ITAD Average Sale Price Is Higher Always Better?
Average Sale Price (ASP) is one of the handful of metrics used by ITAD providers to help explain your incoming remarketing revenue – or at least it should be. Don’t take it at face value though because a high ASP in the wrong context can work against you and your ITAD program – and it can act as a nice smoke screen for ITAD providers. Most drivers of ASP are obvious. But there are positive drivers which lower ASP, and negative drivers which increase ASP. For instance:
- Lower ASP may not mean poor performance on its own and must be investigated further. It could mean the resale of older(and hence more) devices sold which drags down ASP but ultimately results in higher remarketing revenue and carbon benefit for you.
- Higher ASP may not mean great performance on its own and must be investigated further. Don’t fall for “We have the highest ASP in the industry” without more information. Any ITAD provider can have a high cut-line and resell the easy stuff (jacking up their ASP) while tossing older but reusable equipment to recycling without hesitation in order to hit a set financial margin. Somehow, though, you’ll still hear about their high ASP and their IT “circular economy”.
ASP is super important – but keep in mind that it’s only one indicator and only reflects what is sold. Have you ever asked “what wasn’t sold and why?” That’s your key. ASP is important, the more investment your ITAD provider makes to generate positive ROI on a higher percentage of what you send them, while also maximizing ASP, the more you benefit.