Fair market value vs. consignment ITAD: why consignment pays more

Short answer: fair market value (FMV) buyback pays you a fixed price for your retired IT assets before they are resold. Consignment pays you a share of what they actually sell for. Consignment usually returns more, because you share in the real resale price instead of accepting a discounted estimate, and your ITAD partner only earns when you do.

How FMV buyback works

The vendor quotes a price, buys your equipment outright, and keeps whatever it makes on resale. To protect itself against price swings, it builds a margin into the quote, so the offer sits below what the gear will likely sell for. Once you accept, any upside belongs to the vendor.

How consignment works

Your ITAD partner wipes, refurbishes and resells your retired assets on your behalf, then shares the proceeds with you. Your return tracks the actual market, not a conservative guess. When demand is strong for recent laptops, servers or network gear, you capture that value.

Why consignment usually wins

• More money back. You share in the actual sale price, with no risk margin carved out up front.
• Aligned incentives. Your partner only makes money when your assets sell well, so it works to get the best price, not the lowest buy.
• Full transparency. A good consignment program shows you what each asset sold for, line by line.
• Value from everything. Gear that a buyback quote would write off at zero can still sell as refurbished units or parts.

When FMV can make sense

If you need a guaranteed number on a specific date, such as for a budget close, a fixed buyback price is simpler. You trade some of the return for that certainty.

Questions to ask any consignment partner

• What share of resale proceeds do I keep, and are fees netted out first?
• Will I see a line-item settlement report?
• Is data destroyed before resale, and is the partner NAID AAA certified?
• How and when am I paid?

How Synetic does it

Consignment is how we work. We resell more than we recycle, and when your assets sell, we both win. Data on every device is wiped or destroyed under our NAID AAA and R2v3 certified process before the hardware is remarketed. You get a Certificate of Destruction, full reconciliation reporting and your share of the revenue. At Synetic, you don't have to ever pay an invoice.

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FAQ

Is consignment riskier than FMV?

Your payout tracks the market, so it can vary. You do not take on cost risk: your partner still handles logistics, data destruction and resale, and only earns when your assets sell.

Does data destruction happen before resale?

It should, every time. Ask for a Certificate of Destruction and reconciliation reporting for each project.

Why does consignment usually pay more than buyback?

A buyback quote includes a margin to cover the vendor's resale risk. With consignment, you share in the actual sale price instead.