Saturday, November 17, 2007

Used/refurbished equipment?



Should you purchase used/refurbished equipment? © 2007

Most refurbished products are mature, practical and functional. Although they may not be the most recently released “cutting edge” technology products, many manufacturers are still producing and selling them. Refurbished products are at least one to two years old, and probably previously owned.

Many companies have been misled and are reluctant to install refurbished products because of the stigma of being “used” or “second-hand” equipment, and possibly not be supported by the manufacturer. It has been my experience that many utility companies, manufacturers, financial institutions, and research firms have discovered that “refurbished” does not mean “inferior” in any way. These products are as good as the original new ones, and have the advantage of having been previously “broken in”.

Refurbished products purchased from the original manufacturer and third party vendors are sources of like-new, high-quality, and supported products. Many of these products have a 90-day warranty. The original manufacturers offer more recent products at approximately twenty-five percent discounts, while third party vendors offer the same products at considerably larger discounts.

Here are some reasons why to purchase used/refurbished equipment;
- Some business applications don't require the latest performance.
- If your company has standardized on a certain platform and "new" production on that platform has been discontinued.
- Refurbished equipment may offer the best price/performance value for a training room.
- Software testing may be performed just as effectively using refurbished products as with new.

So the best value for your company's IT dollar/euro could be with pre-owned, refurbished and used equipment. More and more companies are looking for used/refurbished computer equipment to help stretch their IT dollars/euros. Once considered an alternative means of cutting IT costs, the secondary market for refurbished IT equipment is now to be said mainstream. Used computer hardware and equipment could save you up to 70-80% off the price of new equipment. You could think long-term: because many times used equipment offers the same quality product at a discounted price, so you could achieve a better overall Return on Investment (ROI).

Are the refurbished products as good as new? Here's an example of some details of an ''assurance/refurbishing'' process;
1. Audit and Inspection: components and computer networking equipment inspected for manufacturer revision levels, part number identification and cosmetic appearance,
2. Initial Diagnostic: full boot and test via manufacturer's diagnostic procedures,
3. Revision Process: repair or replace nonworking parts, can receive an upgrade to current revision levels,
4. Full Diagnostic: full diagnostic test of integrated product,
5. Inventory Process: components and computer networking equipment can be bar-coded, identified by manufacturer's serial number, assigned an inventory control number and stored in static-free, climate-controlled storage facility,
6. Configuration: orders can be custom configured according to customer specifications,
7. Outgoing Diagnostic: full diagnostic test of configured product,
8. Quality Certification: all configurations can receive an independently check for quality by certified technicians
9. Packaging Process: antistatic and reinforced materials can be used in customized packing to prevent shipping and handling damage, etc.....

What should you look for when you decide to purchase refurbished?

There are a number of things to keep in mind when you buy a refurbished business product. Here are a few tips:

1. Buy smart - Be sure your product was refurbished by the original manufacturer or a certified third party company (if you need the best pricing). There are many companies looking to recoup losses and may refurbish a product cheaply and resell it without an adequate warranty or return policy.
2. Buying directly from a manufacturer or an authorized third party company ensures that your product has been refurbished and tested to meet stringent standards.
3. Check the warranty - Does your seller guarantee the quality of its used/refurbished products? Products remanufactured by a manufacturer are covered by an official manufacturers warranty. Products refurbished by an certified third party company are covered by their certified warranty which in most cases can be extended for a longer period if you need. For some product lines, the warranty is the same as equivalent of the new product in question.
4. Ask about return policies - If for any reason, you are unsatisfied with your refurbished business product, some manufacturers provides a no questions asked return policy and maybe other certified third party companies do also. At least you should be able to return products when they are not up to your satisfaction with a normal/valid explaination.
5. Act quikly - Refurbished product inventory turns over quickly in general and the tried and true workhorses of the industry go first. Unlike new, if you miss out on a product you want, re-stocking or back-ordering is not an option!

Good luck and success...© 2007

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