Should You Buy New or Used Network Equipment for Your Business?

Does your business need some networking equipment? Are you on a tight budget? You might be able to buy used network equipment instead. Keep reading to learn whether you should buy new or used network equipment for your business.

When the network equipment fails, everything fails.

Especially for startups, obtaining such equipment at an affordable price can be practically impossible. And even for established businesses, the prospect is a nightmare.

So how, you might ask, do you go about obtaining the proper hardware? In your efforts to cut costs, you’re sure to come across the age-old dilemma faced by many a business owner.

Dare you buy used equipment or should you take the financial whipping and purchase new?

Let’s evaluate both sides so you can find your answer.

What Do You Mean by Network Equipment?

When we say “network equipment” we mean all the pieces and parts that work together to communicate with each other in your computer network. It’s the stuff that connects all your computers, printers, faxes and more.

Common hardware you’ll recognize include the following:

• Routers
• Modems
• Networking cables
• Hubs
• Ethernet adapters

Hybrid devices include firewalls and proxy servers.

All these parts work together to let your technology communicate with each other within the workplace.

Benefits of Purchasing New

Buying new equipment comes with several benefits that business owners simply won’t get with used equipment.

Performance

New equipment fails a lot less often. It hasn’t been touched or ruined, meaning the likelihood of a new product being deficient is very low.

In purchasing new network equipment, business owners can have faith everything that ships to them will work correctly the first time.

Productivity

New equipment means you and your employees focus on your job rather than why the printer won’t work. And if you think this isn’t a problem, you might be surprised to find the average employee wastes over two weeks each year because of IT-related issues.

Keeping the focus on work means company employees have the opportunity for higher productivity, which translates to higher revenue.

Convenience

The sheer convenience of purchasing new can’t be overlooked. New network hardware comes with easy installation directions or companies can choose to have a party install it.

With the advancements in technology and focus on customer satisfaction, more businesses are turning to an internal management of networking systems rather than relying on IT professionals or administrators. The new tech is that convenient.

Warranties

New hardware comes with warranties and access to the original manufacturing company. This is doubly advantageous because even if something goes awry, businesses have backup plans.

They can return the part and have it fixed according to the warranty’s specifications or they can contact a representative to troubleshoot and correct the issue. Professional manufacturers may even offer several-year warranties that include labor.

Repairs

While many business owners shrink at the cost of a new network system, keep in mind you won’t have to funnel any more funds into it for a while.

Unfortunately, with electronics, it’s advisable to avoid any route that requires repairs. New electronics are especially susceptible to simply dying when their time comes. There’s no quick, inexpensive fix.

And when a small electronic’s part costs roughly $100 to fix, you might actually save money by purchasing new in the long run.

Drawbacks of This Route

Of course, there are several drawbacks. We bet you can name the biggest one.

Costs

Replacing your network system with new equipment is expensive. And if you’re a startup, you’ll spend thousands of dollars getting everything set up.

Arrival Time

Business owners may also have to wait for parts longer than they would for used hardware. New systems have higher chances of being out of stock.

Furthermore, if you’re starting from scratch, network accessibility is rarely provided on time. This is because of delays involving unpredictable necessities for installation.

No Changes

Technology today is amazing, but sometimes you may not like what you get. Companies today rely less on beta products and more on the update-as-users-complain tactic.

Consequently, you may have to be patient while a company works out its bugs with your equipment.

Benefits of Buying Used

By “used” we don’t mean a beat up router that’s been kicked around the block a few times. We mean refurbished. A company (usually a third-party) cleans, repairs and resells the product so it works like new.

Purchasing refurbished has several benefits for businesses.

Save Money

If you’ve ever toured the refurbished section on a website, you’ll know all about the savings you can obtain. If you’re interested in seeing for yourself, learn more here.

In some instances, you could save up to 50%.

For any company tight on money, refurbished hardware is a viable option.

Performance

Contrary to popular belief, credible companies check refurbished products to ensure they work correctly before selling them. If business owners take the time to ensure the hardware they choose is genuinely refurbished by a trustworthy company, the chances of future issues drop dramatically.

Recycling

In purchasing used products, you’re reducing the number of electronics that end up in landfills. Not only does this feel good at a personal level, but if you’re a green company, it is an ideal route.

Limited Warranties

Reputable companies offer warranties with refurbished products. Even if something goes wrong, you generally have a warranty to cover it.

Drawbacks of Refurbished

Even though refurbished options might save you hundreds of dollars, there are a few drawbacks.

No Support

If something goes wrong, you don’t have anyone to turn to. That means you’ll have to hire a team to fix the issue or try to find a solution yourself.

Furthermore, the warranties for refurbished items are typically much shorter than those for new ones. If something goes wrong, there’s a greater chance it will occur outside of the warranty’s coverage period.

Out of Date

If you’re buying used network equipment, it means it’s older. While it might not be out of date now, technology moves quickly. It could be in only a few years.

That leaves your company vulnerable to hackers.

Performance Issues

Even though reputable vendors might restore an ethernet adaptor or modem to proper working condition, there is no getting around the fact it’s been used. Therefore, it has a higher chance of experiencing performance issues in the future.

For a business, that leads to future costs for repairs or outside help.

Which Is Right for You?

Having reliable network equipment is a must for any company, whether it’s a startup or one that’s been around for decades. In today’s world, an efficient network system equates to more sales and higher revenue.

So which option is right for you?

If you’re still unsure, check out our article. It discusses the newest network and security trends hitting small businesses. For anyone contemplating upgrades or installations, this article provides excellent pointers.

And just remember: all the research is worth it. A happy network equals happy employees and customers. And that, after all, is what every company strives for.