Common Sale Value (ASP) is one of the handful of metrics utilized by ITAD suppliers to assist clarify your incoming remarketing income – or a minimum of it must be. Don’t take it at face worth although as a result of a excessive ASP within the mistaken context can work in opposition to you and your ITAD program – and it will possibly act as a pleasant smoke display for ITAD suppliers. Most drivers of ASP are apparent. However there are optimistic drivers which decrease ASP, and unfavorable drivers which improve ASP. As an illustration:
- Decrease ASP might not imply poor efficiency by itself and have to be investigated additional. It might imply the resale of older(and therefore extra) units offered which drags down ASP however finally leads to greater remarketing income and carbon profit for you.
- Increased ASP might not imply nice efficiency by itself and have to be investigated additional. Don’t fall for “We have now the very best ASP within the business” with out extra data. Any ITAD supplier can have a excessive cut-line and resell the simple stuff (jacking up their ASP) whereas tossing older however reusable gear to recycling with out hesitation with the intention to hit a set monetary margin. In some way, although, you’ll nonetheless hear about their excessive ASP and their IT “round financial system”.
ASP is tremendous essential – however remember that it’s solely one indicator and solely displays what’s offered. Have you ever ever requested “what wasn’t offered and why?” That’s your key. ASP is essential, the extra funding your ITAD supplier makes to generate optimistic ROI on a better share of what you ship them, whereas additionally maximizing ASP, the extra you profit.