Maximizing Value Recovery from Off-Network, Decommissioned, and Retired IT Assets
Synetic’s Secure and Compliant IT Value Recovery Practice
After every security measure has been taken to ensure your data is destroyed and irretrievable (see Virtual Data Annihilator™), Synetic’s goal is to find a new home for all IT assets.
Many organizations can remarket equipment, but to maximize an asset’s potential takes knowledge. Having been involved in this industry since 1999, Synetic knows the repurposed technology marketplace intimately. We have a wide network in which we can place IT equipment where it can do the most good, which is good for you, other organizations, and the environment.
Our team takes the lead in asset recovery, reconditioning, and repurposing your IT assets for market redeployment or charitable donation.
How we determine which assets are sold and which are recycled
Synetic makes this determination based on our market and equipment knowledge. There are many factors used to determine marketability, including asset type, age, configuration, and condition. Secondary market values are entirely dependent on supply and demand so they are in constant movement.
Since 1999, we’ve built relationships with the right sales channels and trusted customers to move used assets quickly. We have invested a great deal of time and energy into developing trusted relationships in wholesale, B2B, and eCommerce channels to provide our Enterprise clients the greatest rate of return on their marketable assets.
How we help companies who lease IT assets
Synetic works with many clients who previously leased assets or still lease today. For clients who lease, we perform functions such as hard drive sanitization and prepping their assets for lease return more cost effectively than using internal resources. Other clients perform a lease buyout, and have Synetic recover value from their off-lease assets.
However what many of our clients who previously leased have found is that with Synetic as a partner, buying assets provides their Enterprise much better value over leasing.
With a lease, your payments are based on the asset’s capitalized cost instead of its residual value. The lower the residual value by the end of the term, the more expensive your lease becomes.
Let’s look at a laptop on a 3 year refresh cycle as an example. As you can imagine, a laptop’s depreciation over a 3 year term is quite significant. Most likely the extended warranty will also be expired by the time the lease ends, thereby reducing the asset’s residual value further. When you add the cost of your lease plus any interest and fees, leasing is typically 20%-30% more expensive than buying outright. While leasing allows you to avoid an upfront capital cost, you’ll be paying much more in the long run.
Buying your new laptops outright and depreciating that capital expenditure over the life of the assets offers significant tax benefits. As an added benefit, at the end of the 3 year depreciation schedule, you now own the asset. Synetic can recover value from that asset to deliver dollars back to your IT budget and recover even more of your initial investment.
How we maximize value recovery for our clients
We develop win-win partnerships with our clients. Our revenue sharing model ensures that both parties have a vested interest in getting the most return on each and every asset. Over time, Synetic often is able to help our clients improve their processes to recover even more value.
With every viable asset, a thorough and comprehensive Fair Market evaluation is completed. This evaluation considers all aspects of your assets. Great care is taken to evaluate the cosmetics, the functionality via extensive testing, and the demand for the asset on the secondary market.
The advantage that Synetic has in this arena is the expertise in marketing to a wide variety of channels developed since 1999. These channels include partnering with school foundations for community sales, employee stores, electronic auctions, retail, and bulk sales through various B2B relationships.
Synetic is also a Microsoft Registered Refurbisher, which allows us to load inexpensive copies of Microsoft Operating Systems to add new life to your used systems and eliminate concerns of violating Microsoft’s terms which results in costly fines during a software license audit.
