When it comes to I.T. hardware, and the expenses involved to start-up or upgrade, an investment recapture strategy is important. What are the components of a valuable strategy, and how much can it save you?
Purchasing a new system or component can be expensive and often, businesses hold off on doing so because of the expense. But there are ways to reduce the expenses.
1. Purchase refurbished equipment from a reliable alternate provider.
One person’s trash is another person’s treasure– especially if it’s been refurbished to like-new standards. A good alternate provider is in the business of buying back equipment that other people need to get rid of when they upgrade or liquidate and if they offer trade-in credit, most likely have an impressive surplus of used equipment in their storage facility. Alternate providers discount this refurbished equipment not only because it’s used, but because they need the space. They’ve already made money on the sale that happened with the trade-in, so refurbishing and reselling is icing on the cake. Take advantage of that! Refurbished equipment often sells for less than 20% of the price of the same product new!
2. Consider buying new or refurbished equipment that is no longer being manufactured. Once equipment is end-of-lifed, the manufacturer stops selling it. So for example, if your Cisco 1600 Series WIC-1B-U melts down, Cisco isn’t going to sell you a new one. Instead, they may suggest you upgrade your entire system to what they’re currently producing. You don’t need to fall into that trap. Replacing broken parts is an important part of any Investment Recapture Strategy, so find a provider that will continue to supply new or refurbished equipment long after the product stops being made.
3. Lease your equipment. Consider leasing to own, or simply leasing until you put away enough to pay for the upgrade. Especially if you aren’t certain if a growth trend will continue. Leasing makes downsizing easy should it come to that.
4. Take advantage of trade-in credit. Buying from an alternate provider that accepts used equipment for trade-in is no different than trading in your car. You no longer need it, and you might as well apply the value to your new purchase. Since finding a customer to buy your old equipment is time-consuming to do yourself, let someone else take the old stuff off your hands.
5. Know that you can liquidate completely if necessary. No one wants to be pessimistic, but the reality is, businesses encounter tough times. Find an alternate provider that will sell your equipment on consignment. Knowing you can sell it means money in your pocket.