Choose a Safe Alternative

Distributors, OEMs and contractors must know with whom they’re dealing.

By David Rosenfield and Winn Hardin

Electrical dealers receive calls from distributors looking for an original equipment manufacturer (OEM) product that is on back order, oversold or is not offered by the dealer. The customer may have an immediate need for reconditioned equipment or services because new or replacement equipment would require a retrofit or isn’t available in time.

Undoubtedly, there is a need for alternative electrical apparatus suppliers. What is less clear is the dependability and integrity of the alternative supplier. There are a number of small electrical supply houses that do not adhere to industry-accepted technical and business practices.

A dangerous gap

Independent electrical suppliers realized in the 1990s that there was a gap in the electrical supply chain, mainly within the niche of small electrical supply houses and providers of used and reconditioned goods. The gap came in two forms: the level of technical knowledge and the professionalism with which they operated.

Realizing the need for reconditioned electrical devices, several dozen established sellers of new, used, surplus and reconditioned electrical apparatuses launched the Professional Electrical Apparatus Recyclers League (PEARL) in 1996. PEARL provides business, operational practices, technical guidance and training to electrical suppliers involved in the testing, inspection, reconditioning and sale of new and used electrical devices.

The need for professional reconditioning services received mainstream recognition as major OEMs began to offer reconditioning services in 2004. Eaton Corp., Cleveland, began to promote reconditioning and refit services through five Aftermarket Centers of Excellence.

These actions—by PEARL, Eaton, Cutler-Hammer, and Graybar Electric, St. Louis among others—have helped to inject dependability and assurance in the reconditioned electrical goods market. But the majority of reconditioning jobs are still done by independent electrical suppliers, of which dependability cannot be assured.

‘Yes, we have it in inventory’

When a customer wants a piece of electrical equipment reconditioned, he or she usually already has decided that replacement isn’t an option because of price, compatibility with existing equipment or availability of a replacement. If the device is beyond repair or reuse, the customer still needs to replace it. This is where the small supply house comes into the picture.

Electrical suppliers get products from many sources. Although it can be difficult without a distributor’s license, electrical dealers can occasionally buy new products from an OEM, particularly after support for a product line has been discontinued.

Also, there is often much good and usable electrical power equipment that becomes available. In the last few years, at least 10 major semiconductor or printed circuit board manufacturing facilities in Silicon Valley have closed plants or discontinued construction on projects. All of the electrical equipment from these jobs became available to the highest bidder—often some kind of equipment dealer. Naval shipyards and military bases have been decommissioned and either leveled or modified for commercial use, resulting in tremendous amounts of used, but often very modern, electrical power equipment. Electrical dealers leverage these sources to make sure they have hard-to-find products in stock.

Occasionally, dealers are approached to buy surplus goods from overseas markets. While the majority of these deals are legal, less scrupulous dealers may pursue deals that are simply too good to be true, and some of those deals involve counterfeit goods.

With the Internet, customers may feel overwhelmed with the number of choices for sourcing electrical apparatus. More than ever, it is critical to trust the company on the other end of the deal. But how do you know who to trust?

When it comes to electrical dealers, customers should look at both the company’s business practices and its technical expertise.

• Is this an original factory product?
• Is the product new and in the box?
• Does it have any cracks, marks or fractures in its case?
• Does it exhibit any indication or symptoms of having been burned in any way?
• What kinds of tests do you use to ensure the safety and reliability of the product?
• If recycled, when was the last time this product was in service?
• Has it ever failed?
• Is there any warranty in the event that the product arrives and is dead on arrival?
• Can I return the product if I’m not satisfied with it?

Sourcing of electrical product outside of the OEM sphere can increase risk, but the ongoing need is why PEARL members and OEM reconditioning centers are in business. However, it is among the reconditioners’ many jobs to protect the client and to ensure the product offered is the right product from a credible and capable source.

ROSENFIELD is president of ROMAC Supply, Commerce, Calif. He can be reached at brosenfield@romacsupply.com. HARDIN is the marketing director for the Professional Electrical Apparatus Recyclers League. Reach him at winnhardin@pearl1.org.