Our mission at DealTrunk is to find great products at low prices to save you as much money as possible. Since we are constantly looking for the best prices on products there are a few terms that we come across often, terms such as “Open Box”, “Refurbished”, and “Reconditioned”. These terms often come with a big savings, but is it really a good idea to buy these items instead of spending the extra $$$$ for the brand new equivalent? I’ve been doing some research on this topic and here is what I’ve found.
Open Box vs. Reconditioned vs. Refurbished
I’ll start by saying that not all retailers and manufacturers use the same exact definitions but as a general rule, these terms can be taken to mean the following:
Open Box
If a product is being sold as an open box item then it should be the same level of quality as a brand new item. Why are they so discounted then? If you were standing in a store with the option of buying the new laptop that is fully sealed in its original box or the same laptop with an open box then you would pick the sealed box every time! Retailers struggle to sell the open box item even if it truly is in excellent condition. Therefore, discounts are given to be able to make the open box item suddenly more attractive.
Reconditioned
A reconditioned product is a product that was previously used by a consumer and was found to be defective. It was therefore returned, repaired, and brought back to the same standards as the new product equivalent. Retailers are not allowed to sell this item as “new”. Therefore, with the “Reconditioned” label applied, you may be able to save quite a bit of money.
Refurbished
A refurbished product is a product that operates the same as a new product but may have minor blemishes that do not affect the functionality of that product. Many retailers and manufacturers use “Refurbished” and “Reconditioned” interchangeably. However, where they are used separately, “Refurbished” may be a step below “Reconditioned”. “Reconditioned” is more likely to apply to the latest and greatest model where “Refurbished” may be an older product.
An example is that you have had your smart phone for a year and recently dropped it and broke the screen. Your contract isn’t up yet and you don’t want to pay for the latest and greatest new cell phone model out of contract ($$$$$!!). You would be happy just getting the same model you already have but with a new screen.
You can buy a manufacturer refurbished phone which is the same model you already have at a fraction of the cost of a new phone! In some cases you can trade in your phone with the broken screen or else sell your broken phone to make back some of the cost. In either of these cases the manufacturer will likely replace the screen on your “broken” phone (which was otherwise working just fine!) and re-sell it as “Refurbished”.
Regardless of what it is called, where did this “not so new” product come from?
There are all kinds of reasons why that originally “new” product is now labeled “Open Box”, “Reconditioned”, or “Refurbished”. Here is a list of some of those potential reasons:
- A consumer was walking through the store and secretly opened up the box to see what that product really looked like… then decided not to buy it! It never even left the store!
- The product was bought as a gift and the recipient returned it without ever opening it.
- The box was damaged during shipment so instead of stocking the item the retailer returned the product to the manufacturer.
- A consumer opened and used the product but returned the working item within the retailer return/exchange window due to a change of heart, compatibility with other consumer owned electronics, or for personal preferences such as size or color.
- The item was used as the store display unit.
- The item was returned because it was found to be defective or not in working order by the consumer. It has since been repaired back to working order.
- The item was used for a substantial period of time and was turned in to a charity or recycling program when the consumer no longer had a need for it. It was sent back to be repaired and re-sold.
As you can see, there is quite a range. Some of these reasons towards the top of the list are no-brainers. Of course you would save the money to buy one of those items! Towards the bottom of this list though you may, understandably, have some hesitation. Unfortunately, most retailers aren’t going to go through the effort of tracking the exact history of every single refurbished unit. Does that mean you should avoid these products all together? In my opinion, no! It just means you should be smart and do some research before purchasing.
Here is a list of Do’s and Don’ts when considering “not so new” products:
DO:
- Look for Manufacturer reconditioned or Manufacturer refurbished items. If someone is going to be trusted to bring that item back to “like-new” condition, wouldn’t you prefer that to be the original manufacturer? The third-party refurb sites probably know what they are doing, but I’d have more faith in the true experts, the original manufacturers.
- Try to get an understanding of where you are buying from and what you are buying. Is it a trusted website that you have used before? Do they have good reviews?
- Make sure that at least a short return period is offered. You don’t want to get stuck with the product if it doesn’t work when you open the box!
- Look for good warranties. Some companies offer the same warranty on refurbished products as on the equivalent new product. This essentially takes the risk out of buying that refurbished product.
- Ask if you can buy an extended warranty on the product. If the price of an extended warranty is less than the amount you are saving (by not buying the product new) then it may be worth considering. Even if you don’t want to buy the extended warranty, at least you know the seller is confident enough in the refurbished product to offer it.
- Look to see what comes in the box. Are all of the cords and accessories included? What about the user manual or any necessary information packets?
- Attempt to contact the seller to identify if there are any blemishes on the product. If so, where are they located? Is there a scratch on the back of the TV that will be against the wall and never noticed? Or is it on the front of the TV screen? The same small scratch can make a big difference depending on where it is located.
DON’T:
- Buy it “As-Is”, meaning that you cannot return or exchange it if there is a problem.
- Forget to open the product and try it out until after the return period or warranty has expired (keep this in mind when buying gifts that won’t be opened for a couple of weeks as well!).
- Buy an “Open Box”, “Reconditioned” or “Refurbished” product that is nearly the same price as the new item. You are taking on a little bit extra risk by buying a refurbished product; make sure the savings are enough to justify this extra risk!
Other things to consider before making your purchase
What are you buying this item for? Keep in mind that you may make a different decision about refurbished
products if you are buying the item for yourself than if you are buying the product as a gift for a friend.
Example:
If you buy a refurbished digital camera with a 90 day warranty for yourself you are probably going to be sure to test it out in each of the different settings within that 90 day period. You would probably be sure to take a lot more pictures, even if they are just of random things around the house, while you are still within that warranty period.
If you buy a new digital camera maybe you would be so excited by your new purchase that you would still go through this rigorous testing… or maybe you would just settle for really putting it to the test on your upcoming summer vacation (outside that 90 day refurbished product warranty).
Now if you bought that camera as a gift would you feel uncomfortable telling the recipient that the product was refurbished so they should make sure to really test it out while still in the warranty period to make sure there were no problems? Just something to think about.
My Recommendation
If you are asking me personally if I would buy refurbished products for myself from reputable sources then I would say absolutely! The laptop that I am typing this very article on was a factory refurbished purchase.
Now if you ask me if I would buy a gift for someone else as a refurbished product then the answer may be different. If it was a gift for my husband then I would probably still buy the refurbished product, assuming that I was sure there was a warranty or return period if he was not happy with it. I wouldn’t be embarrassed to tell him it was refurbished and that we needed to really put it to the test before the warranty ran out. Since he’s my husband he’d also get to share in the savings of buying refurbished!
On the other hand, if I was buying the product as a gift for a sibling, parent, or friend then the answer may be different. Maybe the product has been manufacturer refurbished, undergone the same rigorous testing and certification and is offered the same warranty as a brand new product, but comes in non-standard packaging.
Would I be embarrassed to give a gift knowing that I’d immediately have to explain why the box looked different than in the store? “Well I did all the research and it is still a great product but I was able to purchase it at a fraction of the cost!” That’s 100% a judgment call. It likely depends on what the gift is, who the gift is for, and how big of a price difference there is between the new product and the refurbished product.
Keep in Mind
Refurbished electronics can be a bit like a used car. If you do your research then you may just save a ton of money on a fantastic product that will last you for years. But are you really buying a new cell phone as an investment that will last years? Or do you only want a new cell phone because a brand new model was just released?
If you look online and at local car dealers, sure there might be some used model 2014 cars. But if it’s that hot of an item the car dealer may not even be selling the used 2014 model car at too much of a discount. Most of the used cars that you will really save some money on will be a couple years out of date.
Final Thoughts
So before considering buying a refurbished product you may want to ask yourself; do you need the absolute latest model DSLR camera? Are you really spending all of that money for bragging rights to your friends and family? Maybe.
But if you are more concerned about the quality of the pictures taken and last year’s model camera specifications are more than enough to fit your needs, then why not save the extra cash? Use it on a weekend getaway, and maybe for the same price as buying “new” you can buy the camera and some great photos and memories to go along with it!