What is a Referbished Product?

Definition of a Refurbished Product

A refurbished product is one that is returned by a customer, for whatever reason, and then restored to original working condition after undergoing an intensive inspection process by qualified technicians. The refurbished product is then offered at a substantially discounted price.

In computer technology and electronics in general, refurbished refers to equipment that has been restored to like-new working condition and/or appearance or computer devices that have been sent back to the factory to fix a flaw. The term typically refers to the hardware products that have been either replaced with similar components or updated with newer technology than the device originally came with. These are typically referred to as "Refurbs".

Companies that lease computers will often refurbish the computers after they are turned in and resell the refurbished units. These are typically identified as, "Off Lease" (not "Refurbs"), and are offered at prices lower than those of new computers and/or regular refurbished units.

Buying Refurbished Products

We are always looking for great bargains, no matter what the product category. It is very hard to resist those Special Clearance sales. However, another way to save money throughout the year is to buy refurbished products. Refurbished products in many cases can be a better product purchase than a "new" unit, since it goes through much more extensive testing, and the issues were known and resolved.

What Qualifies As Refurbished?

When we think of a refurbished item, we think of something that has been opened up, torn apart, and rebuilt, like a rebuilt auto part, for instance. But, in the electronics world, it is not as obvious as to what the term "refurbished" actually means for the consumer.

An electronic or computer product can be classified as refurbished if it meets ANY of the following criteria:

1. A Customer Return

Major retailers have a 30-day return policy for their products and some consumers, for whatever reason, return products within that time period. If there is nothing wrong with the product, a retailer will just reduce the price and resell it as an open box special - still having the new product warranty. However, if the product is defective, the product is returned to the manufacturer were it is inspected and corrected, and then specially repackaged for sale as a refurbished item.

2. Shipping Damage

Product packages can be damaged in shipping, whether due to mishandling, the elements, or other factors. In most cases the product in the box is in perfect condition. However, the retailer has the option to return the damaged boxes to the manufacturer. The manufacturer, then, inspects the products and repackages them for sale. But since they were returned, they cannot be sold as new products, so they are relabeled as refurbished units.

3. Cosmetic Scratch or Dent

Sometimes, for a variety of reasons, a product may have a scratch, dent, or other form of cosmetic damage that does not affect the performance of the unit, but it does detract from the "newness" of the product. If the cosmetic defect occurred at the manufacturer, there are two options: sell the unit with its cosmetic damage visible or fix the damage by placing the internal components into a new cabinet or casing. Either way, the product qualifies as refurbished. Plus it has the added bonus that the internal mechanisms that were unaffected by the cosmetic damaged are still checked once again.

4. Demonstration Units

At the retail store level, most retailers sell their old demos off the floor, some manufacturers will take them back, inspect and/or repair them, and send them back out as refurbished units for sale (though this is less common). This may also apply to demo units used by the manufacturer at trade shows, returned by product reviewers, and internal office use. All of these are considered refurbished units.

5. Production Defect

In any assembly line production process, a specific component can show up as defective because a faulty processing chip, power supply, disc loading mechanism, or other factor. Most of the time, this is caught before the product leaves the factory, however, defects can show up after the product hits store shelves. As a result of customer returns, inoperative demos, and excessive product breakdowns within the warranty period of a specific element in the product, a manufacturer may "recall" unsold products from a specific batch or production run that either exhibits the same defect, or is expected to show this issue. When this occurs, the manufacturer can repair or upgrade all the defective and non-defective recalled units, and send them back out to retailers as refurbished units for sale.

6. Opened Box

Some times, a customer asks to see what is inside, and then decides not to buy. Realistically, there is no issue here other than the box was opened and was sent back to the manufacturer for repacking (or repacked by the retailer), the product can be considered refurbished (though not always - it depends on the degree of unpacking that occurred). This is because it required "factory" repacking, even though no refurbishing has occurred.

7. Overstock

If a retailer has an overstock of a particular item they simply reduce the price and put the item on sale or clearance. However, sometimes, when a manufacturer introduces a new model, it will "collect" the remaining stock of the older models still on store shelves and redistributes them to specific retailers for quick sale. In this case, the item can be sold either as "a special purchase" or can be labeled as refurbished.

What This Means For The Consumer

Basically, when an electronic product is shipped back to the manufacturer, for whatever reason, it is inspected, restored to original specification (if needed), tested and/or repackaged for resale, the item can no longer be sold as "new", but can only be sold as "refurbished".
It is not always clear what the exact origin or condition of a refurbished product is. It is impossible for the consumer to know what the reason is for the "refurbished" designation for a specific product. Only the factory or refurbishing center has knowledge of this issue or reason for the designation.

Therefore, taking all of the above possibilities into consideration, here are several questions you need to ask when shopping for a refurbished product.

1. Is the refurbished unit being sold by a retailer that is also authorized to sell new products? This means that you can have confidence in that reseller.

2. Does the refurbished unit have a warranty? It is always important to read the warranty carefully to avoid misunderstandings.

3. Does the retailer offer a return or exchange policy for the refurbished unit? Legitimate resellers stand behind their products, be they new or refurbished.

4. Does the retailer offer an extended service plan for the item? This doesn't mean you have to buy an extended warranty -- but whether or not they offer one indicates their degree of support for the product.

If the answer to all of these questions is positive, purchasing a refurbished product can be a very smart move. Although some refurbished products may be repaired or serviced units, it is very possible that the product merely had a minor defect during its initial production run (such as a series of defective chips, etc...) or subject to an earlier recall. However, the manufacturer can go back, repair the defect(s) and offer the units to retailers as "refurbs".

Summary

Buying a refurbished item is a great way to get a great buy on an outstanding product at a bargain price. There is no reason the label "refurbished" should cause you to hesitate. Remember, the unit has been given more attention than a traditional "new" product. And the rule of thumb for electronics is: if they run, they will likely run forever!
The most important consideration is simply that the retailer backs up the product with some sort of return policy and warranty to the extent that you feel comfortable making the purchase.