Buying Refurbished Electronics - Is it Worth the Risk
June 15th, 2008Introduction
We are always looking for new ways to save on the bigger purchase - irrespective of whether this is a new PC or notebook, a digital camera, or a big screen LCD HDTV for the living-room entertainment area.
Seasonal and clearance sales are always on the agenda of bargain hunters, but there is a further option - that of buying refurnished products. For example, a refurbished LCD TV may sell online for anything from 50% to 80% of its retail price.
Still, even at these big savings, it is not easy to get someone buy a refurbished product for the first time.
To the uninformed, buying a refurbished product may seem like a compromise; it is as if buying a car with dents and scratches on the paintwork, or unknown problems with the mechanics. However, in the electronics world, the tag ‘refurbished electronics‘ does not refer to reconditioned, used or re-build products.
In fact, buying refurbished electronics allows you to enjoy deep discounts and still have a product that is essentially new. What’s more, factory refurbished products often come with an extended manufacturer warranty. But…
You need to exercise constant vigilance when buying refurbished electronics. This is only possible if you have a through understanding of what the ‘refurbished’ tag, once assigned to a product, implies in the electronics world.
What ‘refurbished’ products are not?
Before we delve further into what may qualify as refurbished electronics, it is important to first understand what cannot be labeled as ‘refurbished’. In particular, there is the misconception that ‘refurbished’ and reconditioned’ are one and the same thing. This is NOT.
A refurbished product has practically never been used while a reconditioned is a used product. The difference between a product classified as ‘USED’ and one labeled as ‘RECONDITIONED’ is that in the case of a used product, you are buying it ‘as is’ after it has been used by a first owner. In the case of a reconditioned product, this is also a product that has been used previously - often under lease - but then was repaired (not necessarily by the manufacturer), and resold by a retailer.
Used or re-conditioned products represent greater savings over refurb units as these sell cheaper, but then such products constitute a higher risk. This risk is even more pronounced when dealing with expensive electronic products such as rear projection TVs, home theater projectors, flat-panel HDTV sets and the like. You can never really tell what has been the impact on the aging of the respective electronic components inside the unit as a result of the previous use.
We say: Be wary of such products. Instead, if you are after a smart buy and a great bargain, opt only for ‘factory certified’ refurbished products. These still represent substantial savings over the normal retail price, and carry a manufacturer’s warranty.
So… what qualifies as ‘Refurbished Electronics’?
As already stated earlier on, a ‘refurbished product’ is not a reconditioned product. While the terms ‘refurbished’ and ‘reconditioned’ are often interchangeably used say when referring to machines, cars, and the like, yet this is does not apply to the world of electronics. Thus, buying a refurbished LCD TV or plasma television is not like buying a reconditioned TV.
In general, refurbished electronics are items that were returned for one reason or another, to the manufacturer. These items are then re-tested at the factory to make sure they are in tip-top shape. Any defective or damaged parts - if need be - will be replaced in order to restore the product to its original specification, and then the product is repackaged ‘like new’.
Refurbished electronics are not used items, but at the same time, these can no longer be sold as new - hence they are sold as ‘refurbished electronics’ often at deeply discounted prices.
More specifically, reasons for returns include: Customer Return: Most major retailers offer a 30-day money back guarantee; during this period, a customer may return the product for whatever reason and still get full refund. If there is nothing wrong with the product, most stores will simple reduce the price and resell it as an ‘open box’ special. However, if there is some sort of defect, the product is returned to the manufacturer were it is inspected and/or repaired, and then repackaged for sale as a refurbished item.
Shipping and Exterior Damage: These include damaged packaging due to mishandling, the elements, etc., in which case the product itself may be perfectly fine. These may also include minor damage to the product exterior casing, such as dents, scratches, etc., and any other exterior damage that in it self would not affect the product performance. Retailers would normally return these products to the manufacturer. The manufacturer would then inspect the product, replace any damaged casing, etc., and then repackage the item just like new. However, these items cannot be sold as new; hence they are tagged as refurbished electronics.
Demonstration Units: Sometimes demonstration units at major retail stores, trade shows, and even returned items by product reviewers, are often returned to the manufacturer where they are inspected and/or repaired if needed, and repackaged as refurbished units.
Opened Box: Sometimes, if a box was simply opened, the item is returned to the manufacturer where it is re-tested and repackaged. Even though technically, there is no issue here, yet the item cannot be classified as new; instead, it will have to be sold as refurbished electronics.
Defect During Production: If a specific component is identified as defective once the product leaves the factory - say as a result of an abnormal number of customer returns during the warranty period, a manufacturer may recall a product from a specific batch or production run that exhibits the same defect. When this occurs, the manufacturer can repair all the defective units and send them back out to retailers for sale as refurbished units.
Overstock Items: While most retailers with an overstock of a particular item would simply reduce the price and put the item on sale for clearance, yet there are instances when a manufacturer want to introduce a new model on the market at a time when there are still a substantial number of older models on stores shelves. In these circumstances, the manufacturer may opt to collect any remaining stock of the older model and redistribute them to specific refurb retailers for quick clearance. Overstock items are brand new items; these can be sold either as a ’special promos’ for quick clearance, or can be labeled as refurbished electronics and sold at deep discounts.
To strike the best deal, you have to act fast, but not too fast!
Fast… because when it comes to refurbished electronics, you cannot expect to simply walk into a store and pick up your favorite refurbished LCD TV or plasma unit off the shelf. Refurb retailers like RefurbDepot and Second Act, work with manufacturers and distributors to acquire as many products as possible, yet the quantity they acquire can vary from just a few units to a couple of hundred units. In other words, you never really know how long they will last, and at 50% to 80% off the retail price, inventory levels change all the time. Additionally, you never really know if a particular model will be available as refurbished item.
But… do not just jump on the first deal. Act too quick and you may equally miss on the right deal. Act only when you feel you have got the right product at the right price. Once you think you have found what you want, then it is time to check with the retailer about return policies and warranty issues. If the refurbish item is factory-refurbished and comes with a full manufacturer warranty, then it is time to act!
Finally, remember: Purchasing a refurbished item can be a great way to a smart buy. There is no reason why the ‘refurbished’ tag should lead to a negative connotation to the product under consideration. At the same time, it is important that you inspect the product yourself within the return policy period. This is especially important since with refurbished electronics, you are getting a bit of a hit on product warranty in that you are only getting a typical 90 days warranty against the one year or so associated with standard products.
In other words, it is true that there is a higher risk when purchasing refurbished products, but if you follow through the guidelines detailed in this article, and the additional buying tips detailed in our Buying Refurbished Electronics guide, you can easily transform that risk into a great buy - one which results in a big reduction in price.
And in the end, you are still getting a ‘like new’ item. Happy bargain hunting!
Andrew Ghigo - A Telecoms/Electronics engineer by profession.
Editor and publisher of http://www.practical-home-theater-guide.com - a comprehensive home theater guide to home theater systems, product reviews and home theater design.
This article is an excerpt from a series of informative guides appearing under the LCD TV Guide section of the site.
Tags: cheap LCD TV, discount LCD TV, inexpensive lcd tv, refurbished electronics, refurbished LCD TV