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Becoming A Cxnet Distributor R2

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An Overview of the Cartridge Ink and Toner Business

An Overview of the Cartridge Ink and Toner Business

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  • 1.  
  • 2. The Cartridge Network An Overview of the Cartridge Ink and Toner Business Presents:
  • 3. Who is The Cartridge Network? The Cartridge Network Inc., is a California Corporation that specializes in offering Business Opportunities to individuals that want to start their own business, without the cost and expense of owning a franchise! We have chosen to work in the Cartridge Business because it has a tremendous annual growth and the consumable nature of the product, provides our network members with a huge “RESIDUAL INCOME” potential! Like toothpaste or shampoo, business and individuals need constant printer ink and toner replacement, so why not make a great living supplying those needs?
  • 4. What are the benefits of owing your own business?”
    • Have the freedom to manage your life the way you want, not as an employer wants.
    • Provide for a full or part time income earning potential.
    • Develop a career for your wife, husband, or children.
    • Provide for college tuition, a vacation home, a new car or simply earn extra cash to pay off bills and debts.
  • 5. Why chose the Ink and Toner Cartridge Business?
    • Businesses and households depend upon printing requiring continuous replacement of ink and toner
    • Ink and toner are consumable products, your customers are going to have to come back for more
    • It’s easy to enter and exit the market
    • The learning curve is very short and no special technical skills or licenses are required
    • Low initial investment and little inventory to manage.
    • Low downside risk and low insurance costs
    • You can work from home or a retail storefront
  • 6. Why chose the Ink and Toner Cartridge Business?
    • Lyra Research, an independent research group, is forecasting that total ink jet cartridge shipments worldwide will grow from about 1.4 billion last year, to 1.7 billion in 2010
    • Lyra predicts that by 2010 ink jet cartridge revenue will grow to $32.1 billion
    • In the USA there are about 145 million printers that use an estimated 400 to 500 million cartridges per year
    • Only about 15% of the market is using refilled or remanufactured cartridges, which is rapidly changing because of the concern for the environment, the dramatic improvement of refilling technology and quality, and the lowered cost of refilling
  • 7. How can we make money in the cartridge business?
    • Selling printer ink and toner cartridges purchased from OEM manufacturers, outside refillers or remanufacturers
    • Collecting used cartridges and reselling them to ink cartridge brokers
    • Refilling or remanufacturing ink and toner cartridges in your own business
    • Sell business opportunities in the cartridge business as a Master Distributor
  • 8. Franchise vs. Business Opportunity such as CXNET
    • Franchise retail storefront business model is very expensive and restrictive, royalties, advertising rules, mandatory advertising, etc.
    • Franchisor’s primary focus is on selling more franchises and protecting brand development
    • Business opportunity model’s such as CXNET is very low cost, provides better training and support, with no royalties or restrictive covenants
    • CXNET’s focus is on training and your business development , not development of a brand or franchise
  • 9. Why should I Join the Cartridge Network?
    • We have the most flexible business model were you can work from home, work from a retail center, or simply provide wholesale products to retailers.
    • “ Membership Direct” buying power, no cartridge middle man or franchise adding to your marginal costs.
    • Our proprietary State of the Art inkjet cartridge cleaning and filling system.
    • 1 – 3 weeks of training individually designed to develop your weak points and accentuate your strong points.
    • A support structure dedicated to your needs, not the needs of a franchise system.
    • Low initial cost and our unique “Fast Start” program.
    • No royalties or annoying Franchise Police to tell you how to run your business.
  • 10. Ink and Toner Market Segments
    • Retail Storefront
    • Wholesale
    • Combination of both retail and wholesale
    • Refilling or Remanufacturing
  • 11. Types of Inkjet Cartridges
    • Foam Type
    • Bladder Type
    • Tank Reservoir Type
    • Continuous Ink Systems
  • 12. Two Main Segments in the Industry … Ink and Toner
    • Refill or remanufacture “In House”: Provides a higher net profit, but requires more capitalization
    • Outsourcing of Ink and Toner refilling or remanufacturing: Provides a lower net profit, but reduces your capitalization costs
    • Buy and re-sell NEW OEM COMPATIBLES : Those cartridges might also be referred to as “Generic” in that they meet or exceed the OEM design requirements, but are different enough to circumvent OEM patent rights
    • Buy and re-sell OEM ink and toner: Allows the lowest net profit, but reduces client objections and has the least capitalization costs. This option often increases the difficulty in creating new clients as the cost per unit are much higher than refilled or new compatibles
  • 13. The Inkjet Refilling Technology
    • Refill by hand in standard atmospheric pressure
    • Refill by machine in standard atmospheric pressure
    • Refill by machine in vacuum less than 85%
    • Refill by machine in 97% vacuum
  • 14. What is Standard Atmospheric Pressure?
    • The weight of a column of air above the earth’s surface creates air pressure, which at sea level is about 14.7 PSI or 29.92 inches of mercury.
    • This air pressure varies depending on your altitude, the weather and temperature. The higher in altitude you live, the lower the air pressure. For example, standard pressure at sea level at 69 *F is about 29.92 inches of mercury. In Mexico City at nearly 7000 feet elevation, the air pressure is about 23 inches of mercury.
  • 15. Why is Atmospheric Pressure Important to Refilling Ink Cartridges?
    • There is always a small air bubble inside the foam type ink cartridges between the foam ink reservoir and the nozzle. If you refill without first removing 97% of the trapped air, then the cartridge may fail because the air bubble blocks the flow of ink.
    • If you fill a cartridge at a low elevation and then try to use it at an elevation that is much higher than where it was filled, the result will be that the air bubble inside the cartridge will increase in size blocking off the flow of ink from the nozzle.
    • This is because the reduced atmospheric pressure at a higher altitude will allow the trapped air bubble to increase in size.
    • Thus, when you ship a cartridge by airfreight, the air bubble will increase from the reduction in air pressure in the aircraft, possibly causing an air bubble size increase.
  • 16. Hand Refilling in Standard Atmosphere
    • Hand refilling is by far the most common practice by refillers, yes, even the franchise owners fill by hand.
    • This practice has a high premature failure rate and has low quality control standards. In order to “prime” the ink flow, most refillers use an external vacuum to pull ink into the nozzle. This also pulls air (foaming bubbles) into the nozzle aggravating the ink flow problem, not solving it. The next slides illustrate the problem of trapped air in the nozzle area and show the result of vacuum priming the cartridge nozzle after filling.
    • The most common problem begins shortly after the client starts using the cartridge, which may produce streaking during printing and have a reduction in the amount of ink that may be used, or a shorter life.
    • Your clients will ultimately notice fewer pages being printed by your refilled cartridges.
  • 17. Machine refilling in Standard Atmosphere Air in the ink channels when no vacuum is applied. Note the air bubble in the picture below. Transparent acrylic cover
  • 18. Machine refilling in Standard Atmosphere This cartridge has been filled with water to easily see the trapped air bubble when filling in Standard Atmosphere. Ink (water) is not in the ink reservoir when filling in standard atmosphere, which then requires vacuum priming
  • 19. Machine refilling in Standard Atmosphere After filling in standard atmosphere, you have to apply external vacuum to the nozzle to pull ink into the print head. This process pulls air into the nozzle reservoir, which ultimately leads to print streaking and failure of ink to flow to the nozzle.
  • 20. Machine refilling in a Vacuum or less than Standard Atmosphere
    • Most vacuum machines in the market create less than 80%vacuum.
    • Statistically, filling under vacuum of less than 80% is no better than filling the cartridge at standard atmosphere.
    • To attain optimum cartridge results and minimize client complaints, you must fill your cartridges at about 29 inches or 97% vacuum.
    • The following slides show the size of the trapped air bubble reducing in size at lower levels of air pressure (higher levels of vacuum).
  • 21. Machine refilling in a Vacuum -160 mm Hg (vacuum level 21%) Ink level -260 mm Hg (vacuum level 34%) Ink level
  • 22. Machine refilling in a Vacuum -360 mm Hg (vacuum level 47%) Ink level -460 mm Hg (vacuum level 61%) Ink level
  • 23. Machine refilling in a Vacuum -560 mm Hg (vacuum level 74%) Ink level -610 mm Hg (vacuum level 80%) Ink level
  • 24. Machine refilling in a Vacuum -660 mm Hg (vacuum level 87%) This cartridge can barely work since the air bubble is not big enough to block the ink flow. -710 mm Hg (vacuum level 93%) Ink level
  • 25. Machine refilling in a Vacuum -740 mm Hg (vacuum level 96%) This cartridge will print the full ink load because the size of the bubble is only 4% of the volume of the ink entrance area. If this cartridge was filled at an elevation of sea level and is now used at an elevation 6,000 feet, the size of the bubble would increase 24% in size, making it unlikely to work properly or have a shortened life cycle. Thus, you should induce a 97% internal vacuum level and fill at the approximate atmospheric pressure you will use the cartridge at.
  • 26. What is the Inkjet Refilling Process?
    • Initial acceptance of the cartridge from the client and testing
    • Cleaning of the cartridge nozzles and emptying of the old ink
    • Refilling of the cartridge, preferably under vacuum
    • Operational testing
    • Packaging and storage before selling
  • 27. Initial Acceptance of the Cartridge
    • Upon acceptance from the client, you may either test the cartridge or send it to the cleaning process.
    • If you choose to pre-test, then this can be done by either an electrical means to test fire each nozzle, or put the cartridge in a printer and try it. If the cartridge is totally empty, you could inject it by hand, about 2-3 ml of ink and test it in the printer.
  • 28. Cleaning and Emptying of Foam Type Cartridges
    • Cleaning can be of several methods such as; 1) steam, 2) ultrasonic, 3) centrifuge, 4) atomizers, 5) water injection cleaning, etc.
    • We believe the preferred method is “Water Injection” cleaning.
    • CXNET has developed our own line of Water Injection cleaning devices.
  • 29. What is Water Injection Cleaning?
    • Water Injection Cleaning is a process using small needles inserted into the filling holes of the foam cartridges, which inject warm, filtered water into the cartridge.
    • This results in cleaning of the sponge and the nozzles, in a very gentle and efficient manner. Typically the cartridge is fully cleaned in less than five minutes.
    • Once cleaned, the water must be removed and the cartridge sponge internally dried, before refilling.
    • Failure to dry the sponge may cause your print to look watered down, cause mold generation in the sponge, or allow air to enter the foam more easily.
  • 30. How do you dry the sponge after Water Injection Cleaning?
    • Centrifuge to spin the excess water from the cartridge
    • A vacuum oven to convert liquid water into water vapor, which is then removed by vacuum
    • An injection process using super dry compressed air pressurized into the cartridge sponge area using needles. This technique was pioneered by CXNET and to date, we are the only company to offer this solution.
    • A convection oven.
    • A vacuum chamber.
  • 31. Refilling under Vacuum using the CXNET Model 3000 Filling System
    • This refilling machine allows you to quickly refill virtually any foam based cartridge under 97% vacuum
    • CXNET has developed it’s own proprietary refilling machine, the Model 3000
    • The system is very low cost, made in the USA, and uses a simple design with the lowest maintenance requirement of any machine in the industry
    • Regardless of what machine you use to refill, it is important that you use one with 97% vacuum capability, that releases the vacuum in the chamber at about 40 or more seconds, preventing re-ingestion of air back into the nozzle area.
  • 32. Packaging and Storage of the Inkjet Cartridge
    • Install a protective tape onto the cartridge nozzle
    • Install the cartridge into a protective clip
    • Seal the cartridge and clip within a heat sealed package
    • Install the sealed cartridge into labeled boxes, or attach self adhesive labels
    • Place in a cool environment
  • 33. What is the Model 3000 System?
    • It is the most complete and technological system available on the market today.
    • It features low cost, high durability and low maintenance.
    • While most machines are made in China, Brazil, Israel, Turkey and other foreign countries, the Model 3000 was designed, manufactured and serviced here in the USA.
    • The Model 3000 has no complicated electronics that ultimately fail resulting in difficult and expensive repairs. When was the last time you looked in your local yellow pages and found a “cartridge refilling machine” repair man?
    • All the Model 300 system components are easy to replace with local, commercially available parts.
    • High performance, rugged, easy to use, low cost and easy to maintain; are all features of the Model 3000 System.
  • 34. What does the Model 3000 System Include?
    • One vacuum refilling machine capable of refilling 6 cartridges simultaneously at 97% vacuum, with 50 second release time.
    • One Water Injection Washing System with your choice of either:
    • A) The “Super Dry” air drying module attachment for the Water Injection Washing system
    • or
    • B) The combination of a Centrifuge and Temperature Compensated Vacuum Drying Chamber.
    • If you choose the “Super Dry” module, you do not need the centrifuge and temperature compensated vacuum chamber
  • 35. What is the Model 3000 System?
    • It is the most complete and technological system available on the market today.
    • It features low cost, high durability and low maintenance.
    • While most machines are made in China, Brazil, Israel, Turkey and other foreign countries, the Model 3000 was designed, manufactured and serviced here in the USA.
    • The Model 3000 has no complicated electronics that ultimately fail resulting in difficult and expensive repairs. When was the last time you looked in your local yellow pages and found a “cartridge refilling machine” repair man?
    • All the Model 300 system components are easy to replace with local, commercially available parts.
    • High performance, rugged, easy to use, low cost and easy to maintain; are all features of the Model 3000 System.
  • 36. What are some of the problems associated with inkjet refilling?
    • Air in the nozzle reservoir area
    • Dried ink blocking nozzles
    • Damaged nozzles from the client continuing to print while the ink is empty. Ink is actually the cooling mechanism during the nozzle firing cycle. When the cartridge nozzle is told to fire by the computer and there is no cooling ink passing through the nozzle, then the nozzle overheats and ultimately fails.
    • Electrical damage to the cartridge
    • Physical damage to the cartridge
  • 37. Marketing Processes and Techniques?
    • Personal Selling Business to Business
    • Local advertising
    • Joining merchant groups such as the Chamber of Commerce
    • Website development and web advertising
    • Adding this program to your existing business product mix
    • Wholesale selling to computer stores, mail box annex’s, or other related businesses with existing storefronts and retail traffic.
  • 38. What are the different programs available within the CARTRIDGE NETWORK?
    • The Level 1 Distributor costs $10,000 and is designed primarily for those who have an existing storefront or want to work from their home or small warehouse.
    • The Level 2 Distributor/Service Center costs $25,000 and includes all of the Level 1 benefits, has a protected geographic area, plus the Model 3000 Inkjet Filling System and a basic inventory of refilling supplies.
    • The Master Distributor/Service Center Development Area Manager has a cost structure that is negotiated. The Master Distributor receives all of the benefits and equipment of a Level 2 Service Center, and is also responsible to promote and sell Distributorships and Service Centers within their assigned territory.
  • 39. How do I Become a Cartridge Network Member and MAKE MONEY NOW?
    • Decide which entry level is best suited to you
    • Send in a small deposit to allow us to order your training materials and basic equipment provisions
    • Develop the training schedule and curriculum to best suit your needs
    • Schedule and attend the training
    • Pay the remaining balance of your chosen level of CXNET business development
    • Schedule the grand opening date for your company
  • 40. Thanks for your Interest!
    • If you have any questions or if we can be of any service, … Please feel free to contact us at:
    • 951-765-5435
    • 951-928-0595
    • Email: [email_address]