News & Events

Remanufactured vs. New

(Irving, TX – January 15, 2013)
When making a “new purchase” deciding on whether you want new or used can have a large impact when considering your budget, usage requirements, lifespan, and compatibility.
When shopping for equipment the terminology can often be confusing or seem redundant – below is a quick overview of the terms, an industry example and how they can help you on your next purchase.
 
New
  • Sold by: OEM or certified distributor of OEM product
  • Condition:  New
  • Warranty: OEM Factory and high end equipment will be under an OEM Service Contract
  • Advantages: The latest and greatest technology is utilized
  • Disadvantages: Pricing, availability to market, incorporating into current line
 
Remanufactured
  • Sold by:  OEM or Trusted Partner
  • Condition:  Like New
  • Warranty: 0-60 days after install
  • Advantages: Lower cost of ownership and more service options are available
  • Disadvantages: Potential limit to product options & quantities
 
Refurbished
  • Sold by:  3rd Party and/or Brokers
  • Condition:  Minimal to moderate cleaning & cosmetic work, broken items & assemblies “fixed” but not necessarily replaced – traditionally “as is”.
  • Warranty: Ask about written warranty
  • Advantages: Lower acquisition cost than new or remanufactured
  • Disadvantages:  Increased cost of ownership, significant variations between suppliers and “acceptable industry standards”, typically requires additional resources during installation and service period.
 
Operational
  • Sold by:  3rd Party, Brokers and/or End Users
  • Condition:  Operational, given the once over – and sold ‘as is’
  • Warranty: No warranty
  • Advantages: Lowest acquisition cost
  • Disadvantages:  Significant increase in cost of ownership, warranty and service options are difficult to handle and enforce
 
Sometimes buying a single piece of remanufactured or refurbished equipment can boost the entire production line without having to buy a whole new line.  Checking with the involved parties to see what the end goal is with the “new” equipment purchase can shed light and save hundreds of thousands of dollars.

When you are talking to vendors shopping for new equipment – insist they clarify in writing what their definition of what a specific term means.  Following this approach will also help bring clarity to your decision making process.
 
When the facts are clear the answers will jump out at you.
- Peter Drucker

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