Consulting|Technology|International business

Selling my notebook

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I finally decided to sell my notebook as I was sparingly using it for the last 1.5 years I had it with me.

My notebook is a DELL Inspiron 6000 with Centrino technology. When I bought it, it was the PCMag editor’s choice for 2005.,1759,1777825,00.asp,120201-page,1/article.html

I felt I was holding onto a depreciating asset and decided to let go of it before its value could plummet further.

A quick food for thought:

How much do notebooks depreciate?

If you look at the computer in general, its like a car – its either a necessity item or a luxury item (as most high end notebooks have become!)

For majority of notebook users, notebooks are a necessity but if it is that necessary, the company usually takes care of this requirement for individuals. In my case, I purchased it from Texas (home of DELL Computers Corp., Nasd: DELL) in April 2005 because there was a resounding discount sale for almost $750 straight! This means the MSRP (manufacturer suggested retail price) of $1500 was being sold at a discount price of $816! It was too good an opportunity to miss so I seized it and moreover I had a genuine necessity for a notebook for my EMIB course I was pursuing back then in 2005.

You need to add logistics cost also to this so in my case, that came free as my cousin staying right there in Texas took care of procurement and bringing it to me. All it cost me was to drive to his place at Bangalore (about 25 kms away at Hebbal and a round trip of about 50 kms in all).

This (equated at the mileage of my car of 12 kms to a liter of Petrol) gives a consumption of about 4.2 liters. At that time, Petrol prices were about Rs. 50 to a liter so I spent about Rs. 210.

So, here are the stats:

Cost of notebook $816
Cost of logistics $5
Cost of laptop bag $32
Total cost  $853

Assuming a 20% depreciation on computer equipment per year, my notebook would be worth about $545 which when converted back to INR at today’s conversion rate would equate to about Rs. 25K

I have found a reliable buyer (my own colleague) who will be buying this for Rs. 21K or $457 (USD)


$853.00  Cost price of notebook in Apr 2005
$170.60  Less 20% depreciation (2005)
$682.40  Perceived price of notebook in Apr 2006
$136.48  Less 20% depreciation (2006)
$545.92  Perceived price of notebook in Feb 2007

46.00  Current INR to USD conversion rate
25112.32 INR
21000.00 INR (Real selling price)
456.52  INR converted back to USD at 1$ = Rs 46
$457   USD (Real selling price)

While he is getting it at a discount, I think it is ok, since he is a reliable chap and I don’t have to worry about recovery.

From my experience, recovery of money in real terms is one of the most difficult tasks on this earth.


Written by Naveen Athresh

January 26, 2007 at 6:00 pm

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