Producing goods for remanufacturing and reuse

Understanding the business benefits of remanufacturing is important, but it is also vital that you can persuade your consumers of the advantages of buying your remanufactured products.

Financial benefits of remanufactured products

Remanufactured products may be less expensive than new ones because of cost savings made from the recovery of the materials. Prices of remanufactured goods are usually 20 to 40 per cent lower than equivalent new products.

Quality of remanufactured goods

Buyers of remanufactured products need to know that they are of the highest quality. You should make sure your products meet industry standards in providing this assurance.

In some business-to-business markets - such as the automotive industry - the quality of remanufactured goods is guaranteed. A replacement remanufactured spare, for example, is indistinguishable from a new one.

Serviceable items such as washing machines can be remanufactured and sold on into secondary markets where the function is more important than appearance. This type of remanufacturing has an important role in improving the lives of disadvantaged households in the United Kingdom - see using secondary markets for remanufactured products.

Purchasing flexibility

Buying remanufactured products relies on the original equipment manufacturer or remanufacturer getting a supply of used goods from users. This means that customers get a range of services that offer more than just a sale. Leasing, take-back, upgrading and supply can benefit both parties by:

• enabling capital costs to be written off over a period of time
• improving supplier relationships
• offering 'whole life solutions', ie there are no problems with disposal at the end-of-life of the product

Environmental appeal of remanufactured goods

Some types of consumers are likely to be particularly receptive to products that have less impact on the environment. These include:

• public sector organisations which have to meet environmental standards when buying goods
• businesses taking steps to manage their environmental impacts, for example using an environmental management system
• members of the public with strong ethical beliefs