Computer liquidator: Difference between revisions

Revision as of 10:54, 13 June 2023

Latest revision as of 05:01, 5 January 2024

Line 1:

A '''computer [[Liquidation|liquidator]]''' buys [[computer]] technology and related equipment that is no longer required by one company, and resells ("flips") it to another company. Computer liquidators are agents that act in the [[computer recycling]], or [[electronic recycling]], business.

There are several reasons why companies will sell, or [[Liquidation|liquidate]], used [[Information Technology]] (I.T.) equipment: [[bankruptcy]], [[Layoff|downsizing]] and expanding, or technological advancement. Technological advancement is the most common reason, as the equipment is no longer performing the tasks required of it, usually because it has been rendered obsolete by more advanced technology coming on to the market. This used or obsolete technology is often referred to as [[electronic waste]]. Equipment designated as outdated for one company is still viable for another company, whose operations may not require advanced solutions. Often, an [[information technology audit]] will be performed to help a company decide if their equipment needs updating, and if so, what the requirements are.

== Reasons for Liquidationliquidation ==

Computer liquidation is a sustainable solution and is [[environmentally friendly]]. Rapid technology change, low initial cost, and planned obsolescence have resulted in a fast-growing surplus of computers and other electronic components around the globe. The purpose of computer liquidators is to keep as many computers and electronic parts out of [[landfills]]. As newer and better technology replaces [[hardwareComputer (computer)hardware|hardware]] at an ever-increasing speed, the amount of technical trash increases as the technology is being replaced. The speed at which hardware changes and innovates in the last few years follows, to some degree, [[Moore's law|Moore's Law]]. Predictions were made that every [[landfill]] would soon be overflowing with discarded [[computer screen]]s and computers, along with associated equipment such as [[Keyboard (computing)|keyboard]]s and [[Mouse (computing)|mouse]]s and all the other hardware associated with use of the Internet. Most electronic waste is sent to landfills or incinerated, which releases [[Electronic_waste#Electronic_waste_substances|toxic materials]] such as [[lead]], [[Mercury (element)|mercury]], or [[cadmium]] into the soil, [[groundwater]], and atmosphere, thus having a negative impact on the environment.<ref> Jeff Edmondson, http://www.kare11.com/article/news/local/recycling-technology-in-the-twin-cities/152950796, Article in "Kare11" 2016 </ref> The best liquidating companies have clearly outlined policies regarding the disposal of dangerous substances which are often an issue with information technology.

The act of liquidation avoids the possible toxins and pollution that comes with putting electronic waste in landfills and also avoids the extra costs that go into recycling. For example, New York passed a law in 2015 that banned putting electronic devices in landfills. Now waste facilities in rural counties are being forced to either turn people away or eat the cost of recycling cathode ray tubes. Outside [[New York City]], counties are spending from $6 million to $10 million a year to deal with the problem, according to [[Stephen Acquario]], executive director of the [[New York State Association of Counties]].<ref> {{Cite web |date=2016-04-24 |title=Old TVs Create Toxic Problem for Recycling Programs Across America |url=https://www.nbcnews.com/science/environment/old-tvs-create-toxic-problem-recycling-programs-across-america-n558701 |access-date=2023-06-13 |website=NBC News |language=en}} </ref> The option of liquidation actually incentivizes people to get rid of their electronic waste in a safer way, since recycling actually costs the owner money, so there are cases where people would rather throw it out to avoid the recycling fee.<ref> {{Cite web |title=Covered Electronic Waste Recycling Fee Guide |url=https://www.cdtfa.ca.gov/taxes-and-fees/electronic-waste-recycling-fee.htm |access-date=2023-06-13 |website=www.cdtfa.ca.gov}} </ref>

Computer liquidators effectively create a secondary market to meet the demand of those who are looking for a cheaper solution and do not require cutting edge technology. It is important to note that the IT equipment being liquidated ranges from new technology to old technology. Because of the relatively lower price for secondary market equipment, some companies may even purchase tech devices from the secondary market to use as backups, stocking the equipment themselves preemptively so that a replacement is always on hand in the event of trouble. Product availability is also another reason for buyers to buy in this market. Manufacturers generally refresh their product line every 12 to 24 months, typically liquidating older products. But networking [[Computer hardware|hardware]] can often see service lives of five years or more, and resellers and computer liquidators might carry products that are upwards of a decade old. End users that use a particular product may find it much easier and cheaper to add/replace an older device rather than take on the costs, business disruptions, and knowledge gaps that occur when upgrading to new products. When newer products are adopted, the used equipment is inevitably liquidated, thrown out or sold back, which creates a robust marketplace.<ref> Stephen J. Bigelow, http://searchitchannel.techtarget.com/feature/Secondary-market-resellers-thrive-in-the-tech-industry, Article in "TechTarget" 2008 </ref>

== Process ==