In today’s fast-paced IT landscape, companies are continually upgrading their hardware and software to remain competitive and efficient. Consequently, the IT Asset Disposition (ITAD) process has become increasingly vital. However, many companies unknowingly lose significant value during this process due to various common pitfalls. In this blog post, we’ll explore the top 5 reasons companies lose value in the ITAD process and how to avoid them

          1. Unrealistic Price Expectations

One of the most common mistakes companies make during the ITAD process is comparing the current wholesale market value of their assets to the initial purchase price from 3-4 years ago. We frequently encounter customers who mention the amount they paid years ago without fully comprehending the secondary IT marketplace. This is similar to expecting a four-year-old car with 40,000 miles to resell for its original price. Another common misconception is assuming that the hardware’s age is solely determined by when it was first used in the company, disregarding technological advancements. Assets depreciate over time, and technology evolves rapidly. It’s crucial to understand that most ITAD partners offer similar values, so if you’re dissatisfied with one vendor’s offer, others are likely to provide similar figures. If an asset no longer fits your company’s needs, decommissioning it sooner rather than later is the best course of action.

          2. Insisting on Cash Offers

Many companies prefer cash offers for their IT assets, but this can lead to significant undervaluation. ITAD companies calculate cash offers by considering variables such as cosmetic condition, internal specifications, and included accessories, and they typically factor in the possibility of equipment not meeting expected conditions. It’s essential to be cautious of hidden terms in the fine print. Some companies might initially offer high prices for IT assets only to reduce payments later, citing conditions like all equipment being in Grade A or “like new” condition. Consignment, on the other hand, gives ITAD companies the opportunity to strategically sell assets, leading to potentially higher returns. For instance, we recently acquired 2,000 Apple iMacs from an end user. We processed these through our facility, wiping the data, replacing broken screens, and in some cases, replacing casings and stands to restore the cosmetic condition to like new for the next user. We then loaded the new iOS onto those units and individually boxed them for retail and e-commerce sales. Because of the time we had to test these units, we were confident in offering a warranty with each unit, which warrants a higher price from the buyer. Under the consignment model, our customer ended up receiving 21% more than what we would have offered in cash. A cash offer on this same deal would have led to a quick key function test, data wipe, and bulk packing for wholesale to ensure profitability, avoid sudden market changes, and free up cash again for another project. The consignment approach often yields better results than immediate cash offers for both customers and ITAD companies.

          3. Choosing an Uncertified Vendor

Opting for uncertified ITAD vendors is a risky move that can lead to various problems. These vendors may not comply with environmental regulations, potentially resulting in environmental non-compliance and legal consequences. Additionally, uncertified vendors might not have the expertise to handle data securely, leading to data breaches and increased costs for data sanitization or destruction. Inadequate documentation is another issue, making it challenging to track assets properly. Certified vendors, on the other hand, have invested in and audited asset-tracking processes and procedures, offering transparency and quality throughout the ITAD process. While non-certified vendors may offer slightly higher prices from time to time, the potential risks and lack of quality often make certified vendors a more reliable choice. At what cost can you risk data security?

          4. Poor Packaging and Freight Damage

To save costs, many companies rely on their internal personnel to pack and palletize hardware, often leading to inadequate protection during transit. Employees may have extensive IT knowledge but lack experience in properly packing and transporting used IT assets. This commonly results in damaged products and reduced value. Given the current understaffed and remote working scenarios in many IT operations post-COVID, relying on professionals becomes even more critical. It’s advisable to engage an ITAD company that can provide onsite professional de-installation, packing, palletization, and logistics services. For sensitive pickups, requesting an onsite audit or data erasure can further mitigate risks.

 

          5. BIOS and Cloud Locks on Hardware

BIOS locks and cloud locks on hardware can render assets unsellable unless addressed correctly. BIOS locks are local to the motherboard and remain intact during the data wipe process, potentially leaving customer data accessible. Ensuring that your IT department removes BIOS locks before decommissioning hardware is crucial. For Apple products, iCloud locks must be removed during the decommissioning process to avoid rendering the item useless. Managing assets effectively while in use can prevent this issue upon decommissioning, as tracking down iCloud-locked device passwords for companies with thousands of employees can be extremely challenging.

 

In the fast-paced world of IT, maximizing the value of your assets during the ITAD process is crucial. By avoiding common pitfalls such as unrealistic price expectations, preferring cash offers over consignment, choosing uncertified vendors, neglecting proper packaging, and ignoring BIOS and cloud locks, companies can ensure they get the most value out of their IT assets. Collaborating with certified ITAD providers and staying informed about asset depreciation trends can help companies optimize their ITAD process and protect their bottom line.