Jeremy Farber, CEO - PC Recycler

Keep a Lid on E-Waste

It’s easy for business owners, when faced with upgrading their office phone or computer system, to underestimate—or overlook altogether—the costs associated with retiring and disposing of their outdated electronics. Sure, some businesses may be able to stow a few items in a storeroom or supply closet, but for enterprises of any significant size, the issue is far thornier, and paying to warehouse an accumulation of outmoded equipment probably doesn’t make a lot of economic sense.

Dumping laws in the U.S. that protect landfills from the hazardous metals used in PC components, as well as security and privacy issues associated with PC disposal, mean companies can suffer embarrassment, damage to their brand, financial ramifications, and even legal penalties if their disposal methods aren’t up to snuff.
So says Jeremy Farber, 30, president and CEO of PC Recycler, which has its headquarters in Chantilly, VA and an office in Albany, NY.

With the price of computers and other electronics falling and the number of upgrades rising—a trend likely to continue—not to mention stricter environmental, privacy, and security regulations associated with PC disposal, Farber saw a niche that needed filling. In 2003, he opened up PC Recycler, a company designed to clean up “e-waste,” which mostly consists of unwanted computers, telecommunications equipment, and entertainment devices.

Farber’s business instinct was correct: “We pretty much doubled our business in ’04, doubled our business in ’05, and did the same again in 2006,” Farber said in an interview with Smart Business Ideas™ magazine. His near-term goal is to be the market leader in PC recycling in the DC metro area, and ultimately, an industry leader with facilities across the U.S.

In addition to using a recycler, PC disposal options can include leasing agreements, trade-ins, selling to resellers or online, and giving PCs away to charitable organizations or employees. But however they choose to address it, PC disposal is critical enough that business owners should have a strategy for disposal before the purchase of new PCs to minimize end-of-life costs and related issues. Ideally, Farber said, a business owner will integrate disposal strategies into the acquisition process, as a way to keep a lid on the costs and complications.

Farber began his own business career selling computers on eBay, eventually branching out to open two retail electronics stores in New York. The turning point came when he met up with a Coca-Cola representative at a trade show, which resulted in an 18-month relationship with the company, in which Farber drove across the country picking up outmoded electronics from Coke bottling plants. Farber got the junked equipment for free in exchange for getting it off-site, and he sold about 80% of it online.

“I made a lot of money doing that, and then I started thinking about what had just happened and researching that service,” he said. “I started finding out that a lot of people have that particular need and not [finding] a whole lot of people out there providing this service. Lots of demand and very little supply.”

Having found success with his maiden PC Recycler facility in New York, Farber enlisted the help of his father, Northern Virginia resident Jeff Farber, to win some DC-area business, including some big-name defense contractors and several financial institutions, which led to the opening of his Virginia shop in 2005.

PC Recycler provides both disposal and secure data destruction services. “They hire us to haul away all of their old junk electronics, [and] we will do a full inventory for their asset management purposes,” Farber said. Using machines that shred and pulverize, the company physically destroys the devices, either onsite if the client chooses, or at the company’s recycling facility. The waste that’s generated, including copper, aluminum, steel, even computer-monitor glass, is separated out, sent off-site for further processing and then sold.

“Everything in a computer can be recycled,” Farber said. “In this global warming society, there’s a lot of environmental pressure to do the right thing.” Farber’s company also has revenue-sharing deals with clients who want to wipe their data and resell equipment that may retain some value.

Tips for business owners when hiring an electronics recycler:

• Make sure the vendor can meet your volume and time requirements.
• Pick a responsible, legitimate recycler, and visit the recycling facility. Some companies simply sell off components to the highest bidder and export the rest for overseas disposal.
• Familiarize yourself with the relevant laws in your state or county to gauge whether the recycler’s processes comply with environmental, privacy, and security regulations.
• Find out what security measures the recycler uses to protect data for both recycled and resold hard drives.
• Obtain a list of all third-party vendors involved and locations where materials will be processed.

By Pamela Barnett