How Is Resale Value Determined?

New releases of devices are so frequent that electronics that were once used on a daily basis often pile up in a forgotten corner of the closet. Instead of allowing these devices to collect dust, many people take advantage of selling their used or old electronics for reuse.

One of the most common issues that arises with reselling used computers or devices is understanding how the equipment should be valued to ensure they’re being sold for a fair price.

Whether you’re trying to sell devices on your own, or using a certified third party like SEAM to properly wipe and test devices before they are reused, how exactly is the value decided?

Using Formulas to Determine Value

There are several formulas or ‘rules’ that are generally accepted as fair methods to find out the value of a used item.

Researching Current Sale Prices

The easiest way to determine how items should be priced, is to research similar items being sold online. Popular resale channels include eBay, Newegg and Amazon. You could also research sales channels like Craigslist or Marketplace to see what similar used electronics are selling for there.

Resellers with trusted sales and reviews will be able to get a higher price than an individual with no selling history, which is where using a partner like SEAM comes in handy.

Calculating Depreciation

When selling used equipment, depreciation plays a huge role in setting the price. The longer you wait, the more depreciation adds up and reduces the item’s value.

Popular ways to calculate depreciation include the straight-line method, when a seller believes the value of the device declines by an equal amount every year, and the declining-balance method, based on the determination that the device drops in value the most when it is new and decreases in value as it grows older.

Protecting Your Data

If you choose to resell your devices on your own, it is CRITICAL that you properly wipe your data or remove your hard drive and other hidden storage media devices entirely to protect yourself from bad actors.

Businesses, particularly those in highly regulated industries such as healthcare or finance, must ensure they are safeguarding all of their customer data and other sensitive information. The easiest way to do this is to seek out a certified device reseller who can guarantee complete data erasure.

Look for certifications like e-Stewards and R2 when working with computer resellers or other electronics brokers to ensure security and sanitization methods are in place, protect ing you and your data.

SEAM Services

SEAM Services provides North Dakota and South Dakota businesses with world-class  electronics resale, recycling and data destruction. Contact us today to learn how we can serve your business.