SMALL BUSINESS SPECIAL SECTION
‘Black Gold’ for BEP Co. Toner cartridge remanufacturer serves Southeast BY RICHARD SCHMITZ
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.
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Photo by Summer Smith
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n 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, Juneaubased 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 remanufacturing 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.”
BEP Co. proprietor Shelly Smith delivers remanufactured toner cartridges to a Juneau customer. Local pickup and delivery are a feature of the customer-service oriented enterprise.
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 facility in which she established a Kindergarten, childcare and early learning center. After settling in Juneau and starting a family, Smith and her daughter opened an organic health food restaurant serving home-
made soups, freshly tossed salads and signature wraps. “My highest compliment was when a customer painted a watercolor landscape and captioned it ‘for the best salad I’ve ever had in Juneau.’ It was fun and something I always wanted to do.” She also founded a small natural foods purchasing co-op so she and friends could have access to organic whole foods and benefit from locally harvested foods whenever possible. Smith took over BEP in 2009 when its former owner and founder retired.
A HELPING HAND Tom Buzzell provides the skilled hands and experience needed for the actual remanufacturing process, and keeps BEP Co. current with technological advances. Along with replenishing the cartridges with dedicated toners, BEP replaces computer chips, worn gears, wiper blades,
www.akbizmag.com • Alaska Business Monthly • May 2011