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What exactly are refurbished products?

Category Buying
What exactly are refurbished products?

Nowadays, the consumers might be more likely to choose a refurbished item rather than a brand new one, simply because the cost might be more tempting and they've got the sense of a great deal!

Whenever we speak regarding computers for example, or about ovens, or vacuum cleaners, the industry is full of dealers of these items both on b2b level and on b2c level. The purchase by the end-consumer is justified if the price of a refurbished product is not more than 50% of the market price of the same item but in brand new condition. Thinking of this, a refurbishment supplier have to calculate backwards the dealing prices, in such a way that will allow the dealers at least a minimal profit, at the same time considering other expenses involved, like:

  • Potentiality 5% returns rate for re-worked, just as brand new we still need to keep it in mind;
  • Transfer from the plant to the broker.

The refurbishment process could be a short one: clean up, brief standard functional check, repack; or maybe a pretty complicated one beginning with the full functional test and finishing with re-packing in its original container or perhaps a new branded one, with grading record.

Let's discuss the grading of the refurbished consumer goods a bit more thoroughly.

The top refurbished grade is known under many variations, e.g. A Grade, A Ware or even 2nd Choice.

In most cases, these items are as new, including all components and packaged as original products. The price of A Graded stocks is normally not greater than 40% of the Retail Recommended Price - RRP, for smaller domestic appliances, 50% RRP for large domestic appliances and 60% RRP for TVs, mobile phones, laptops, PCs, tablets.

A lot of the A-were products haven't in fact been delivered to the clients, or even there are times when have not left the production facilities or the retailers. Some others may have failed in the first few days of use.

The second grade for refurbished products is the so called: B Grade, B Ware or 3rd Choice.

Generally, B Graded stocks are with more visible imperfections, such as cosmetic defects, missing accessories, the packaging could be damaged or a basic box.

Typically the price of the B-Ware items is with 20 - 25 % less than the A-Graded refurbished merchandise.

Both the A-Grade and the B-Grade products should function on 100%, and occasionally could be offered with guarantee.

There is one more grade that can be seen on the market: C-Grade.

The refurbished products offered as C-Grade or C-Ware are usually highly used items or a mix of grades and could present a high risk of returning back soon after purchase.

FinalWholesale advises you to always check with the seller the exact definition for the refurbished items before buying.

Also, please see our other Grades Explainedned.


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