Comment by gdmka
9 days ago
I'd add that companies write off their equipment investment over a 3-5 year depreciation period. After that, when the laptops reach EOL, employees can often buy them through the company's EPP (employee purchase program) usually for just the fair market value, which might be a couple hundred € or sometimes even less.
So, eventually they recoup the equipment costs, wouldn't get surprised if they even make a profit out of it sometimes.
First thing they do, they write off VAT (20-23% of laptop price). Then at the EOL, they just set the EPP price to the higher market value. And return the cost.
VAT doesn't exist in the US (and sales tax, which we do have, is more like 5-10% of sale cost), so are you talking about something specific to tech companies in Germany or the UK or something?
Not that everything has to be about the US, but it's weird to make a claim about the tech market as a whole that doesn't apply to its biggest single region.
Yep, I've used the € sign for a reason, to make sure people won't get confused.
The article goes into considerable detail about the EU tech industry. My comment relates to that context.
I also want to note, that EPP isn't the correct term here. For US, EPP would mean Manufacturer Employee Purchase Programs for New Products with a discount. Like, if you work for HP, you can purchase a product it manufactures at a discount price for your personal use.
The EU practice that I was mentioning is called IT Asset Disposition through employer to employee disposal program[0]. I don't believe big companies in the US get involved in employer to employee ITAD for lots of reasons. But in EU, it's a thing, much to my surprise.
[0]: https://www.mddp.pl/disposal-of-used-equipment-by-an-employe...
>Yep, I've used the € sign for a reason, to make sure people won't get confused.
>The article goes into considerable detail about the EU tech industry. My comment relates to that context.
You know what, that's entirely fair. And I'll also note that American companies can claim depreciation to offset corporate income taxes, so there's some parity there, it's just s different mechanism.
Is that common? I've never worked at a corporation that had an EPP for EoL computer equipment. It always all went to a specialist recycling/refurbishing business.
I don't know about "common", but at one place, when they were retiring my machine, I asked if I could buy it, and they agreed. (Of course, for that to work, you have to be there long enough that they replace your machine...)
Throughout my career I’ve run into this approach a couple of times. All in all, it’s a fairly unusual practice—I was surprised myself.