Costco Offers Cash to Recycle Electronics
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?
Costco’s recycling program for electronics will do mostly good things provided that the program is consumer-friendly We have not yet arrived at the point where it’s enough for the majority of the public simply to do the right thing. The inconvenient truth is that people still want personal incentive and convenience.
It is great that Costco and others are becoming more environmentally sensitive. This will only benefit their customer base as all of us are becoming more sensitive to our environment and are trying to preserve it. Costco is wisely using this as a bounce back to their stores with their cash cards. This not only encourages consumers to go to Costco, but also to turn their electronics faster (so that they can realize more sales). Everyone wins in this model and more retailers need to take notice of this.
This is the first loyalty programme that has actually grabbed me, apart from the fact that you still have to pay to join Costco and, in the UK at least, have to jump thru various hoops to convince them that you are deserving of giving them your money. It is very difficult to find anyone here to take large electronic items, especially computers and printers, which have little or no value the minute you get them home. Fortunately I have a friend who takes them, refurbishes them and passes them on to other friends or friends of friends etc who will give them a good home. As for print cartridges, that’s easy as many charities provide postage paid envelopes for sending them in.
This is a great idea. I didn’t know about the program but will certainly use it!
Finding places that will recycle old electronics has not been easy. If more customers knew about them they might use them. I really like the ink program at Staples. One of the great things about the Staples ink program–and now the Costco technology program–is that not only do they take the used items back for recycling but they also offer a cash incentive. The cash incentive is great for the retailers because they can only be used on the purchase of new items, so it generates loyalty and incremental business in addition to doing something good for the environment.
I might quibble with a few of the details–for example, I really don’t want to have to pack the old gear up for UPS. However, I’m sitting on two perfectly functional 17″ CRTs, an HP printer, a 13″ TV and a couple of PIII boxes that I can’t give away–not to mention several old cell phones and a Palm Tungsten E. In good conscience, I can’t let these items go to the local landfill, as they are laced with mercury, lead solder and other metals and compounds that a responsible society must reclaim.
Checking out the Costco GreenSight site, I see most older stuff has little or no cash value–so the monetary incentive is questionable. However just the service of providing a responsible recycling path for these devices is commendable. I don’t need store credits–just make it easier for us all to do the right thing.
The most successful programs leverage multiple consumer needs.
Many want to recycle, even those who don’t agree with Al Gore. However, in a busy world, folks don’t often have the time to do what they want, and end up selecting a solution that isn’t optimal for the sake of convenience.
Costco’s program meets the desire to recycle in a way that is convenient and ties into a trip I was going to make anyway. The reward for recycling makes me feel even better about myself and about Costco. If I had to bet, my money says that Costco has research indicating that consumers incrementally spend about 1.5x more than the rewards they receive, so Costco wins in with the incremental sales. And what do you figure the redemption rate on rewards like this is–50%? People lose the rewards, forget about them, etc….
Success for Costco will come if the consumer experience is quick and painless once they reach the store. Pre-quoting on the web is a great way to confirm the deal in advance, but if it falls apart when the actual transaction takes place this will be a short-lived initiative.
Expect Costco to add one more draw to its many that already exist. The store credit makes sense, and I really wish more retailers would do it (even better if they’d load up my Starbucks card in trade!).
It’s going to take a few more NGOs like GreenSight to get consumers doing the right thing with their old goods. Keep up the great work!
I think this is great. The fact that they aren’t charging, makes it easy to do (integrated with a web interface), and guarantees privacy…this is really contemporary thinking and makes Costco a leader at building a world I want to live in.
I don’t have a Costco membership, but will get one now!
Costco continues to think of solutions through the lens of its members. As a classic “fit the demo perfectly” active boomer with 3 kids, I too am loading the trunk and can easily identify at least one dozen electronic devices that will be going over there this weekend. I will use my credits to offset some fitness equipment I have my eye on, and oh yes, maybe a few bottles of better wine! (reward after exercise!)
Convenience and personal incentives are a fact of life, but I for one am really pleased with this kind of retail service. Not to mention, I will be telling all my friends and neighbors who have houses full of leftover electronics as well.
GreenSight is making similar electronics recycling deals with college bookstores and other retailers besides Costco. Electronics recycling is a great way to get positive public relations publicity. Costco shoppers are uncommonly loyal and this will only reinforce the loyalty. Staples recycles printer cartridges which reinforces extra store traffic. Apple has been roundly criticized for iPods whose batteries cannot be easily replaced by their owners. Many supermarkets encourage plastic bag recycling.
Bottlers resisted recycling deposits when they first were proposed in New York, but the unclaimed deposits have been absorbed by the bottlers, supplementing their meager earnings. When will New York State reclaim those deposits under the escheat laws? Maybe all consumer electronics should be subject to deposit laws, too.
Green is in and Costco is thinking green. Look at the demographics of the Costco shopper. Sure, they would like the recycling money but Costco is making it easy for them to be Green, too. Another feel good move by them that separates them from their competition.
This is great. With technology changing so rapidly, there are a lot of items to be recycled; printers, television sets, computers, keyboards, monitors, cell phones…on and on. This positions Costco as an environmentally friendly and responsible corporate entity. Since the recycling program is free, it’s cheaper than the landfill! Kudos! Loading the truck now…:}
The concept of recycling items should become more active than it is now. It’s good for the planet and opens doors of opportunity to new business enterprises.