Why Buy Used? Part One.

Posted by Joni Paulo on

Whether you call it used, pre-owned or refurbished, buying IT hardware in the secondary IT market can provide significant benefits. If your organization hasn’t considered Second User equipment, then now is the best time to consider the value of what many say is ”equally reliable” equipment.  Second User equipment has been a vital option for State and Federal governments as well as private and public organizations around the world.  These organizations are stretching budget dollars by capitalizing on this non-traditional IT planning and in the acquisition process.

Second User equipment and new overstock is a result of network upgrades,  terminated leasing contracts, OEM overstock, purchasing mistakes, company closures and discontinued programs, which supply the secondary market with a surfeit of current and end-of-life equipment. This surplus is comprised of primarily used equipment, although a significant portion is new, manufacturers’ surplus, open-boxed or unused (out–of-the-box) equipment. This fully functional hardware, including routers, switches, network modules, servers, server options, telephony and much more is available and priced at fifty to ninety per cent off list price. With savings in that range, IT budgets are extended significantly, while limited IT budgets can achieve superior technology through the acquisition of IT surplus that would not be possible through traditional channels.

Although many OEM's also are directly participating in the second user equipment market to meet the growing IT demand for budget conscious IT buyers there’s still a significant amount of surplus equipment that OEMs are not buying back or destroying. This sets the stage for us to buy back quality IT Hardware and resell at significant savings. 

A flourishing secondary market does raise the question “Is used as good as new?” To answer this, let’s agree that the average refresh cycle is three years for most large organizations who are buying major brand IT.  This top of the line equipment has an extensive life span due to superior engineering, which is why it is priced higher than lower end equipment. Most high-end equipment is built to last and when it does fail it is usually due to human error as in mis-handling the hardware. The consensus is is that of many is that well cared for used equipment  is “as good as new.” (Consider that it is not uncommon for new equipment that is randomly tested to fail immediately or within a short time frame.)  

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