Old and unwanted comms kit has a long way to go before it fulfils its potential as a source of revenue, therefore a fresh look at recycling used equipment is needed, says Matt Emmins, Managing Partner at MF Communications.
All used equipment should be offered for sale, argues Emmins, who lives by the principle that value can be realised from used kit that end users deem worthless. "All businesses have communications systems but many have no policy for when they become obsolete," said Emmins. "The equipment often ends up as landfill, burying its potential value. Some believe the OEMs will pay to take it back, but it's not financially viable for vendors to do this. We can help businesses put a plan in place, making sure that when the time comes their equipment is dealt with responsibly."
MF Communications offers a free decommission but gets a pay-back as some of the parts usually have a value that will at least cover the costs. "For example, in June we decommissioned a large PBX with 500-plus users for one of the world's largest car manufacturers at zero cost to the client," said Emmins. "The system was almost 10 years old and the OEM was charging £4,500 to do the same job that we did for nothing. But when we ask large corporates and carriers what their policy is on disposal of used equipment it always amazes me how many don't have one."
Compliance with WEEE regulations has become increasingly important due to recent changes to the Data Protection Act, which could mean firms are liable to be fined if they do not dispose of equipment in the correct way. In May, Conservative MP Mark Prisk was given responsibility over WEEE regulations in the UK as part of the new coalition government and stated that he will be looking to improve standards further. All businesses need to get in the habit of dealing responsibly with electronic waste as the laws will get tighter and fines will be enforced.
Because the number of UK corporates with a policy on surplus telecoms equipment is ‘shockingly low', claims Emmins, MF Communications is on a mission to heighten awareness of e-waste. Recycling is at the core of MF Communications and every part of the business aims to be as green as possible. "We have recently achieved ISO 14001 certification for our environmental management system, which means we are reducing waste, carbon and energy consumption and have found more efficient ways of conducting trade," added Emmins.
OEM's discontinue products all the time, noted Emmins, but that still leaves many end users and resellers with service contracts. "They need a source of quality equipment," he said. "Many companies selling used or refurbished equipment simply clean it up, possibly test it, but the end product can be poor quality. We try to fill the gaps left by OEMs. Rather than offering refurbished equipment, we remanufacture it to make it as close to the original new quality as possible, and give the same service and warranty as original new, but at a big discount to the original cost. We provide a real alternative to original new equipment."
Customers can experience problems with OEMs, says Emmins, citing long lead times as an example. "Sometimes refurbished equipment is perceived as being poor quality," he commented. "That can be true, but not from a good reliable supplier with large stocks. Keeping an existing or potential new client happy by supplying quality products and parts for their legacy equipment ensures that resellers will be the first port of call when the client needs a new system or alternative service."
MF Communications was established in August 2000 by Matt Emmins and Fraser Young. The company now has nine employees and year end turnover was £2.2 million with an impressive £1.1 million profit. The company has increased its profits every year since its inception. "Our target market is businesses worldwide," noted Emmins. "There has always been a market worldwide for refurbished equipment, but currently the recession is one reason for its growth. Not every company can afford to or wants to have to pay to migrate."
The refurbishing industry was established in the USA where MF Communications' founders witnessed at close range the processes that deliver telecoms equipment of a high standard. This first hand experience led the firm to focus on providing ‘good as new' equipment with a year's warrantee. "Many resellers just buy used equipment on price to eek out every penny from every deal," observed Emmins. "Resellers who buy from us will have to charge the end user slightly more but their customers will have a quality product and greater satisfaction. Once we gain a client they rarely leave. Our client base has grown over the 10 years and a lot of new business comes from referrals."
Used equipment is checked and tested for possible defects, and then overhauled to ensure all of parts are in good working order. Faulty or damaged components are replaced, and the equipment is reassembled with new housing, cords and keypads before being tested again. "The remanufactured product is checked for industry standards and provided a serial number," stated Emmins. "It is packaged in new original boxing along with all the essential literature documents for the purpose of reselling."