FROM THE INDUSTRY
Later, it was about remarketing the kit. Reselling it involved a revenue split but for large companies, it cost them a lot of time internally to process and allocate those proceeds. So, many carriers have chosen to have us hold onto the fee in a secure account for them to use. A slush fund essentially. We came into our own during the 2008 financial crisis, a scary time. The carriers asked about asset recovery because budgets were slashed; they realised they could rely on that slush fund. It helped take the business to that next step, which was this integrated solution. Customers saw this as an advantage; they had been doing this just for CapEx reasons, but supply chain disruptions helped then release an unintended benefit of the programme, by partnering with RINCON they had some buffer inventory to attenuate the peaks and troughs of OEM supply. Their partnership gave them flexibility; they might resell not quite as much one month and redeploy more of these assets because they can’t get them new from the OEM. Or conversely, they might release more items to sell in a certain month to exploit the market dynamics on a certain platform. Every business has its challenges; what’s made you stronger? Green market hardware has been a tough sell. Customers accepting that used or surplus hardware is just as good as a new has taken time. Embracing a circular economy isn’t just good for the environment and future generations, it’s good for the bottom line. Scaling a business involved all the usual challenges but we are the proudest of how we’ve scaled the culture, because it’s a very entrepreneurial owner culture manically focused on helping our customers. You should be very proud of carving out such an impressive, original niche in a very competitive space. Thank you. Pioneers might get first rights to the land, but they also have arrows in their back, right? That’s the lesser- known part of being a pioneer. The arrows we’ve taken over the last 20 years are how we’ve built the relationships and knowledge that are incredible assets now, as we head toward the next inflection point for the business. I’ve never been more excited about the opportunity in this industry. RINCON knows how to handle the secondary market, across every aspect; legally, financially, operationally. You are positioned well for the future. I’d say so; we’re pumped about the opportunity in Europe, we see the demand there growing and we’re uniquely positioned because we have access to the supply to meet that demand. With the global mindset and the economics of green market hardware shifting and these emerging opportunities, it’s an exciting time for RINCON.
https://rincontechnology.com/
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Volume 46 No.3 September 2024
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