Whether it involves recycling, refurbishing or remanufacturing, product reconstruction can offer attractive consumer prices, high-quality goods and a host of profit opportunities.
Product reconstruction, which covers a continuum of activities from recycling to refurbishing to remanufacturing, allows companies to sell high-performance goods at lower prices than equivalent new products while also realizing higher profits. Product reconstruction may open new markets for companies in meeting the needs of one or more of six kinds of customers: those who need to retain a specific product because it has a technically defined role in their current processes; end-users who want to avoid the need to respecify, reapprove or recertify a product; customers who make low utilization of new equipment; those who wish to continue using a product that has been discontinued by the original manufacturer; people who simply want to extend the service lives of used products, whether discontinued or not; and customers who are interested in environmentally friendly products.
Beyond serving a particular market, the company must also possess certain kinds of expertise.
To succeed at recycling, for example, it must be intimately familiar with the manufacturing process
that initially created the product, be able to make extensive and time-consuming sales efforts (to help
compete effectively against the many other companies in this low-barriers-to-entry industry) and be
willing to specialize, given that particular materials vary greatly in complexity, time requirements,
predictability, capital and labor characteristics and expense.
4 Comments On: The Profit-Making Allure of Product Reconstruction
Product decisions should not be internal. Fresh design or assembly can also be perceived as integral to new product development. It is always a matter of meeting new customer requirements. Any other motivation is unlikely to add value.
Another advantage to product reconstructions (also known as refurbished products) is that they tend to be more eco-friendly than buying a new product every time.
Do you have a ideas for products that are best bought new verse one’s that lend themselves nicely to the world of product reconstructions?
the idea of product reconstruction should be understood as the next step of manufacturing process, ecomanufacturing. ecomanufacturing means low cost, low CO2 emission and low price
Minimizing the costs of raw materials and supplies is becoming a higher priority among manufacturing-company executives. Product reconstruction, in particular the recovery of used goods, their processing and their resale, looms as an excellent way for a company to enhance revenue, profits, and market share.