Former Tech Data Exec Finds New Life In Used Equipment Market

Page 1 of 2

Joe Serra spent 18 years at Tech Data building relationships with the distributor’s vendor partners. So six weeks ago when he joined Network Liquidators--which buys and sells used and refurbished networking equipment--as executive vice president, it may have raised some eyebrows.

Manufacturers traditionally don’t think much of the secondary market because they don’t see any revenue, but Serra thinks his experience can help bridge the gap. A lot of what he learned as a distribution executive can apply to the used equipment market--even the relationships with vendors and solution providers.

“It’s like any other channel, where we learn to co-exist with each other. Most manufacturers understand we’re an integral part of the life-cycle management of their products, but we know we’re not going to be invited to any partner conferences,” Serra said.

Serra said Network Liquidators reminds him of Tech Data 18 years ago. “At the time, the market didn’t necessarily understand what role the distributors played or whether or not partnering with them would represent a good thing or a bad thing. What made a difference were the people, passion and accountability that went into building a value proposition that rewarded the partners that chose to participate,” Serra said.

“I see those same traits here at Network Liquidators,” he said. “And as the secondary market continues to evolve, I believe the same rewards are in store for those who chose to participate.”

Network Liquidators specializes in used networking equipment, offering one-year warranties on products from Cisco Systems, Extreme Networks, F5 and Juniper Networks. The Tampa, Fla.-based company expects $30 million in revenue this year and keeps about $50 million in inventory.

The used networking equipment space is a $1 billion market this year, and Network Liquidators counts many Fortune 100 companies as customers, said John Stafford, Network Liquidators president and COO.

“There are such massive upgrades in equipment that the greatest thing last year is completely available as used this year,” he said. “We have stuff in the warehouse that’s only been out six months. We have stuff that’s been out seven or eight years.”

Network Liquidators attempts to find a seller for used products before it buys them, which protects the company from holding inventory that nobody wants, according to Stafford.

“Everything we purchase goes through a grueling test. It has to be in good physical shape and in working condition with valid serial numbers. It has to be sellable. We are not in the fixing business,” he said, adding that the company’s return rate is less than 1 percent.

1 | 2 | Next >>

Tweet

   

More Channel Programs