Services We Offer
Depending upon your requirements, you might choose to use our organization to repair and refurbish your current inventory and then return it to you so that you can quickly resell it through your existing distribution channels and convert it into cash. You might prefer to sell us your dealer returns inventory outright, or on an on-going contractual basis. In such a case, we would arrange for a convenient and consistent pickup schedule, and then refurbish the products for sale to our own group of customers – both domestic and international. Possibly you have an existing inventory of already refurbished products that you would like to dispose of through our highly controlled distribution network. Under all circumstances, rest assured that your company would be in total control of all aspects of the repair, repackaging and redistribution of the finished products.
With operations in both California and Mexico, Sohnen’s automated material handling systems, state-of-the-art testing and repair facilities, computerized tracking and data collection systems, combined with over 35+ years of refurbishing experience, allow us to currently produce over 125,000 pieces of assorted audio, video and telecommunications products every month. Sohnen’s leading-edge methods for high-quality, high-volume refurbishing is as sophisticated as the products it’s designed around. This unique operation is designed to simultaneously achieve two key objectives: return the product to a like-new condition – electronically, mechanically and cosmetically – and do it as quickly and efficiently as possible. After over 3 decades of evolution and development, the Sohnen method has now becomed recognized as the industry’s “gold” standard.
Sohnen has the financial resources to purchase and/or process any size lot of inventory. We can buy either a single-product category or a company’s entire product assortment. Our highly trained and experienced staff is capable of refurbishing all types of electro/mechanical consumer goods such as consumer electronic items, computers, small electric appliances, and even electronic toys and musical instruments. Typical products we process include such items as, televisions, DVD player/recorders, microwave ovens, MP3 players, GPS devices, digital cameras, computers, printers, car and home audio products, telecommunication items, and more.
Each of the services outlined below are designed to meet your company’s unique needs including the highest quality refurbishment, high-volume processing, quick conversion of your returns/excess/dormant inventory into salable merchandise and cash, proven reduction in your overhead costs, improvements in your inventory turns and working capital, while always being protective of your company’s image and reputation. Additionally, under all refurbishment services provided by Sohnen, our team of knowledgeable and experienced engineers and technicians, equipped with the latest testing equipment and repair facilities, provides your company with an abundance of repair data such as actual defect rates, no trouble found rates, required repairs and possible causes, parts replacement reports – all of which are collected and consolidated in real time and presented in easy to read reports. These reports are often cited as being one of the most valuable aspects of a Sohnen relationship and prove indispensable in helping our suppliers implement design and manufacturing improvements to current and future production.
Sohnen currently maintains active relationships with some of the world’s largest and most well respected consumer electronic manufacturers.
Outright Purchase (OP):
Sohnen can purchase your current and/or ongoing supply of product returns for repair, refurbishment and redistribution to our base of both domestic and internationally based distributors and dealers. Although we do have certain minimum lot size requirements, we have no maximums. After 35+ successful years in business we have both the physical and financial resources to handle any potential purchase; regardless of the size of lot or amount of money involved.
In a typical Outright Purchase arrangement, Sohnen would purchase your inventory either on an item by item basis or for an entire product line. Purchases can be made on a “spot” basis as available, or can be structured on a continual and uninterrupted basis. The price we pay for the products we purchase will vary from product line to product line but is generally based on the value of the products when sold as new while also taking into account whatever other sale considerations are provided to us including such items as freight, payment terms and parts support where applicable. Most often, the pricing we establish is formula based and functions as a percentage of actual wholesale or retail pricing. What we think is most important about our approach to pricing is that it is designed be fair to all parties and that it is structured to be dynamic and evolve as market prices and conditions change. By doing so, we avoid the need for constant negotiations. Establishing a consistent pricing structure also provides our suppliers with a reasonable way to budget for the costs associated with their returns. Once refurbished, Sohnen redistributes the products to its worldwide base of dealers and distributors. Selection of dealers and or markets is always subject to the final approval of our suppliers. As is the case with all possible refurbishing scenarios, all products would be produced to the highest standards of quality and in accordance with your specific requirements.
Fee For Service (FFS):
Under a Fee for Service (FFS) relationship, Sohnen would be contracted by your company to provide specific refurbishing/repackaging services. We would repair and refurbish your inventory in the shortest time possible and in accordance with your guidelines as to cosmetic standards and packaging. Once completed, we would return the products to your own facilities for distribution or we can assist you in the fulfillment of orders for the finished products to your existing base of dealers and distributors.
In a typical FFS arrangement, Sohnen structures its refurbishing fees based upon your company’s specific repair/refurbishing requirements. It is usually quoted on a flat fee basis. In FFS arrangements, your company would be required to provide Sohnen with all the parts, packaging and accessories necessary to refurbish and repackage per your approved design the inventories provided. Sohnen would provide the labor, management and facilities. Production yields are an extremely important factor in the refurbishing process. Although our goal is always to recover as much salable inventory as possible, actual results are dependent upon a number of factors such as the condition of the inventory received, the unique refurbishment standards you set and your ability to provide Sohnen with the necessary repair parts and accessories. Under typical conditions, Sohnen is usually able to recover approximately 95% of all products processed. Any product that is not recoverable will at your direction either be scrapped by Sohnen or returned to your company for further disposition. In a FFS arrangement, your company would retain legal title of the inventory at all times. Upon refurbishment, products would be packed with your warranty card and then resold by you. We can also provide warehouse space for the finished goods inventory and assist in the fulfillment of your sales orders.
Revenue Sharing (RS):
Revenue Sharing represents a very unique approach to the management of product returns. It is in the truest sense a “partnership”. Your company would provide the product returns to Sohnen and we would provide the labor, management and facilities required to refurbish the inventory in the shortest time possible and in accordance with the standards and specifications you establish. We would also be able to warehouse the finished goods inventory for you and assist in the sale and redistribution of the inventory utilizing our collective sales and distribution networks and only in agreed to domestic and international markets. Under a RS arrangement, there are no “fees” charged for Sohnen’s services.
In a typical RS arrangement, Sohnen is compensated with a mutually agreed to “share” of the proceeds of the sales of the finished products. There are no separate refurbishment fees or charges. Additionally, there are no charges for warehousing, order processing, handling, etc. Your company would determine the wholesale selling price for the refurbished products as well as the distributors or dealers who would be selected to resell the products. In such an arrangement, it would be necessary for your company to provide Sohnen with all the parts, packaging and accessories necessary to refurbish the inventories provided. Sohnen would provide the labor, management and facilities necessary to refurbish the products to your standards. Depending upon the condition of the inventory, the refurbishment standards you set, and your ability to provide Sohnen with the necessary parts and accessories, Sohnen should be able to recover approximately 95% of all units it processes. Those units that are not repairable can either be scrapped by Sohnen or returned to you for further disposition. Your company would retain legal title of your inventory at all times. All products would be packed with your warranty card and supported by your service organization. What makes a RS arrangement so unique is that your company would not be investing anything up front to refurbish the products and would benefit from Sohnen’s own distribution network to help distribute the finished goods inventory. In essence, Sohnen becomes an active partner in the entire process of refurbishing and redistribution and only takes in money when a product is sold.
Production Sharing (PS):
Production Sharing represents another very unique approach to the management of product returns and asset recovery. In a Production Sharing relationship, your company would sell to Sohnen all of its product returns under an agreed to purchase pricing format or formula. Sohnen would then refurbish and repackage the products according to mutually agreed to standards. Sohnen would then resell back to your company a portion of the goods which you would redistribute to your customer base and Sohnen would retain the balance of the inventory for distribution to its own customer base. Sohnen can also assist in order fulfillment and warehousing of your portion of the finished goods inventory.
In a typical PS arrangement, Sohnen would acquire your inventory under the same basic guidelines as we would in an Outright Purchase. We would refurbish and repackage the products in accordance with the guidelines you establish. There are no repair or refurbishment fees charged to you. Sohnen would provide the labor, management and facillities necessary to refurbish the products to your standards. You would re-purchase only those models of products specifically committed to by you. Pricing for the products would be set in advance and would be formula-based in a manner similar to the pricing format or formula you would use to sell us the products initially. You would repurchase only the fully refurbished and salable units and do not have to address issues of scrap. Our common and unified goal to maximize the production yield is best served in this relationship since you do not buyback any units that are incomplete and unsalable. You obtain legal title of your inventory upon buyback of the completed units. All products would be packed with your warranty card and supported by your service organization. What makes a PS arrangement unique is that it allows your company to take advantage of Sohnen’s strengths in production and distribution while at the same time maintaining your current distribution base for the refurbished goods.
National Returns Center (NRC):
Sohnen could be your NRC and act as your warehouse to receive, collect, consolidate, filter, sort, repackage, organize, report and further process you dealer returns from throughout the United States. Doing so allows you to reduce your current facilities and management costs, reduce unnecessary freight and handling costs and dramatically improve the speed and accuracy of issuing credit memos to your dealers and distributors for the returned goods.
In a typical NRC arrangement, we mutually develop a Standard Operating Procedure (SOP) that defines all the terms and conditions of the receiving process according to your dealer return policies and procedures. Operating as your NRC can be established on a Fee For Service basis or can be combined at no extra cost into an overall Outright Purchase, Revenue Sharing or Production Sharing arrangement. Where applicable, Sohnen’s fees for this service are based upon several factors including whether or not we would be receiving single or bulk returns shipments, product weight/cube, number of SKU’s, overall volume of returns, etc. All receiving information on returns is electronically transmitted by Sohnen to you on a daily basis with all pertinent detailed information on each and every return including digital product photographs of any exceptions to your SOP. Operating as your NRC is a critical ingredient in improving the speed with which we can refurbish the product returns and convert them back into salable inventory. Given the nature of the consumer electronics business with its relatively short product life cycles, improving the turn around time through the refurbishing process is essential in maximizing the overall dollar return to you.
In-Warranty Product Replacement (IPR):
In-Warranty Product Replacement using refurbished products is quickly becoming the industry standard for providing fast response to in-warranty service issues. It is also unquestionably less expensive than trying to establish and maintain an independent national service network. For In-Warranty Product Replacements, Sohnen would set aside a portion of its refurbished goods inventories to support the In-Warranty product replacements as authorized by your customer service organization.
In an IPR arrangement, Sohnen would maintain a separate inventory of refurbished products to be used to replace a consumer’s defective product while in warranty. When a consumer has a defective unit and is entitled to coverage under your standard warranty, they would contact your service organization through your 800 telephone number. Once an exchange has been authorized by you, we would fulfill the replacement from our inventory. Fees for this service would be formula-based and all shipping fees would be at cost. In essence, Sohnen acts on your behalf to provide fast and reliable warranty replacements using best practices in the industry to enhance your levels of customer satisfaction.
Custom Tailored Program - any combination of the above Services (CTP):
We can create a custom tailored program to meet your company’s unique or special needs that may integrate one or more elements of any of the services we offer described above. For example, within a single relationship, we could flexibly design a bundle or combination of any of the above services by product category, item volume, price thresholds, etc.
Sohnen’s asset recovery solutions are as innovative and advanced as many of the products we work with on a daily basis. You tell us your needs and requirements and we will work hard to design and offer you a viable and cost effective solution that can address your needs however complex they may be. With over 35+ years of refurbishing and redistribution experience, we consider ourselves uniquely qualified to develop creative and economically viable solutions to the challenges of returns management and asset recovery.
Whichever service(s) you choose, rest assured that Sohnen’s experienced Team will work diligently, honestly and professionally to partner with you in your challenges and to start, develop and maintain a consistent and mutually satisfying, productive and profitable relationship.
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