Used Computers & Mobile Devices. Retired IT equipment. Resale Value. Return on Investment. IT asset disposition.
Many companies consider information technology hardware an expense rather than an investment, and when it’s time to retire that equipment, they figure any tech recycler will suffice. But did you know you can generate a profit from selling those used computers, servers, and mobile devices? That’s where an IT asset disposition (ITAD) partner that specializes in value recovery can help you maximize returns. To help with that process, we provided eight simple questions to ask when searching for an ITAD vendor that can help you unlock the value of your company’s used IT equipment.
8 QUESTIONS TO ASK AN ITAD PROVIDER REGARDING EQUIPMENT RESALE:
1. Are they certified to handle and destroy secure data?
2. Are their resale goals aligned with yours?
3. Do they take measures to protect your equipment’s condition?
4. Do they recognize the need for speed?
5. What is their strategy for maximizing returns on higher-value assets?
6. Are they leveraging today’s global marketplace?
7. What is their skill set for unlocking and repairing devices?
8. Are they planning to cash in on your resale profits?
1. IS THE IT DISPOSAL PROVIDER CERTIFIED TO HANDLE & DESTROY SECURE DATA?
Before considering how much your company’s used assets are worth on the resale market, review the type of data stored on the equipment. With the average cost of a data breach in the United States exceeding a staggering $9 million (Source: IBM), preventing confidential data from getting into the wrong hands is critical. While there are numerous tech recyclers offering free services, it’s essential to question their trustworthiness and the fate of your used devices. Instead, opt for an IT disposal partner with reputable security certifications such as NAID AAA. Remember, no amount of free services or resale income can compensate for the consequences of a data breach.
2. ARE THE ITAD PROVIDER’S’ GOALS ALIGNED WITH YOURS?
If your company has decided to value IT asset reuse over recycling, we commend you. You’re helping lessen the e-waste problem while also getting a return on your IT investment. The next step is finding an ITAD vendor that aligns with your goals. Start by researching whether they are just talking the talk or are fully invested in reuse principles. Certifications from third parties like e-Stewards are reliable proof of their sustainability commitments. Retail partnerships such as eBay, Amazon, and their own marketplace along with Microsoft Authorized Distributor status show commitment to reselling equipment. Published documentation such as case studies, reports, and customer satisfaction ratings are also valuable sources of information.
3. DOES THE PROVIDER TAKE MEASURES TO PROTECT YOUR EQUIPMENT’S CONDITION?
If you’ve ever shopped for a preowned vehicle, sporting equipment, or furniture, your preference for the item’s condition is probably “like new” or “gently used.” You’ll accept slight scratches, but not significant cracks and dents. The same goes for used computers, mobile devices, and servers. When deploying a new asset to an employee, communicate your intent to remarket it at the end of the use period. Make the employee aware they should care for the asset in a way that maximizes resale value.
When it’s time for the ITAD provider to pick up the retired assets, verify the items will be handled with care. You don’t want gently used desktops getting smashed at the bottom of a big heap of equipment or valuable mobile devices jostling around inside a box.
4. DOES THE ITAD VENDOR RECOGNIZE THE NEED FOR SPEED?
As the saying goes, “timing is everything.” This statement also rings true when selling used IT equipment. Ask your ITAD provider to remove old equipment as soon as possible because the average device drops 2-3% in value each month. Factors such as new product launches, product shortages, demand fluctuations, and the overall economic climate can drastically alter equipment values. A good ITAD partner monitors these industry developments and provides fast service, especially when your assets’ values are spiking.
5. WHAT IS THE ITAD PROVIDER’S STRATEGY FOR MAXIMIZING RETURNS ON HIGHER-VALUE ASSETS?
Seek out an ITAD partner that is knowledgeable about your industry’s equipment. For example, an ITAD vendor that handles warehouse inventory scanners and retail point-of-sale equipment may not be familiar with medical equipment. A vendor that specializes in retired industrial equipment or test and measurement devices may not have expertise in reselling computers and mobile devices containing personal data.
When you find an ITAD partner that has experience with your industry, verify they’re proficient in all asset categories. A vendor with extensive knowledge and resale experience with mobile devices may not know the nuances of the computer and server markets. Ask the vendor how they “grade” the equipment to determine their values. Do they consider each item’s make, model, configuration, condition, and age? Or do they group items into categories and offer generalized pricing (i.e., peanut butter spreading)? In most cases, you’ll get a better return from ITAD providers who value individual assets.
6. IS THE VENDOR LEVERAGING TODAY’S GLOBAL MARKETPLACE?
Understanding global markets and their impact is also an important factor in earning the highest value from your IT investments. Does your ITAD vendor have experience reselling numerous equipment categories or just a few? How much experience and at what volumes? ITAD partners who have longstanding relationships with dealers and global markets are in a better position to reclaim the highest values. The ITAD provider should also be taking advantage of Amazon, eBay, and their private online marketplaces as these popular retail channels are effective when selling low-volume, high-demand items.
7. WHAT IS THE ITAD PROVIDER’S SKILL SET FOR UNLOCKING AND REPAIRING DEVICES?
Before outsourcing unlock, repair, and resale services, recognize there are risks to your business. It’s critical to have complete confidence that the ITAD vendor meets your data security requirements. The next step is to ask about their ability to unlock and refurbish devices. This includes their capabilities to deactivate Activation Locks, BIOS Passwords, Computrace, Microsoft Intune, and other Mobile Device Management (MDM) software. A vendor with more tools in their toolbox is always better because the device’s destiny will shift from resale to recycling if the vendor can’t unlock it. An example of the significant value that can be generated: In 2022, Cascade unlocked over 6,670 devices driving an additional $385,000 in resale revenue for its customers.
Similarly, vendors with more repair and upgrade capabilities can help you turn a retired asset into an income-generating device. Look for participation in the Microsoft Authorized Refurbisher program. It signifies the provider can professionally refurbish Windows devices and preinstall genuine Microsoft software, ensuring a good customer experience and higher resale values.
Another area that deserves attention is the level of transparency the ITAD provider offers regarding equipment upgrades. First, what is the vendor’s decision-making process for repairing a particular device or updating its operating system? A poorly defined process could result in an asset with zero demand undergoing unnecessary enhancements, leaving you with a negative return.
8. IS THE ITAD VENDOR PLANNING TO CASH IN ON YOUR RESALE PROFITS?
Speaking of enhancements, how is the vendor sharing the upgrade costs and profits from your remarketed devices? Seek out a vendor who is transparent about the revenue share. You should have visibility into the final sale price for each asset minus any deductions for equipment enhancements. As mentioned earlier, beware of peanut butter spreading — applying the same price per asset regardless of its condition and value. Also, be on the lookout for vendors who subtract 100% of the equipment upgrade costs from your side of the equation and 0% from their share. Both of you profited from the upgraded asset, therefore the costs should be split.
IN SUMMARY
Auditing an ITAD vendor for value recovery using the questions posed here is crucial to ensure you’re earning the maximum value for your assets. Heartland Dental is a real-life example of a company that benefited from these concepts. Of the 30,317 assets we received and inventoried, we resold 77.4%. This resulted in Heartland Dental earning a rebate check of over $416,000. Contact us to learn more.
BONUS: Resale Value Estimator
Try our Resale Value Estimator to get a general idea of how much your organization’s used notepads, desktops, monitors, and smartphones may be worth according to our methodology. Use the information to determine if resale is right for you or to gauge whether your current ITAD provider is paying a fair value.