While the dramatic decline of the dot.coms and the general economic distress in the telecom industry certainly have their downside, it has been a boon for the secondary market. Companies suddenly divesting themselves of used, and sometimes practically new, IT equipment have been flooding the market. No company is more favorably situated to profit from this situation than ITParade.com, founded in 1996 by Robert Davie, now its Executive Vice-President.
A virtual trading-post, the company acts as an on-line middleman between corporations who are purchasing refurbished computer and networking hardware and those disposing of surplus IT assets. Run like an auction, the company boasts a high participation level, an estimated 25% of resellers worldwide, leading to competitive bidding and pricing. This network of dealers includes not only the leaders, but 1500 smaller dealers who specialize in obscure and less popular refurbished hardware as well.
For a company wanting to sell off its equipment, these IT recovery services
make the task especially easy and fast. By providing a Buyer's Network of
high-revenue companies pre-qualified to bid, ITParade.com insures that sellers
reach the widest audience. The equipment is posted, a reserve price established
based on market values, and the bidding begins with no obligation until the
minimum bid is met. Typically this part of the transaction takes place in a
week, with pickup and inspection within another week.
For the buyer, too,
it's a good deal, a fast and easy way of finding the desired product at 20-30%
of the price of it new. And because many of the large telecom companies
overbought before the market went sour, some of the equipment branded "used" is
almost, if not in fact, brand new, making the deal extra sweet for the end
user.
"As a result of the current flood of equipment coming onto the market and the heightened awareness of IT users of the availability of equipment at significantly lower prices," says Davie, "more companies are adopting the policy of purchasing refurbished hardware. It's a good time for the secondary market."