In: Accounting
"Refurbished" is a big term now in the electronics market now. How is this accomplished?
answer in your own words, ty
thread below
Refurbishment is the distribution of products usually electronics and electrical that have been previously returned to a manufacturer or vendor for various reasons. Refurbished products are normally tested for functionality and defects before they are sold. It is repaired from manufacturer and resold.
I think this can be related to rework which, include the disassembly of a finished product, the replacement of components, reassembly, and repackaging. The cost required to bring a nonconforming product up to a company's standards may be so high that there is little margin left.
There are so many products which are returned by customers due to various reasons like-having default or inferior quality and so on Hence under refurbishment ,products are distributed after being they are repaired or defective materials are removed and replace it with good quality material.
Refurbished means, units that were returned by customers for one reason or the other (usually faulty parts), repairing the device and selling it as brand new with the same warranty.
The cost to the person buying a refurbished product is a little less than what you’d pay when purchasing brand new, which is another factor that is important.
Refurbished doesn’t necessarily mean bad, it simply means something about the product went wrong, it got fixed and then sold as brand new at a small discount to the user.
Some commonly refurbished products are electronic products i.e- laptop , i-phone , etc because these products have high cost .due to this customer might afraid of purchasing such high cost product hence for providing convience companies started refurbishment. Now a days this technique is well esrablished in US market.
The two major branches of refurbished products are Organized refurbished & Unorganized refurbished
1)The Organized refurbished typically comes from the brand where the brand get the default units repaired through a dedicated process and put a seal on the product stating clearly about the condition of the product. Sometimes these products carry Limited Brand Warranty too.
2)The Unorganized refurbished typically are those products which are repaired by local retailers 7without dedicated expertise. Usually these products carry seller warranty