Chimorel

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Pricing Matrix

May have value, if they work

Laptops 
PCs: desktops, towers – 3 yrs or less 
Software – retail packaged or sealed 
Cell phones – 2 yrs or less 
Photographic / Video Equipment

We must determine items actually work to have
value,
but accept donations without testing

Will Incur a Disposal Fee

$7-28 / hard drive wiped 
$25-50 / large low value item – you help 
$50-100/ large low value item with our helper
$3-7/flat screen monitor/TV

CRT TV/Monitor
We no longer accept CRT TVs/Monitors

Donated & Dropped Off / 
20+ items Donated & Picked Up

     All eWaste – printers, faxes, scanners, copiers, UPS (small/mid size), hubs, routers, switches, cords, cables, boards, older computers, network and test equipment, telephones, stereos, older cell phones, game players, tape players, microwaves, small appliances. 
   Essentially anything with a cord or battery operated that can be picked up by one person. 
   We also recycle toner cartridges and other electronic accessories. We accept large appliances, but charge a fee to pick up: stoves, refrigerators, air conditioners, etc.
   When asked, we will render hard drives inoperable without charge. See above for fees to wipe hard drives.

Recycle Computers

Call 614-885-0000
To schedule an appointment, to get directions or to clarify costs / value.

Risks of Disposal | Donate Computers| Potential Disposal Costs
What Happens to Our Computers?

       Chimorel is committed to safely disposing of your computers and other electronic equipment. Depending on (a) the quantity and residual value of the equipment you wish to dispose, (b) the services you need and (c) how involved you want to be in the process, we may …

… charge a disposal fee 
… work with you to reduce disposal costs 
… arrange for deductible donation of your equipment 
… share part of the re-marketed value 

 

       The most important element in disposing of your electronic equipment is to eliminate risks which could result in thousands, even millions of dollars, in risk exposure if this equipment is not properly disposed of. 
         In the screens that follow are a wealth of information, which may be time consuming to explore in full detail. It may be helpful, but is not necessary, for you to take the time to review all the information available. Explore as much as you want, until you are comfortable that we can meet your needs. 
       Then call 614-885-0000 or send an email to Contact Us. You can review our pricing matrix or just contact us and we will help you find the least cost solution for disposing of your electronic systems

Yes, that’s Warren moving a load of computers. Many of the pictures below come from 
our recycling efforts. Some are from stock computer recycling images.
Risks of Improper Disposal

      Privacy Issues: Your computers may contain trade secrets, confidential customer information or other sensitive data. In the wrong hands this sensitive information could cost you thousands / millions in lawsuits, lost business and other privacy risks. 
      Environmental Risk: The EPA has classified electronic equipment as hazardous waste. Improper disposal of computers, peripherals and other electronic waste can incur significant fines and penalties. 
      Software Liability: There are specific requirements for transferring the proprietary software on your computers. Software left on computers you dispose of could incur significant fines if not transferred properly. In addition, you may have created your own software programs, which you do not want in the hands of competitors or others. 
       Other Risks: Many other risks lurk just around the corner. Perhaps the next most significant risks might be (a) the hidden costs of managing your own asset disposal when this is not your full-time business, (b) working with a disposal company who tells you disposing of computers is “free” and (c) timing or obsolescence.

Privacy Issues

       If all you do is Format C: your hard drives could still contain sensitive data. Wiping hard drives to protect your trade secrets, customer data and other sensitive information has become standard practice. 
       You can wipe your hard drives in-house or Chimorel will provide this service for you at a fraction of the cost to do it yourself. We will dprovide a certified wipe for $21-$28/computer, depending on volume. this gives you an electronic certification of the wipe. For 7-$10 we will wipe the drives and provide non-certified documentation of the wipes.  
       Chimorel’s data removal process is Hipa or DOD Compliant as requested.  What ever your needs are, we can make sure your sensitive data is destroyed. We will make your hard drive inoperable at no charge on your request.

Environmental Risk

       Chimorel is committed to environmentally sound recycling of everything we process. Our Landfill Policy has been designed to dramatically reduce disposal in landfills. We encourage you to join us in keeping items which can be reused or recycled from landfill disposal. In addition to real environmental issues, there are significant costs of landfill disposal you may want to be aware of.  In Franklin County, OH, it costs over $1 million to prepare one acre of landfill to receive your garbage. In approximately 70 years the covering material will begin to leak exposing the toxins in the landfill to nearby water sources. 
       Electronic equipment contains hazardous materials like Plastics, Lead, Aluminum, Germanium, Gallium, Barium, Tantalum, Indium, Vanadium, Terbium, Beryllium, Europium, Titanium, Ruthenium, Cobalt, Palladium, Manganese, Silver, Antinomy, Bismuth, Chromium, Cadmium, Selenium, Niobium, Yttrium, Rhodium, Platinum, Mercury, Arsenic, Silica and other substances which can have serious environmental consequences. 
      Chimorel wants to keep these materials out of landfills. We want to avoid other unsafe practices. And we want to use these materials to create training experiences, jobs and business opportunities. 
       We strongly suggest you do not store electronic waste outside. If you partially dismantle computers, the parts need to be handled properly and not accidentally dumped into your waste stream. 
       As Chimorel identifies potential downstream vendors we ask questions and pay attention. We have stopped using several vendors who did not share our concern for the environment.

Software Liability

      Assuming the software on your computers was acquired through regular vendor channels, you typically have a legal license to use rather than ownership of the software. 
       This carries a potential risk when donating computers. If the license is not properly transferred (meaning the disk/CD, all manuals and actual license is given to the donee) with the donated computer, then the charity could be using an illegal version of your software and you may be found to have participated in their illegal use of your software. 
       This is a particular problem when legal software is installed, then the CD, manuals or license ends up in a drawer, file cabinet or box never to be seen again.  It is also a problem when you use enterprise software and never receive manuals, etc. At $5000+/incident for a donation of say 25 computers, each with perhaps five software programs installed, the risk is substantial. Chimorel can help. Ask us about our software storage program and see Privacy Issues above for a brief discussion of wiping hard drives. 
        You should be aware that the license for the operating system goes with the computer, but all other licenses generally do not. Additional problems occur when the operating system is removed as part of wiping hard drives. First, you may be retaining a license that no longer belongs to you, once the computer is disposed of. Second, a new operating system must be acquired and installed by the donee in order to use the donated machine. 
       The exposure to incidental software piracy on re-marketed computers is similar to that with donated computers, but there is a difference. If you donate computers to a charity, you probably know who you gave the computers to and can probably correct the situation by removing the software or legally transferring the appropriate licenses. If software remains on a re-marketed computer, on the other hand, you may have no idea as to who received your computer. You probably can’t correct the situation and you have no control if they make and distribute other illegal copies of your software from the machine they acquire. You potentially could be exposed to hundreds of illegal copies from your original license. At $5000+/copy the risk is not insignificant. 
       You may have developed your own proprietary software. If this software remains on a machine you dispose of, you may be revealing trade secrets or other information which could reduce your competitive advantage and have a major impact on your marketing capabilities.

Other Risks

       Can we manage our own disposal? / Hidden Basic Costs – Another Risk: You certainly can manage your own disposal; however, if disposing of computers and other electronic equipment is not your full-time business, you may want to be aware of the hidden costs of doing so. There are those who claim that in-house disposal can cost $400 or more per computer. We suspect this might be a bit of an exageration; nevertheless, under Potential Disposal Costs we take a little time to review some of the costs you might want to consider:

  • Administrative Tasks: Inventory, forms, accounting, etc.
  • Backing up and sanitizing hard drives.
  • Storage costs until computers are removed.
  • Packing and shipping.
  • Disposal fee

      In addition, there are the costs of marketing your computers, opportunity costs and the costs of obsolescence or timing. You will want to consider the Total Cost of Ownership of your equipment. If you decide to host your own sale, donate your computers to charity, sell your computers to your employees or use other in-house marketing strategies, you may want to consider some of the following hidden costs:

  • Host sale: pricing, setting up sale area, answering questions.
  • Finding a charity that will accept your PCs.
  • Setting up an employee purchase program.
  • Reloading operating systems and other software.
  • Upgrading PCs to meet new user requirements.
  • Technical support – immediate and ongoing.
  • Testing PCs before the sale.
  • Processing payments.
  • Preparing transfer documents.
  • Opportunity costs – can you use the time spent more profitably?
  • Obsolescence – 6-10%/mo possible reduction in value.

Under Potential Costs, we review these costs in greater detail.

What Happens to Our Computers?

          When Systems Have Value:  If a donated computer has value, it is sold or distributed to a program designed to achieve a specific objective. See Recycling Stories above for examples. When a donated computer is sold, the proceeds are used (1) to cover the pick up and processing costs; (2) to implement a program such as those indicated under Recycling Stories; (3) to make computers available on a “cost recovery basis” to schools, churches, nonprofit groups, and startup businesses; (4) to employ resource developers and assist affiliate nonprofit groups; and (5) to fund other Chimorel programs and administrative costs. 
        If you have 50 or more systems which have value, we can agree to share part of the re-market value with you, after allowing for pick up and processing costs. Systems may be re-marketed on both a wholesale and retail basis. If desired we will work with you to re-market systems to your employees or manage distribution to charities you are concerned about. 
       Once you become a member (donated value of $250, $500, $2100+ depending on membership) you have a Recommendation Privilege. Of course, if you choose to donate your computers instead of receive part of the re-market value you receive a tax deduction. We will manage the safe disposal so you avoid future liability. We will even give you a disposal certificate on request. And we will manage your donation to a specific charity. 
       If you have 20-50 systems, we will work with you to keep your disposal costs as low as possible. We suggest you donate these systems. You may want to review our pricing matrix to begin to evaluate the best way to achieve maximum value / the most cost effective way to dispose of your systems. 
        If you have less than twenty systems we suggest you drop them off. We might expect a small fee of say $25 to pick items up for you. 
        Laptops typically have a re-market value (dead or alive). We appreciate your donations and will make arrangements to pick up laptops or when appropriate might pay shipping costs. We might share re-marketing revenue for working laptops (which have operating system and office licenses) with you.

       50 or More Computers (potential remarket value of $1250+/- to you): A typical computer system we would re-market, consists of the box (CPU), monitor, CD-ROM, Fax Modem, sound card, keyboard, mouse, cables, Operating System and Office program, delivery & setup, plus a brief training program. Computers of this nature might sell for $50+/-. A full training program plus a computer would be higher depending on the course provided. 
       This means that your computer donation might be re-marketed for $150 as received before being upgraded. You would receive $25 to $50 if it came with an operating system, modem, sound card, keyboard, mouse and cables. You could receive more if it came with additional licensed software. For 50 to 100 computers you might receive a re-market value of perhaps $1250 to $2500, if you participated in the process.

       When Systems Have Little Value:  Remember the times before Pentium computers, hi-speed graphics, games, and complex equations? Those old computers did a lot of work, even with their limitations. If they still work, older computers can still be used to teach typing and beginning computer skills. They can become cash registers in small stores. They can be part of computer repair training programs. These uses may not generate a lot of revenue, but they are significantly better than being thrown in a landfill and sometimes are better than being parted out or recycled. 
        Parting out or de-manufacturing can be labor intensive, but Chimorel has developed and continues to develop systems to make this a viable option. Usable parts can be shelved for future repairs or re-marketed to repair centers, brokers, part depots, etc.  Damaged, broken or obsolete equipment is recycled for the materials according to our strict No Landfill policy. Typically, this de-manufacturing and recycling is done locally. 
       Our current volume is relatively small. We are more likely to recycle components and materials with down stream vendors than to re-market computer systems when the volume is small; however, we have in the past and can in the future re-market large quantities of computers as we develop the right relationships and supportive structures. 

       Why Donate Computers? Millions of computers are discarded every year. Computer junkyards grow in cubicles, offices, back rooms and warehouses in thousands of companies. Every time you see one of these junk yards growing, Contact Us and let us know whom to contact. 
       One day someone begins to realize that the 50 computer systems in the cubicles next to you are taking space needed by new staff members and it is decision time. Yes, 50 systems originally cost a little over $100,000, but what do you think they are worth today? There are those who will tell you that it costs more than $400 to dispose of each system in-house. That’s another $20,000 before the cubicles are cleared. Ouch!!! 
          Thousands of people with disabilities, as well as, hundreds of schools, churches and nonprofit organizations struggle to get by with aging equipment or do without computers entirely. Many small business startups can’t afford new computer equipment along with other startup costs. There is a better way. 
       One of the best ways to clear out the computer junkyard growing in your business is to Contact Us indicating you would like to donate your computers. 

      What Can You Donate? See our Pricing Matrix above. You can essentially donate any electronic item, but in some cases we will charge a disposal fee. 
      It is important to note that CRT (cathode ray tube) monitors and TVs have lead glass, which is a toxic substance. We would prefer not to receive these items, but will dispose of them for a hefty fee. Please tell us if they work. We provide working items to nonprofit recipients, but still charge a disposal fee to cover the cost of ultimate disposal. Homeowners and businesses in Columbus can call 311 for a possible bulk pick up of CRT items and can drop off CRTs for approximately $20 each.

      Chimorel Programs: Donating your computers to Chimorel enables us to develop many other programs. Chimorel can work with you to set up recycling of non electronic waste, office cleaning, inventory management, software security, asset acquisition and related asset management programs.
       Chimorel has a Cooperative Effort program designed to support you as you build your business. Through our Business Development Program we can put you in touch with consultants who provide a variety of services. 
      Chimorel works with individuals, businesses and nonprofit groups to solve problems and achieve goals. Under the yellow Chimorel link above, you can explore many programs designed to achieve this mission.

       Recommendation Privilege:  Your Recommendation Privilege entitles you to allocate 50% of your donation, of the funds you raise and of Chimorel Bucks you earn to one of the following committees: Client Assistance, Education & Employment, Business Incubation or Nonprofit Development. 
       This means that your donated computers could (1) help an employee pay off a large hospital bill or (2) help another employee get an education or (3) support a favorite charity or (4) accomplish many other objectives. You might discover that the combination of your donation and Recommendation Privilege will have a greater value to your organization than the re-market value you might receive.

       Tax Deduction, Safe Disposal & Charitable Donations:  Chimorel Services Inc is a 501(c)(3) charity recognized by the Internal Revenue Service. Our IRS Letter of Determination is posted under the yellow Chimorel link/Compliance. Many companies like to support worthwhile causes by giving computers and other assets to charity and don’t mind getting a tax deduction in the process. It is important to realize that giving to just any charity carries certain risks and may incur additional costs as previously noted. 
       At Chimorel we solve both the risk and additional cost problems for you. We operate much like a for profit disposal company would. Once your donation is received, the risk stops at our door. We manage the safe disposal of your computers. At your request for a small fee (you agree to in advance) we can wipe your hard drives according to HIPA or DOD standards. We will certify the safe disposal of your computers, just like other responsible vendors might do. 
       If you have already given computers to charity, you probably know about staff time to wipe hard drives and/or remove proprietary software. You may have taken the time to deliver the computers to the charity and set the systems up. You may have spent time teaching the charity’s staff how to use the computers. Then the charity may have called you to come back when something didn’t work or what you gave them didn’t meet what they were trying to do. Your donation of 25 computers may actually cost you more than $5000 real money by the time you’re done. 
       Your donation to Chimorel solves all that. And if you want to specify the charity which will finally get your computers, we can work that out for a reasonable fee (much less than $5000).

Downstream Vendors

      As we begin to establish a relationship with a new downstream vendor, we will ask a few questions then keep our eyes open. We have stopped using several vendors when their disposal practices did not meet our standards.  As our volume grows, we might ask you to complete a comprehensive due diligence review. We will be happy to work with you to develop the most efficient system possible to process and recover parts and materials. Warren is a business consultant and coach. You may find his services very helpful. 
       Eventually, you may agree to a tough contract which carries stiff penalties for improper disposal. We will work with you to maximize your return, but seek to avoid toxifying the environment. We may partner with you. 

Due Diligence 
       We believe in an ongoing due diligence process and will start by asking a few questions like: “What is the final destination for the material we send you?” “Is anything you dispose of ever sent to a land fill or disposed of in a way that can negatively affect the environment.” “Who are the ultimate receivers (name, address, email, phone) of material we send to you?” “Would you be willing to develop a partner or affiliate relationship with us?” 
       If we suspect improper disposal, we might ask you to provide verifiable documentation for ultimate disposal. As our volume grows, the process could get more complex potentially moving in the direction of becoming partners or at a minimum verifying what we agree to. 
       That is enough for now. We seek to be a friendly partner, but we are genuinely concerned about the environment and intend to implement a No Landfill policy to the degree possible. 

No Landfill Policy 
         We expect that no electronic or other potentially hazardous waste will be disposed of in a manner which can cause environmental damage. Significant efforts will be made to find ways to reduce, reuse, recycle and rethink. This applies to all waste streams generated by Chimorel and those associated with Chimorel. As above, to the degree possible, we intend to pursue a No Landfill policy.

You do not need to read all this information. The intent is to enable you to understand all the potential costs you face as you dispose of your computers.
If you really want to understand, take the time to read. Otherwise, just know that there can be significant real costs that we can work with you to reduce.

Suggestions to Reduce Disposal Costs

       By working cooperatively together, we can do many things to reduce your disposal costs. We make a few suggestions here. Later we will get into many details and will be happy to schedule a time to begin to plan for your disposal needs. Two significant costs are (1) Pick up costs and (2) Processing Costs. 
    You reduce pickup costs for 20 or less items by dropping items off. You  reduce processing costs when you donate working computers that (a) already have an operating system and office program and (b) already have sensitive data removed from the hard drive remaining in the computer. When you drop off donated computers ready for re-marketing, we can waive all disposal charges. If your computers have value, we also waive disposal charges. 
        If you want us to pick donations up, wipe hard drives, remove identifying labels, record serial numbers and handle other processing tasks, we may ask for a cash contribution or require a disposal charge to cover these costs. 
       If you have large quantities of similar items we can work with you to keep your total disposal costs as low as possible. Sometimes this will be free. Sometimes we can agree to pay you for large quantities of items with real value.  If your technicians can volunteer to help train students, rebuild systems and help with other processing tasks, this can also help us reduce your disposal costs.

Potential Disposal Costs

     There are those who have valued the hidden costs of managing your own asset disposal program at over $400/pc system. 
 Did you say computer disposal could cost $400/ computer? Well, not exactly. What we said was there are those who have valued the hidden costs of managing your own asset disposal at over $400/computer. 
      Years ago Gartner Research reported that in-house computer disposal “presents unique challenges and potential costs that enterprises seldom consider.” A current search did not quickly uncover a similar statement. 
       At about the same time PC Disposal indicated that when a company tries to manage its own in-house retirement, the costs can exceed $400 per computer. A current search did not uncover a similar statement. 
    We suspect these estimates could be a bit of an overstatement, but we want to share with you the way this very high cost can be calculated. Whether or not this is an overstatement the discussion that follows gives you a way to estimate the potential costs of doing your own computer disposal. There are basic costs and other potential costs.
       If you have time, lets take a closer look at some of these costs and learn where we can work together to reduce these costs for you. If you are busy, you might not want to read all the detail, but you could get a warm-fuzzy feeling knowing its available and we have systems to reduce your costs.

Basic Costs

Free Disposal 
       If you are looking to develop a long term relationship with someone who can safely manage the disposal of your electronic waste and more, “free” probably is not free.  There are real costs involved in picking up and processing electronic wastes safely. Somehow these costs must be paid or your vendor won’t be in business the next time you need them. 
        If your equipment has value, the costs can be offset by this value. In a sense this is “free.” For many items this is how Chimorel manages its computer disposal and in some circumstances Chimorel might share part of the value with you. Don’t get caught in the trap of paying to dispose of something that has value, unless you want to help a nonprofit organization that will do something to benefit others with your computers. Chimorel is a nonprofit and we do many things to benefit others. 
        On the other hand, if you keep your machines as long as possible squeezing the last ounce of life from them, you have gotten your value. Now find out how to pay the least cost to safely dispose of your equipment and not be exposed to the privacy/security, environmental, software and other risks. 
       Disposing of computers safely is labor intensive (pick up and transportation, asset tag removal, cleaning hard drives, EPA compliance, recording serial numbers, etc.). If a disposal company can only sell 20% of your computers (not far fetched – obsolescence, glut of used computers) they would loose money on 80% of your computers. Rather than loose money your computers could be land filled opening the door to identity thieves, environmentalists and privacy watchdogs. One of the most common reasons a company looks for a new vendor is because, “we had a few privacy problems.” If your disposal is “free,” you can be 100% sure that problems will surface at some point. 
        Instead of free, some computer recyclers offer a very low initial bid with a few charges that can’t be quoted exactly until the work is completed. When you receive the final bill excessive shipping charges, small print fees and handling turn your low bidder into an outrageously high bidder, but now you have a signed contract to deal with. 
        Of course, you can keep switching and hoping, but we suggest that developing a long term relationship with a firm that actively works with you to reduce costs will be much safer and more cost effective. 

Timing & Obsolescence 
       When Is the Best Time to Dispose of E-waste? The best time to dispose of computers and other electronic equipment is immediately after it has been fully written off or determined to be obsolete for your needs. Depending on your acquisition schedule and accounting practices, this typically has been every 3-5 years for computers, but as prices are dropping more and more companies are trading out their computers every 2-3 years. After four years the re-marketing value for computers tends to drop rapidly. For monitors the time frame is slightly longer, perhaps 5-7 years, but with flat screens many companies are trading out regardless of when the monitors were acquired. And today CRT monitors contain a hazardous material (lead glass) so they cost to dispose of them. 
    The Total Cost of Ownership (TCO) encompasses the entire equipment life cycle – from planning and acquisition, through inventory management, to disposal. If you are not already managing your assets on a TCO basis, we encourage you to begin soon. Chimorel can help with the entire process. 
        Timely resale or donation of your equipment through Chimorel can help your business be more competitive, while managing environmental and privacy / security risks and eliminating disposal headaches. Stored/ unused IT equipment can lose as much as 3-10% of its value each month, while it sits taking up valuable space you may need for other purposes. We calculate: Loss of value each month & cost of space under Storage Costs.

Administrative Tasks 
       The most obvious administrative cost in disposing of assets is identifying which assets are being disposed of. Usually this is done by recording serial numbers, manufacturer, model number, type of asset and perhaps some other information. Some of the other information might include your asset tag number, software on a machine, details of a machine’s configuration and more. 
        The best way to record this information is to use an existing database, check off the asset and transfer this information electronically for your and our use. We can work with you to develop a check off database at the time of equipment acquisition, if you would like. 
        I remember the time when we recorded the information needed by a large medical system. It took one person about ten hours to record the information for 400+ PCs, using a system where all similar machines were grouped together. To record the same information with machines in random order in different locations could increase the recording time to 20, even 40 hours. Factors which might influence the time involved might include location, light conditions, recording by hand or to a laptop and other conditions. 
        Using the checkoff method described can reduce the time to less than two hours. What is the value of the person’s time doing the recording? $10/hr? $15/hr? $20/hr? $30/hr? Depending on your benefit and training costs, your actual cost/hr might be 10% to 50% more or $11 to $45/hr. If you have to pay overtime the actual cost could range from $11 to 60/hr. Calculate: Hourly cost to record. Realize that you could incur this cost at both the time of acquisition and at the time of disposal, if you don’t have an appropriate system in place. 
       Using a range of $11-60/hr and 2-40 hours, the time to record the data might cost from $22 to $2400. The cost per computer might range from 5.5 cents to $6. If you were disposing of a computer and a monitor, the cost might range from 11 cents to $12 per system. If you need to monitor software on your PCs or record other information, the cost to record serial numbers could climb to approximately $15 per system, not $400 yet, but we are on our way. We will record serial numbers and a limited amount of additional data for $.77/system or teach you how to keep your recording costs even lower for a modest consulting fee. 
       Once you have identified which assets are being disposed of, you need to update your accounting system. This cost could range from a few cents to over $2/system depending on many factors which we won’t detail. If you would like Chimorel to help you reduce these costs, we will have one of our consultants work with you. 
       If you want to be sure no one can track a machine back to you, all asset tags and other identifying labels need to be removed. This may take a few seconds to perhaps five minutes per item depending on the number and type of labels. It is to your advantage to establish only one ID tag which contains a barcode per system. If you need other information, like routing #s, include it on the tag or in your database and read it from a portable PC with a scanner. 
        When trying to remove tags, you can heat them with a hair dryer and remove them (in seconds) with a screwdriver and needle nose pliers. You may be able to clean 10-50 PCs per hour. Using $10-30/hr, this would establish a range of 20 cents to $3/ item or 40 cents to $6/system. We can work with you to establish a barcode inventory system tracked in your database, which minimizes the need to remove labels and makes label removal efficient. 
       You may have other administrative needs. By now you may be getting the idea that our systems to help people solve problems and achieve goals extends down to the smallest details. Once again, whatever the need, we’ll be happy to support you. To keep the amount of reading down, we focus primarily on the high cost/computer. At this point our high running total would be $23/computer (record data $15, update accounting $2, remove labels $6). Note: we have not considered  “free” or obsolescence.

Administrative Best Practice Notes
      Record Serial Numbers:  Develop a database which tracks all data needed at the time of acquisition. Identify the items to be retired. Create a spreadsheet of items with data needed. Use the spreadsheet to pull the items. Send email to accounting and to Chimorel. Serial numbers are automatically part of this system. 
    Update Accounting System: Use above spreadsheet to total categories. Update accounting with category totals.
        Remove Asset Tags: Have only one barcoded tag in the same place on all equipment. Scan as needed for all uses tracked in database. If the tag has no company identifying info, removal is not needed. If tag has company identity remove with hairdryer, screwdriver and needlenose pliers. Better yet use tags that can be easily removed. 
      Other Tasks: To be devised as tasks are determined.

Backup / Sanitize Hard Drives 
       If you are not already backing up your computers, you should begin to do so soon. If you are backing up regularly, all you need to do is verify the computers you are taking out of service are backed up. No real cost involved. 
        Sanitizing or wiping your hard drives may be much more of an issue. If you are not overly concerned about privacy issues, you can just delete any data on your machine leaving the operating system and software intact. In this circumstance we will work with you to be sure you transfer any unneeded software legally. 
       The best way to transfer software legally is to use our Software Storage Protection Program. Transferring unneeded software legally makes a machine more valuable and can give you maximum re-marketing value with minimal cost and liability. Deleting data in-house may cost you from essentially nothing to perhaps $5+/computer depending on how your computers and data are configured. Storing your data on a server instead of on the actual computers usually reduces the cost and risk of deleting data. 
       You should be concerned about privacy issues. The next level up is to format your hard drives and replace the operating system and any unneeded software. If you have only a few machines, it may be easiest to just reload the appropriate software. If you are disposing of many similar machines, you can replace the operating system and other software with a ghosting procedure. Depending on the cost and availability of your staff you may find it more cost efficient for us to provide this service for you. Formatting and replacing software in-house may cost you from 50 cents to $10/computer. 
        Formatting a hard drive is less secure than writing 0s and 1s to your drive. There are many programs which will perform this operation. Most of the programs have a limit on the number of times they can be used. You could, for example, pay $39 for permission to use a program 20 times for a cost of almost $2/wipe. Some machines are configured so that a wipe does not work, thus increasing the cost/wipe if you are not aware of the effect of a machine’s configuration. If it takes 15 minutes/wipe, using our high cost/hr of $60 this could mean as much as $17/computer (15+2) to wipe hard drives one time. 
       If you need to meet HIPAA standards (hospital/medical center=3 wipes) or DOD standards (bank or financial institution=7 wipes) the time per machine to wipe a hard drive might increase to 30 minutes or an hour. This would mean a high cost/computer of $32 or $62 respectively. 
      Some respected authorities say that writing zeros and ones one time is all you need. A good many other authorities say it doesn’t matter how many times you wipe a hard drive some hackers may still be able to find an image and retrieve your data. If you want to be sure no one ever gets to your data, degauss your hard drives (fry them with a strong magnet) then grind them up to 1/4″ pieces or smaller. 
       In order to have a re-marketable computer at this point, it would be necessary to replace the hard drive, which could cost $40+, in addition to approximately $15 in labor per computer or $65+ at the high end. 
        Our high running total at this point would be $88/computer (65+23).

Software Storage Protection Program 
       When you buy new software in packages, rather than downloading using a bulk licensing, Chimorel can help you inventory and then provide off-site storage for your software. Although we are not currently doing this for other companies, we can implement a program for you if you have a large quantity of software to store.

Software & Data Best Practice Notes
      Backup System:
You should already be backing up data, preferably from a server. Verify backup requirements for items being retired. If you are not backing up consistently, we will work with you to develop a backup system. 
      Determine Security Needs: (a) Identify and retain software and data as required, then delete data. (b) Format C:, then replace with ghosting system. (c) Single wipe. Ghost. (d) Hipaa wipe. Ghost. (e) DOD wipe. Ghost. (f) Destroy hard drive. If all data is retained on a server, separate from the computers, lower security requirements are feasible. Health organizations need to be HIPAA compliant. Financial and others may need to meet DOD requirements. 
      Wipe Drive: Depending on the security requirements perform the type of wipe required. If your technicians cost $18/hr or more plus benefits, or if you pay for wiping software which has a limited number of uses, Chimorel is likely to be a better alternative to wipe drives. 
      Destroy hard drive: If your security requirements mean the hard drive must be destroyed, you essentially create a machine without value because the cost of replacing a hard drive typically is more than the value available to you. In this case a straight donation to Chimorel is the best option and we will part out the equipment.
    Software Storage: Best practice is to store software and documentation offsite. Tie the software to a database which tracks computers by asset tag.

Storage Costs 
      Storage costs involve both the space/labor costs of storing your computers and obsolescence. Your space/labor costs will vary widely depending on sqft rental, building depreciation, hourly costs of labor to move, how many times you move your equipment before it is disposed of, how long you store your equipment, overhead allocated to storage space (insurance, utilities, etc.) and similar costs. The per item cost might range from less than $2 to $50+. 
        Obsolescence may range from under 6% to over 10%/mo. If an item is worth $100 today, it might be worth approximately $48 to $65 six months from now. Once an electronic item is over six years old it typically has a negative value. That is it will cost you money to dispose of it safely. For our purposes here we will set the high cost of obsolescence at 52% of the worth of an item or $52 for a $100 item stored for six months. Obviously, if an item is worth more than $100 or it is stored for longer than six months the obsolescence cost would be more than $52. 
       We estimate high storage costs at $102 (50+52). Our running total at this point would be $192 (102+88). The cost of storage, including obsolescence, is one of the more significant hidden costs involved in managing your PC disposal. This cost, however, will be there whether you manage your own disposal or have someone else do it for you. The important decision here is to dispose of your equipment as soon as it is no longer useful.

Packing and Shipping 
       Packing and shipping costs will also vary considerably. It might cost you $27 for the labor and supplies to stack and wrap 45 monitors on a pallet. You may be able to ship ten pallets on a semi-truck for $2000 or less. Your packing and shipping costs in this case might be approximately $5/monitor. It might cost you $45+/item to pack and ship one item at a time. You could put the items in your van and deliver them personally on the way home and consider your costs as no cost. 
        It is not to your advantage to pay individual shipping costs to gather items in one spot, then pay to bulk ship the items again. If you have no better alternative, individually ship directly to your disposal firm. 
        We will consider $45/item as your high cost, but you should not allow yourself to slip into this wasteful pattern. Our running total at this point is $237 (192+45).

Disposal Fee 
       Even if you decide to manage your own disposal, it is not unlikely for you to find that 60-80% of your equipment is not successfully re-marketed. At that point what do you do with the remaining items. Your choices essentially are to put the items in the trash or call a disposal company. 
        Each time you fill up a dumpster it will cost you from $50 to $200+ to have it emptied. Six unbroken cardboard boxes can fill up an average dumpster. Approximately 25 computer systems will fill up an average dumpster. Your cost to throw out a system might range from $1 to $4 per item. Then there are the environmental and possibly the privacy and software risks to consider. 
       Depending on the disposal company, your costs might range from under $10 to over $50 per item. There are many disposal companies who will take your items for $22+. We will use $18 as our high cost. This accounts for those items you successfully re-marketed. Our running total at this point would be $255 (18+237). $400+/PC is beginning to look realistic!

Other Potential Costs

Marketing Costs, Testing PCs.
Host Sale
, Find a Charity, Opportunity Costs

Marketing Costs 
       If you decide to manage your own disposal, you will get the highest value by selling your computers one at a time to individuals – your employees and their families, the general public or small businesses. 
        Although you will get the greatest value, it may also be very time consuming, require significant other resources and can be a major distraction from your primary business. Doing your own marketing or disposal will require you to test your PCs and other equipment, to host a sale or perhaps find a charity.

Testing PCs before the sale 
       There is a significant cost involved in preparing your equipment for re-sale. Part of this cost we have already discussed under Administration and Backup/Sanitizing. If you are going to re-sell your computers, you must clean hard drives. You should remove labels and tags. You should also clean up your machines, removing marks dirt, etc. 
        You should open up each PC and blow out the dust. You can get a small air compressor for this purpose. When a PC is sold you no longer have a right to the operating system for that PC, which means the operating system needs to be reloaded after the machine’s hard drive has been wiped. You will get the most value when you also have additional software, minimum an office program. There are free and very low cost office programs available. It will take time to load this software. 
       If you sell a computer that does not work or that has operational problems, your reputation will be damaged, not only for the items sold but potentially for your primary business as well. This means that you need to run certain tests to be sure your equipment will not create unhappy customers. The equipment and software to conduct these tests can be a few thousand dollars, but if you have an IT department, you may already have this equipment and software. 
        Preparing a PC for resale may require upgrading your equipment with things like more memory, a CD, a sound card, software and other items. 
        In estimating the costs involved, you may have certain costs for things like an air compressor, software and other equipment; but your primary cost will be labor. We return to our high cost of $60/hr. Preparing one PC for resale may take from 20 minutes to two hours, depending on how much you do. This suggests a high end range of $20 to $120/PC. If you add additional hardware, software, testing equipment, etc. you might have another $20 to $80+ involved. It is unlikely you would spend $200 each to prepare a lot of PCs, but you very well could have $50+ involved. At this point our high cost running total would be $305 (50+255).

Host sale 
       There are also potential significant costs in preparing for the actual sale. If you sell directly to your employees, you may need to prepare a catalogue or at least a price list. You may need to take pictures. You will want to send emails to all your employees. Let’s say one employee spends one week preparing for the sale. You actually sell 240 out of 300 items available. $60 for 40 hours is $2400 at the high end or $10/item. Then an employee spends another week, collecting money, filling out forms, making arrangements to deliver systems and answering questions or another $10/item. Consider your self lucky. Marketing costs can easily range from $25 to $50/system sold and you still have perhaps 60 items left to dispose of. 
       You could hold an auction. You may have costs for staff time to prepare the sale, advertising, an auctioneer’s 6-20% and perhaps a few other costs. You could have a public sale. Again you have costs for staff time, perhaps food, space to hold the sale, tables, advertising, cash registers, credit card processing and perhaps a few other costs. 
        Generally marketing costs will range from 10-25+% of the sales price. We estimate $25-$50 per system. At this point our high running total is $355 (305+50). There are many ways to reduce this high running total. We suspect that real costs of over $400/PC to manage your own disposal may be a little overstated. Nevertheless, there are real costs that can be reduced or avoided by timely disposal of your equipment with Chimorel. We still have finding a charity and opportunity costs to consider.

Finding a Charity 
       The hidden cost of finding a charity are somewhat subtle and easy to overlook. You obviously have staff time involved in finding and evaluating one or more charities. Then come other costs that may never be recognized. 
        Many very worthwhile charities are somewhat technically challenged. They will ask you to help them set up their donated equipment. When something doesn’t work, you may become their IT department. “Could you teach our staff how to use this please?” “We need a donation to buy the software we need.” There is nothing wrong with getting actively involved with great causes. We encourage you to do so. But, as you do, recognize that you might easily invest $25 to $100 per PC in time and in other ways. Sometimes the time will be volunteered by your staff, so the cost may not affect your bottom line. 
       If we went with the high cost suggested, we would be over $400/PC. $405 (305+100). Once again, this seems a little overstated. We haven’t considered opportunity costs yet. This significant potential cost might take the total significantly over $405.

Opportunity Costs 
       Opportunity costs are probably the most significant hidden cost you might incur. If the time you spent managing the disposal of say 1000 PCs could have resulted in a $1,000,000+ opportunity, your cost is $1000+ per PC. 
        The problem with Opportunity Costs is you probably don’t know what opportunities you miss by doing something less productive.
      We have demonstrated how a potential cost of more than $405/pc is possible and we have not considered potential costs like “free”, obsolescence, loss of space and opportunity costs. $400 is not the issue. The real issue is that you can reduce these potential costs by donating to and working with Chimorel.