IT Asset Liquidation and the Different Approaches to Solving the Problem
IT assets, unlike most other in the organization, have an ephemeral active lifecycle which averages four years. On the flipside, they also represent one of the assets with the most cost-saving potential.
Surplus liquidation on a frequent basis has become even more crucial in this age when companies are increasingly becoming reliant on cutting-edge technologies to keep up with, or stay ahead of, the competition.
It is also an age where companies do not have to get stuck with old electronics by stashing them away in the storage closet or dealing with recycling issues. This is because the electronic liquidation market is thriving with many buyers (liquidators) willing to purchase used IT assets you no longer have use for.
The beauty of electronic liquidation is that it increases your return on investment and affords money that can be pumped into better, newer assets.
Reasons for IT Asset Liquidation
There are many assets you can liquidate and these include: monitors, computers, laptops, printers and copier machines, network equipment (from switches to servers), telephone systems, security systems and other equipment.
The reasons for liquidating may vary from one organization to the next. Generally, the following are the reasons behind it:
- Eliminating storage costs
- Implementing a new way of doing business
- Upgrading existing IT infrastructure
- Relocation of a business
- Office downsizing or closure
Solving the Liquidation Conundrum
The trick to getting liquidation right is to do it early when assets are likely to fetch a better price. This way, the business is guaranteed to maximize proceeds for its assets.
That said, what are the approaches available to solve the liquidation problem? Let’s find out!
There are companies that specialize strictly in inventory liquidation and this is perhaps the most professional way you can go about liquidating your IT assets. There are many benefits of working with tech liquidators, chief among them a good return and security of your data.
IT asset liquidation is something you shouldn’t take lightly because there are critical issues to deal with and these fall under two key categories: security issues such as data breaches (sourced from hard drives that have not been professionally wiped, for example) and environmental missteps (IT equipment ending up in a landfill somewhere and becoming hazardous material, for example).
Second-hand Electronics Companies
Second-hand electronics companies will be found in every town and typically, there are many of them (which should be good news for anyone looking to liquidate).
These are companies who specifically deal in used equipment and most will be willing to accept your excess inventory in exchange for a fee.
Computer vendors include OEM like Dell, HP and IBM, as well as other vendors like Amazon and Best Buy.
This approach will normally involve or buyback programs or trading in your old equipment plus cash for newer ones. It’s a great option that will save a substantial chunk in the long run instead of watching equipment go obsolete in the warehouse.
It might not have occurred to some, but competitors are great potential buyers when it comes to surplus liquidation.
When it comes to disposing used computer equipment, the first thing that comes to the mind of many (IT big shots in mid-sized firms included) is eBay.
It’s easy to flip used equipment on online platforms like eBay and Craiglist where a lot of potential buyers lurk, especially if you’re an experienced seller.
The rule of thumb is if your equipment is 4-5 years old, it’s best to donate it because selling works best for equipment that’s under three years old.
Computer donations have indeed surged to the extent that it has got to a point where it’s becoming increasingly difficult to find anyone willing to accept used computers.
Recycling is best suited for assets that hit the 5-year mark and you can start by consulting e-waste companies or surplus liquidators who will advise you on what to do. The latter normally recycle for resale which means they’ll purchase the assets from your organization, before proceeding to handle data destruction and carrying out repairs or refurbishing as needed, then reselling on say, an online marketplace.
When it comes to IT asset liquidation, the issue of security should be right up there regardless of whom you’re selling the assets. Disregard that at your own peril.