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A new way to sell used IT equipment

Patrick Thibodeau | Feb. 26, 2013
The buying and selling of used IT equipment is not a trivial market, but it doesn't get enormous attention.

Blair believes there is an opportunity for the company because he says many enterprises are only interested in getting rid of their equipment, not in maximizing its potential resale value. They believe that once IT departments investigate the potential resale of some of the equipment through their market, their minds will change.

"[Wholesalers] make their spread off ignorance," said Blair, who said his company's model ensures offering transparency on price.

According to IDC, the market for used equipment in the U.S. is about $70 billion.

Joseph Pucciarelli, an analyst at IDC, said that a lot of companies are restrained on what they can spend on capital equipment, and purchase used equipment to augment their existing systems. In many cases, they buy used equipment to keep compatibility with existing systems as way to keep their "support footprint" from expanding, he said.

Pucciarelli said companies typicall will unload used equipment to an original equipment manaufacturer (OEM) as part of a trade-in on an upgrade.

The company doing the upgrade won't get top dollar for their old IT equipment, but they may not see a selling alternative as worth their time, said Pucciarelli. Relative to the overall size of the transaction in an equipment upgrade, "you are talking about something that is pennies on the dollar [for the used systems,]" he said.

 

 

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