Risks vs. Costs

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Risks vs. Costs

The risks — and costs — associated with disregarding regulations can be tremendously damaging.

Instead, consider the following:

Save money, save time, save face by using TechR2’s knowledge and foresight. Let us help you manage the disposal process, contain costs and maintain an aboveboard operation.

Evaluate your risk issues such as accounting, asset management, depreciation, regulatory requirements, storage, taxes and PC valuation. We can help you with that process. We can also provide further consultation to develop a cost-effective and time-efficient plan to retire your outmoded equipment that will honor the bottom line and the environment.

Your cost depends on the amount and type of your equipment and your choice of disposition options. Generally, if your assets are remarketable, this service covers its own costs and may generate a profit for you. Product with no value is scrapped in an environmentally safe manner.

Some cost considerations

Storing obsolete equipment can be expensive in more ways than one. Stockpiling technology isn’t a good idea when you add up the associated costs. For example, the average cost for a Microsoft Office license is $300. Add that to the costs of storage and property taxes, and you could be paying 300 percent more to store an asset than to dispose of it properly (Gartner, 2005). Consider these costs associated with storing equipment:

  • Property taxes — many states assess these on IT assets whether or not the assets are in use
  • Software de-installation compliance
  • Square footage of rental space
  • Labor — putting equipment into storage and then removing it from storage

In addition, consider the fiscal issues associated with properly depreciating owned assets:

  1. Changes to deployment lifetimes affect amortization, depreciation schedules, net income and taxes
  2. Failing to transfer unused software licenses and warranties can result in costly overpayment

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