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Why Do Businesses Buy Refurbished Hardware?

Some people are reluctant to purchase used hardware for business or home. Many people think of used – which should be referred to as refurbished – as technology that has some sort of defect. Most refurbished technology is returned to the store because the purchaser didn’t like something about it, or there was a scratch on the case, or something not related to how it runs. The truth is, refurbished hardware has almost always gone through a very rigorous process of cleaning and assessment to ensure that it will work as intended.

The alternative to this evaluation of technology means a company is distributing potentially damaged products to its customers. Think about what that would mean. Business is often allowed just one failure before a customer is lost – not always, but the business never knows. In order to not lose that customer, the business is going to do all it can to ensure that it is passing on a quality product.

Why Should a Company Order Refurbished Hardware?

Almost every reason to buy refurbished instead of new is related to financial advantages. Refurbished is less expensive than the same model if it was purchased new. The reason purchase refurbished might be due to not having enough money at the time of the purchase. This isn’t an uncommon reason to buy refurbished – when a business is starting, or making some sort of transition. 

Businesses with plenty of money in reserve and turning regular profits often consider purchasing refurbished technology. These machines are proven to be as reliable as new machines, and they cost less. CEOs and CIOs view purchasing refurbished as good business sense.

Another reason people purchase refurbished is they can get a computer with more RAM or a larger screen that has been refurbished for 75% of the cost of the same model of machine when compared with new hardware. The only difference might be that there is already a scratch on the case, or there may be some other minor issue. After a while, purchasing refurbished machines just makes sense in many business models.

Sometimes, when a company has important software, or two different kinds of hardware that must interface with each other, time is an enemy. New computers may not work with the software, or it might not interact with other hardware. The choice might be to purchase more new hardware and new software just to get the job done. Another alternative is to buy refurbished – and reliable hardware that will still work with the older software or hardware. This can at least save some time until that larger transition must be made.

When it is time to make a switch to something new, often a business can save money by purchasing refurbished equipment to test new software or for a similar purpose. This makes the investment smaller in case the new technology isn’t appreciated as much. When a company goes all in and buys brand new everything, they often don’t have much of choice. They are invested in the “new,” so they can’t make any changes. Purchasing refurbished gives them more wiggle room to ensure they like what they’re switching to.

Maintenance is often an issue that is more affordable with older, more familiar hardware too. These machines have been evaluated and are trusted by the company. Buy new machines and it is certainly possible that the IT department must be trained to work on the new stuff. Older machines that the IT team is used to working on requires less newly learned skill.

The more technology a company has, the more likely something will break, get lost on a trip, get stolen on a trip. Using older and refurbished machines means that when those machines are broken or gone, a smaller investment is at risk. This can not only make the company happy, but it can pay off by having improved insurance rates to protect that hardware.

Some businesses might not want to purchase refurbished in every situation, but it might still make sense to keep that as an option. When a company releases a brand-new version of hardware, there is a belief in many IT circles that you never know if something is going to work well until it has wide distribution to the public. This can be true of smart phones or hardware. One of the ways to avoid problems and to ensure that the new technology you purchase won’t be a lemon is to purchase refurbished tech until the new release has been vetted by the public. 

Whether you’re concerned that your technology is going to age out, or if you need to save money, purchasing refurbished stock can make a lot of sense. Remember, the people selling refurbished equipment will clean it and evaluate it before they are willing to sell it. It is almost always worth the consideration.