Will Buy Geeky Jetsam

New Buy Back Program Could Reshape Selling Landscape

The following link is to a story on a new trend in buying throw away gadgetry. The idea is to get you, rather than purchase an extended warranty, to pay a small fee of something like 10 dollars to get a guarantee that the retailer will buy it back when you upgrade or go to the next generation of the device.

Instead of being hit up for an extended warranty next time you buy a gadget, you may find yourself hearing a pitch from TechForward Inc., a Los Angeles-based company selling a "guaranteed" buyback plan for electronics.

The idea came from Jade Van Doren, Chief Executive Officer of TechForward, while traveling in Japan where the passion for Tech is an advanced art form. "I just started thinking about ways that you could build a company around ... encouraging people to live that lifestyle of temporary ownership," he said.

The idea of encouraging a turnover is not so advanced either. All companies plan strategies that include the shelf life of their product. In Japan, states Van Doren, people change out their phone every few months. It seems a matter of re framing the American consumers mind to that of such values.

It makes sense that for an agreed on fee at the time of the original purchase that a year down the road the company would take the approach. Consider that the next generation from beta's frequently release the next generation withing the same season as Betas. People wonder, why bother buying an extended warranty when a few months latter they are in the same store looking at the latest model. So rather than pay, $50.00 dollars at a Best Buy on an extended warranty, you would shell out ten to sell back your camera phone or other device.

Sounds great, right? Well there is one small catch. As time passes by you get less investment on junk when you take it back. After one year it is $40.00, after two, it is twenty. Van Doren says it helps keep the consumer update and the retailer gets the customer to come back into their store and spend more money. Their are limits, points out the article, and not all gadgets will qualify for such constructional offers.

There are already many companies who will take your tech trash, but they don't offer money back normally. Programs like this, maintains Van Doran, will stimulate the industry and make it more tempting for someone just on the verge of buying that new toy.

It may be good too, to consider that this echo friendly solution, despite its origins of profit driving sales will appeal to recyclers and Earth friendly minded users. It sounds good to me.

Any thoughts?

http://www.cnn.com/2008/TECH/ptech/01/17/gadget.buybacks.ap/index.html