The enforcement of the Home Appliance Recycling Law and other measures have provided a tailwind that has helped make the use of recycle stores more widespread among general consumers.

The enforcement of the Home Appliance Recycling Law and other measures have provided a tailwind that has helped make the use of recycle stores more widespread among general consumers.
However, the operation of recycle stores requires an accurate grasp of what is selling in the market and consumer needs, and the ability to quickly set appropriate purchase and sales prices.
It also requires repair and maintenance skills.
Although our business form is simple - trade in used products and sell them - it is by no means a straightforward process.
In this environment, one company that has developed a business unrivaled by any other is Hard Off Corporation, headquartered in Niigata Prefecture's Shinbashida City.
The company is a pioneer in the home appliance recycle store chain and listed its stock on the over-the-counter market in November 2000.
In addition to home appliances, the company has been growing rapidly by expanding its product lineup to include musical instruments, watches, cameras, software, furniture, household goods, clothing, and even books through a partnership with Puc-Off, in response to the growing ecological momentum and consumer needs in recent years.
The shift to a business format in which the company has the right to dictate prices has been the key to the company's progress.
The company's predecessor was Sound Hokuetsu, established in 1972, which operated five stores in Niigata Prefecture specializing in audio equipment.
However, sales of new products were based on prices set by the manufacturers, and profits were not as high as expected.
Under pressure to change direction, the company decided to convert to recycle stores.
In seeking a challenge in a new field, we had two things in mind: to develop a business in which we had the right to set prices, and to do something that was truly needed in the world.
The best way to do that was to open an electronics recycle store," said President Yamamoto.
We were able to freely set prices for used products, and we expanded our recycling business by selling rebuilt products as our own products.
In addition, the company had been trading in used equipment from customers and selling it at low prices in order to expand new demand since the Sound Hokuetsu days.
As a result, used equipment sales were more popular and the company found new business opportunities.
In 1993, with no bank financing available, we changed the format of our first store, the Sound Hokuetsu Shichikuyama Store in Niigata City, Niigata Prefecture, to the "Hard-Off Niigata Shichikuyama Store," an electronics recycling store, and thereafter switched existing stores to the "Hard-Off" format.
Furthermore, in 1994, the company started the "Hard-Off System" franchise business, and in 1997, it partnered with Puc-Off, and from 1998, "Off-House" selling clothing, household goods, furniture, gifts, sporting goods, and baby-related products.
As of March 31, 2001, the company had rapidly expanded to 51 directly managed stores and 189 franchise stores, mainly in the Niigata, Kanto, and Chubu regions.
The breakdown by business category includes 20 directly operated Hard-Off, 13 Off-House, and 18 Puc-Off stores, and 146 franchised Hard-Off and 43 Off-House stores.
These stores also include electronics retailers such as Nojima and Denkord.
The company is looking to expand further.
For sales and purchase prices, the company has created a database of eight years of accumulated data and introduced a system that can quickly determine prices based on year, manufacturer, performance, scratches, and other factors.
There are approximately 60,000 products in the database, which is a pioneering effort in the industry.
Each store has a maintenance shop, where used products are issued a warranty and repaired free of charge in the event of a malfunction.
These efforts have helped the company increase sales and profitability.
Currently, the company operates stores primarily in the Niigata, Kanto, and Chubu regions, with plans to expand into Kyushu, Shikoku, and other regions.
The company is also expanding its combined Hard-Off, Off-House, and Puc-Off store network, aiming to have 1,000 stores by 2010.
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