Remarketing used and out-of-date assets can provide an unexpected source of revenue for many companies. From IT assets to heavy machinery, biotech equipment and everything in between, remarketing can, and should, be a critical component of any asset life-cycle management plan. The following article will review what exactly asset remarketing is and how it can benefit your company.
What is Asset Remarketing?
Asset remarketing is the process of retiring, refurbishing, and reusing a company’s assets that have outlived their useful life. Different companies have different needs and the useful life aspect may be up for debate. For instance, a company requiring advanced IT equipment to remain competitive may be upgrading equipment every few years. Their old equipment may not be suitable for their needs, but it could very well benefit another company that doesn’t have the same demands. Remarketing helps to maximize the return on investment for the equipment that a company has purchased. It also helps to minimize environmental impact and may help companies comply with environmental rules and regulations in their country.
When considering retiring assets, a company has a few options:
1. The company can refurbish the asset and redeploy within their company in a different business unit
2. The company can refurbish the asset and remarket (sell) it to an external buyer
3. Donating the asset or selling it to employees can also be viable options
4. Finally, if the asset is truly unable to be used it can be responsibly recycled
While all these options are good, remarketing provides the company with an opportunity to generate some cash flow on the asset they are retiring. This cash can in turn be used to purchase new equipment or other upgrades required by the business. The value the company will receive for the asset will depend on a few factors:
- Overall Condition
For anyone who has ever bought or sold an asset, either for business or personal use, the above considerations are not uncommon. To help maximize the value that is received for the asset, enlisting the services of an asset remarketing company may be wise. Companies with trained professionals can quickly asses the asset, determine a fair market value, and help to find a buyer by leveraging their networks.
If you decide to recruit an asset remarketing service provider to aid in your remarketing efforts, the process can be very easy and straightforward. While the process may vary from firm to firm, the following is a high-level process overview.
1. First, you need to select a service provider. Depending on your location the options may be many or few. If you have many options you want to consider factors such as price, logistics services provided, and if the company is experienced in dealing with the asset in question. If you are selling a bulldozer, a company that traditionally remarkets data center hardware may not be the best bet.
2. With a service provider selected it is time to arrange the transportation of your asset to their processing facility. Some providers will arrange the logistics for you making this very simple.
3. The service provider now needs to audit and inspect the asset and estimate costs such as refurbishing and data cleansing and erasure.
4. With repairs and data destruction complete, the provider remarkets the asset and (hopefully) has it sold quickly.
5. Once the asset is sold you should be provided payment as well as an audit report that tracks the disposition from the time of pickup to sale. Service providers that aren’t willing to provide an audit report should be reconsidered. The report is documents that environmental regulations where followed and that your company’s sensitive data was properly removed from the device.
The process of remarketing an asset is not terribly strenuous if you engage with a well-respected and competent remarketing service provider. It is a practice that every company should build into their asset life-cycle management plan. Helping to keep the environment green while also adding some green to your bank account is a win-win.