Let’s face it, the economy is nothing to write home about unless you are writing home to ask for a place to stay while you are looking for your next job! Based on the poor state of the middle class in our economy, if you are in the business of manufacturing or selling electronic products the headwinds are strong and it is difficult to keep your ship moving forward. In light of this, it seems appropriate to point out a few of the extremely positive elements of a successful trade-in and recycling program that companies should consider to help their business situation.
1. Good for Consumers! I learned a long time ago that if you start with what is good for the consumer, you are likely to be right more often than not. So if trade-in and recycling programs are so good for consumers, you might ask why more companies aren’t rewarding their customers to (C)exchange their used devices for value, or at least offering to recycle them responsibly? Thanks for asking; the reason most often is that many companies view these programs through the lens of a reverse logistics process instead of a marketing and promotions opportunity. Providing value to consumers, and giving them another reason to visit your store or engage with your brand should be the driver of the decision. Unfortunately, some consider the implications of having to deal with used products as a hassle. But seriously, how often do you get the opportunity to have a consumer “pay” for their own discount? That’s right, consumers are willing to pay for a discount to acquire a new device by exchanging their current product! A trade-in program is an ideal vehicle to create a new retail transaction, and ultimately benefits the consumer. Bottom line, If you are in the business of acquiring new customers with an ever shrinking marketing and promotional budget, you’ve now got an additional tool.
2. Good for You! When customers know they can upgrade sooner through trading up, or even consider you as a place that will responsibly handle their outdated product, you will get more traffic, more sales, and more loyalty. Our research shows that trade-in spend gives a company a much higher lift than even a gift card, and you can expect consumers to reward you for having a lucrative program. Think of what companies pay to get a consumer to cross their doorstep or go to their online site. It isn’t cheap, but the answer to lowering this cost (in the form of good used electronics) is sitting in homes across America. Once consumers realize there is an option to trade with your brand, you have a great opportunity to be involved in their upgrade cycle for the long term. The trade-in and recycling business is exploding, and companies that don’t deploy strong and consumer friendly programs will be left behind.
3. Good for the Economy! This industry is a bright spot in a sky filled with economic storms. Our industry is in hyper-growth mode and we are adding jobs as a segment like few others. We aren’t manufacturing, but we are remanufacturing and creating new value out of existing technology without the heavy use of resources that burden other businesses. We employ people, we generate payroll that helps the economy, and we pay our fair share of taxes. We help the economy by growing a business based on real consumer demand that also facilitates the purchase of new goods, and we ‘re just scratching the surface of the impact we can make.
We’re proud to run a business that is good for consumers, good for you, and good for the economy!