PURCHASING A PRE-OWNED TELEPHONE SYSTEM

Taking five minutes now to read this article can save you hours of frustration (and considerable money) down the road.

Considering the purchase of a "pre-owned" telephone system? The potential savings can sometimes be significant.  Sadly, uninformed buyers often do not know the questions to ask or issues to consider when looking into acquiring a pre-owned system.  As a result, what was originally thought to be a true bargain turns quickly into a true headache.  The purpose of this article is to provide anyone considering the purchase of a pre-owned system some insights and guidelines on how to be an "informed" buyer when considering such a purchase.  Listed below are several such insights you may want to factor into your decision.

1. One of the most common sources of pre-owned systems is the large pool of systems removed from service due to excessive maintenance problems.
   A standard scenario occurs when a company replaces their problematic system with a new system.  The old system is often taken as a trade-in or sold outright, passing the problems to an unknowing buyer or vendor.  Systems such as these are in abundance on the used telephone system market and can be purchased for very low prices.  Sometimes companies think purchasing a pre-owned system at such a low price may be worth the risk.  However, it is not until the company has paid for both the system and installation that they may realize just how expensive such a system truly is.  In fact, after considering the lost business from problems such as dropped calls as well as the lost man hours in training staff and trying to make the system work, such a purchase can cost in the hundreds or even thousands of dollars in non-recoverable installation and maintenance costs.
2. Since most businesses recognize the risks of buying a used system directly from the previous owner (buying someone else's problems), the overwhelming majority of pre-owned systems are sold by telephone equipment dealers.  Most of these dealers will sell the equipment and install it for an additional cost.  Some will even provide a warranty.  This would seem to protect you, but there are still a couple questions you will want to ask.  Is the dealer a reputable company that will stand behind their warranty and work?  This is especially important in a pre-owned system purchase, as there is rarely a manufacturer's warranty backing the product.  The entire parts and labor warranty is usually provided by the installing vendor, making that company's reputation and stability critical to your decision.  Many used system brokers are one or two man operations that go away as quickly as they crop up.  And when they go away, so do warranties, installation information, and backup files.  Is the dealer experienced on the equipment they are providing and installing?  Many companies take trade-ins of equipment on which they do not have experience and then sell these to companies looking for a bargain.  Unfortunately, these purchasers often feel the brunt as the telephone company learns about the system "on the fly" and does not have the parts or expertise to support it.  This can be a painful experience for both sides.
3. When comparing costs of "new" and "used", always factor installation labor into the decision.  The installation labor is usually about the same price for new or used systems, and these costs need to be accounted for during the life of a system.  Obviously, spending $1,000 in unrecoverable installation costs for a system that lasts two years is a lot more expensive than spending $1,000 on a system that lasts ten years.
4. Always make sure you receive user guides and, if applicable, an administrator guide specific to your system.  You will not need the technical installation manual (the company installing the system should have theirs), but without a user guide, it is very easy for everyone attempting to use the system to become frustrated, and you will not enjoy the full benefit of the telephone system.
5. Ensure that your vendor has a Quality Assurance testing program and procedure prior to allowing pre-owned products to be sold.  This is a critical step for protecting you as the buyer.
6. One of today's most popular (and misunderstood) options is voicemail.  Are you considering a used voicemail system?  If so, being an informed buyer is even more critical.  Purchasing a used voicemail system has its own set of rules to follow, and we address that in part 2 of this series, Purchasing a Pre-Owned Voicemail System.

Purchasing a pre-owned system can be a real bargain… or a very costly headache!
Know what questions to ask, and choose your vendor carefully!