Bring your old television set/refrigerator/personal computer, and exchange it for a new one at some extra cost.? Almost all of us have been tempted into trying out a scheme like this. But what?s behind this offer?
With green computing a major focus of all gizmo producers today, take-back offers are a good way of dealing with e-waste.
They are also an easy solution for consumers to get rid of an old gadget that has been sitting on their tabletops and gathering dust.
Consider this: Till a few years ago, one disposed off an electronic gadget by selling it to the kabadiwala. The ?new and improved? version was bought later, after a time lag. But let?s keep in mind the fact that today none of us wants to spend a day without a refrigerator or a PC. So the best bet is to get the old product exchanged for a new one on the very same day. That?s why exchange offers today have so many takers.
Ask anyone, and the answer would be that an exchange offer is more a matter of convenience than anything else. It is the best way to dispose off a gadget after such offers have run the course of its life. And a discount on the new product is just a bonus that makes you feel happy.
With brands vying for shelf space in shops today, it has become a way of increasing market share for companies. And it is an all gain and no loss offer for the consumer. But, what does the company do with these second hand products? Do they simply dispose them off as junk to the kabadiwala?
More often then not, the exchange offers that the companies come up with are more a marketing strategy than anything else. They are the best way to increase market share, as people usually get attracted to discount offers.
LG Electronics has exchange offers on all its consumer durable products. ?However, the company has hardly any role to play in this,? says Amitabh Tiwari, business group head of consumer electronics and home appliances. The dealer takes back the old products and gives a discount on the new product. ?If the machines are in working condition, then they are often re-sold to customers who cannot afford new gadgets. At other times, when the products are not in working condition, they are dismantled and sold as scrap,? adds Tiwari.
There is an equation formed between the company and the dealer. In this, the company offers goods at a discount to attract customers, while the dealers use it to their benefit by announcing an exchange offer. The dealer gains as he can earn a few extra bucks either because of the resell of the product or the sale of scrap.
Contrast this with Samsung and Sony Ericsson. They do not bring out such offers. Ravinder Zutshi, deputy managing director, Samsung India explains: ?As a policy, we only opt for value added offers for customers. And exchange offers do not value add for customers.?
So exchange offers are generally announced by the dealers themselves who offer take-back of goods from customers. Rajiv Jindal, head of the CBIT from Vishal Megamart asserted the fact that the goods taken back from the customers are resold. ?Prices vary from product to product and also on the condition of the goods. Laptops and mobiles are re-sold between the price range of Rs 5,000 and Rs 50,000, depending on how old they are.? Goods that are not in a condition to be re-used, are sold as scrap.
Says Diptarup Chakraborti, principal analyst, Gartner Research Services: ?Reselling of products that are too old is anti-green. The products that are taken back from the customers hardly have any use. At times, some of the components from these old electronic gadgets are utilised for repair work.? And scarp, like iron, plastics, copper, brass, aluminum and so on is sent to the factories where it is recycled.
Surjit Singh, a dealer in scrap says: ?We buy scrap from MNCs, government departments, offices and also households and sell them in the Mayapuri Scrap Bazaar in New Delhi.? There are fixed rates for all kinds of scrap. Ravi Gupta, R P Metal says, ?The scrap is used for making new products. We sell them at the fixed market price. Copper is sold at Rs 325 per kg, iron in between Rs 25 and Rs 30 per kg, brass at Rs 225 per kg and aluminum at Rs 100 per kg.?
Looks like there aren?t any losers in this game. Those who gain are the customers, who not only conveniently get rid of their old gadgets but also buy a new one at a discount. The retailers too turn out winners as they earn a few extra bucks from selling the scrap. And, the goods fly off the shelves.