December 22, 2008
Maryann Jones Thompson, the editor of The EcoInnovator and the Corporate Eco Forum recently did an article on Dan Gilbert, VP of Supply Chain Field Operations for Cisco Systems, called “Turning Scrap into Profit“. I give Dan and Cisco huge credit for radically changing their Go Green strategy; transforming their “returned equipment” process from a cost center to a revenue stream.
Dan Gilbert joined Cisco in 2005 and took over their Reverse Logistics program at a point when Cisco’s returned products generated about 6 million pounds of scrap and costing Cisco $8 million per year! That is equal to 12 football fields filled knee-deep with product that was returned and assumed not working or DOA.
He changed the corporations mindset from a “scrap it” mentality to a “recycle and re-use” mentality. In fact, he found that over 80% of the returned and traded-in equipment coming back was in fact in good working condition. He realized the equipment had a remaining life; a life with a second or even third career! Dan went on to matched up these products with internal Cisco functions that had a need for refurbished equipment, using 44% of his returned products internally for customer demos, engineering labs, spare parts and charity opportunities.
Dan goes as far as to put on his sales cap and convince his collegues within Cisco that refurbished product could meet their needs as reliably as new product. He demonstrated that in fact refurbished gear passed the same quality and compliance checks required of their new products.
So yes, Cisco themselves even use refurbished Cisco equipment as a way to save money and reduce their own corporate carbon footprint! This is a great endorsement for all corporations to consider buying refurbished equipment for their internal use! If the manufacturer themselves uses refurbished equipment internally, that speaks volumes to corporate IT staffs and for the validity of the $2 billion refurbished computer industry.
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Articles/Blogs, Cisco Systems, FACT, MINORS, Refurbished, used cisco | Tagged: buying refurbished, carbon footprint, Go Green, refurbished cisco, The EcoInnovator, turning scrap into profit | 
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Posted by Garry Seaber
December 22, 2008
"Go Green"
Let’s face it, we all care about our world and managing the finite resources the good Lord has given us. The question really is, how can corporate America Go Green and at what cost?
Going Green always has a cost associated with it; monetary, time, effort and risk. Businesses can Go Green by recycling their paper and cell phones, buying office supplies made from recycled materials and using filtered water dispensers vs. providing bottled water to its employees. However, there is typically a cost for businesses to have a recycling company come in and pick up the recycled paper/cell phones and a cost premium of 10% – 20% when buying recycled office supplies.
The easiest way for a company to Go Green is for its corporate IT department to purchase pre-owned and refurbished computing equipment. Here’s why:
1. Buying pre-owned computer systems uses “zero carbon”.
2. Buying a new system requires the introduction of a new carbon footprint to our landscape.
3. Re-use before you recycle. Why recycle a system when it still has a significant useful life remaining? It would be a waste!
The reality is, corporate America can Go Green the easy way – re-use or purchase pre-owned IT equipment as a way to save money on hardware expenditures while reducing the carbon footprint of its company. Secondly, the company doesn’t have to pay a premium to Go Green. In fact, when you buy refurbished, you typically save 30%-80% of new prices.
As the owner of computer remarketing companies, we are doing our best to help corporate America reduce their carbon footprint by selling them refurbished IT gear. Let me know how I can help you and your company with your Go Green IT strategy.
Leave a Comment » | Articles/Blogs, FACT, MINORS, Refurbished | Tagged: buying refurbished, carbon footprint, Go Green, green IT strategy, recycle, Used IT Equipment | Permalink
Posted by Garry Seaber
December 2, 2008
IT DEPENDS…
Depending upon how and where you purchase your refurbished and used computer equipment will determine the warranty you will receive. ( I will talk about the various channels and sources of refurbished equipment in a future post). But to narrow it down, you should receive some type of warranty from the reseller of the used equipment and possibly a warranty (or what remains of it) from the manufacturer themselves! Let me explain.
THE REFURBISHED RESELLER
You should expect any reputable and experienced refurbished remarketer or reseller to offer at least a 30 day warranty on the equipment they remarket. Personally, I would expect the top remarketers of used IT equipment to offer at least a 90 day warranty as well as a 100% Money Back Satisfaction Guarantee. The reality is if a reseller isn’t willing to extend a reasonable warranty and guarantee their used equipment, then they are probably a company that shouldn’t be on your short list. Short warranties and/or no money back guarantee usually means the company is not thoroughly testing or not even testing their equipment before it goes out the door. Make sure you understand to what extent the company is refurbishing the used equipment before it is resold… very important. If they can’t provide you with an outline of their refurbishment process, then move on.
Secondly, the Money Back Guarantee is a big one. If the remarketer offers you a Money Back Guarantee, then you know the company is most likely refurbishing their equipment and is willing to stand behind their gear.
THE MANUFACTURER
Is it possible that newer equipment might still carry the manufacturers’ remaining warranty? And could that warranty be transferred to my company? Absolutely… but not always.
Depending upon the manufacturer, the remaining original factory warranty may be transferrable to a new owner of the equipment. It all depends upon the equipment type and the manufacturer’s warranty transfer policy. For instance, PC’s and Notebooks typically will have a 1 year warranty where servers usually carry a 3 year warranty and many network equipment manufacturers offer a lifetime warranty on their networking equipment!
The key is to ask the used computer remarketer if the equipment you are interested in purchasing has any remaining factory warranty and if it is transferrable to you and your company. If they say “I’m not sure I understand what you are talking about?”, then hang up and move on!
THIS IS GOOD NEWS FOLKS!
The reality is, if you can buy high quality IT gear from a reputable company who offers their own warranty and money back guarantee AND also get some remaining factory warranty from the manufacturer, then you are golden. Not to mention the savings versus buying new…
The other good news is that if you drop me a line, I would be more than happy to let you know if the manufacturer and equipment you are interested in offers a “transferable warranty”. Just leave a Reply, Send a Comment, or contact me: http://www.trustNSR.com
In fact, I might just start a NEW PAGE on this blog outlining major manufacturer’s and their Transferable Warranty Policy. What do you think? Would this page be beneficial to you and your staff? Let me know.
Leave a Comment » | Articles/Blogs, BUYING, FACT, MINORS, ROOKIES, warranty | Tagged: computer refurbishment, computer warranty, factory warranty, Refurbished Reseller, transferable warranty | Permalink
Posted by Garry Seaber
November 19, 2008
ON THE LOW DOWN
OK… How can anyone really benefit from the recession? We all feel it and we are all experiencing it. Don’t try and kid yourself. But business owners and IT Managers can tip the scales in their favor by capitalizing on other companies misfortunes. But you must embrace the paradigm that is occurring… and all to your benefit. Let me explain.
Economics in One Chart
THE ECONOMICS OF THE RECESSION
Many of you are aware of my background in Economics from UCLA. I share with you truths from Milton Friedman, John Maynard Keyes, Adam Smith and my hero… Ronald Reagan (not an economist of course, but a huge proponent of Supply Side Economics). They all point to the basic fundamentals of Economics of Supply and Demand.
It plays out like this: People begin to feel cautious because of various events that can occur i.e. wars, bank failures, stock market declines, gas prices rising, etc. Consumers reign in their spending as they begin to lack confidence. They don’t spend money. Businesses experience the results in decreased revenues. When business revenues decline, their profits will typically decline proportionately. With reduced sales and profits, business must cut back. Their biggest expense is their people; their wages and benefits. So, business start to cut back by laying off their employees and/or reduce the production of widgets, thus saving on its cost of goods sold. With the reduction in production and employees means internal assets become excess to their requirements. Employees are let go and their computers sit idle under their old desks while servers that used to be used for their production environment sit in their Data Center racks, still using electricity but are now unproductive.
You all can see where this leads. Companies, if they are wise and prudent, recognize that they must retire and sell their sidelined IT assets and recover any value that remains as quickly as they possible, before they become worth nothing (at which point they call in a local recycling company who charges 20 cents per pound to recycle their worthless computing equipment).
THE ECONOMICS OF BUYING USED COMPUTERS
Here lies an opportunity for those still in need of corporate computing equipment during a recession. To help you better understand the scope of savings one can make, below is a good “rule of thumb” for the decreasing value of computer equipment over time:
TIME ITEM VALUE % DISCOUNT
TODAY NEW COMPUTER WIDGET $100.00 0%
1 YEAR OLD USED COMPUTER WIDGET $70.00 30%
2 YEARS OLD USED COMPUTER WIDGET $40.00 60%
3 YEARS OLD USED COMPUTER WIDGET $20.00 80%
4 YEARS OLD USED COMPUTER WIDGET $0.00 SCRAP
DISCLAIMER: Variations in values can and do occur in varying amounts based upon the type of IT equipment and the supply and demand of that particular type of equipment in the used marketplace.
THE WISE MAN SAYS…
Savvy IT executives see that it makes real economic sense to consider and buy pre-owned equipment vs. buying new in a recessionary environment. On top of these general percentages, you will actually find even higher percentages off of new as a result of more SUPPLY of equipment flooding the used market with reduced demand. So with more supply and normal demand = Lower prices.
The Sweet Spot is to find equipment less than 2 years old with savings of up to 60% off of new list prices. In fact many servers, storage arrays, networking equipment and phone equipment may still have remaining factory warranties that can be transferred to you and your company! OH… REALLY? More on that next time….
Leave a Comment » | Articles/Blogs, BUYING, FACT, ROOKIES, Refurbished, Uncategorized | Tagged: computer equipment, excess IT assets, factory warranty, IT Executives, IT recession, recycle, servers, UCLA economics, used market | Permalink
Posted by Garry Seaber
November 10, 2008
THE REFURBISHED
MARKET
When corporations need IT equipment, they call their Account Rep from Cisco, Dell, HP or IBM. Others might call their Business Partner or VAR. Better yet, they don’t call, they log-in and order their new equipment on-line!
Virtually 100% of the time, when they place an order, it is for new equipment. i.e. Servers, Storage, Networking or Personal Computers. But why the propensity to order equipment NEW. Why not buy used equipment, refurbished by the manufacturer or by a 3rd party or independent computer remarketer? “You kidding Me? You trying to get me fired?”
THE PRODUCTS
Let’s face it. We as human beings like things new. It all started with our first gifts under the Christmas tree. Freshly wrapped; new box with its crisp corners and its tight, un-torn flap… nothing like it. You open the end carefully… not wanting to tear the cardboard and pull out the custom-made insert, holding the shiny new widget, with the warranty card and documentation carefully placed below in its own clear plastic bag taped shut. Us IT guys love the art of opening our new toys. IT REALLY REMINDS US OF CHRISTMAS! That’s why we got into the business… 
But wait, is their a better way? With out all the wrappings and fixins’?
THE PROS
The reality is over 70% of all corporations purchase some form of used, pre-owned, or refurbished computing equipment. Secondly, the typical savings is 30 to over 80% off buying it new from your manufacturers account rep or VAR. The refurbished market is BIG and growing. The industry is growing and well into the billions and billions of dollars. Heck… even BusinessWeek just wrote about it. How can I justify buying refurbished equipment for my company? Wait… “Nobody gets fired for buying IBM!”
- SAVINGS – Buying high quality IT gear can save your department buckets full of cash.
- AVAILABILITY- Usually available for immediate shipment. No waiting for it to be build (Build To Order- BTO).
- MAINTAINABILITY - Majority of equipment is eligible for the manufacturers standard maintenance agreement.
- WARRANTY- Most reliable re-marketers offer a warranty on their equipment. Expect 30 days to 1 year; depending upon the Re-marketer and the type of gear.
THE CONS
But can I really trust bringing in used equipment into my company? The risk seems too high? What if it fails on me and my network goes down? I could be out of a job! But on the other hand, if I can bring in high quality refurbished equipment and save money, then I can implement more IT solutions that will make my company more competitive and therefore more profitable. Lower IT expenditures; increase competitiveness; increase profits… hhmmmm. Sounds like a fast way to the corner office!
- RELIABILITY – Used equipment has been USED and is less reliable… how long do I have before it fails?
- JOB SECURITY- I can’t bring in pre-owned gear? If it fails and we have an outage, my career is over!
- RISKY – It’s too risky… I just can’t afford to take the risk… for me or for my company.
“THE USED TRUTH”
The arguments on both sides are valid. But the fact of the matter is life and business are full of risks vs. rewards. If we want to be successful in life, we must all take risks; their are no rewards without risk. The business world is overflowing with examples of managers, high level executives and business owners that have stepped out in faith and taken “educated risks” in order to become the best in their industry! Or even the best in their IT department!
Look… we all take risks. The question remains: “Is buying used computer equipment worth the risk?” Let me continue to be your guide…
Leave a Comment » | Articles/Blogs, BUYING, FACT, ROOKIES | Tagged: availability, job security, maintenance, refurbished market, reliability, risk, savings, Used Computers, warranty | Permalink
Posted by Garry Seaber
November 6, 2008
G Unit
ARE WE GOING TO THE BALLPARK?
My first post ever October 30th 2008 titled “In the Beginning” ended with “Let’s Ride”. So where are we going? O.K…let’s talk truth…
My plan is to start at the beginning, to educate Corporate IT executives in America in buying and selling used computer equipment and corporate technology. What this means is, my posts will start as though you know nothing about the benefits and disadvantages of buying used computing. I am going to assume you have never considered purchasing pre-owned equipment; I am going to assume you have no interest and are adverse to even the thought of risking your career and your company to buying even a spare part for your core network! What idiot would even consider performing “Harry Carry” on oneself by buying refurbished systems? Suicide… suicide for a career… suicide for a company.
IS THIS AN OXYMORON?
I think so. Many a CEO has risen the ranks to the corner office based upon their unique skills as technologists, but more importantly as leaders and risk takers. Not one good leader has raised the ranks without taking actual or perceived risks to become pinnacles in their companies and industry. Executives must step out in faith to succeed. I hope to make that step smaller… because there are big rewards in buying and selling used and excess equipment. I will prove it.
ROOKIE IN THE MINOR LEAGUES TO THE MAJORS… AND FAST!
With over 27 years in the computer and IT remarketing industry, my plan is to take you from your Rookie season to the Minors and then into the Big Leagues; hopefully opening your eyes to perceived risks vs. actual risks of successfully implementing a refurbished equipment acquisition strategy and selling your sidelined equipment for the benefit to your career and the bottom line of your company. For your benefit, I will CATEGORIZE each post whether or not it is FACT vs. FICTION, BUY vs. SELL, and ROOKIES/MINORS/MAJORS. The end result is you will have the knowledge and resources to make wise IT sourcing and disposal decisions while furthering your career and making you look good! I think that means you’ll make more money, have higher prestige and eventually the corner office.
PRESS CLUB
I figure I have over 85 original topics I need to discuss with you. Topics such as…
- Make Money While Downsizing
- Nobody Gets Fired for Buying IBM
- CIO’s Fastest Way to the Corner Office
- Can I Have My Cake and Eat It Too?
- Computer Room to Board Room
- How To Benefit From the (Coming) Recession
- The Economics of Refurbished… My Major and Soon Yours
- Cherry Picking or Buying The Farm
Take a swing and enjoy the ride. I encourage feedback, comments, suggestions and rebukes. I know many of you have knowledge from your experiences that can add value and make a difference to TheUsedTruth. Please speak, so you can be heard! We welcome it.
G Unit
Leave a Comment » | Articles/Blogs, FACT, ROOKIES | Tagged: buying refurbished, excess equipment, IT Executives, IT Sourcing, rookie, sell used, technologist | Permalink
Posted by Garry Seaber
November 3, 2008
Author - BusinessWeek
Wow. What perfect timing I have!
Check out this great article from Rachael King at BusinessWeek.com (UCLA Grad like me!) about the “NEW RAGE AT WORK: Used, Revamped IT Gear“. Was published this morning at 12:01AM EST.
From my experience, you will see more corporations, large and small, adopting a Refurbished IT strategy as part of their hardware sourcing. IT budgets are being slashed all over corporate America, but CEO’s more than ever realize the “strategic and competitive advantage” technology can bring to their bottom line… especially during a RECESSION (yes, I said the “R” word).
Watch and listen… more and more CIO’s and Directors of IT will be receiving a call from their bosses, bosses, boss asking, “Do we buy refurbished IT gear? If not, why not?” The rule of thumb is over 70% of corporations buy some sort of used or refurbished equipment as a way to save money. My expectation is you will find businesses “running” to refurbished resellers… especially in the next few months as the Elections end and our new President takes office.
Would love to hear your thoughts about Racheal King’s article? Have any questions or comments, let me know.
Leave a Comment » | Articles/Blogs | Tagged: BusinessWeek, recession, Revamped IT Gear, Used IT | Permalink
Posted by Garry Seaber
October 30, 2008
Commodore64
In the beginning, my world started with the Commodore64 computer, hitting the market in August 1982 and being pulled from the shelves in 1994 after selling 30 million units! Then came my dream come true… the IBM Personal Computer. I can remember it now, new to the IBM Corporation as a trainee in 1983, with my white starched cotton button down long sleeve dress shirt (and ”IBM Blue” tie) looking at the newly deployed IBM PC perched on my desk.
Original IBM PC XT
Then later came my PC XT with a 10MB Disk Drive! Oh boy…no more diskettes! Ring a bell ladies and gentlemen? Well, my years at IBM were filled with unreal amounts of training, studying, and selling under the helm of Lou Gerstner, the then Chairman of IBM and many others.
But the fact of the matter was IBM could not overcome and beat its biggest competitor! We constantly lost deals to these guys and it was always because of price… not support, not because of quality, not because the competitors products were faster and not because they had better software than us! Who was this behemoth competitor? Ourselves… IBM. But how could this be? It was IBM systems being purchased, refurbished, and re-marketed by 3rd party companies.
In training, it was ingrained in our heads… “Our biggest competitor is ourselves”. And it was true! The fact of the matter was there were companies buying up used System/36, System/38, 4381, and S/390 mainframes from end user companies and reselling them to other customers at a fraction of the price of buying new. The KICKER was the U.S. Justice Department Consent Decree imposed upon IBM (because the US Government felt IBM was becoming a monopoly) mandating among many things that IBM must ACCEPT their “preowned” systems under an IBM maintenance agreement. This enabled savvy 3rd party companies to purchase refurbished mid-range and mainframe class IBM systems to run their corporations a fraction of the cost of buying new from IBM. On top of it all, the US Government decree “guaranteed” IBM must maintain these used systems at their published maintenance rates! WHAT A DEAL! … And Still Is! Although the Consent Decree has expired, many of the terms still hold true; not only for IBM, but now virtually all computer, storage, networking and peripheral manufacturers.
This is my beginning and I hope over time to share my wisdom and expertise with you. There are many Pros and Cons to sourcing, using and eventually selling your refurbished, pre-owned, or used computing equipment. Let me be your guide and … ENJOY THE RIDE!
LET’S RIDE!
Leave a Comment » | Articles/Blogs, FACT, ROOKIES | Tagged: Commodore 64, Consent Decree, IBM, PC, Personal Computer, Refurbished, S/390, System/36, System/38, Used Computers | Permalink
Posted by Garry Seaber
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