Costco has created a recycling program that pays members for trading-in computers and other electronics. The company's website has an interface that allows consumers to enter information about the product they wish to recycle and receive the estimated amount of Costco Cash Card dollars they will receive in return.
The warehouse club will take and recycle equipment deemed to have no value. Certain categories of products including CRT monitors, fax machines and personal printers are for recycling only.
The object behind the program is to keep products out of landfills. Costco's partner in the program, GreenSight Technologies, either recycles equipment that it receives or in some cases sells it as reconditioned in the secondary market. For those concerned about personal security with information left on computer hard drives, for example, GreenSight uses "Active Kill Disk" software to comply with U.S. Department of Defense (DOD 5220.22-M Sanitization Schedule) standards.
Costco members who participate in the program usually receive a Cash Card from the merchant about a month after sending in the equipment, assuming it matches the description entered into the value estimator. Shipping is currently free.
The dollars consumers receive for their trade-ins are not large but offer a way to dispose of an unwanted item and get something in return. A fourth generation 40 GB click wheel iPod in working condition was estimated to have a trade-in value of $70.
With the launch of its trade-in recycling program last month, Costco joined Staples, Apple and others offering similar services.
Unlike the Costco program where consumers can recycle items for free and receive dollars to spend in the store in some cases, the Staples program charges a $10 fee to recycle equipment.
The Apple free recycling program allows consumers to send it old iPods or cell phones from any manufacturer to be recycled. In a separate program, Apple offers to recycle old computers and displays for free when consumers buy a new Mac.
Discussion Question: What benefits will Costco accrue from its trade-in/recycling program with GreenSight Technologies? Will this type of program become commonplace in the near future?