Outdated IT equipment is a problem every business is sure to have to deal with at some point.
Most will look at the old laptops, servers, networking gear, etc., as nothing but junk that needs to be disposed of. This is an expensive way to look at your hardware. While it might be obsolete to your organisation, there is still a lot of value left in your old assets. You can recoup a significant portion of your equipment’s cost by engaging with ITAD Services to handle your IT asset recovery.
Understanding How IT Asset Value Recovery Works
IT asset value recovery consists of retrieving your legacy assets and recovering value from them in the most lucrative way. Your used IT asset recovery starts with an inventory and appraisal of your legacy systems. Assets are tested, graded and then categorised by age, condition and specifications and placed in the correct channel based on their demand on the resale market.
If your used assets are still working, they can be refurbished and made ready for resale. This may include component replacement, memory and hard drive upgrades, cleaning and system testing. Even if the equipment cannot be resold as a whole, there is still a likelihood of finding parts that can be harvested and resold.
Refurbishment and Resale Create Financial Returns
When it comes to selling, your options are to have a portion of the asset’s value returned to you (through refurbishing and resale) or enter into a revshare agreement where the ITAD handles all the retrieval, testing, refurbishment and resale of your equipment and returns a percentage of the proceeds back to you.
Equipment that is still in good working condition has great value as a refurbished system. Corporate-grade laptops, servers and networking gear have a ready resale market even if your company has outgrown them. Once refurbished, they can be resold into secondary markets where the equipment suits the needs of smaller companies, education, etc., giving you some return on your original IT investment.
Why Refresh Timing Directly Affects Resale Value
Unfortunately, the one thing that negatively impacts how much an asset is worth is time. The IT market is continuously advancing, and new processors and generations of hardware and storage make your equipment worth a lot less simply due to depreciation. This even applies to assets that are 100% functional.
Last year’s laptop that might have been an in-demand resale system is worth substantially less with the introduction of the next generation.
To get the maximum return on your assets, consider the resale market when scheduling equipment refreshes. By taking a closer look at your equipment’s condition, the resale market demand and depreciation, executives can plan the appropriate refresh cycle so that your IT asset recovery yields the best results.
Using Recovered Value to Offset New Equipment Costs
Perhaps the greatest benefit of engaging with ITAD services and IT asset value recovery is the savings it will provide you in replacing your IT systems. Upgrading to new IT equipment represents a huge capital expense for your company, especially if you’re replacing hundreds or thousands of devices.
Using your recovered asset value to help offset the expense of replacing the equipment is one smart way of funding your new investment. For example, if you have 500 business laptops to replace, you should be able to refurbish and resell the ones that are still functional, then apply those returns to help buy replacements.
Note: Be sure you factor in costs of refurbishing, shipping, testing and service fees to understand your true return on investment.
