Stop Wasting Money on Rapidly Depreciating Gadgets
In a world powered by technology, consumers are constantly looking for the latest and greatest gadget. While a new device often brings the potential for improving a person’s life, consumers shouldn’t confuse these purchases with investments. Just like a new car, electronics lose value as soon as they are taken for a spin.
“We live in a world in which significant technological improvements in the consumer electronics and gadget verticals are seen on an annual basis,” says Joshua Weiss, CEO Of TeliApp, a company that develops and executes digital media marketing strategies for a variety of brands including those in the consumer electronics space. “As such, 1-year-old devices will depreciate significantly, especially because the cost for better and brand-new items continues to go down.”
Though short product cycles and saturated markets add to the rapid depreciation of consumer gadgets, demand for new tech continues to rise. In fact, the technology industry is estimated to grow 3.2 percent in 2017 and earn $321 billion in retail revenues, according to a semiannual report from the Consumer Technology Association.
While fighting depreciation may feel like a losing battle, there are certain steps consumers can take to save money on the gadgets they need. Just follow these tips.
Compare features and specifications carefully. Electronic manufacturers, brands and retailers bombard consumers with ads promoting the newest devices that tout better performance and superior features, making it hard to resist the urge to buy. While many shoppers justify splurging on a new device for updated specs, experts caution that the differences between old and new may be minimal, and the price to upgrade may not be worth it.
“Many of these new models do not have major, innovative upgrades, but rather small internal hardware modifications, like a slightly faster CPU clock speed,” says Emily Shapiro, marketing associate at iPowerResale, a site that specializes in reselling refurbished, used and overstock Apple products.
Consumers should review potential product purchases carefully, looking over specs in detail, or seek guidance from product experts to understand key features. Since many electronic retailers charge restocking fees of 10 to 15 percent of a returned item’s purchase price, an impulse purchase could cost even more in the end.
Compare features and specifications carefully. Electronic manufacturers, brands and retailers bombard consumers with ads promoting the newest devices that tout better performance and superior features, making it hard to resist the urge to buy. While many shoppers justify splurging on a new device for updated specs, experts caution that the differences between old and new may be minimal, and the price to upgrade may not be worth it.
“Many of these new models do not have major, innovative upgrades, but rather small internal hardware modifications, like a slightly faster CPU clock speed,” says Emily Shapiro, marketing associate at iPowerResale, a site that specializes in reselling refurbished, used and overstock Apple products.
Consumers should review potential product purchases carefully, looking over specs in detail, or seek guidance from product experts to understand key features. Since many electronic retailers charge restocking fees of 10 to 15 percent of a returned item’s purchase price, an impulse purchase could cost even more in the end.
Consider a repair first. When faced with a broken or poorly functioning device – whether it’s a laptop, smartphone or tablet – consumers often jump to replace it. Many common issues such as cracked screens, liquid immersion, broken charging docks and buttons, viruses and damaged components can be repaired for a minimal cost, saving people hundreds of dollars. For example, repairing an iPhone screen costs $90 on average while fixing laptop liquid damage typically runs from $200 to $250 – both of which are a fraction of what it would cost to replace these devices, according to Computer Repair Doctor, an electronic repair chain that fixes cell phones, laptops and desktops, PCs and Macs and more. Not all repairs are equal, however, so gather quotes to determine whether fixing a device is worthwhile first.
“You typically want to look at the cost to repair versus replace, as well as the age of the device,” says Matt Ham, president and owner of Computer Repair Doctor. “Find a local store that specializes in tech device repair. Stores like these will be able to determine if your issue is fixable and if it’s worth repairing.”
Review last year’s model. With every new electronic release, the price of a current and old model drops significantly, providing a good opportunity to save on a needed gadget. Whether you’re shopping for a TV, laptop, smartphone or tablet, look at last year’s models for savings of up to 60 percent off. Considering that stores are eager to move old inventory, shoppers often have a better chance at haggling on these older devices too.
Wait it out. Electronics are never at a higher price than when they’re brand new and holding off to buy the latest model can result in big savings.
“A product will be at its most expensive when it has just launched,” says Jennifer McDermott, consumer advocate for finder.com, a personal finance comparison website. “Waiting for a week or two when demand has died down can see a drop in the dollar amount which can be worth it if you can hold out.”
Better yet, hold off for a couple of months to see an even bigger dip in price. This also provides more time to evaluate whether the quality of that new device is worth it as reviews from experts and consumers are published.
Buy refurbished. The best deal on any electronic is buying a refurbished model. While refurbishment often gets a bad rap, these gadgets are usually a result of the original buyer returning an item that was opened but never used. Others are older models, which are sold for less to make room for the updated versions.
“Often, refurbished gizmos are simply gifts that were opened and then returned to the store,” says Slavik Boyechko, gear blogger at Geardads.com, a site for working video producers who make a living from their equipment. “The warranty is usually the same, the item is often unused, but the retail packaging is typically replaced with a plain box. If you can live with that, the savings are super.”
Boyechko recently bought a pair of refurbished wireless Bluetooth headphones for nearly 70 percent off the retail price through Groupon.
When searching for refurbished options, experts suggest looking for one that comes with a purchase guarantee. “The nature of electronics (new or used) can be finicky, so make sure you’re purchasing from a reputable retailer who will assist when it’s needed,” Shapiro says. “Don’t hesitate to contact the retailer to clarify the condition of the machine and inquire about guarantees.”
Trade in or sell it. Offset the cost of a new device by trading in the old one for cash or gift cards. Various retailers and wireless carriers, including Target, Amazon and AT&T, now offer tech trade-in programs. Otherwise, consumers can sell old devices through recommerce sites such as Gazelle.com or opt for instant payment through ecoATM kiosks, which can be found in malls, large retailers and grocery stores. Whether trading in or selling, it’s important to take care of the device to get the most money back.
“Condition is a key factor in determining price, so make sure you take care of your device and use a case and screen protector on your phone,” says Yanyan Ji, general manager at Gazelle.com, a recommerce company that buys and sells pre-owned consumer electronics. “You may want to consider light repairs, for instance, if your phone’s screen is broken, in order to fetch the best possible price.”
Save an old device for insurance. Smartphones and other personal gadgets get misplaced and damaged more easily than anyone would like and holding onto an old model can provide a free insurance plan. After all, wouldn’t it be nice to have a backup available in case that pricey new iPhone or Android falls in the toilet?
