IT Hardware Repair vs. Replacement: Cutting Costs in a Tariff-Driven Market
August 11, 2025
Why Repair Beats Replace in the New Tariff World
In today’s business environment, staying competitive means balancing innovation with operational efficiency—and that includes how you manage your technology infrastructure. Now, with a newly imposed tariff of up to 30% on imported IT hardware, that balance has become even more challenging.
For companies that rely on barcode equipment, mobile devices, point-of-sale (POS) systems, printers, tablets and other essential devices, these tariffs are more than just a line item on a spreadsheet. They are an immediate hit to the bottom line, making hardware replacements far more costly than they were just months ago.
And it’s not just tariffs that are impacting costs. Across the board, many original equipment manufacturers (OEMs) are raising the price of repairs and maintenance contracts—while also reducing the coverage and length of those contracts. In effect, businesses are paying more for less.
So, what can you do when replacing hardware has become too expensive, and relying on OEM support no longer makes financial sense? The answer: extend the life of the equipment you already have. At Mercom, we believe a repair-first approach is not just a short-term fix—it’s a long-term strategy.
The Real Cost of Replacement Just Went Up
When the cost of replacing hardware increases by 15%, 30% or more overnight, it forces IT leaders to reconsider their standard approach. For many organizations, especially those operating at scale with hundreds or thousands of devices, replacing outdated or malfunctioning equipment was already a significant investment. With the new tariffs in place, that investment becomes exponentially more burdensome.
Additionally, it’s important to understand that hardware replacement isn’t a standalone expense. Along with the cost of the new device, companies must also factor in:
- Procurement and lead time delays due to supply chain disruptions
- Configuration, setup, and installation costs
- Training staff on updated systems or interfaces
- Possible software compatibility issues with newer models
These hidden costs add up quickly, turning a straightforward hardware refresh into a costly, time-consuming project. When you multiply these costs across an entire fleet of devices, the total impact can be staggering.
Adding Fuel to the Fire: Rising Maintenance Costs
As if higher hardware prices weren’t enough, OEMs are also increasing the cost of their repairs and maintenance contracts. In many cases, the new pricing structures are not only more expensive but come with limitations that reduce their overall value.
These changes often include:
- Shorter contract periods
- Reduced availability of parts for legacy equipment
- Longer response and repair times
- Higher service fees for basic issues
For organizations that rely heavily on vendor contracts to keep their systems running, these changes can lead to increased risk of downtime, decreased performance, and mounting frustration among IT teams.
In this climate, sticking with the OEM’s repair program may not be the most cost-effective—or dependable—option.
The Smart Alternative: Repair and Refurbishment
Mercom has long been a trusted partner for companies looking to get more value from their existing hardware. With in-house repair expertise with veteran technicians, we’re able to restore mission-critical equipment to like-new condition, often at a fraction of the cost of replacement.
A repair-first approach offers significant benefits, especially now:
- You avoid the financial burden of new hardware tariffs
- You bypass expensive OEM service contracts
- You reduce downtime with faster, localized service
- You support sustainability by extending the life of existing equipment
- You minimize the need for retraining or reconfiguring software
We don’t just fix what’s broken—we build proactive repair plans that help organizations anticipate future issues, minimize disruption, and get the most out of their IT assets.
What We Repair
At Mercom, we specialize in repairing and refurbishing a wide range of business-critical equipment. This includes:
- Barcode equipment and handheld mobile device
- POS terminals and peripherals (printers, scanners, cash drawers)
- iPads and other tablets.
- Monitors and touchscreens
- Circuit boards and power supplies
Whether you operate in retail, logistics, hospitality, manufacturing, shipping, healthcare, or any other sector, our skilled technicians and responsive service model are designed to keep your systems up and running—with less downtime and greater efficiency.
Repair vs. Replace: It’s About More Than Cost
While cost is a major factor in the decision to repair or replace, it’s not the only one. With today’s increased tariffs, supply chain delays, and shrinking manufacturer support for older systems, keeping your current equipment in service longer is also about reliability and control.
A repair-first strategy gives you the flexibility to maintain operations without the disruption that often comes with large-scale replacements. It allows you to plan for upgrades on your timeline, not the manufacturer’s. And it keeps your systems familiar, stable, and reliable—just the way your team needs them to be.
Your Next Step
In a market defined by volatility and rising costs, businesses need to rethink how they approach hardware lifecycle management. If your IT budget is under pressure, if your hardware still performs well but needs attention, or if your OEM contract no longer provides the value it once did—it’s time to consider a smarter path forward.
Mercom can help you develop a repair-focused hardware strategy that aligns with your budget, operational goals, and sustainability values.
Let’s work together to protect your investment, reduce unnecessary costs, and keep your business moving—without letting tariffs and price hikes call the shots.
Contact us today to learn how Mercom can help you save more and stress less.
