As of 1 November 2026, Harris Technology Group has reported $4.3 million in sales revenue for the September quarter, with refurbished technology generating about $2.6 million, or roughly 60 per cent of revenue. Refurbished was also the largest category by net profit contribution, and monthly refurbished revenue reached a record of about $1.04 million in July. Group gross margin came in at 33.9 per cent, up three points quarter on quarter, while refurbished gross margin of 37 per cent sat well above the 19 per cent recorded for new IT. The company also repaid about $0.7 million of borrowings, cutting drawn debt to $0.56 million at September 30.
Refurbished is now 60 per cent of quarterly revenue
The margin gap is the story. A 37 per cent gross margin on refurbished goods against 19 per cent on new IT means the second-hand category is not a clearance channel, it is the profit engine. That flips the usual logic of assortment planning. Instead of treating refurbished as a way to clear excess stock, a retailer in this position should be asking how much refurbished supply it can secure, and what grade mix maximises margin without breaking the trust that makes the category work at all.
Trust is the constraint. Refurbished buyers accept a compromise on condition in exchange for price, but they do not accept uncertainty about what they are buying. That is why the company pointed to upgraded quality assurance systems ahead of Black Friday, Cyber Monday and Christmas. In practice, quality assurance is a data problem before it is an operations problem: if the grade, battery health and cosmetic condition of each unit are not recorded at intake, no amount of marketing copy will make the product page credible.
The margin gap between refurbished and new
Why the price gap has to be defended
A refurbished unit competes with a new one on the same product page. If the price gap narrows too far, shoppers default to new, because the perceived risk of refurbished is only worth accepting at a discount. If the gap widens too far, the category starts to look like a different product rather than a cheaper version of the same one, and margin per unit falls faster than volume rises. Managing that band is a pricing discipline, not a promotional decision.
Grade disclosure is the pricing lever
Most refurbished ranges carry several grades, and each grade should have its own price band. When grades are collapsed into a single listing, the cheapest unit sets the price expectation for the whole range and higher grades lose their margin. Keeping grades separate on the product page protects the top of the range and gives the retailer a reason to raise price when supply of premium grades tightens.
Supply is the other half of the equation. Refurbished inventory comes from trade-ins, returns and corporate refresh cycles, none of which respond quickly to demand. A record month in July followed by a normal August is a supply signal as much as a demand signal, and it argues for holding a buffer of high-grade units rather than discounting to clear the low grades.
Three columns for price monitoring
Price monitoring in a two-tier category needs a different table from a single-tier one. The columns below keep the refurbished and new ranges comparable without letting one distort the other. They also make the trade-off visible: every point of extra margin on a refurbished unit is a point of distance from the new model sitting next to it on the same page, and that distance has to be justified by the condition record rather than by the discount.
| Column | Definition | Warning sign |
|---|---|---|
| Grade price band | Price range per condition grade | Grades collapsed into one listing |
| Gap to new | Refurbished price as a share of new price | Above 85 percent or below 50 percent |
| Margin per unit | Gross profit per unit by grade | Falling while volume rises |
The second column is where most pricing mistakes show up. A gap that closes to 85 per cent removes the reason to buy refurbished at all; a gap that opens beyond 50 per cent usually means the grade description has drifted and the unit is being sold as something it is not. Both errors are visible in the numbers before they appear in returns, which is why the column belongs in a weekly review rather than a quarterly one.
FAQ
Why is refurbished margin so much higher than new?
Because the input cost is lower and the buyer is paying for assurance rather than for the latest specification. At 37 per cent against 19 per cent, the category is a profit engine rather than a clearance channel, which changes how supply should be secured.
What is the right price gap to new?
There is no universal number, but the usable band sits between roughly 50 and 85 per cent of the new price. Below that band the unit looks like a different product, above it shoppers default to new.
How should grades be presented on a product page?
Separately, each with its own price band and condition description. Collapsing grades into one listing lets the cheapest unit set expectations for the whole range and erodes margin on the higher grades.
What does a record month tell you?
It may be supply rather than demand. Refurbished inventory depends on trade-ins and returns, which do not respond quickly to promotions. A spike followed by a normal month is usually a supply signal.
