Microsoft Coa
An entire industry exists around the business of refurbishing and remarketing used laptops and desktop computers. The major sources of these machines are billion dollar companies. Wise CIO's plan to have a regular refresh schedule so that they don't end up with a fleet of outdated computers creating a budget crisis. Instead, most plan a rolling refresh schedule on a 3 to 5 year cycle. So, 20% to 33% of corporate computers are retired and replaced each year.
Fortune 1000 companies, companies that employ thousands of workers, typically lease computers for 3 years. At the end of that period, companies can extend the lease, buy out the equipment, or return the computers to the leasing company. The largest leasing companies in the computer field are actually subsidiaries of the computer manufacturing companies. Examples would include Dell™ Financial Services, HP™ Financial Services, and IBM™ Global Finance. These companies exist to facilitate the sale of new computers for their parent companies. They do not want to inventory used machines, nor do they want to create the impression that they are competing with their new-equipment sales staffs. They just want to get rid of the old machines, so they sell them in bulk to computer brokers.
Brokers, in turn, want to sell these used computers to new buyers. Brokers can (and do) sell used computers "as-is" to other brokers or consumers. Used computers are a commodity, and the market typically attributes a value to these machines that is just a multiple of some value multiplied by the speed of the equipment's processors in megahertz. These commodity computers trade at low commodity prices.
Other brokers actually invest time and capital to refurbish computers. The Refurbishment process involves many steps. Brokers audit the equipment to determine the machines' specifications. They test to make sure the machines are bootable. Brokers inspect the equipment to ensure it is aesthetically acceptable. If necessary, they professionally paint machines, replace keyboards, wrist rests, and covers. The next step involves loading an Operating System (OS). The best brokers participate in the Microsoft Authorized Refurbished (MAR) program which ensures that they are providing a licensed copy of the operating system with a Certificate of Authenticity (COA) sticker and a restore disk. Unlike used, commodity computers, refurbished machines are premium products, and brokers can obtain a higher price in the market. Still, these prices are a great bargain compared to new retail prices. Typically one can get approximately the same amount of refurbished computing power for about 50% of the price of new machines.
The industry calls these "Off-Lease" machines. They typically sell with a 90 day warranty provided either by the brokers themselves, or by the original equipment manufacturer. Originally owned by Fortune 1000 companies, they were once the cutting edge of computing power. Three years later, and refurbished, they are still great machines. Refurbished Off-Lease computers can be a great tool for individuals who want corporate power, or for mid-size and small companies who just haven't yet reached the billion dollar level.
Author: Hank Laws is a wholesale computer broker with KruseCom, LLC.
http://www.KruseCom.com
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