So you want to expand into ITAD?

January 5, 2017

 

 

We, ER2, recently wrote an article for the E-Scrap News of Resource Recycling surrounding the idea of moving from solely an electronic recycler to a full ITAD (IT asset disposition) service company. 

 

Like most aspects of life, operating in the e-scrap world is more complex than it might first appear. And it’s becoming more complicated for many companies in the market as they try to define a workable business model.

 

Today, there is a deep focus on the environmental responsibility associated with electronic recycling companies, and many operators built their businesses on the principle of handling material in an environmentally conscientious way.

 

However, being a recycler that is focused on commodity recovery without any refurbishment or reuse has become difficult. Over the past few years, commodity prices have softened and precious-metal reclaim efforts have declined. Therefore, as any savvy business owner would do, e-scrap leaders have looked into innovative ways to maximize their revenue and profits from the products they receive.

 

For many, the path forward involves transitioning to become an ITAD (IT asset disposition) service company rather than a pure accumulator of end-of-life electronics that are destined for commodity recovery. While that shift represents a smart long-term financial move for many operators, successfully entering ITAD takes careful planning and an understanding of some key points.

 

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