The new Rival brand uses collected cartridge cores to manufacture new compatible cartridges. CEO Chuck Mache says collecting its own empties increases the company’s freedom and allows for lower costs.
He said: “It has always been a goal to build distribution first and then brand our compatible cartridges. Now that we are manufacturing our own Rival line and selling it through the distribution we have built, we have greatly enhanced our ability to control the collection of the core cartridge once it is used by our customer.”
Mache continued: “The price of the core cartridge has driven wholesales pricing up to companies like ours who have traditionally purchased from remanufacturers. These price increases have contributed to an erosion of our gross margins.
“Now that we are manufacturing and selling our own Rival brand and collecting our own cores from the end user, we’ve lessened our dependency on purchasing from the remanufacturers. While we will continue to purchase from select remanufacturers and wholesalers, Rival gives us a clear cost advantage over more traditional purchasing methodologies.”
The new range comes shortly after the company expanded its Tonertype division with a new facility in Tampa, Florida, giving it nearly 30,000 square feet. The expansion was spurred by increasing profits, as ATS reported revenue of $16.9 million for the first six months of 2010.