NEW PROGRAM GUARANTEES RESIDUAL VALUE OF NEW CORPORATE IT PURCHASESPlanITROI's Valuation Investment Protection program maximizes IT returns
DENVILLE, N.J., June 20, 2005 - PlanITROI, the pioneer in retired information technology asset management programs, today announced a new program that offers companies a guaranteed minimum value at end-of-life for newly purchased IT equipment. Through the Valuation Investment Protection (VIPsm) program, PlanITROI will write a purchase order when a client purchases new technology to buy it back from them at a specific minimum price up to 60 months from the original date of purchase.
The company, which has been setting lease residual values for more than 15 years for some of the leading OEM and IT leasing companies, is applying distinct industry knowledge and its unique formulas for purchase residuals to determine accurate future values of today's IT equipment now.
"For some corporations, the value of retired IT assets could be in the millions," said Paul Baum, CEO, PlanITROI. "By working with companies at the beginning, and keeping the end in mind, as they are buying new technology hardware, we can help them plan the best timeline for retirement to maximize value while setting in place a solid plan to minimize disposal costs associated with obsolete technology."
How the VIP Program Works
Through the VIP Program, PlanITROI begins helping clients at the strategic planning stage by providing advice and counsel on which IT equipment holds its value best at retirement. This enables clients to factor equipments' end-of-life value into the purchasing decision.
Once a client has decided on the specific IT equipment they intend on purchasing, PlanITROI provides a purchase order for up to 60 months from the initial date of purchase with a guaranteed price at which PlanITROI will buy the equipment back. PlanITROI arrives at this price by applying a unique formula based on its propriety data on IT residual value trends, which they have been compiling for more than 15 years, combined with the type of IT asset, manufacturer, model number, intended use, configuration and length of time the company intends to use it.
At retirement, PlanITROI will collect, audit, sanitize hard drives and process equipment to the client's specific instructions. In the end, to pay for the end-of-life services, PlanITROI will remarket the IT assets. To ensure clients get the maximum return, PlanITROI employs an exclusive revenue sharing program that provides clients a guaranteed minimum value or a pre-determined percent of the sale price, which ever is highest. The simple formula multiplies the number of units by percent revenue share or guaranteed minimum (whichever is higher) less the cost of services the client selects. The result is the client's net return, delivering in many cases significantly more money per unit than originally calculated.
"For example, if a client is considering re-outfitting a sales force with notebook computers, they may be considering offerings from Dell, IBM Lenovo and Panasonic Toughbook," explains Baum. "Based on more than 15 years of setting residual values, we can tell them immediately that if all are configured the same, the Panasonic will hold its value better than the other two, because it is built differently to withstand tougher environments. The IBM Lenovo will have the worst residual value because their future is uncertain.
"But what really sets us apart," continued Baum. "Is that we can put all the configuration details of those three potential notebooks into our valuator model and actually provide the client with a guaranteed minimum buy-back price. Now, the client can truly calculate the total cost of ownership for each computer and make the right choice for their needs."
Better Planning, Higher Returns
PlanITROI's VIP program allows companies to better plan their IT acquisition and retirement cycles and create accurate depreciation schedules based on the actual residual value of assets to help maximize returns on investment and minimize total cost of ownership.
"With our unique program, clients can eliminate uncertainty and risk around the worth of their IT investment at retirement and can effectively plan, budget and mange their IT infrastructure," said Baum. "The program also allows for an accurate depreciation schedule which will help companies plan future IT spending and avoid unwarranted capital gains taxes and stay compliant within Sarbanes-Oxley reporting regulations."
About PlanITROI
PlanITROI, the pioneer in end-of-life information technology asset management programs, helps corporations worldwide address cost, compliance and environmental issues associated with the recovery and disposition of retired IT assets. Headquartered in Denville, N.J., PlanITROI operates a unique model that offers clients data and information security; regulatory and reporting compliance; and revenue rather than expense in dealing with retired IT assets. For more information, visit: www.PlanITROI.com.
