Switching to dollars

"Of all the computer-related equipment we deal with, the hottest is networking,'' says Robert Davie, founder of ITParade, an online business-to-business auctioneer of refurbished high-tech equipment in Research Triangle Park, N.C.

"People are upgrading networks regularly and quickly. Networking equipment turnover is higher than mainframes or midrange systems that tend to sit out there for a while."

Auctioneers explain that companies such as Cisco and Sun Microsystems are using third-party auction sites to sell slow-moving products. But they also note the bigger trend is for user companies, such as Winn-Dixie Stores and AT&T, to use online auctions to sell older equipment once it's been replaced.

On EarthWeb, an IT business portal, about 1,500 of the 9,000 hosted hardware auctions are for networking equipment, and most are from user owners, says Scott Anderson, vice president of worldwide marketing at the New York firm. Although fewer in number, the transactions represent bigger bucks because networking equipment sells for higher prices than other hardware categories, such as peripherals.

With each incarnation of networking technology, older but useful network equipment becomes impossible to sell via normal channels, say industry players such as Raymond Letulle, chief technical officer of Moai Technologies, an online auctioneer in San Francisco. When that happens, don't throw the products in the trash; put them up for bid at an online auction. Auctioneers guarantee you wider reach and help you get maximum bucks.

"We assist in determining what the used market value might be by polling our used networking dealers. Then we help set up a minimum acceptable bid,'' Davie says.- Sharon Gaudin

Related links

E-commerce: Auction action
Industry watchers agree that business-oriented auctions are one of the hottest new online trends, drawing participation from small businesses and Fortune 500 companies alike.

E-commerce: Making an auction site successful
Even the most innate benefits won't stop your pet technology project from bombing if people don't use it. Early adopters say the danger with auction sites is even greater, because auctions aren't quite mainstream e-commerce yet.

EarthWeb
A business portal for the information technology industry.

The Auction Tribune
Auction news and auction related links.

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