WESTBURY, N.Y.-Going once, going twice...sold to the savvy credit union seeking savings on equipment.
For more than a decade online auctions and resellers have been a popular place for consumers to sell what they don't need for a few extra bucks or acquire items on the cheap, and credit unions are doing the same-and with the same hit-or-miss results.
"We have tried selling equipment on eBay, but with the specific type of equipment that we often have to sell, whether it be used PCs, teller receipts or other printers, or other used IT items, we never seem to get any interest," said Robert Reh, CIO at $325 million Nassau Financial FCU, Westbury, N.Y. "We have had some luck with resellers of some equipment, particularly network switches and other surplus equipment, and sold our used core system mini-computer for a hefty price that was more than we paid for it."
While Nassau Financial eschews buying through auction houses, Genisys CU takes exactly the opposite approach, as the Auburn Hills, Mich.-based institution has not sold anything to online auction houses but has made multiple purchases with them. The $1.3-billion CU used auction channels to buy 200 signature pads last year to equip front line stations at branches it acquired through a merger with USA CU.
"We just recently purchased another 100 at $20 each," EVP/CIO Jackie Buchanan told Credit Union Journal. "They are slightly used, as they came from a retail store that went out of business, but with a little TLC, they look like new. The new cost for these same models is between $675 and $750 depending on where you purchase them; for this lot we saved around $14,000."
Genisys CU has also utilized online auctioneers to buy phone equipment, routers, switches, tape drives and networks, saving the institution tens of thousands of dollars. Penny Worley, founder and president of Penny Worley Auctioneers, noted that those items are typically among the most popular in banking liquidations. Ergonomic chairs, flat screen televisions and high-end conferencing systems are also in highest demand.
"We're definitely seeing more activity," Worley said. "We've had an extremely busy 2009 and are expecting an even busier 2010 and 2011."
The increased liquidation activity is not causing a supply glut, however, as demand by businesses and individuals looking for a good deal are keeping prices stable, though still much cheaper than conventional channels. Aside from the direct cost savings, auction houses also provide competition for other vendors, forcing them to keep their prices down if they want to stay in business, Buchanan pointed out. But with the cost-savings comes some risk. Buchanan cautioned against buying "mission critical" components through auctioneers because of the uncertainty surrounding the condition and quality of the equipment.
"We always ask for a DOA (Dead on Arrival) or 30 day warranty," she told the Journal. "This way if there is a problem, we can send it back. So far we have only had to send back a few signature pads over the years."
Though eBay is the largest auction site on the web, there are a number of other auctioneers and re-sellers in the marketplace. Reh noted that Nassau Financial FCU had particularly good luck selling some of its equipment with the help of Bay Pointe Technology. The CUNA Technology Council and its listserv also provide a good place for buyers and sellers to connect, he said.
