The recent failure of the iconic Dick Smith chain of electronic stores is a great example of a couple of things:
- The heavy discounting that occurs when electronic hardware needs to be liquidated quickly (as reported on this LifeHacker webpage)
- How large stockpiles of brand new equipment come on to the global secondary market on a regular basis
The main reasons for this are straightforward. Most electronics are a ‘perishable commodity’ that loses value over time due the constant stream of newer models coming on the market. Once vendors have sold equipment to a distributor or retail supplier they typically do not buy it back. In most cases they actually don’t even have the capability to receive it as their warehousing and logistics processes are designed to move product in only one direction – from factory to customer.
This leaves the entity holding stock with only two options – fire sales to sell off in ones and twos to end users, or, bulk sales to another supplier.
Like consumer electronics, the market for Enterprise class server, storage and networking equipment is very similar with large stockpiles of brand new equipment becoming available for sale on a regular basis. Here at Touchpoint we have access to a world-wide network of suppliers who are holding large inventories of very well –priced hardware from most of the major IT vendors.
If you’d like to know more about how we can help you buy top quality hardware at the best price feel free to get in touch.