complex question and not one that I think has been studied/concluded scientifically. On one hand the shells of Gold Line plastics are produced from a mix of new and recycled plastics in China and then shipped in bulk for distribution across America. There is obviously a carbon and energy cost to this. When the product is spent, we do not take responsibility for it unless our dealers choose to enroll in our Recycling program which provides end to end collection and R2 certified recycling of all the components. Even within a recycling program there is further carbon output from the collection and shipping costs to return the empty cartridge. By comparison, in the Remanufactured model, empty cartridges have to be collected, shipped to producers and then sorted in order for the remanufacturer to actually have a product to sell in the first place. From my previous experience about 1/3 are rejected as not being suitable for remanufacturing (damaged, not desirable models, not virgin cores, etc). Then, most of the components and waste toner inside that used cartridge are discarded. Some remanufacturers pay to recycle these materials – others do not. Then the cartridge is resold and shipped around the country again. Once it has been used, some dealers/remanufacturers pay to collect/recycle the cartridge, but most do nothing further and I believe a large percentage of spent remans also then end up in the Landfill.
Which business model is most environmentally friendly? I cannot say for sure, but both produce waste, use energy and emit Carbon. My belief is that the responsibility for recycling is a decision each dealer and end user can make by selecting a recycling program. If this is an important consideration for dealer, they can add recycling of our empty products and depending on their choice of bulk collection, or including a recycling label inside each box, the cost is between $2 and $8 per cartridge. We recently wrote an article on this – More detail is here: https://cpd.ldproducts.com/wp-content/uploads/2018/04/ENX-April-2018-Pepper-article.pdfWill you be effected by the new tariff on Chinese products entering the US? - Norm M
At the time of writing (9-27-18), our product category has not been levied with a tariff in either of the two rounds the Trump administration has levied upon Chinese imported goods.
One of the reasons reported by Actionable Intelligence in September 2018 was the Lobbying undertaken during the consultation period by HP and other printer OEMs who also manufacture the majority of their cartridges in China. Where the OEM and Aftermarket usually are fierce competitors, in this situation we are unlikely partners. If the third round of proposed tariffs are implemented, it is understood that all Chinese imported products will have a tariff added to them (perhaps up to 10%). If this happens, OEM products and our Gold Line will be affected and we already have plans in place to split the increased costs with our manufacturing partners so that we do not have to pass on any pricing increases to our dealers. However many remanufactured cartridges will also be impacted as a lot of the components, toner powder, chips and even finished goods are manufactured by Chinese entities.We don't supply very many printer cartridges in our market, what is the best process to win new customers? - Jeff E
Someone from our team will contact you to understand your business and make some recommendations.
The LD Gold Line New Build Cartridges: what printers are included in the LD gold offering? - Wesley T
The most popular HP, Lexmark, Samsung, Brother, Xerox and Dell A4 Laser printer models manufactured in the last 15 years. Someone from our team will send you a product list to consider.
Is there a plan for recycling the new build cores in the future? - Amber H
You can already recycle the cores by opting into our recycling program, but they cores are not remanufactured into more cartridges – Instead they are sorted and separated into their plastic and metal commodities – The reason is that recycling a cartridge can never consistently produce the same quality as the New product as it has to be split in half, cleaned out, some new components added, others reused and then the cartridge resealed again. All these processes rely on humans and occasionally we make mistakes. This is why the leading remanufactured cartridge producers have about a 1% return rate and a 0.3 – 0.5% defect rate (depending on how many people actually return faulty carts or how they massage their data) By comparison a new build product like our Gold line employs much higher levels of manufacturing automation and 100% new components every time. This leads to an industry leading return rate of 0.1% for our Gold Line in 2018.