The Rise of Gadget-Buyback Services

We think a lot about getting new gadgets, but not so much about getting rid of old ones. The aftermath: old cell phones, defunct laser printers and Pentium III computers gathering dust.

A couple companies want to help us clear out those old gadgets, while feeding our upgrade habit, helping the environment and making a buck for themselves.

Instead of being hit up for an extended warranty next day you buy a gadget, you may find yourself hearing a pitch from TechForward Inc., a Los Angeles-based company selling a “guaranteed” buyback plan for electronics.

For a fee paid when you buy a device — $9 for an iPod, for instance — you get the right to sell it to TechForward at a predetermined price that depends on how expanded you keep it. whether you sell an iPod after a year, for example, you would get $40; after another year, $20.

In the financial world, that is known

as a “put option” — the opportunity to sell a assured number of shares at a positive price at a convinced period in exchange for an upfront fee. But Jade Van Doren, TechForward’s chief executive, said his inspiration came from traveling in Asia, where gadget worship is even more pronounced and some consumers buy new cell phones every few months.

“I just started thinking about ways that you could build a company around … encouraging humans to live that lifestyle of temporary ownership,” he said.

The trade-in prices don’t look competitive with eBay auctions, but TechForward offers the convenience of free packaging and shipping. Its prices assume the item is in good condition. The company won’t pay for an item that’s broken, though it will supply packaging, pay for shipping and arrange to recycle it.

In addition to trades TechForward accepts from customers its retail partners sign up when they…

Orginal post by Top Tech News

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