Your brand’s reputation is one of the most important factors in determining the success of your company.
When the products you create end up in the wrong hands or hurt others, your brand’s reputation and bottom line will likely suffer.
Certified product disposal, however, can help ensure the products you no longer want or can no longer sell don’t end up in the hands of unscrupulous characters. It’s a must for any company whose success relies on its reputation and the quality of its products.
Here’s how certified product disposal works and how it can preserve your bottom line.
What Is Certified Product Disposal?
Certified product disposal is the process by which the goods a company produces are destroyed or disposed of legally.
Certified product disposal ensures products you no longer sell or want are destroyed so they do not end up in the wrong hands and sold on the grey market. This type of certified disposal also destroys products that have been deemed unsafe.
The best disposal companies provide authentication of the destruction so that you have peace of mind and proof that your products were disposed of properly and legally.
This can be especially important if you have been court-ordered to dispose of products due to illegal activity or defective parts/materials.
Why Is Certified Product Disposal Needed?
There are many reasons a company may require certified product disposal services, some of the most common reasons include:
- Disposing of products that have expired and can no longer be sold
- Removing products that have been replaced by a newer version or product line
- Destroying products because the packaging is incorrect, no longer used or has been updated with new information or warnings
- Disposing of products that have been court-ordered for disposal
- Products that have been recalled, are defective or are no longer safe to distribute
Hazardous waste laws also mandate certified product disposal of any goods whose components or ingredients have become contaminated, passed their expiration dates or have been otherwise corrupted.
Many other seemingly harmless products, such as cosmetics and pet foods, are potentially damaging to people, animals and local ecosystems if inappropriately disposed of as well.
How Does Certified Product Disposal Affect Your Bottom Line?
Disregarding product disposal regulations can not only damage the environment, but also a company’s reputation among consumers in the marketplace. This places the company’s future in question.
Here are a few ways certified product disposal can help your bottom line:
1. Keeping Your Products Off The Grey Market Saves Money
The grey market consists of unauthorized sales of products either designated for disposal because their quality has become compromised, a newer model/version has been offered to consumers or parts have been compromised.
The grey market thrives because it offers deep discounts for second-hand, counterfeit or expired goods passed off to consumers as new and authentic.
While the grey market affects many industries, from automobiles, consumer products, pharmaceuticals and fashion accessories to computers. Information technology products valued at as much as $40 billion in sales are passing through the grey market annually.
The practice is so widespread that products that are hazardous or otherwise unreliable have ended up on places like eBay or other similar retail or auction sites whose commercial reputations are otherwise trustworthy and sound.
These are not isolated incidents. This happens because manufacturers do not exercise suitable care when selecting a certified product disposal company to dispose of their outdated or damaged goods.
By choosing a reputable certified disposal company and not having your products end up on the grey market, you limit your liability that someone will get ill or injured due to defective or expired products. This can save you a lot of money in claims and lawsuits.
2. Customer Expectations Stay Intact And Future Sales Are Protected
When an item is sold on the grey market, brand degradation can result because your supposedly discarded products are appearing in places with substantial discounts. This changes consumers’ expectations of your products and prices. In other words, consumers will be unwilling to pay for the real thing at the real retail price. This can have a significant impact on your bottom line in the long-term.
There is also the risk of customers purchasing your products that are of inferior quality. If this is there first introduction to your product, it may also be their last if they perceive that all of your products are like this. So it becomes very important to make sure unwanted or inferior products are properly disposed of.
Working with a certified and experienced company will eliminate the devaluation of your brand caused by the negative perception of someone who has used your inferior quality product or purchased it at steep discounts on the grey market. This in turn can protects you future sales.
3. Your Liability Is Limited, Saving You from Fines and Legal Claims
Defective products can expose your company to a liability risk. It doesn’t matter if you “tried” to get rid of these faulty products. If you don’t dispose of them and someone is hurt, you are still liable.
This is extremely important if you have a recall or court order to properly dispose of your product. This can be because of a defective product or a case of patent and copyright infringement.
If you don't dispose of the product and someone gets hurt, this can land you in legal trouble. Not complying with a legal order can result in costly fines. And if someone gets sick or injured, You may be subject to fines and legal claims as well.
4. Proprietary Protection Is Ensured So You Aren't fined
One of the benefits of a certified product disposal company that is often overlooked is proprietary protection. Electronic products that contain sensitive customer or company financial data should be carefully disposed of to ensure this information is not breached.
It’s important to remember that electronic products contain embedded memory with software that can be easily copied and then sold by other companies. Companies have been fined millions of dollars in fines because of data breaches.
There is also the case when information from prototypes and product test runs are stolen, allowing other companies to release the product you designed to the market. This information must be destroyed when it is no longer needed or the electronic equipment holding it is no longer needed, otherwise it can be devastating to your bottom line.
Enlisting the services of a certified product disposal company will keep your products off the grey market, maintain your reputation among consumers, limit your liability and ensure your data and ideas are protected.
All of these play an important role in the success of your company’s bottom line and how you are viewed in your industry and by the public. Ensuring the disposal company you choose is reputable can provide solid evidence that your product has been disposed of appropriately. This will alleviate many of the problems mentioned here and help protect your profitability.