Reel Video of Berkeley closed its doors for the last time today. As loyal customers visited their favorite community haven to hand in their rentals, liquidators on the inside were removing all its famous video stock from the shelves.
The stock was sold off Monday to a small syndicate of Video retailers for $150,000. This will come as a shock to customers who pledging donations to raise a significantly higher sum than this. The store’s annual gross revenue was in excess of $1,200,000 a year, making it by a margin the most profitable store in Movie Galleries Stable, who are also planning to liquidate all its remaining Hollywood stores. With creditors closing down the jewel in the crown store, it is highly unlikely that any other stores in its stable will survive.
All stock will be removed from the store by the end of Wednesday. Having kept the original branding of founding store Reel, it is unlikely that Movie Gallery will make any efforts to remove the signage. Reel’s databases were never mixed with that of Hollywood, it was run as a complete independent. As an independent company it would have been in a financial footing to survive, however no bidders were prepared to buy the video store in light of the industry’s decline since Netflix and Red Box effectively took over the market. Stuart Skorman had made a serious bid which was turned down by creditors, and local business man Chris Whittome had considered turning Reel into his flagship for the online buy and sell business trade2save.com. It was proposed that the store under the new ownership of trade2save.com would buy and sell Cell phones, digital cameras and electronics, video games and movies keeping all the original stock in tacked for purchase or rental to the local Berkeley community.
A Budget Rental Truck was seen this evening parked in the drive way of the store and blinds have been shuttered as the stock is boxed and moved out.
We all want to do the right thing for our old electronics gadgets. If it’s not too old and there is still life in them – the most effective way to recycle is to sell it on to the next user and get a bit of cash in the bargain.
However, not everyone likes the idea of a stranger in a puffer jacket pulling up to their driveway sometime between 7.30 and 9 to check out your merchandise – that’s if they show (Rarely do they cancel if they spot a better deal).
Then again there is eBay, which takes away the personal face to face anxieties, but adds stress, fulfillment obligations, good or bad ratings, bogus buyers then the not so occasional ‘not as described complaint’ case opened against your paypal account perhaps 2 months later.
Selling your gadget takes time and energy, and for many it just isn’t worth their busy time. For this and many other good reasons Goodwill has become good business. They’ll gladly take your old clothes for free, but they’ll be jumping for joy when you hand over your used Blackberry or iPhone. Their electronics reselling activities has help grow a 2,400 global store chain with $2.4 billion in retail and online sales.
So Hats off to Goodwill for enabling people to feel good about giving their stuff away for free. (They’ll resell your hat for ten bucks incidentally).
Now there’s a simpler faster, convenient and financially rewarding way to recycle laptops, cell phones and electronics for cash. Traditionally, online trade-in portals have leaned on the goodwill angle a little too comfortably, resulting in a ludicrous profit margin when they resold what you gave them. Seeing the fantastic profits to be made, more trade-in portals have joined in, and thanks to that old U.S. notion of competition, trade-in portals are now offering as good a price as you might have only thought possible on Craigslist.
Most, like our own portal trade2save.com offer free shipping, and as you’d expect, this is reflected in the price we give, but considering you get a free shipping label and even a box sent to your door, it really does take all the hassle out of reselling.
The basic principal is that people enjoy buying more than they enjoy selling – buying is a leisure activity, selling is something you have to do from 9-5 so that you can earn enough money to buy that holiday, the car, the new iPhone 4 – OK, so the reception is terrible – but it still looks great next to the iPad which look even better sitting next to the MacBook Pro.
As for your old old electronic item that has no cash value left in it do be aware that recycling electronics like cell phones and computers is far from a clean process. While some of the valuable elements like gold and cadmium may be reclaimed, the process inevitably results in a number of toxic by-products when it is incinerated. Under the radar is also the reselling of the old electronics to the third world with lax environmental standards.
Most marketing Guru’s agree that the greener your company looks, the more profit you are likely to reap. This is especially true within the newly emerging market of electronics trade in portals. Gazelle.com is the market leader and a huge proponent of recycling your electronics while getting some cash at the same time.
In addition to giving straight cash for old electronics items, Gazelle understands that offering extra services like recycling can go along way.
It’s become very smart indeed to be green.
So much so that in many sectors, not having substantiated green credentials can be commercial suicide. Take the Gazelle example again. Having strong green credentials means effectively you can charge more for your services because you are adding the vital ingredient of the good will factor.
The Good Will Factor - an important lesson for every business…
Today it is important for all of us that we feel we are doing the right thing for the environment. When we buy a dishwasher, we need to know that our old one will be recycled and kept out of landfill. We need to know that our Laptop has been made without PVCs, we need assurance that our wood comes from a sustainable source.
General consumers are doing their bit to help the environment such as separating the trash, unplugging their chargers and using efficient light bulks. They expect the same from retailers they buy from, and will go out of their way to seek out green options if they are readily available.
What’s crucial for business is that they will pay more to do so… and this is what will give your business the crucial edge in being green.
Gazelle does not give very much for many items they buy off of customers. However, their green credentials enable them to pay a bit less for an item because the good will that flows from their environmental credentials allow them to increase their profit margin.
Yourenew.com has taken note of this magical effect and taken the business of being green to a new level, donating a portion of the money they make to tackle e-waste. They do not appear to be too competitive on price, and they don’t need to be. It just feel good to sell your electronics to them. You just feel you’re doing something good for the environment. In short, we are willing to pay for that good feeling we get. As a business, ignoring this fact can spell doom for your enterprise.
So here are the 10 most important ways to become green and profit from being green.
(1) Research. Research. Research.
If you’re going to look green, you’ve got to figure out how you can be green. Affiliate yourself with environmental organizations. Two great places to start would be The Carbon Fund and The Carbon Neutral Company. These companies will work with you to help build your company’s green credentials.
(2) Become a green certified site
By clicking on this logo inside your website, it enables your customers to verify your green credentials through a reputable organization. The site calculates your company’s carbon footprint through the energy consumption.
Logo credentials are very effective in making your business immediately stand out from your competition. Some affiliations do not come cheap. Becoming affiliated with the Better Business Bureau for example can set your company back over $1,000 a year. Most would agree that this is money well spent. To become a Green Certified Site will set you back about $300. Again, money well spent.
(3) Link Greenness with your Company Ethos
A mission statement is not just how customers should feel about your company. It’s also a reflection of how your employees feel about working for you. This goodwill can go a long way in keeping the staff that make money for the business.
(4) Green Companies pay less
If your company has a strong green mission, it’s going to be easier to hire the people you need to make your buainess successful. They’ll want to come and work for you and that means they’ll accept less of a salary from you compared to your competitors.
(5) Put one person in charge of the company’s green credentials
As stated earlier, making your company green and demonstrating it to your workforce and customers is not a walk in the park. It has to be worked on. By placing someone in charge they can do all the necessary research. This employee will draw on other members of staff to pitch in and become part of the ‘Green Team’. Green Teams have also become vital team building exercises within larger corporations.
Ebay and Google both have a Green Team.
(6) Establish a Green Team within your organization
Green Teams are not just the privileged domain of large organizations with budgets to suit.
(7) Always Always link your company greenness with what your company does.
For example, say you have a printing company. Make sure you provide paper from sustainable sources or old recycled stock and state it plainly. Your customers will want to know, and if your customer is a business it will add value to their business.
(8) Increase your profit margin
Quite a bold statement in itself, but you’re in the business of making money, and investing a lot of time and energy into being green has got to pay off somewhere. This is where being green pays.
Going back to the example of the printing company, recycled paper is actually cheaper to produce than the non green options. However, Printing Businesses will charge more for it. They make a bigger margin on their green products.
You can increase your product margin because people want to do business with green companies and are willing to pay more for it. It is one reason why Wholefoods is such a success. Green detergent is never cheaper, but it’s often cheaper to produce.
It is often a worry for companies to alter their pricing structure after an internal green revolution. There are 2 main factors to consider. If your new greenness is going to actively increase the number of your orders significantly, your company is obviously going to reap extra profit on the upside.
You may find that orders do not increase in any significant fashion and that your hard earned green credentials may have seemed like a waste of time. This is because you are missing the key ingredient of your new greener beusiness…
(9) You are not just selling a service or product, you are selling a lifestyle
As a green company, you no longer need to be the cheapest in your field. Greener, more environmental businesses are never perceived to be the bargain basements of their industry. People expect to pay a little more for your services. If you don’t increase your prices you are simple missing the point of your company being seen to be greener.
(10) PR. PR and then some more PR. Publish your green credentials on a regular basis.
It’s easy for your customers to forget you are greener. If you stop working at it, your newer customers may not be directed to the fact. You need a website which strongly reinforces your green credentials. Highlight the issues with the environment associated with your business. For example, if you provide server storage services, ensure that your customers are aware that your servers are run using super efficient semi-conductors, and that your facility sources much of its energy using solar panels on the roof. I’d happily pay an extra $20 a month for our server if I knew that.
The problem is that many companies spend a small fortune doing some great work to make themselves greener, but then spend much less effort making their customers aware of it.
Happy Friday from trade2save!
It has been a chaotic but rewarding week as our new office is pretty much up and running albeit a few tweaks to be made here and there. Furthermore, with the rampant spreading of flu, colds, and general sickness our staff has taken it’s fair share of casualties so make sure all you out there are taking your vitamins and getting your 8 hours of sleep!
Reported last night, news website examiner.com posted a great article summarizing our nation’s major e waste issues, referencing great back links to our current national (or lack of) policy, state’s attempts to enforce local legislation, and even frontline video reports, a must see. Focusing specifically on the Bay Area and San Francisco, the author continues to follow through where most consumers stop caring (out of sight out of mind), calling out recycling companies’ shady exportation of electronic waste.
Trade2save is happy to see that bigger name news companies such as the examiner are directing their focus on e waste. This is a great summary article that highlights the e waste issue quickly and to the point but lacks further depth. We believe this is still not enough coverage but at least is a start that is approachable by most average readers. The article does do a good job of emphasizing the need to start focusing on creating electronics that are easier to reuse, refurbish and recycle. Naturally trade2save is with this argument for extended life span as with longer use comes less waste. Regardless of future products, just make sure to think twice this holiday season before you buy that new 24″ monitor to replace your 19″. Enjoy the weekend!!
Following our own nation’s (The USA, for our international readers) first signs of progress in implementing a national policy towards e waste (see previous article), Australia has decided to up the ante and fully pass e waste legislation to be implemented! Way to go Australia!Just announced today by gmagazine.com.au, the Australian environmental ministers have proposed a new recycling program focusing on old computers and televisions. Much like the US and other developed nations, Australia shared an abysmal track record of e waste production with little to no recycling facilities or policies, leaving much to be tossed or exported. In 2007-2008 alone only 1 out of 10 tossed computers/televisions was recycled in Australia, a country that produced almost 44 million tonnes the year before.However with this new policy, planned for 2011, Australia’s goal is to have up to 80% of all scrapped televisions/computers by 2021.While this may seem a long way off, just the fact that such progress is being made to slow the e-waste tide is already a fantastic start. We here at trade2save applaud the Australian government to take responsibility and step in to face a problem before it get’s completely out of control. Consumers can rejoice as e waste drop offs are planned to be free of charge, with government and manufacturers taking the costs. In the mean time manufacturers plan to implement higher costs in better quality, longer lived electronics, emphasizing refurbishing and reselling. Hopefully we too in the states will see our current e-waste bill be passed, leading to such ambitious e waste policies. Until then, keep buying/selling/trading nt!
World renowned “Stanford Graduate School of Business” recently published the results of a study on the effects of upfront recycling fees for old electronics, and frankly trade2save couldn’t be more excited. In a nut shell, the research strongly suggests that not only will upfront recycling fees encourage the life span of electronics and reduce waste, but actually benefit manufacturers as well, giving them more time to develop new, innovative products.
The study chose to cite California as it’s example of a flat, enforced fee charged to consumers when recycle electronics. Not only does this fee ensure the proper and safe disposal of the e waste by avoiding shady middle man companies (who often export e waste to developing nations) but the enforced charge makes consumers less eager to toss electronics at a whim. In the current economic situation, consumers are getting more spend conscious and this extra recycling fee is just the nudge consumers need to realize that tossing their last generation ipod for a slightly newer model may actually not be worth it.
The study also cited staggering statistics on the wastefulness of global consumers, noting that Americans buy a new cell phone every 18 months and businesses replace entire fleets of PCs every 4 years. By creating such an immediate demand for new products, consumers effectively instigate the “Osborne Effect,” in which the anticipation for new products actually hurts current product and manufacturer sales. Stanford’s Erica Plambeck argues that by extending lifespan and reducing the demand for arbitrary new products (Woo! 3 megapixel phone instead of 2!), electronics “manufacturers are in less of a rush to introduce new products. Consumers anticipate using a product for longer, and so are willing to pay more for it. Because manufacturers have additional development time, they can make larger leaps in both product capabilities and quality, so the new products coming out are substantially better than the previous generation.”
This truly is a win win scenario for all parties involved, so as usual we here at trade2save hope this research gets the recognition it deserves from both consumers and manufacturers! By extending lifespans of electronics and buying/selling/trading pre-owned we can all do our part to reduce e waste and save ourselves some hard earned cash during this economic situation, which hopefully will permanently change our wasteful habits.
Check out a good summary article by greenbang.com !
Today, online e- gadget blog “engadget” released a fantastic article regarding recycling e waste.
While detailing the engadget’s own absurdly large collection of gadgets accumulated from years of electronics reviews, the article then continues to briefly mention the problem of e waste and detail the recycling policies of many electronic manufacturers’ recycling policies, costs, and respective url links.
We here at trade2save are once again genuinely excited to see the positive example set by large scale electronics websites such as engadget that have a large base of followers. Not only will this article hopefully improve consumer awareness to the importance of electronic recycling, but also will give the tools and resources for consumers to research proper electronic disposal. For those savvier on the global e waste problem, this article serves as an excellent way to track big name electronics companies’ e waste policies.
However, once again Trade2save really must emphasize the importance of buying/selling/trading your used electronics! “engadget” only briefly mentioned this option. Just by looking at the reader comments, many of which asking engadget for their used electronics, it’s obvious that one person’s e-waste is another’s e-treasure. The constant demand for new products keeps this flow of e waste up, so never forget the option of re-selling your electronics before they become obsolete.
Happy Tuesday from trade2save!
After a brief break our blog is back to keep our readers updated on e waste news from around the globe.
Today, techie news website”PC World” reported that the community organized “eday” in New Zealand may have fallen subject to corrupt e waste recycling companies. According to PC World’s article, 3rd party e waste company CRTNZ which is responsible for the safe recycling of e waste collected on eday, is undergoing investigation regarding their handling and shipping of electronic waste to reputable recycling/re-using centers. While the whole investigation has been kept relatively mum on account of the potential bad publicity for both the company and eday representatives, it has been suggested that CTNZ may have breahed e waste regulations by branding e waste as reusable/resellable products.
While eday is likely to continue in New Zealand, the bad publicity could cause an overall drop in participants, public approval, and sponsorship. This potentially a huge problem for New Zelanders as eday is currently the only way for citizens to properly dispose of electronics (966 tons were dropped off last year alone).
The trade2save team is both thrilled to see that smaller countries such as New Zealand are making government and community initiatives to increase public awareness to e waste, but are also very frustrated to see such controversial news already tarnishing a good program. Internationally people need more options to recycle electronics as opposed to just the dump. Regardless of community/gov programs, the ability to re sell and extend the life of used electronics always exists! Hopefully our cry for consumers to buy/sell/trade pre owned electronics will be realized globally, as the garbage is never the place for old electronics (plus you’ll make some cash!)
The American economy is in the slumps and our culture of mass consumerism is being called into question both fiscally and morally. Originally posted in 2007, an extremely interesting and provocative lecture was held by McAlvany International Collectors Associates (ICA) economists, predicting the very economic declines and issues our nation is currently facing. Many of these very predictions seem to point to the growth of the pre owned sector in lieu of the current American economic situation. While it is always easy in hindsight to say these current recession trends were to be expected, more attention is now rightfully being given to the dramatic increase of gray market exchanges of used goods.
Perhaps the most relevant section of the lecture to trade2save.com concerns the issues of mass overproduction by China and other Asian exporters and the overconsumption by the US, specifically in the sector of consumer electronics. Fueled by economic bubbles created with the intent to encourage unsustainable amounts of production and purchases, a culture of spending and waste became the norm within the United States. Now, following the “.com” and housing market busts, millions of jobs have been outsourced, our purchasing power/currency is diminished, and our amount of “stuff” (including waste) and debt is overflowing.
Ironically it has been America’s spending power and over consumption that has kept its economy afloat over the past few years. With inflation and our weakening currency, saving money is far less profitable due to the dollar’s steady decline in value. However, now with debt finally catching up to consumers and the ability to purchase jeopardized, Americans are now becoming more frugal and conscientious in their spending and demand for new products. While most would be right to see these economic changes as negative, this could also be the transformation in buying discourse and priority that the U.S needs to reduce personal and national debt.
Just as trade2save.com encourages the buying, selling, and trading market for electronics, multiple indicators point to growth of buy/sell/trade markets and classifieds. Many business journals are reporting bulk consumer good superstores like “Sam’s Club” and “Costco” partnering with used electronics companies such as EcoNew.com and gazelle.com, partnerships that were unthinkable until recent events. As the spending power of the average American continues to fall, trends such as extended product use/life and buy/sell/trade expansion mark a major shift from the traditional market approaches by electronics companies.
As revenues from all consumer goods have fallen, the electronics industry took an especially hard hit, dropping as much as 50% in certain sectors. In a recent article, Electronics website and specialist “Electronics Design, Strategy, News,” or EDN, cited the major decrease in demand for new electronics is due to the lack of disposable income by consumers, a relatively new issue for the electronics market. EDN notes that “This downturn has a very different dynamic than anything that the electronics industry has seen before… Previous downturns were caused by too much capacity. This one…is caused by a steep and sudden drop in demand.” (Hamburt, 2009) With the entire population being affected by the recession, electronics companies are now forced to create new strategies to cope with “entire markets undergoing fundamental changes” (Hamburt, 2009). As electronics producers face lower demand for new products the pre owned market is flourishing, marking a major opportunity to focus on used electronics.
This growth of the buy/sell/trade gray market, specifically in the domain of used electronics, isn’t going unnoticed by consumers, many of whom are now purchasing from liquidated tech companies. With journals such as “U.S. News and World Report” publishing advice recommending the purchase of used electronics, its little surprise that electronics producers are witnessing buy/sell/trade exchanges taking a chunk of the electronics market. With many corporations going under, many of their electronic gadgets are being sold to liaison companies which refurbish and resell to businesses and individuals.
Liquid Technology Inc. is just one of many companies which, similar to trade2save, focuses on used electronics. According to economic journal “www.bloomberg.com,” the number of businesses filing for bankruptcy increased 42% in 2008, making failed companies’ electronics a major source for inexpensive technology. New businesses and individuals alike are all taking advantage of the situation, as “the fire sales have drawn customers that don’t normally buy used equipment…They’re finding they can still get brand-name equipment, such as computers from Round Rock, Texas- based Dell and Hewlett-Packard Co. or networking products from Cisco, at much lower prices.” (Hoffmann, 2008)
Buy/sell/trade gray market expansion is not just limited to electronic gadgets, as many forms of pre-owned home entertainment are gaining momentum and following the trend. With consumers opting to stay in and save money from costly outings, home entertainment such as movies (DVD, blu-ray) and video games are in high demand on the buy/sell/trade market. With companies such as GameStop making $2 billion on selling pre-owned games, nearly a third of GameStop’s revenue, it is clear that buying, selling, and trading xbox 360, playstation 3, Nintendo DS, and Wii titles is major market. Video game news site www.gamasutra.com reports that “numbers on resales are bound to head upward… as gamers — like everyone else — look to save a few bucks during the deepening recession” (Hyman, 2008). According to a recent survey of gamers, 1 in 4 gamers who had previously never purchased pre owned video games or game consoles planned to start in the next year. Furthermore, around 49 million gamers had purchased and 26 million gamers had sold a pre owned video game within the last year.
Perhaps even more telling is the rapid expansion of internet classifieds sites like “Craigslist,” which serve as popular channels for buy/sell/trade exchanges. According to Small Business Labs, in just the past year Craigslist.org showed a 105% year-over-year percent change in search prevalence, overcoming both “myspace.com” and “facebook.com.” This is attributed as a direct reflection of consumers’ increased interest in buying and selling used goods in order to save/make money during these harder financial times. Ranging from anything from laptops to last year’s iphone 3G, craigslist and classified represent a local effort to profit from what previously may have been stored in the garage or tossed.
Along with the success of craigslist and buy/sell/trade markets, multiple other classified sites have been launched and are already expanding quickly such as ebay’s “kajiji” and oodle. As new, must have electronics continue to be released, these exchanges of used smart phones, PS3 slims, etc. still allow a cash strapped consumer to get the hottest tech gear, albeit at a lower price. Time magazine noted the fierce competition for online classified supremacy, as the once considered “stagnant sector” of online classifieds has grown 35% in the past year alone, totaling to a $15 billion market.
With such buy/sell/trade practices on a dramatic rise, it is a strong implication that companies such as trade2save, which specialize in the used/refurbished market, will play a major role in the future of American consumption habits. Trade2save loves our gadgets as much as the rest of the world, and while there will always be a demand for new, innovative products, hopefully we all as consumers can still manage to purchase the products we want (even if used) while selling our unwanted products for others to enjoy as well (and make some pocket cash!) While trade2save strives to encourage the moral fiber of such buy/sell/trade exchanges because of their huge environmental and humanitarian implications, the average consumer will profit regardless of their intent and can rest assured that they are both saving some green while going green.
References:
Hamilton, Anita. “Taking Aim at Craigslist - TIME.” Breaking News, Analysis, Politics, Blogs, News Photos, Video, Tech Reviews - TIME.com. 18 June 2008. Web. 15 Oct. 2009. <http://www.time.com/time/business/article/0,8599,1814457,00.html>.
Harbert, Tam. “Electronics companies brace for a long, hard recession.” Electronics Design, Strategy, News. 10 Mar. 2009. Web. 14 Oct. 2009. <http://www.edn.com/article/CA6643065.html>.
Hoffmann, Katie. “Cisco, Dell Sales at Risk as Slump Fuels Gray Market.” Bloomberg.com. 5 Dec. 2008. Web. 15 Oct. 2009. <http://www.bloomberg.com/apps/news?pid=20601204&sid=ag5pxFL3YpFY>.
Hyman, Paul. “As Recession Deepens, Used Games Get More Painful.” Gamasutra. Think Services, 8 Dec. 2008. Web. 15 Oct. 2009. <http://www.gamasutra.com/view/feature/3872/as_recession_deepens_used_games_.php>.
King, Steve. “Craigslist Continues Strong Growth.” Small Business Labs. 23 Mar. 2009. Web. 14 Oct. 2009. <http://genylabs.typepad.com/small_biz_labs/2009/03/craigslist-continues-strong-growth.html>.
Lagesse, David. “Used Electronics Can Make Good Buys.” U.S News & World Report. 19 Feb. 2008. Web. 15 Oct. 2009. <http://images.usnews.com/money/business-economy/technology/articles/2008/02/19/used-electronics-can-make-good-buys.html>.
Happy Friday from trade2save!
A bit of bright news to all you readers out there to kick start your weekend with some optimism! AFP recently released pictures and details of the medals to be awarded for the upcoming 2010 Vancouver Winter Olympics which are making Olympic history. Not only are the gold, silver, and bronze set to be the heaviest Olympic medals ever (roughly a half kilogram each), but each medal will be made using a small percentage of recycled electronics.
While the amounts of gold, silver, and copper used from e-waste is quite small, (ranging from .12 to 1.5 percent) the gesture itself is a statement towards the proper disposal of materials that would typically be tossed in a haphazard manner. The use of recycled material in the medals is another Olympic first and quickly generating well deserved buzz. This is absolutely fantastic news, as the international exposure and recognition the Olympics hold with the focus on e-waste will make a great tool to spread the word about e-waste.
