Although OEMs release product updates quite frequently, industry watchers agree that routing and switching equipment actually has quite a long lifespan. Pre-owned equipment, therefore, may not only be a cost-effective alternative in the short run, but also a viable part of most companies’ long-term network technology roadmaps.
Know Your Options
When considering new hardware, discuss these needs with an expert in previous-generation equipment. A manufacturer will not always share options for less-expensive configurations. For example, a company considering the newest router or switch on the market could instead purchase the previous model and notice very little, if any, performances differences. In terms of reliability, there also may be no discernable drop-off. NHR helps IT professionals select the previous generation equipment that meets their requirements at prices as much as 90 percent below the manufacturer’s proposed new configuration.
Many companies take advantage of the huge savings available on the secondary market to stockpile “spares” for their networks, keeping onsite back-ups of critical equipment in case of emergency. As with any purchase, planning ahead allows shopping around for the best value.
Many companies report that sparing is a much more cost-effective strategy than buying extended manufacturer warranties, especially on previous-generation equipment. This approach also saves time and frustration by avoiding the endless series of tiered service requests. With spares “on the shelf,” an increasing number of companies double their value by using them for testing and corporate training without having to affect the production network. So what should companies look for when they consider the pre-owned market? Here are five tips for getting the best deals on used equipment.
Do your research
As in any industry, capabilities and levels of service can vary widely. Investing time to research the various secondary market players upfront can help avoid headaches down the road. Visit the company’s website, check with the Better Business Bureau (www.bbb.org), glean recommendations or cautionary tales from various IT message boards or blogs, search Dunn & Bradstreet (www.dnb.com) to check financial stability and contact the company’s references. If anything doesn’t feel right, try another alternate source. There are many reputable companies in the secondary market, so don’t be discouraged if one prospect does not meet your needs. The good news is a reputable source of alternate procurement should be able to fulfill 99 percent of your product requests.
Beware of the "unbelievable" deal
One of the biggest benefits of pre-owned equipment certainly is low price. Equipment prices typically are 50 percent to 90 percent below manufacturers’ list prices. But be sure to shop around as prices can vary on each piece of equipment based on supply and market demand. You may find dirt-cheap deals, but beware of the “unbelievable” bargain, especially from an online auction site. If the equipment is offered "as-is," approach with extreme caution. Consider why most carmakers now offer “certified, pre-owned” models as a better bet over purchasing from a private party. Paying a little more, but getting top quality from a reputable company, guarantees authenticity, a one-year warranty and technical support services that helps avoid a lot of the frustration and disappointment. In the end, do your due diligence and buying from the secondary market can deliver the same peace of mind with heightened post-sale support and lengthier warranties than purchases directly from a manufacturer or authorized reseller.
Expect rapid delivery
As equipment manufacturers often build to order, it’s not unusual for buyers to experience weeks of delay in receiving equipment. This can be a precarious predicament for any company that urgently needs networking hardware, because every hour counts. A trustworthy pre-owned equipment supplier should have a substantial inventory of popular products available and usually be able to deliver that equipment the next day. Even hard-to-find products are obtainable in a few days from an established, well-connected source.
Quiz your vendor on quality
Don’t hesitate to ask a potential secondary market source about quality assurance procedures. If there are good processes in place, they’ll be happy to answer your questions. Ask how serial numbers are validated to prove legitimacy. Is all equipment tested prior to shipment? Check the credentials of the technical staff performing testing and providing support. Secondary market vendors with in-house technical expertise also should be able to ship equipment configured to your specifications—a big bonus over manufacturers.
Demand a warranty to mitigate risk
Buying used networking equipment shouldn’t feel like a risky proposition. Secondary market companies that have expert purchasing, testing and shipping procedures will back all purchases with a one-year warranty and offer extended coverage, including lifetime warranties. In many cases these warranties exceed those offered by the original manufacturer. If a provider doesn’t include a warranty, consider a larger or more established secondary-market vendor.
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