NEW OR REFURBISHED?

Which is the better hardware purchase for value-added resellers?

It’s the million-dollar question. For many resellers, refurbished hardware makes more sense financially, but the trouble comes in finding machines with the performance power required.

But in many cases, refurbished machines are outfitted with matching, or sometimes even better configurations than brand new hardware. Finding these can be simple – if you know what to look for.

Yes, upgrades are important...

While purchasing older or refurbished stock is an option, no reseller can afford to skip upgrades. It's essential to keep hardware up to date to provide customers with what their businesses need. IT lifecycle management is critical for resellers, so when upgrade time rolls around, keep an eye out to see exactly what you are getting.

While upgrading is necessary, brand new equipment doesn't necessarily offer an advantage. In some situations, companies decide that a new system is necessary, but have a limited budget. Instead of purchasing a refurbished model with all the bells and whistles they’re looking for, they buy a new machine with limited features due to budget constraints.

…but “newer” isn’t always “better.”

Take the time to compare costs carefully. Look at several makes and models to determine which fits your budget as well as your customers’ technical requirements. Often times, a model that is just a few years older could have more speed, better software, and more memory than what you can afford in a brand new model.

On the other hand, many companies benefit from buying “last season’s” hardware. That is, you could spend less on a fairly new, but discontinued model instead of buying the most recent model. If the specs fit what your business is looking for, this is an excellent way to get new hardware without buying at full price.

What can a certified refurbished product offer?

With IT departments facing budget cuts and still being expected to keep up operations, it's more important than ever for your customers to consider refurbished hardware – but they must know (and respect) where the hardware is coming from.

Trust your seller.When you buy recertified IT hardware from a trusted seller, you are not limited by function or overall speed. You don’t have to worry about junk parts being configured into your units, or being grossly overcharged. On the other hand, there may be some hiccups – for example, the system may not match your specs to a T, or perhaps the machine does not have as long of a lifespan as you hoped for.

Be sure to weigh the risks and benefits to determine the best course of action for your business and your clients.

Questions? We can help.Do you need to source discontinued or withdrawn hardware from Lenovo or IBM for your customers? Contact your local ITX global office and ask us about our Lenovo or IBM Options Continuation Programs.