Buying Refurbished Electronics -
What You Need to Know
A Refurbish LCD TV - Is it worth the risk?
Buying a refurbished LCD TV, or in that case, any refurbished
electronics, represents a possible option to knock a sizeable chunk off the
retail price. But...
Is buying refurbished electronics
worth the risk of not buying
something new?
Introduction
We
are always looking for new ways to save on the bigger purchase; this applies irrespective of
whether this is a new PC, a digital camera, or a big screen LCD HDTV
for the living room entertainment area.
It
comes to no surprise therefore that seasonal and clearance sales are always on the agenda of bargain
hunters, but these do not take place all year round.
Another possibility to
save money throughout the year - especially when buying expensive electronics -
is to opt for a refurnished product.
For example, a refurbished LCD TV may sell
online at 50% to 70% of its retail price; actual savings
depend on several factors - including if it is factory refurbished or
third-party refurbished.
Still, even at these big savings, it is not easy to get someone to buy a refurbished product for the first
time. Why?
Though there is no reason why the 'refurbished' tag should lead to a negative
connotation, yet the
reality is that few have an understanding of what constitutes refurbished
electronics.
In this article, we explain what
qualifies as 'refurbished' in the electronics world. In the process, we also present a set of
guidelines to follow when buying refurbished products - guidelines that should
help transform the risk into a smart buy.
Buying Refurbished Electronics
- Not all refurbs are the same!
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, things are somewhat different. It is
unfortunate that to many, it is not so obvious what the tag 'refurbished electronics' does
actually mean.
As indicated in our introduction, refurbished electronics can be either third-part refurbs or manufacturer
(factory) refurbs. While third party refurbished electronics offer the biggest
savings and do come with a warranty, yet it is only factory refurbished products
that come with a manufacturer warranty. Most retailers also offer an optional extended
warranty on their refurbs.
For the smart shopper, buying factory refurbished electronics - possibly with an
extended warranty - is a way
to enjoy considerable discounts and
still have a product that is essentially 'like new', but...
You need to exercise constant
vigilance when buying refurbished electronics.
This
is only possible if you have a thorough understanding of what the 'refurbished'
tag, once assigned to an electronic product, implies.
What 'refurbished' products are not?
Before we delve further into
what may qualify as refurbished electronics, it is important to understand
what cannot be labeled as 'refurbished'. In particular, there is the
misconception that the tags 'refurbished' and 'reconditioned' are one and the same thing.
A refurbished product may or
may not have been installed, repaired, or slightly used, for reasons given
further on in this article. On the other hand, a reconditioned item is a product
that have been used over an extended period - often under lease - but then was
repaired (not necessarily by the manufacturer), and resold by a retailer.
'Used' reconditioned 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'?
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 to restore the product to
its original specification, and then the product is repackaged 'like new'.
However, consumer laws prevent
manufacturers from selling anything considered factory refurbished electronics
as 'new' since the original factory seal has been broken. Hence, these items are sold as 'refurbished
products' often at deeply discounted prices.
More specifically, reasons for returns include:
Customer Return: Most major
online 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 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:
If a box was simply opened, the
item is often 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, a manufacturer may
recall a product from a specific batch or production run that exhibits the
same defect. When this occurs, the manufacturer can decide to repair all
returned defective
units and send them back to retailers 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 wants 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
resellers 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 substantial discounts.
Tips on Buying Refurbished Electronics
From the above, it is clear that one can never
know what was the exact origin or condition of a refurbished product;
more specifically, what was the reason for that 'refurbished' tag.
Therefore, do not assume anything when opting
for a refurbished LCD TV, plasma television, home theater systems, etc.; instead,
take all the above possibilities into consideration.
Here are a few
questions you should ask yourself when buying refurbished electronic
products:
What to ask when buying a Refurbished Product
-
Is it a factory refurbished product?
-
Is the refurbished unit being sold by a
manufacturer authorized dealer?
-
Does the refurbished unit have a valid U.S. warranty?
At least it should come with a typical 45 to
90-day Parts and Labor warranty.
-
Has the refurbished item been originally
intended for the U.S. market?
-
Does the retailer offer a return policy
for the refurbished unit in case you are not completely satisfied with your
purchase?
Expect at least a 15-days return policy. This is important so
that you can inspect the product yourself before a final decision.
-
Is it possible to get an extended warranty
for the refurbished item? This does
not imply that you should purchase an extended warranty - rather it
shows to what extent, the retailer is ready to backup the refurbished
product.
Do NOT proceed with
the purchase of any refurbished electronic product unless the answers to at least the first
five questions are all in the affirmative.
If the answer to all these
six questions is positive,
opting for a unit that has been designated as
refurbished electronics may represent a smart move to get a great product
at a great price.
Concluding Remarks
Buying refurbished electronics
up to the late 90s was more of a hit-and-miss affair, requiring bargain hunters
to scan through mail-order catalogs and paper ads.
The web had changed all this
- with both small and large manufacturers and online retailers selling
refurbished electronic products at an even lower price tag. Why?
Buying
online has always been associated with an added price advantage, yet buying refurbs online offers even further savings since online companies do not have
the overheads of brick-and-mortar retail stores.
Many are concerned that buying
online may not be safe. Yet to the informed, buying online is totally safe and
secure - even in the case of refurbished electronics.
This holds true - as long as
you follow through the steps detailed in this article and the guidelines on buying online expressed in our
Buyer's Guide to Shopping Online.
Tip:
When
it comes to buying refurbished electronics, ensure that you inspect the product yourself within the return policy period.
Keep in mind that 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.
There
are a number of online retailers such as Second Act and RefurbDepot.com that offer refurbished electronics at heavily discounted
prices. It is also possible to find refurbs at amazon, though these are normally
sold through third-party re-sellers rather then direct by amazon.
A Final Note:
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
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 will stocks last, and at the big savings
associated with refurbished products, inventory levels change all the time. Additionally, you never
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 as
highlighted in this guide.
If
the refurbish item is factory-refurbished and comes with a full manufacturer
warranty, then it is time to act!
This is all it takes to
transform that slightly higher risk
associated with buying refurbs, into a great buy - one which results in a big
reduction in price.
And in the end... you would still get a 'like new'
item.
Happy bargain hunting!
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Interested in buying
a Refurbished HDTV or A/V Receiver, or even a brand new item at a greatly
discounted price?
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We suggest checking out the latest
offers at
Second
Act and
Amazon.
Second Act in particular, has the largest
range of refurbs at some of the lowest prices one can find on the internet.
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They specialize in name brand
refurbished products, with a special focus on HDTVs such as LCD’s, Plasmas,
DLP’s, and 1080p Projectors.
They also sell related refurbished
electronics such Home Theater systems, Audio, and Video Products.
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