Many business owners realize that their used and end-of-life assets have some value. From computers, to cars, boats, heavy machinery and more, your assets are not worth $0.00 the day they are taken out of commission. Asset remarketing is an industry that contains firms who help companies refurbish and sell their used assets. While this may seem easy enough and make a business owner question why they would pay a fee for assistance, it isn’t as easy as posting your used stereo on eBay. Business owners may think they are getting a good deal, but how can they know for sure? Working with a well-respected asset remarketing partner can help you avoid common pitfalls in the remarketing world.
Why Work With a Partner?
I could write a long list of reasons why working with a partner is beneficial. But, that isn’t necessary. In a nutshell, you work with a remarketing partner for the same reason you hire an electrician to install new lighting in your office or a marketing firm to help you promote your company. They are professions trained in their craft. If they are worth their salt, they will know the ins and outs of the industry and how to help you receive maximum value for your used assets. A quality remarketing partner can help with refurbishing, supply logistics, get your asset in front of the right buyers, and, most importantly, allow you to continue the day-to-day operations of your business without missing a beat.
Why Doing It Yourself Isn’t The Best Option
If you aren’t convinced that working with a remarketing partner isn’t in your best interest, I discuss some of the pitfalls that the DIY crowd may experience. You may think you are saving money or earning more by going at it alone. In reality, you may be leaving more money on the table than you think.
Sell or Give to Employees
Nothing will earn you the boss of the year title quicker than allowing employees to purchase used assets. It doesn’t matter if we are talking used cars or computers, getting something for lower than retail price excites many of us. However, problems can arise if this scenario isn’t approached correctly. Let’s look at computers, hard drives, and other IT assets. If you sell, or simply give, the assets to an employee they will certainly be grateful. Your IT department, on the other hand, won’t be so thrilled. They may be stuck providing software and hardware support for the device that is no longer used for company purposes. This isn’t good for the IT team or your business. You also will run into issues of data security. An employee today isn’t necessarily an employee tomorrow. One option is to wipe the entire drive. While this may work for you, the employee now needs to purchase and install a new operating system (OS).
Do It Yourself
Rather than selling to an employee, maybe you want to sell it yourself to another company. This seems easy enough. Refurbish the asset and wipe any data and then list on a platform. You can enlist your IT team to answer any technical questions and now, rather than paying a remarketing firm’s fee, your company keeps all of the sales revenue. In theory this sounds great. In practice it is less so. Remarketing is a time-consuming process. You and your IT team have better things to focus on than refurbishing an item, answering buyer questions, worry about logistics, and then handling any after sale support. Additionally, while it may be easy to sell the product, how do you ensure that you are getting top dollar? A professional remarketing firm will have a deep understanding of the industry that comes with years of experience. They can help you maximize the value that you receive for your company’s used assets. I’d rather pay a fee to know I’m maximizing my return as opposed to worrying about leaving money on the table.
Take It To Auction
This option also seems appealing on the surface. Gather your used equipment and head to the auction. However, this raises some issues:
- What about data sanitization for electronics?
- How will you get the items to the auction? Logistics can be a nightmare.
- What will you do with unsold items that you still own?
- Is the auctioneer’s fee worth the value you receive?
- How do you know you are getting the best deal?
The last point is especially important. Depending on what you are selling and the auction you attend, the auctioneer may not be an expert. This may result in fire-sale prices and you can be sure you aren’t maximizing your return here.
Wrapping it Up
I’ve tried to make a good argument as to why a do-it-yourself approach to asset remarking may not be the best approach. Think of it this way. If a customer came to you and said: “I can do what you do and do it just as well” you would likely try to explain why your expertise is valuable and DIY isn’t the best approach. The same is true for asset remarketing. Working with a professional allows you to focus on your business and what you do best. Let the professionals focus on maximizing the return on your used assets.