Friday
Jul012005
Refurbished Electronics
Friday, July 1, 2005 at 08:33AM A Used Printer? No, It's a Refurb
http://www.nytimes.com/2005/06/30/technology/circuits/30refurb.html?ex=1277784000&en=af34201b2901edbc&ei=5088&partner=rssnyt&emc=rss
By MARCIA BIEDERMAN
If renovated movie palaces are considered cool these days, why not a factory-reconditioned home theater?
A refurbished Pioneer 50-inch plasma television with some previous history fetched $3,300 on eBay over Memorial Day weekend, after an auction that opened with a 99-cent bid. Even Pioneer Electronics, which arranged the auction as an experiment, wondered if the frenzied bidding that quadrupled the price in the last hours was just holiday madness, said Russ Johnston, senior vice president for marketing in Pioneer's home entertainment division.
"We're in a test mode," Mr. Johnston said.
Pioneer asked ChannelAdvisor, the intermediary that operates the Pioneer store on eBay, to repeat the experiment. Three days into another recent seven-day auction, bids for a reconditioned high-definition 50-inch plasma TV had topped $2,000.
Once hidden in the back of electronics stores, "refurbs," as refurbished products are sometimes called, are everywhere on the Web. Eager to recoup their losses on returned goods, manufacturers like Dell, Apple, Hewlett-Packard and Kodak sell refurbs on sections of their Web sites or through online factory outlets.
And refurbs are proliferating on eBay.
"Laptops are probably the king of them," said Karl Wiley, the company's director of computers and consumer electronics, followed by audio receivers, laser printers, car electronics and MP3 players. Most sellers of refurbs on eBay are independent dealers, but big names like the Sharper Image and Harman Kardon also offer them at their eBay stores, either through auctions or at a "buy it now" fixed price.
Because sellers use various terms, like "factory reconditioned" or "remanufactured," to describe such goods, Mr. Wiley recommends searching for a product by price. Refurbs typically fall in a price tier just below those described as new.
The Pioneer auction may also be the ultimate test for retreads. Some consumers are willing to risk thousands on a reconditioned TV, which, for repairs not covered by the 90-day warranty for labor, cannot simply be boxed and mailed back.
The core refurb customer is someone who wants plasma living on a cathode-ray-tube budget. "They're people who have a price they can't exceed," said Liem Nguyen, a spokesman for Dell. Earlier this week, the Dell Outlet Web site offered a reconditioned Dell 1700n laser printer for $124, compared with the $299 Dell price for a new one for home use.
Many consumers remain wary of refurbs, despite manufacturers' assurances that they have been carefully repaired and rigorously tested, or better yet, that they are "open box" items, returned by people who unsealed the package but never used the product. In offering refurbs to resellers, manufacturers typically describe them as "NTF," for no trouble found, and "B stock," for those requiring repair.
There are no federal laws about the labeling of refurbished electronic goods other than general rules prohibiting false or deceptive claims, said Janice Podoll Frankle, a lawyer for the Bureau of Consumer Protection in the Federal Trade Commission.
Internet chat boards abound with complaints about refurbs, but, according to Randy Guttery of Meridian, Miss., this is "whining by people who haven't done their homework." Mr. Guttery said he was satisfied with the refurbished computers he bought from Hewlett-Packard and Dell. For the software company he owns with his wife, he has bought a number of heavy-duty Epson printers from an online reseller, the RefurbDepot (www.refurbdepot.com), at a savings of about $1,000 each on items typically costing $2,500 and he has encouraged others to do the same.
Mr. Guttery advises checking the manufacturer's warranty for reconditioned items in advance, even when buying through a reseller. A reseller "is nothing but an agent," said Mr. Guttery, adding that he once received a defective printer from RefurbDepot, but that Epson resolved the problem.
Judy Silver, a supervisor for RefurbDepot, confirmed that the responsibility for the goods lies with the manufacturers.
"The company takes it through a special examination," Ms. Silver said. "Most of it comes to us in a package. We are just resellers." She said her company refers customer complaints to the manufacturer, applying its 30-day return policy at its discretion if a manufacturer fails to resolve a problem. The policy is described on the section of the RefurbDepot site detailing terms and conditions.
A number of manufacturers, including Olympus and Pioneer, make their warranties for reconditioned products available on the Web. In many cases, the warranty applies only to goods sold through authorized resellers. Refurb customers can often buy extended warranties.
Consumers who swear they would never buy a refurb may already own one. Warranties on consumer electronics often allow companies to replace a product with a comparable one - often a refurb - rather than repair it. This is true whether the item has been purchased new or refurbished. Cellphone insurance policies typically contain similar language.
"People should understand this is part of the program," said Michael Powers, vice president for product marketing at Asurion, a leading cellphone insurer. Mr. Powers estimated that nearly half the cellphone replacements provided by Asurion, which provides insurance for many of the leading wireless companies, are refurbs.
Apple Computer's battery replacement program for out-of-warranty iPods costs $99 plus shipping charges and replaces the iPod along with the battery, as described at www.apple.com. Critics have asserted that the replacement iPods are refurbs. Apple declined to comment.
Loved or spurned, refurbishment is proliferating and becoming more automated. Asurion's refurbishing plant in Smyrna, Tenn., puts cellphones through a reskinning process that gives them new plastic coats and a new screen. And at Costco Wholesale's Electronic Hardware Services plant in Auburn, Wash., carts of computers roll past stations that wipe their hard drives and reimage them, often 20 at a time. Costco offers the refurbished products at its online store, www.costco.com, but sells most to dealers, said Mike Parrott, vice president for corporate purchasing and strategic businesses.
"There are environmental advantages" to Asurion's replacement practices, Mr. Powers said. But environmental laws do not always afford special consideration to refurbs. Under the Electronic Waste Recycling Act in California, consumers who buy refurbished computers and televisions must pay a fee to cover the state's cost of electronic waste management, just as purchasers of new products do.
By MARCIA BIEDERMAN
If renovated movie palaces are considered cool these days, why not a factory-reconditioned home theater?
A refurbished Pioneer 50-inch plasma television with some previous history fetched $3,300 on eBay over Memorial Day weekend, after an auction that opened with a 99-cent bid. Even Pioneer Electronics, which arranged the auction as an experiment, wondered if the frenzied bidding that quadrupled the price in the last hours was just holiday madness, said Russ Johnston, senior vice president for marketing in Pioneer's home entertainment division.
"We're in a test mode," Mr. Johnston said.
Pioneer asked ChannelAdvisor, the intermediary that operates the Pioneer store on eBay, to repeat the experiment. Three days into another recent seven-day auction, bids for a reconditioned high-definition 50-inch plasma TV had topped $2,000.
Once hidden in the back of electronics stores, "refurbs," as refurbished products are sometimes called, are everywhere on the Web. Eager to recoup their losses on returned goods, manufacturers like Dell, Apple, Hewlett-Packard and Kodak sell refurbs on sections of their Web sites or through online factory outlets.
And refurbs are proliferating on eBay.
"Laptops are probably the king of them," said Karl Wiley, the company's director of computers and consumer electronics, followed by audio receivers, laser printers, car electronics and MP3 players. Most sellers of refurbs on eBay are independent dealers, but big names like the Sharper Image and Harman Kardon also offer them at their eBay stores, either through auctions or at a "buy it now" fixed price.
Because sellers use various terms, like "factory reconditioned" or "remanufactured," to describe such goods, Mr. Wiley recommends searching for a product by price. Refurbs typically fall in a price tier just below those described as new.
The Pioneer auction may also be the ultimate test for retreads. Some consumers are willing to risk thousands on a reconditioned TV, which, for repairs not covered by the 90-day warranty for labor, cannot simply be boxed and mailed back.
The core refurb customer is someone who wants plasma living on a cathode-ray-tube budget. "They're people who have a price they can't exceed," said Liem Nguyen, a spokesman for Dell. Earlier this week, the Dell Outlet Web site offered a reconditioned Dell 1700n laser printer for $124, compared with the $299 Dell price for a new one for home use.
Many consumers remain wary of refurbs, despite manufacturers' assurances that they have been carefully repaired and rigorously tested, or better yet, that they are "open box" items, returned by people who unsealed the package but never used the product. In offering refurbs to resellers, manufacturers typically describe them as "NTF," for no trouble found, and "B stock," for those requiring repair.
There are no federal laws about the labeling of refurbished electronic goods other than general rules prohibiting false or deceptive claims, said Janice Podoll Frankle, a lawyer for the Bureau of Consumer Protection in the Federal Trade Commission.
Internet chat boards abound with complaints about refurbs, but, according to Randy Guttery of Meridian, Miss., this is "whining by people who haven't done their homework." Mr. Guttery said he was satisfied with the refurbished computers he bought from Hewlett-Packard and Dell. For the software company he owns with his wife, he has bought a number of heavy-duty Epson printers from an online reseller, the RefurbDepot (www.refurbdepot.com), at a savings of about $1,000 each on items typically costing $2,500 and he has encouraged others to do the same.
Mr. Guttery advises checking the manufacturer's warranty for reconditioned items in advance, even when buying through a reseller. A reseller "is nothing but an agent," said Mr. Guttery, adding that he once received a defective printer from RefurbDepot, but that Epson resolved the problem.
Judy Silver, a supervisor for RefurbDepot, confirmed that the responsibility for the goods lies with the manufacturers.
"The company takes it through a special examination," Ms. Silver said. "Most of it comes to us in a package. We are just resellers." She said her company refers customer complaints to the manufacturer, applying its 30-day return policy at its discretion if a manufacturer fails to resolve a problem. The policy is described on the section of the RefurbDepot site detailing terms and conditions.
A number of manufacturers, including Olympus and Pioneer, make their warranties for reconditioned products available on the Web. In many cases, the warranty applies only to goods sold through authorized resellers. Refurb customers can often buy extended warranties.
Consumers who swear they would never buy a refurb may already own one. Warranties on consumer electronics often allow companies to replace a product with a comparable one - often a refurb - rather than repair it. This is true whether the item has been purchased new or refurbished. Cellphone insurance policies typically contain similar language.
"People should understand this is part of the program," said Michael Powers, vice president for product marketing at Asurion, a leading cellphone insurer. Mr. Powers estimated that nearly half the cellphone replacements provided by Asurion, which provides insurance for many of the leading wireless companies, are refurbs.
Apple Computer's battery replacement program for out-of-warranty iPods costs $99 plus shipping charges and replaces the iPod along with the battery, as described at www.apple.com. Critics have asserted that the replacement iPods are refurbs. Apple declined to comment.
Loved or spurned, refurbishment is proliferating and becoming more automated. Asurion's refurbishing plant in Smyrna, Tenn., puts cellphones through a reskinning process that gives them new plastic coats and a new screen. And at Costco Wholesale's Electronic Hardware Services plant in Auburn, Wash., carts of computers roll past stations that wipe their hard drives and reimage them, often 20 at a time. Costco offers the refurbished products at its online store, www.costco.com, but sells most to dealers, said Mike Parrott, vice president for corporate purchasing and strategic businesses.
"There are environmental advantages" to Asurion's replacement practices, Mr. Powers said. But environmental laws do not always afford special consideration to refurbs. Under the Electronic Waste Recycling Act in California, consumers who buy refurbished computers and televisions must pay a fee to cover the state's cost of electronic waste management, just as purchasers of new products do.