We all know that “the moment you drive a new car off the lot, it loses 30 percent of its value.” But what about your lab equipment? How fast does it lose value? While it’s difficult to find data specifically for lab equipment (there’s no Blue Book for this equipment), electronics, in general, lose 30 percent to 70 percent of their value in the first year alone.
The reason is pretty simple: technology innovation continues at a rapid pace, which creates new, improved equipment becoming available quickly. And, from a business perspective, if you get a loan to purchase equipment, you must depreciate the value of the equipment over a designated period of time (typically five years).
“If your equipment is more than 10 years old, there are probably better replacements available,” said Yvonne Oden, Director of Product Management at BioSurplus. “Once a new model is released or a competitor comes out with a faster or more economical system, the value decreases rapidly.”
Given that lab equipment depreciates quickly, it’s important not to simply store equipment you no longer use. Not only will stored equipment lose value due to age, it may also depreciate due to the decay of components like rubber seals from lack of use. Equipment will also degrade in storage if it was not properly shut down. Mold, corrosion, dust and lost components are just a few of the things that could diminish value while in storage. Another consideration on the cost of unused equipment: if you take the stored equipment off of your service contracts and its preventative maintenance schedule, the cost of adding the equipment back into a service contract can be significant.
“When it’s time to take equipment offline, storage shouldn’t be at the top of your list of alternatives,” said Yvonne Oden, BioSurplus Director of Product Management. “Selling your unused equipment is usually the better option and typically means the best returns. On top of that, you don’t have to rent storage space indefinitely.”
For example, the Agilent 1100 HPLC system has been a workhorse in most analytical labs for more than three decades. Its value has dropped significantly over the last five to six years as Agilent phases it out. In 2014, the system sold for more than $22K on the resale market; today, it sells for just $5K-$10K.
As you can see, selling equipment can create significant value and is a better option than storing equipment. There are several ways we can help you sell your equipment, depending on your needs. Visit: https://www.biosurplus.com/sell-lab-equipment/ to find out how we can help.