'Black gold' for BEO Co.: toner cartridge remanufacturer serves Southeast.

• Author: Schmitz, Richard
• Position: SMALL BUSINESS SPECIAL SECTION

In a community whose fortunes are rooted in tourism and government, Shelly Smith has nurtured a manufacturing enterprise rooted in dependability, customer service and an environmentally conscious work ethic. With Smith as sole proprietor, Juneau-based BEP Co. remanufactures print toner cartridges for customers locally and throughout Southeast Alaska. In addition to saving money on toner cartridges, local customers get the added benefit of time-saving pickup and delivery service.

BEP customers range from government agencies and corporations to individuals and their home-based offices. Customers typically save 30 percent or more on cartridges, which can be the largest line item in an office supplies budget.

As Smith expands her business, customers across Southeast are increasingly responsive to this locally offered service. "Toner cartridge remanufactufing is the norm in the Lower 48," Smith said. "Interest continues to increase here in Alaska. Customers outside Juneau simply drop their cartridge(s) in the mail, though some have used air cargo or even hand-carry their depleted cartridges on the ferry when they come to town."

CREATING WEALTH

Building BEP's customer base has required determination. "The industry refers to toner as 'black gold' because of the high profit margins. The original equipment manufacturers vigorously defend this profit center, using statements like 'This is not a genuine (brand name) product. Are you sure you want to install it?' which deters many users from purchasing remanufactured cartridges."

Smith identified another challenge. "The cheap 'drill and fill' method has given remanufactured cartridges a black eye. They are not true remanufacturers and offer a cheap and inferior product. It can be a challenge to overcome this reputation." BEP Co. remanufactures cartridges in accordance with specific guidelines in factory-produced manuals.

[ILLUSTRATION OMITTED]

Some customers express the concern that using remanufactured cartridges will void printer warranties. However customers can be assured that their printer warranties are protected by law. The Magnuson-Moss Warranty Act prohibits printer warranties from being voided by using remanufactured toner cartridges.

HISTORY LESSON

Smith has a long history of creating success as an entrepreneur. While in college she and a fellow student started a business selling advertising on restaurant placemats. In Connecticut, after leaving college, she designed a state-of-the-art...