Asset disposition service companies help IT manage equipment through retirement, reuse, remarketing, and recycling. Companies like Redemtech not only handle the equipment, they typically have some system for categorizing used equipment, testing and certifying the operability, and assigning an appropriate condition code that helps both the seller and the buyer know what to expect.
However, does this mean your company is better off with faster refresh cycles to get higher value for used equipment before it depreciates, or is it better to squeeze every last ounce of productivity out of your current equipment before you refresh? Probably the latter.
Even though his company would love to sell your newer hardware because it's worth more, Redemtech CEO Bob Houghton says it's typically better economics to extend the lifecycle of equipment and give up the residual value. For each type of equipment, though, there is no formula to figure out the ideal time to retire and sell, as the application of that equipment and type of maintenance required vary significantly.
Once you've made the decision to refresh and sell, move as fast as possible. Once an asset is surplus, it loses value rapidly, so don't stick it in a warehouse and let it age for three months. And don't look at such sales as merely a scrap-iron deal: Many assets can be refurbished and provide more value.
Use a consignment model if you go with an asset disposition firm, rather than a buyout. In an outright buy, the purchaser (in this case, the asset disposition firm) tries to pay the lowest price possible, while in the consignment model, the firm takes a percentage as commission, so it has an incentive to get the best deal for both of you.
6. Redeploy what you have
In any large distributed organization, there is always a certain amount of churn, and IT should take advantage of that churn for refurbishment and redeployment. On average, every dollar spent to redeploy a company can defer $14.50 in procurement costs, says Houghton.
And you can redeploy much more than just PCs, Houghton says. "Virtually everything in the IT portfolio should be looked at as redeployable as long as it can fit in with the company's hardware standard," he says. "If it doesn't meet the standard requirements, then retire it."
7. Sell equipment to your own employees
If the other methods to sell your unneeded equipment don't make sense, you always have the option of selling it your employees. But having something like an in-house silent auction to sell off old equipment to your staff can be a double-edged sword.
On one hand, it can be a way of giving your employees a kind of bonus during the hard times. On the other hand, like selling a used car to a friend, there is a good probability it will come back to bite you. If the system develops a problem, the employee will still hold IT responsible. If you're going to do this, make clear it is sold "as is" -- and stick to that.