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October 3, 2009 10:03 AM PDT

EcoATM pays you for used gadgets

by Leslie Katz
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You know that old Motorola Razr that's been sitting in your nightstand for the last year? If you live near Omaha, Neb., you can march up to the EcoATM at the Nebraska Furniture Mart, toss it in, and automatically get an in-store trade-up coupon or gift card.

The self-serve e-cycling station electronically inspects phones, assigns them real-time secondary market value, and provides in-store payment--if the handset still has any monetary worth. If not, consumers can choose to assign the device to the recycle bin, and then it's on its way to getting recycled or refurbished.

EcoATM kiosk (Credit: EcoATM)

The kiosk at the Omaha store is the first such station to be installed by San Diego-based start-up EcoATM, and it's serving as a test case in advance of a scheduled larger rollout.

The company, formerly called ReMobile, declared the Nebraska machine an immediate success when it went into operation September 21--both in the number of recycled devices collected and the trade-up purchases.

On its first day, 23 phones went into the recycle bin. In addition, "the EcoATM at NFM bought back over $100 in phones on day two, including a perfect BlackBerry Curve," Twittered EcoATM's Eric Rosser, who said in an interview he thinks retailers will appreciate the automation of the EcoATM and consumers will value the speed and convenience.

The company plans to install kiosks at wireless stores and big-box retailers in San Diego, Texas, Washington state, and Vermont this quarter, Rosser said, with a "massive rollout" set for the second quarter of next year. Eventually the EcoATMs should be able to recognize other gadgets, such as MP3 players, digital cameras, notebooks, printers, and storage devices.

The machines rely on a camera-based system to detect signs of wear such as cracked screens, missing keys, and scuff marks, and to determine a device's approximate value. If it's not worth anything, consumers could still get a free gift for their efforts--in Omaha's case, a waterproof phone case. And in a green nod, EcoATM will plant a tree for them.

Of course, whether a machine can assess a product's value with the same accuracy and nuance as a human remains to be seen. In any case, the system's aimed at countering the growing problem of e-waste. In the United States alone, more than 100 million cell phones get thrown away every year, according to the Natural Resources Defense Council. (On the front end, wireless companies are making a concerted effort to go green, with gear such as the Samsung Reclaim and other initiatives.)

"Today, a used consumer electronic goes into your drawer or garage, sits there until it decays to zero value, and then goes into a landfill," said Rosser, vice president of sales and marketing for the company. "We want to change that paradigm so it's more like car. When you're done with a car you don't just put it in your garage and leave it to rot."

Retailers get the machines installed for free, with obvious incentives including reward tie-ins and the potential for increased foot traffic. Participating businesses can also use the EcoATM to support the charitable cause of their choice ("Give us your used game console and we'll donate a dollar to the Saginaw Community Center"). In addition, they are getting help complying with e-waste laws (and possibly picking up some eco-cachet while they're at it).

"Consumer electronics retailers and their OEM partners are facing a complex and growing set of state and municipal e-waste laws," said Leslie Hand, research director at IDC Global Retail Insights. "Consumer convenience is important to solving the e-waste problem in the U.S., and trade-in/trade-up incentive programs are proving to be quite effective in retail."

This EcoATM, the first to be installed, is currently undergoing a trial run at the Nebraska Furniture Mart in Omaha.

(Credit: EcoATM)

Leslie Katz, senior editor of CNET's Crave, covers gadgets, games, and most other digital distractions. As a co-host of the CNET News Daily Podcast, she sometimes tries to channel Terry Gross. E-mail Leslie.
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by adiegoguy October 3, 2009 10:48 AM PDT
This is great that someone is finally buying back electronics at a store. Why drop your old phones in collection boxes to recycle when you can get paid a few bucks for them and give them a second life.
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by mikedrud October 3, 2009 11:15 AM PDT
A long-overdue idea. I am glad to finally see a product like this on the market. It may take some time before we see machines like this everywhere; but I'm optimistic this will become a part of the way we process old electronics.
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by consumealot October 3, 2009 11:45 AM PDT
A good idea and glad to see it happening. It makes sense to recycle and in my opinion reuse old electronics. The latest generation of cell phones are mini computers/dvds/cameras/gps systems/mp3 players and oh yea phones combined into one device. When you think that making that cell phone generates more than 3 tons of mining waste, our thinking about electronics needs to change. The car model is a good analogy and something to move towards.
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by carlhage October 3, 2009 12:24 PM PDT
Interesting, but this brings to mind-- how much energy and electronics are in the Eco-ATM itself? If it's collecting 20 phones per day, then maybe it's worthwhile. I was thinking about how to write software to recognize and assess phones, but the system could send an internet message to a call center that causes a popup window for manual verification.

On the topic of ATM and vending machine energy efficiency-- they all seem to be pretty horrible. In these Kiosks, they seem to run 24hr without a standby mode. The LCD screen could be turned off most of the time, e.g. blink on for a quarter second every 2 seconds, use infrared sensors to turn on when people walk by, and/or substitute a blinking LED to push a start button. The system could go into 1W standby mode until someone wants to use it.

I remember a project to replace Coke machines with more efficient models-- the existing ones were even worse then old refrigerators (they also had energy inefficient lights). Some use almost as much as statewide energy use per person (California). I'm surprised that no eco-blogs noticed the new (Aug 31, 2009) DOE vending machine standards to cut energy use by 42%. See nrdc.org/media/2009/090831.asp
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by jaguar717 October 3, 2009 12:59 PM PDT
Ok we've clearly gone overboard with the eco-paranoia. "Standby mode" for a box with an LCD screen? It's not like it's furiously pumping its motors away.

You realize these things sit inside of stores that have to keep fresh food climate controlled, and have to keep auxiliary lights running for night shifts or even just to keep thugs away, plus security systems, etc.

Trying to squeeze power savings out of an already-miserly LCD screen and circuit board is at best a pennywise venture, and at worst another empty "green" gesture of throwing tons of resources at something with no benefit.

Redesigning a kiosk to cut 42% from something that uses a fraction of a percent of a store's power is kind of like making your weekly grocery run and spending hours haggling over the cost of the pack of gum you through in at the end.
by Trexuphigh October 3, 2009 2:06 PM PDT
I don't think you can take 'eco' to far. The more efficient anything is the better. The less resources are used the better.

Regarding this machine, I wonder if the Blackberry Curve was stolen. This machine will soon have it's own gang stealing gadgets for vouchers that will later be sold on the black market.
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by extragreen October 3, 2009 8:27 PM PDT
You have to be kidding, right? Dude, if you are going to make an impact on 'eco' you got to do more than just be negative.Your comment is like saying that municipal recycling facilities use too much energy recycling your paper and cans. You're right, you can't take eco to far.... unless you have no idea what you are talking about. Creating a single phone generates 3 tons of mining waste just for the metals involved. Not to mention the oil need for the plastics and the energy to manufactuer it all. Reclaiming materials from a single phone, or giving one a second life, maybe a third, saves that 3 tons for at least one cycle. The EPA est. the energy required to create a single phone can run an avg US household or automobile for more than a day. If these guys can collect a phone per week they will be way ahead of the curve. Celebrate the positive.

And "gangs stealing gadgets for store vouchers"? Not the kind of crackheads in my neighborhood.
by Seaspray0 October 4, 2009 5:25 PM PDT
And when the voucher is used, the theif gets caught on tape at the cash register. I would worry more about identity theft than a gang of phone thiefs getting vouchers.
by extragreen October 3, 2009 4:26 PM PDT
awesome idea, kind of like eBay-in-a-Box, but no hassle/expense of posting, boxing, mailing,etc. cool stuff, I have 7 phones in my junk drawer, wonder if they take an old StarTac?
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by Seaspray0 October 4, 2009 5:27 PM PDT
Even if the phone was worthless, I like the idea or recycling them. I'd like to have one in my area. I'd don't really care if I get a voucher or not as long as it gets recycled.
by salt4502 October 3, 2009 7:34 PM PDT
Really a great idea. Now phone thefts will be on the rise because of the easy no hassle instant cash.
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by Cedarx October 3, 2009 8:49 PM PDT
My thoughts exactly... what would prevent someone from grabbing your phone off the street, turning it in, and leaving virtually no trace? Black-market-in-a-box, in my opinion.
by Seaspray0 October 4, 2009 5:29 PM PDT
Me thinks the thief is going to be more interested in racking up your phone bill on a stollen phone than turning it into a recycling box for a voucher (and end up on camera at the store when he redeems it).
by consumealot October 4, 2009 9:11 PM PDT
If you check out the ecoATM web site the kiosk is equipped with a camera, a finger print scanner and a drivers license scanner. Getting your picture taken trading in a stolen phone is hardly something anyone will want to do.
by dissent3125 October 4, 2009 3:20 AM PDT
I think that with most phone thefts, people will make a greater profit by selling them on real black markets where they get real hard currency. A brand new blackberry curve, for example, would be worth much more to someone who can just switch out the sim card and get maybe $75 than a coupon which must be used a certain place.
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by adiegoguy October 4, 2009 9:04 AM PDT
I work for ecoATM and the kiosk has a full package of biometrics on board. We can capture a photo, fingerprint, drivers license and signature. This was done to prevent theifs from selling back electronics and to comply with various pawnshop laws in different states.
by RMSorg October 7, 2009 11:47 AM PDT
I think anything that will help with convenience and time will be a plus for recycling and keeping e-waste low. If these kiosks are being used to help the environment, I trust that they to are being designed to be as environmentally friendly in parts as possible.
Every sector we could get to assist and take stock in the environment is a step in the right direction. The energy companies are doing it, the food industry is doing it and many Americans are taking stock and making better choices for the environment. A great example is - http://titanenergyworldwide.com/

Thanks for this post!
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by zachb44081 October 18, 2009 12:03 PM PDT
Here's a brilliant idea... Why doesn't this company become even more eco-friendly and just unplug the machine?!?! You can already do this at any Radioshack nationwide, and they can even do cameras and MP3 players..... just a thought
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