The question THE EAGLE's analysis is ultimately seeking to answer is what effect en-user rebates are having on their perceived beneficiaries, the printers, and the benefactors, the manufacturers.

To grasp the seriousness of the challenges facing an industry "addicted" to end-user rebates, it is first necessary to make some estimate of the sheer scale of rebate payments and to distinguish types of rebates where major categories exist.

THE EAGLE's analysis focuses primarily on the pre-press sector in which the consumable supplies sales of film, plates and proofing materials are the source of end-user rebates. We are looking at a billion-dollar-plus business (manufacturer revenue from dealers). We believe overall rebate payments to printers, as a percentage of this total revenue, may exceed 20%. The actual amount of percentage of rebate to an individual customer may vary widely based on size and other conditions. Many are much more than 20%.