Protecting their brand requires that all equipment is destroyed. All enterprises, large and small, are accountable for their bottom line. A company may take huge financial losses if it fails to properly maintain its proprietary equipment.
Hiring the right destruction vendor is one way to make sure the process runs smoothly.
Here are five common mistakes companies make when choosing an equipment destruction vendor.
- It is difficult to understand the difference between destruction and recycling
It is alarming that companies continue to use the terms interchangeably. There is a big difference between equipment destruction or equipment recycling. The EPA requires that equipment be reused if it can be. These items should be resold and put back on the marketplace. They should not be resold. Instead, the parts must be reused.
On the other hand destruction renders equipment useless or unsellable, thereby removing them from the secondary or resellable market.
- Not Using a Serious Vendor Vetting Process
Many companies don’t do enough research or due diligence to find the right vendor. Avoid using evaluation criteria that don’t place enough importance on the relevant factors. What should you be looking for? You should consider a variety of factors when deciding on your criteria.
Your organization’s brand protection needs and requirements.
If the vendor has been involved in past destruction or government contracts.
What the vendor can do to ensure that equipment does not go back on the marketplace.
- Choose the wrong method and level of destruction
Many companies are driven by the price, but they don’t take into account the level of destruction and method that they require.
Prices for vendors will vary depending on how much protection you need. There are three levels of equipment destruction.
1st level – Physical damage or scratching to the equipment. This option is the most economical as it involves less labor and actual destruction. You can damage the computer’s case by hitting it with a hammer or breaking the plastic.
2nd level – Equipment is broken down into smaller pieces to prevent damage or even complete destruction. You can open up your computer to damage the hard drive and optical drive.
Third Level – Total destruction of all parts to ensure that they cannot be used again. You might take apart a computer and break the case. This would damage and destroy all pieces and components, including the processor and memory.
To ensure that you receive the services you require, it is important to understand the destruction levels. Many companies need level 3 destruction, but only receive level 1.
Do not fall for the trap.
- Be driven by price
Although you might want to find a vendor that promises equipment destruction at a minimal cost, many companies make this mistake.
Low cost vendors may claim they will destroy equipment but not have it go back on the marketplace. But the truth is that they will try to make a profit, whether on eBay or another market.
You might miss out if a vendor has a significantly lower destruction cost than other vendors. Consider how much profit you will lose if your equipment ends-up on the black or gray markets. This could result in fewer sales for your new product. Sometimes, a vendor that is more expensive provides greater protection for your brand.
- Inspection and Spot Checking at a Minimum
You should make sure that vendors have control systems that clearly define performance criteria and provide objective indicators before they start to sell. This is something most managers overlook.
To ensure compliance with the requirements, ask to inspect the premises of the vendor and to conduct surprise checks.
Your business can suffer from improper equipment destruction. These are the most common mistakes made by companies that require disposal of obsolete or recalled inventory. Avoid them and you will maximize your profits long into the future.
This post was written by Steven Elia Co-Founder and Recycling Director at https://ecycleflorida.com/. eCycle Florida is a R2 Certified electronics recycling company in the state of Florida. Our processes and procedures are dedicated to the proper destruction and recycling of your electronics. eCycle Florida is your go-to when looking for an electronic recycling center in Tampa.
