How to Earn Money Like a Jawa

It’s a challenge every organization runs into at one point or another: you’re finally upgrading your networking gear, but it leaves you with a rag-tag collection of old routers, switches and phone systems.

Now you’re left with the dilemma of how to get the best value with your surplus hardware. You’re sure your equipment is still worth something, and you want to maximize ROI, but how do you do that effectively? Asset recovery, IT asset disposition—call it what you will but it’s the way to go. It plays right into the old saying, “One man’s trash is another man’s treasure.” Take a cue from our little friends on Tatooine.

In a Galaxy Far, Far Away…

The Jawas from Star Wars had the right idea by refurbishing discarded scraps and old droids and reselling them to moisture farmers. Unlike the Jawas, you won’t need to jump into a sandcrawler and scour the desert for material to sell—you can utilize the equipment that was scrapped after your latest upgrade.  

In non-Star Wars terms, asset recovery can also be defined as “investment recovery.” It involves disposing of or    selling surplus material in a way that maximizes your return, all while minimizing costs and liability (source). In terms of IT asset recovery, the surplus material would mean switches, wireless access points, routers, phones and other used networking gear you no longer have a use for. 

You can maximize your return in the form of cash or credit by selling this equipment to a reputable network equipment reseller. Most importantly, you need to make sure the organization you’re selling to is legitimate and trustworthy. This will ultimately minimize the costs and liability to your own organization. After all, you wouldn’t give your equipment to some shady Jawas and expect to get a good deal, would you?

Once you find a trusted reseller, your used equipment will go through a refurbishment process that will reset the hardware back to factory standards. This allows other organizations who can’t afford brand-new equipment to acquire networking equipment at a lower price. By using asset recovery, your “trash” turns into someone else’s treasure, while you make money from it in the process- creating a win-win situation for everyone.

The Break Down

Now that we’ve covered what asset recovery is, we can give you the run-down of how it works, and how you can get the best value for your used equipment.

1. Choose a trusted secondary market reseller

You want to look for an established company with a good reputation. Spend time reading customer reviews or case studies, if available. A trusted company will treat their clients well, and be happy to answer any questions you may have about the asset recovery process.

2. Figure out what your equipment is worth

Make a detailed list of the equipment you’re planning on reselling. The more detailed your list, the more accurate the reseller’s estimate will be. It can also be useful to go online and do your own research to compare prices and see what your networking equipment is worth in the retail market. Do keep in mind—you won’t be getting back exactly what you paid for when your equipment was brand new. Just like a new car, as soon as you drive it off the lot, network equipment will depreciate in value over time.

3. Shipping logistics

Take the time to figure out the best way to ship your used networking gear to the reseller. Know what supplies you may need and if there is a specific method or company the reseller requires you to ship through. You want to be sure your equipment arrives safely so you can get the most value for it. Ideally, some resellers like CXtec will cover the shipping logistics for the equipment they buy from you.

4. Make sure your data is safe

The most important thing when selling your equipment to a secondary reseller is making sure that your data is safe. A reputable reseller will make sure that your equipment goes through a full data cleanse, which ensures that any equipment you sell will be returned to factory default settings. Any data you had on this equipment will be wiped, and you can sell your equipment knowing that your data will be safe.

5. Get properly compensated for your equipment

Once a reseller wants to buy your used networking equipment, it’s important that you are compensated. Otherwise, what would be the point of going through all of these steps? By choosing a reputable organization, you know you’ll get a fair price for your used equipment. Most equipment resellers will offer you cash for your equipment, but some will also offer you credit to be applied to your account. This is a great benefit to take advantage of. For example, if you’re looking for a different phone system but not ready for a full upgrade, you can apply the credit you’ve accrued towards this phone system instead of paying out of pocket. This way, someone else’s trash becomes your treasure, and the tech life cycle continues.

If you have more questions about asset recovery and how it can benefit your organization, feel free to reach out to one of our reps at CXtec, or download our tech guide to selling your network hardware the smart way. We’re always here to help!