Have you been leasing technology and not sure what to do with your customers’ devices that are being returned? Or are you a lessor and looking for a new revenue stream?
In this article, we break down how leasing mobile technology (MacBooks, Laptops, Chromebooks, Tablets, iPads, etc.) is a fast-growing industry and how to ensure you are maximizing the residual value.
Residual Value for Used Technology
As a lessor, you have a couple of options as what to do with your leased technology:
- Dollar Buyout: your customers lease equipment with the intent to buy the assets outright at the end of the term. This method is being utilized less and less as the secondary market for mobile technology continues to grow.
- Fair Market Value: allow your clients a lower monthly payment option on equipment that will have residual value at the end of the lease. Partnering with an ITAD company to sell your leased technology at their fair market value allows for more aggressive rates and payment options on the front end of the transaction. Having a reliable partner that will be accountable for the data destruction and secure resale of the assets is very important.
To get more out of your end of life leased technology, working with an ITAD company to sell your product will always provide a greater return. Here is why:
With the explosion of Amazon, Ebay, Walmart, and other large e-commerce markets, the flow of refurbished products available to the budget-conscious consumer (Chromebooks, MacBooks, Tablets, Laptops, etc.) is constant. The main supply of these used & refurbished devices are sold into the market by ITAD companies (wholesale refurbishers).
This is where leasing companies have an incredible opportunity to recapture their investments and get residual value out of each device. By finding an ITAD partner you can sell your used devices too, the ability to double down on your return on investment is inevitable.
So, as a leasing company, you make money when you lease the devices to your customers, and when you sell them.
Things to Consider When Selecting an ITAD Partner
Selecting the right ITAD partner is essential. Here are a few things to consider:
1) Re-marketing Channels
To ensure the maximum value of your leased technology, you will want to be sure your partners have set up solid re-marketing channels. The better the channels, the greater return your partner can provide you. In fact, working with someone who sells direct on ecommerce and overseas can secure you the healthiest margin for your product.
2) Pricing Experts
An ITAD company should be able to serve as your pricing consultant. With their thorough industry knowledge and buying history, they will be able to anticipate the value of devices year over year and help you quote out your current deals. This will minimize the risk of your contracts and secure a solid revenue stream once they are ready to sell.
2) Data Security
An R2 certified company has the capacity and knowledge to sanitize digital data, and properly manage focus materials (toxic materials used in the manufacturing of computers) in a manner that protects the safety, public health and environment. The R2 standard is the leading global certification standard for the electronic recycling industry, ensuring companies are equipped and trained to handle sensitive data through extensive audits.
In order to have full confidence that a device has been wiped in the hands of trained professionals and experts, it is best to partner with a company that has an R2 certification. An R2 certified company must follow specific requirements and is periodically audited in order to keep their certification.
Not leasing technology yet? Now is the time.
Because of the booming after-life market, a growing trend among business and organizations, schools, etc, is leasing.
What are the benefits to your customers? There are 3 main benefits that your customers will enjoy.
- Less cost upfront, and with the price tag on technology being so high, it will continue to become more popular for companies to lease their technology.
- It is easy to upgrade and keep technology updated. As technology continues to improve and advance, your customers want to improve and advance along with it, but the cost of upgrading every couple of years can be too burdensome. This is where leasing devices can provide a simple upgrade option and help meet their internal needs.
- Lastly, it provides your customers more flexibility. Rather than purchasing a fleet of new devices all at once, companies are able to upgrade little by little or as needed.
How to get started?
At this point, you may be wondering how your leasing company can add mobile technology to your services. It’s pretty simple, you just need a supplier, and a buyer:
The refurbished device market is not slowing down anytime soon, so working with a company that buys all used or retired devices allows leasing companies to provide an all-in-one service to their clients without any hassle. When you partner with us, we do all the legwork and manage the entire process. We believe in building strong, lasting partnerships and are here to support you.
If you are interested in receiving a quote or a general breakdown of the residual value for used technology, then let's connect!