IT Asset Disposition is seldom a single, one-size-fits-all transaction. Apto’s advanced value recovery helps companies move away from an auction process that leaves large amounts of revenue on the table – value recovery revenue that can go a long way toward funding new technology investments.
VALUE RECOVERY CASE STUDY
An “as is” process leaves big value on the table.
Prior to becoming an Apto client, a technology company had been performing their value recovery (aka remarketing) function internally, through a process of sending out lists of their decommissioned IT assets.
Bids were due by a deadline and awarded to the highest bidder.
The IT asset lists encompassed a broad range of product categories and did not generally include information such as component detail, functional grading or cosmetic grading.
Because the terms of sale were “as-is” for the entire lot, many of the potential bidders placed little to no value on certain categories, and took a conservative approach to the assumptions.
Apto first worked with this company by winning a bid on one of these lists. In this particular case, the list included three different brands of servers, four brands of networking equipment, as well as PDUs, storage systems, and miscellaneous peripherals. Because of the limited information provided, Apto took a conservative approach to bidding, but still had the highest offer.
Included on this list was a Dell Force 10 S60 Network Switch, which Apto priced at $60 per unit. These brands of switches require a specialized buyer, which required this equipment to be fully tested and warrantied with terms in order to transact a sale. Apto was able to sell several hundred of these switches for an average selling price of $325 – a 440% increase over the original purchase price!
The company’s in-house remarketing process was clearly leaving a lot of money on the table. Other parts in multiple categories were undervalued, too. A NetApp storage shelf bought for $1,650 was sold for $3,916 – by focusing on proper information, process, and channels.
In time, Apto became a value recovery partner with the company, and restructured the terms of the relationship so that any net upside sales potential was remitted back to the client. As a result of this change, the company realized an 80% increase in revenue over its previous methods, net of any incremental charges.