STRATEGIC PARTNERS
Don't just take a seller's word for it -- make sure that 'like new' ATM has been thoroughly refurbished before buying. Here's what to look for in a refurb job.
February 21, 2002
Depending upon the deployment situation, your smartest choice in equipment may be either new, refurbished or used machines. For the purpose of this article, we will assume that the situation demands a refurbished ATM and we want to be astute shoppers.
Before getting into detail, let's define what we mean by a refurbished machine, because there are more different interpretations for "refurbished" in the industry than there are for "sex" in the White House. What distinguishes a refurbished machine from a used machine is that the former should be remanufactured to a "like new" condition. The whole point is to obtain new performance, reliability and appearance for a significantly reduced investment. Buying a merely "spruced up" or repaired machine does not achieve this goal for you. There are some instances where the smart choice is a tested out as-is machine, but you shouldn't pay the refurbished price for it. The appearance part is fairly easy. The vault and top hat (upper case that houses most of the mechanisms) have been carefully cleaned, sanded or bead-blasted, and painted. The fascia is also usually replaced.< can?t you refit, didn?t they If>
What makes a machine like new is that the worn parts have been replaced or restored. Or, as I like to say, replace anything that turns or burns. Eyeballing the exterior is a good place to start. Is the monitor screen new, or is the logo from the previous owner still burned into the CRT? Is the keypad pristine, or does it bear the scars of scores of cash-hungry customers? Inside, the principal wear components are the card readers, cash dispensers and stackers, depositories, power sources and printers. A sure sign that the printer wasn't torn down is that the prior owner's paper roll is still in it. Don't laugh -- I've seen it more times than you'd guess. Elements of these components that are routinely replaced by legitimate refurbishers include picker cups, lines, tubes, ribbons, cables, cords, belts, rollers, stamp wheels, print heads, sensor lamps, gears, etc. This requires a lot of detailed work and calibration to be done right. Therefore, if the machine price is too low, you are wise to question if it is a true refurbished machine. When each component has been rebuilt, it should be calibrated and tested. Refurbishers with extensive years of experience have seen it all and often know how to "tune" the equipment better than factory specifications. When the components are done and the paint is dry, the machine is assembled to your specifications -- or should be. When you receive your machine, it should be accompanied by a report that details what was done and how the machine was configured. There should also be results from the testing of the assembled machine. Testing should include an error-free cycling through all functions, three consecutive times. In addition, the machine should've been powered up and monitored for at least 24 hours to check for overheating and other problems. Details are also the hallmark of a competent refurbisher. The safe combination should have been reset to 50 and a key (or two) provided. One of the first things people ask me is how long of a guarantee they should expect to receive. The only guarantee you need is one that your service company will accept it for service, because keeping it running is their problem and expense. Any guarantee you get beyond that is like, in my opinion, the hyped extended warranties they try to sell you with some consumer products. They're not giving you an extension of warranty. You're paying for it in spades. Any long guarantee is built into the price, so decide if you want to pay the machine seller or the servicer -- but don't pay both. I would ask the seller to simply guarantee the machine for service and then cut a year's worth of service off the price of the machine, rather than pay the premium for a year guarantee. Once again, be careful if the net price is too low, because corners may have been cut somewhere. Refurbished equipment provides you with the profitable opportunity (in the right circumstances) to save about half the required investment (or double the number of machines you get for the money). But, it's not a good deal unless the machine is truly refurbished. The author, Henry E. Dorfman, is vice president of theATM Exchange, a vendor of new ATMs, refurbished ATMs and TCDs and parts. He can be reached at 800-741-6617, extension 122 oremail himathenryd@atmex.com.