HP in Trouble Down Under

Date: February 10, 2010

Sydney, Australia -- According to the Australian website Smarthouse, HP is charging Australians twice as much as Americans for the same ink products at the store Officeworks. The specific ink in this case was the 6-cartridge value pack of HP 02 cartridges. Ironically enough, this news comes a week after HP Australia invested in a large radio and print advertising campaign warning consumers about purchasing non-HP ink. They have also spent a great deal of money establishing their “ink police” in Asia to find organizations which manufacture counterfeit HP ink. In January 2008, the Australian dollar was converting into US dollars at about $0.85 to $1 and the ink was selling for $49.95 Australian.

Fast forward to today, and the Australian dollar is faring a bit better, converting at $0.93 to $1, but the same ink pack is now retailing for $89.97 Australian. That would be fine, if it weren’t for the fact that Best Buy here in the U.S. is selling the same pack for $39.99 (and theirs includes 150 sheets of photo paper), the equivalent of $43.00 Australian. That is still $6 Australian cheaper than in January 2008.

Recently, Best Buy made the decision to ship internationally with a U.S. address. Basically it allows freight companies as well as third party organizations to collect the products, and then be responsible for the delivery from the U.S. to Australia (or wherever). There is a small freight charge which adds $10 to the U.S. purchase price. Converting and adding leaves the cost of buying from the U.S. still $36 Australian cheaper than the Officeworks price.

BY ADAM HAIGH, Editor