Originally Posted by kane

Many years ago I worked for Tektronix in their printer division. The area I worked in made printers that used solid ink. The printers sold for $1500 and at that price the company was selling them at a loss. However, they sold the ink for about $100 per color and it needed 4 colors so it was about $400 for three sticks of ink. Their cost on that $400 ink was less than $5. Pretty crazy margins.