Podcast Archive - StorageReview.com - Podcast #153: ServerPartDeals CEO Max Manekia on Refurbished Drives as Supply Chain Strategy

Episode Date: September 29, 2026

Brian recently sat down with Max Manekia, CEO of ServerPartDeals, at the company’s facility in Sanford, Florida, on the same trip that produced our ServerPartDeals facility tour. We’ve bee...n a ServerPartDeals customer for years. Brian put them on our drive leaderboard not long after they opened their doors in 2010, and our 2025 look at The post Podcast #153: ServerPartDeals CEO Max Manekia on Refurbished Drives as Supply Chain Strategy appeared first on StorageReview.com.

Transcript
Discussion (0)
Starting point is 00:00:04 Hey guys, Brian Beeler here with StorageView.com, and we've got a special video for you today. We're taking a look at server part deals. And while many home labbers know these guys, you've been around for years servicing that market, the messaging is really up-leveled as the whole supply chain has been entirely disrupted. We all know about the prices of GPUs for sure, but RAM, hard drive, servers, it's all going up. And you guys have a really great solution for organizations that want to get more out of their spend. What's going on, Max, and what's changed in your business? What's changing and changing fast is the compute shortage is followed by a storage shortage.
Starting point is 00:00:46 And traditionally, for over a decade now, we've been selling refurbished storage alongside new factory sealed storage. But the difference today is the type of customer that we are servicing and helping is evolving fast. I think that refurbished hard drives and storage components, SSDs, even servers themselves are becoming strategic in a supply chain when availability is down. Sure. Constantly. Lead times are growing and costs are very concerning. So our company has been focused on establishing customers' trust by making sure the product is reliable in an obsessive way. but now because the need is so wide and spread out,
Starting point is 00:01:38 it seems like we've been positioned well all these years to help. So you didn't even know back then when you started that you would end up here and that your processes and everything would be the foundation for what gets you there. And I want to make it clear that just because when you say recertified or refurbished, it doesn't mean it sometimes can come off possibly negatively. But you guys are warranting these things. You're testing these things. You're shipping them really well.
Starting point is 00:02:05 You're making sure that the customer experience is fluid and that they're happy. Absolutely. Our journey started a long time ago, and we always started with the customer. So, you know, selling online, it's extremely tall order when you're servicing thousands of customers a month. Because one bad experience can echo into a very wide community quickly. And so what we did is we would look at failure rates. We would look at why customers would receive a DOA product. And we'd work backwards.
Starting point is 00:02:40 And we found things over time like the ability to weed out a bad drive and smart on the front end, a long test, and then smart on the back end. Upgrading packaging, where we source products. And when you put it all together in one package, the goal of like, never delivering a DOA drive, it does become possible, pretty close to possible. Well, that's important. And so we're in the warehouse now, the receiving side of it. So kind of walk me through what we're looking at. You've got stuff everywhere. You've got drives, obviously, you've got servers. I saw some UPSs further down. You talk about sourcing, and that's job one, I guess, from your perspective, running this company, is how do you get all of this stuff?
Starting point is 00:03:31 on a regular basis in here. So how does that work? Yeah, so I guess untraditionally, because we're dealing with end users constantly, and we have a lot of data coming in on what products are selling, what are they selling for, what is a sweet spot for customers in terms of price, and also a type of product. We establish relationships throughout the whole supply chain.
Starting point is 00:03:57 So because we have the ability to buy on the spot, and we're sourcing from so many relationships built over years. We're getting things, we're getting items constantly, and we're getting them in a fluid way so that we have constant supply, and we can constantly offer customers the same type of products over time. One thing that we're really proud of is like we have a 42% return customer rate, and I think partly that's due with testing, partly that's to do with price, but I think part of it is just having consistent supply.
Starting point is 00:04:35 And that's something that hasn't been easy to do, but over time, compounding relationships, we've established that too. Well, one of the big things from your perspective on the supply side is making sure that we're reducing waste, right? And some of it you can't do anything about. There's going to be certain requirements like HIPAA, where a lot of drives are going to get shredded, systems are going to get, you know, e-wasted. And that's unfortunate, but for the rest of the world, you guys can help solve that. And we were talking at dinner last night where you have a lot of customers
Starting point is 00:05:04 that will buy a box of drives like you're unpacking here, put those to work, and then send you the old ones that can be recertified and put back to work for another customer. And that's an important part of what the whole IT structure
Starting point is 00:05:19 needs to do better at, even if it's not with you guys. I'm just saying, like, let's not throw this stuff away. It's a terrible waste. Absolutely. Like all these years, we always felt like we were like that last bit on the circularity on the circle itself. Right. And I feel like now we're almost full circle because like you said, we're dealing with customers that they're buying new products from us and then we're picking up their assets.
Starting point is 00:05:47 And that asset comes in, it gets tested and sometimes almost like the same day or the next day, it's going out to another customer. we're getting to the point where a customer is telling us the assets that they want us to pick up, and then another customer is telling us that they want that exact same asset. So you match them up, right? So we're able to see if we feel like we're in between two rooms, and we're just watching it happen. And it's a win-win for everybody because one, we reduce e-waste, second, it's available, products available. Third, we put our testing to the test, and I think also we're able to meet people. budgets right a big concern right right well let's so let's talk about the flow
Starting point is 00:06:30 you've got actually some action happening here this is a new case of drives that comes in just walk me through what what happens at receiving yeah so we're we're buying from you know hundreds of different sources so the first thing we do before even comes here is like we're gonna vet the source we're gonna talk about who they are in the marketplace or supply chain how they got the product what's What type of product? What's the date stamp? What's the firmware?
Starting point is 00:06:58 So you want all the provenance information? Everything on the front end because we want to reduce anything coming to our facility and then turning into a return on that end. Right. But once it comes in, we're looking for all those factors. We're just confirming them. We're looking for part number. We're looking at physical condition. Any dings, dense, scratches, marks, tears.
Starting point is 00:07:19 Those are the type of things that we would automatically consider not a grade A drive. Right. even if it's functioning, you know, perfect, but the physical aspect is a part of this. Again, being in the e-commerce world, like, you know, I think we were one of the first companies to, like, show the actual image of our products. Right. This is a thumbnail. It's just like...
Starting point is 00:07:38 Or rendering or just like a general exos photo. You're showing the actual drive. Okay. And we didn't water market. And, you know, so now a lot of the pictures are everywhere. But that's what we're doing here. We're making sure that everything we confirmed on the purchase is actually physically confirmed when it gets in the door. Right. And so you're doing some of that here on the front end.
Starting point is 00:08:01 He's going through these cases of drives. They're getting stacked up probably over here and organized. And then from here, that's going to go to the next station, which is from a hard drive perspective is your Storinator. But like I said, you've got pallets of servers. Like these guys, these are all super micro hard drive servers or jibods. You get stuff like this in, too, and then this has its own testing regimen. Yeah, so the next step is usually, like, we're looking at the testing queue. Right.
Starting point is 00:08:30 And we're looking at what needs to be tested and how. And so, like, there's queue management. Sometimes we're prioritizing something that's already sold, like the customer who came to us for procurement, and now we have it in stock. Right. Other times, it's, we need to load those machines because to just to just, To load it, it takes a couple of hours because there's so many slots. Right. And then they'll get to like the bigger things like breaking down a server and testing components.
Starting point is 00:08:59 So that's what I noticed these guys were working on that earlier today where they were taking some things apart, checking BIOS, checking the component level stuff to make sure it's accurate. But the other thing you can do, which is pretty fun, is you could start with something like this and if a customer needs different HBAs or different memory configuration or whatever, we'll see in the other room, that you've got all those parts to be able to tune these for what customers want. Yep, absolutely. You know, the other part about it is that when we are testing, because we're on the side of the spectrum where it's like the longer full test. So, and right now high capacity, everybody wants high capacity.
Starting point is 00:09:38 So we're running 24 hours to 36 hours on testing and then we go back to this side of the equation and it's more detailed unpacking. and then putting it through the right chain of command here. Now, some of your guys don't look like they're quite strong enough to move these big servers around. Do you have a physical requirement here? We need to bump some of these dudes up in the gym? They're stronger than they look. All right.
Starting point is 00:10:08 We also, we're getting taller tables. We're thinking about those suction cups soon. Oh, yeah, there you go, to lift and move them. Yeah, Tom Cruise climbed a building that way, and one of the Mission Impossible, so you should be able to move servers. I haven't thought about that. That's next level thinking. So as we walk around here, these guys are working on different validation, different drives, but your really important investment has been with these Storinators from 45 drives.
Starting point is 00:10:33 You've got 40 of them here, if I counted right. Yep. So tell me about this infrastructure and why this is so important from the hard drive side of the business. Yes. So, you know, when you're trying to test a hard drive and the bar is going up for what's acceptable and what you're trying to weed out. On the quality side. On the quality side.
Starting point is 00:10:54 Yeah, they took ours out because we brought some special drives here that immediately failed. We want to make sure that you were on the up and up. We kept this on our toes. So we brought in five or six drives where we had an idea about what they were. But yeah, I mean, this pretty quickly gets to all those drive attributes. And then from there, you can kind of categorize what you do with them. Yeah.
Starting point is 00:11:13 And, you know, to get to this point, we went through like many solutions over time. and our result-oriented solution, which is now this, is we would look on the customer side and say, what's our failure rate? For this drive, this batch, and how many were we able to weed out and how many were we not able to weed out, how much of it was from shipping and handling?
Starting point is 00:11:40 So just going through that and looking at that 3%, trying to make it down to 2%, trying to make it down to 1%, trying to make it to zero, this is the final product that we came up with. Right. Well, I'm surprised. I guess I shouldn't be. You guys are so data-driven, both on the acquisition side and getting things at the
Starting point is 00:11:59 right price for your customers that make sense for what their needs are. But when you look at what you're doing with the storinators here, too, a 20-terabyte drive, just one 20-terabyte drive takes 30-plus hours of testing just in this system. After it's already been looked at by these guys, and then it gets some more QA after this. like you said, you've got to run these things pretty much around the clock to be able to turn through that much product. Yeah, especially when, you know, you start loading one side. Right. You get to the end and then offloading is just the same amount of work.
Starting point is 00:12:32 Right. So we'll be adding more as we go along. Is that the goals you need to just keep building the racks out? Yeah, I think right now we have capability from anywhere between 1,800 and 2,200 high capacity. city per day. Right. I think the demand for us to test more is there, so we will be increasing over time. You know, power is also a constraint because the amount of power we need to run these has been there. Yeah, so you guys built out in this facility from when you started, right? So you must have run into clearly physical space. I can see the cut out there. You've moved into the neighboring
Starting point is 00:13:11 space, but the power, from a hard drive perspective, like we think about it for the AI solutions. all the time because power is limited, but every business faces a fixed power budget regardless, right? There's not a whole lot you can do oftentimes to get more. How have you managed the power budget? We were lucky because this building already had like three phases and had 600 amps service. We're also able to grab more power from our tenant next door. So that helped our cause. I think a year ago our goal was like to scale out to a thousand units per day and we were able to get to two thinking that we may never use it. Right. Like we would just be able to like filter more drives as time went on. But because of the shortage and because of the adoption of
Starting point is 00:14:04 refurbished, I feel like now, you know, we may have to get another facility or get more power somehow. Right. Well, the nice thing, too, that we should note is right outside is a fire station. So if in case you guys run into an electrical problem, we're good. You got those guys two feet away, which is nice. So these tests run, the drive cycle through, and the grading is actually something that I didn't really fully understand. So talk to me about grading, because the good ones that are, you know, no bad sectors that test out well, those would be A grade, right? That's how you think about it. Yes. So our grading is a little bit different in the sense that when people grade, they say ABC, that kind of nomenclature. But it's not universal. Which I did not know until today. So that's important information.
Starting point is 00:14:54 As an online seller, the grade ends up being like what the platforms look at as grade. Right. And the platforms are not going to grade something as a smart failure or as a bad sector. or even physically they may look at something and say if it looks new from a foot away, you know, but if something has a barcode that's etched off, you know, that's not something that we would sell. No. So we have the platform grading.
Starting point is 00:15:24 That sounds like that might be a little hot. You might not want that one. And so you have the platform and then you have like kind of the global grading. Right. For refurbished drives. And then what we do is we look at a, as a drive with no defects at all.
Starting point is 00:15:42 And we wouldn't really take a B or a C and sell it to our traditional customer. That's gonna be something that would be wholesale. So that's an important point because one of the 18 terabytes we brought you that had bad sectors in it, your guys were here looking at it and he said, yeah, this clearly is not an A,
Starting point is 00:16:01 but it's not dead either. It still has capacity, it still spins. It's not, you know, have a rotor lock or anything. So it still has value to the right customer. Absolutely. And it's just that what we see over and over again with storage is like people want warranty. They want to know how it was tested. And they definitely want to technical support at times.
Starting point is 00:16:25 And so if we can't offer those three things, then it's not going to be a mainstream drive for us. Protecting reputation is also important. That's all you have, though. At the end of the day, like you can move product all you want. that's fine. Yeah. But if there's any sort of question about where the drives came from, where the quality control sits, how they're shipped, how they're supported,
Starting point is 00:16:49 all those things roll into an important solution. Absolutely. Yeah. So from here, these drives are getting swapped. You've got new ones coming in. These guys are ready to go to the next phase. Where do the drives go after they've been graded and validated? So the test rig tells us the grade.
Starting point is 00:17:07 and then once it tells us the grade, it's going to go over to scanning and receiving. Let's go over there. Let's take a look. So you were talking, too, about provenance, and I think that's an important thing because these things show up in different ways and different sources. And I think during the chia craze, which you guys were probably having some fun with, there were some shady practices. And then there was a whole thing with a specific set of drives maybe a year ago where there were some fraudulent ones that you had to be concerned about. Have you been hit by that kind of stuff?
Starting point is 00:17:46 I mean, you would suss it out, I imagine, as part of your process. Yeah, I think over time, like the number of variables that we do to check on the purchasing side and also receiving side has eliminated a lot of that. I think who you deal with really matters in our market. Where you source it. Where you source it. Right. But, you know, shadiness generally doesn't scale. No, it's normally a quick hit.
Starting point is 00:18:08 Yeah. So it's something that we have an eye on. I think on top of like just physically checking things, our buyers are well trained. You know, they know who they're dealing with. Right. And there's always like early signs that something's off. Do you worry about that, though? Because with the price of all these components, like I'm sure you have in the back of your head what the inventory value is here.
Starting point is 00:18:32 Yeah. But from the price. price, argument of hard drives, SSDs, like one SSD can be a six-figure product. Yes. Do you think that makes this industry more dangerous in that respect? It definitely has its risks. We say no to a lot of deals. Right.
Starting point is 00:18:51 That don't feel right. A lot of deals that we, let's say it's a new relationship and I can't really say I have history with that supplier. What I'm going to do is get a set. sample. And if that getting a sample means that, you know, they're going to sell to somebody else, then so be it. Because on the other end, when it comes to like trusting customers trust, obtaining that or keeping that, it's like really hard to build and easy to lose. And we don't really have a problem getting products, to be honest. So we just, it hasn't been something that we're
Starting point is 00:19:25 going to risk it to receive it. And so far, and in the chance that some, something comes in that we feel is not kosher, we're going to make sure that we either return it. And there's enough checks between the point where it's purchased and the point where it's scanned in live. Right. Because another fear we have is like if we scan something in, it's live. And once it gets purchased, you know, at that point, we have to ship. So we don't want to cancel an order until it's like fully verified. So speak about the verification process. We looked at the lab, the drives that get done come in here next. And you've got some activity going on here.
Starting point is 00:20:09 But tell me about what happens in this room. So what happens is like now that it's been physically checked, it's also we're checking the part numbers and date stamps, things like that. Now it's been graded. It's going to come over here and it's going to be transferred into a live inventory position. And what does that look like? You've got the website. You're on eBay, right?
Starting point is 00:20:30 We're on all the traditional platforms like eBay, Amazon, New Ag. Our own website, our own e-commerce website, surferparterdeals.com, is our biggest driver. It's also the nicest one because you don't have to give up margin, right? Three, two-day shipping. There you go. And so what happens is all those listings, those specifications, those pictures, the warranty, every question that a customer may have is answered on that listing. Right.
Starting point is 00:20:58 And then, so that's all teed up. And this step connects the wiring. So once he scans in that cereal to the correct condition, it automatically goes live with the price. So everything that's in this room as it's being scanned in here, this is all available for purchase at this point. Yes. There are certain products that we have like holds on for customers that are already waiting for it. So those wouldn't go live. Another instance where we would be holding something is if we're unsure,
Starting point is 00:21:28 about like market prices. So we have a thousand units. It's dynamic. I mean, how do you manage that? Because the price of a, you know, 15 terabyte hard drive or SSD today may not be what it is. And, you know, even a couple hours. It's been that dynamic.
Starting point is 00:21:47 It's never been like that before, has it? Outside of maybe, it's never, it's never been as extreme. Okay. As it is now. The way we look at the market. is the online market at least. It's like it's a marketplace where there is availability at different price points. But more than price, there's a trust factor, there's a warranty factor, there's a number
Starting point is 00:22:12 of units available factor. Right. And so what we do is we look at the entire market as like a weighted average scale. And so if this 12 terabyte has a very long warranty and, you know, a customer is going to look at this 14. with half the warranty because they're a little bit more capacity. It's less about that product's price and more about what other options are around it for us. That's no different than buying a car or anything else, right?
Starting point is 00:22:42 Certainly like a CPO that has a couple extra years on the warranty, there's a big value in that in knowing that that's there. So how does that work from a support standpoint? You guys will warranty things too for the customer, But if there is a failure because hard drives specifically moving parts, but NAN fails, servers fail, these things fail. What does that look like from a customer perspective? From a customer's perspective, there's two things that we learned. One is you can have a warranty, but how do I claim it?
Starting point is 00:23:13 Right. If it takes me three weeks and I'm down. That's the aggravating thing, right? It's like, okay, then I got to send it to you, then I got to wait, and then you got to verify the things broken the way I think it is, and then you got to send it back. Like, that's high friction. Yes. And so what we did with that, it was actually, it's not possible to scale in this way and have those, you know, long waiting periods.
Starting point is 00:23:34 Right. So our RMA replacement is super fast. A lot of times we even offer advanced replacements. Right. Sometimes we ask for the failure of screenshot so that just a proof of life. We can kind of escape that step. Right. Most people are very honest about what's going on.
Starting point is 00:23:50 They just want their system up and running. So that's one aspect that it's driven the process to make the customer happy. The second part about it is if there is an RMA claim and we are warrantying it, we're going to take that loss because I don't think there's any customer that I've ever spoken to that's like I want to pay 1% less and risk it myself. Right. But because we have so many drives coming in and out and so much data, we can afford to say, okay, we're going to take that hit and offer the warranty.
Starting point is 00:24:27 And oftentimes we're going like really above and beyond on the length of warranty. We have customers all the time, all the time that come back and say, I have three days left on my three-year warranty. It's time. And my drive diet. And we have customers that are three days after that day, after the warranty. And we still, you know, because it's a working relationship. Again, being online teaches you that although you're not like,
Starting point is 00:24:52 meeting the customer physically, over time it's become even more intimate. And at 40% recurring rate, we're seeing the same people all the time. Right. Now we're north of Orlando in this facility. Do you ever have customers that show up here to check out the operation or pick up stuff? Yes, we've had that over time for sure. We tend to not condone that too much. Right, because you're not running a retail front. Yes, it's not retail.
Starting point is 00:25:22 But there are situations where, let's say, a customer flew in and they were installing something at a data center here or in Miami. Their flight was in Orlando, and they just come here, pick it up and go straight. And for those customers, it was great because we could just handle it right there on the spot. But generally speaking, it's all e-com. And then now we have more account managers helping people through like real solutions, like longer solutions. Sure. So one of the things that's kind of funny is you talked about RMA. And my favorite part of this entire facility is how small the RMA thing is.
Starting point is 00:25:56 So if you can look through the cage, there's, I don't know, 120 square feet of space for RMAs, which is pretty remarkable. And we've been here all day, and I've seen people over there a little bit working through it. But not to say there's nothing going on there, but there's not a lot going on there when you consider everything else in this whole facility. That's just from a square footage standpoint. That's a pretty good testament to what you guys are doing. Yeah, the biggest effect on our maze was the 100% sector scans. It really gave us the ability to weed out anything that was predicting failure or was going to fail.
Starting point is 00:26:36 Right. And then so that if you take care of the front end, the back end kind of takes care of itself over time. We also have pretty fast rotations here, like going in and out. So, you know, there's probably some of those drives went out yesterday and a week before and a week before and a week before. Right. But generally speaking, it is a low percentage. Like, you know, when we speak to other people in the industry and things like that, like about warranting drives and like the risk of that happening, we feel like as long as you test it and you buy it from a quality source, you know, drives will last a long time. And pack it well.
Starting point is 00:27:16 So that's the next thing is after you get your situated storage stuff here, you go to this section, which I must say is a bit like a candy store. So you've got all these nicely anti-static wrap drives and servers and all these other components. So kind of walk us through this. Once we get to the shipping cage, you've got everything available and organized. And so this is one of the tricks when I was looking at it. that looks challenging. Like when you look down this aisle, you've got hundreds of drives
Starting point is 00:27:52 and your total skew count, do you know offhand? I mean, it must be, it's got to be thousands. It's over 200. Okay, unique skews. Current, yeah. But as far as number of drives, yeah, tens of thousands.
Starting point is 00:28:06 So when you're looking at this, how do you guys organize this? Because back in the early days, maybe it was easier, but at these volumes with every two-terabyte increment in capacity on the hard drive side, You got a ton of stuff here.
Starting point is 00:28:18 Yeah, the challenge was when we were putting this all together is one, you have obviously different manufacturers, different part numbers, and then you could have different grade. Right. You could have a Western Digital Drive that's, you know, dual labeled with Dell or dual-labeled. Yeah, all the vendor labels, yeah. So we started adding, you know, the dash nomenclatures to all our products. Okay. That list got long really fast. But we take that and we use a mapping system for the warehouse.
Starting point is 00:28:52 Right. And so we assign every specific nomenclature to a specific spot on the shelf. And every morning when they're getting ready for pickpack and ship, they get that manifest printed out so they could walk around, grab what they need and get it out the door. And so, yeah, it's really well organized and laid out from that standpoint. is we're sort of looking at the central hub of your shipping situation here. You've got your foil seals. You've got obviously all your boxes and materials.
Starting point is 00:29:25 One of my favorite things, though, is, and we've seen versions of this before, but these little foam dudes to hold the single drives together. Yes. How long did it take you to realize you had to have something like this? So this was interesting because when you're upgrading your testing and you're looking at your customer's outcomes, the one doubt you have in your mind is like,
Starting point is 00:29:46 what if failure is caused by something that happens between us and the customer? Right. And this was years ago when we used to, you know, we used to see those videos where like UPS or FedEx were like, don't know a box. Yeah, sure. And so we started thinking like, hey, maybe this like industry standard box is just not cutting it for like
Starting point is 00:30:05 vibration on all these trucks. Right. Getting to the end user. So what we did is we took a drive that was tested. and we tried many different types of packaging and we would like stand on a ladder and drop it and we had an engineer actually help us and when we drop that drive off of a ladder
Starting point is 00:30:25 you know over a dozen times maybe 20 something times it's still past test right so we were trying to recreate it and when we did it with the other types of it the clamshells and the other inserts the drive would fail early especially glass platter right but but this particularly packaging, it just always works. It's not the most efficient for shipping. Well, it takes a lot of space. It takes a lot of space. But when a customer is, first of all,
Starting point is 00:30:53 trusting you for a refurbish drive with their system that's mission critical, receiving it in a nice packaged way that you believe work is important. Right. So for onesies, or two, this works really well. Of course, you've got your full cases with the foam and these even get repackaged in a nicer box if they're not palletized. So, That's bubble wrapped again a second time, which is additional security. But what I really love is this stack of goodies here that you have these foam inserts for holding up to five at a time in a box. Tell me about this innovation because it just looks like a little foam board,
Starting point is 00:31:34 but this took some work to get to. It took a lot of work. We noticed that a lot of customers were ordering between three and ten years. units for various reasons. And that packaging was just too many smaller boxes for them to unpack. So we had this made. We looked at spacing between the drives. We looked at space between the drive and the box.
Starting point is 00:32:00 We looked at the impact and how much, how it would transfer into the drive. And this was the best solution we could come up with. It also gave us the ability to knock out a five pack or a 10 pack. Right. so that versatility is good. But yeah, the foam was created because, like, once you have this for your single drives, yep, it doesn't scale, yeah.
Starting point is 00:32:21 Yeah, you have to keep, but you have to keep the quality on the larger orders as well. So you came up with this innovation, which is nice for shipping those drives and making sure they're secure. And then as we look over here, your guys been working today. And this is all orders, what, from yesterday, maybe even this morning? Or what are we looking at here? Yeah, so throughout the day, they're going to batch out orders probably two, three, or four times. Sometimes there's one pickup, sometimes there's two pickups.
Starting point is 00:32:50 Right. So you're probably looking at the orders. I think they knocked out before lunch. Right. And these are all two-day air. Do you ship almost everything today? Yeah, almost, I would not say we don't really ship much ground. Okay.
Starting point is 00:33:05 So you're located in Florida. Right. It makes sense because it's one day. But everything else. The ground's a little rougher on the ship. Yes, so we make sure that it has that packaging. And you're right, ground is a little bit rougher, so we prefer two days, lower defect rate. And everybody's going towards overnight as well now. Right. You know, every order is close to $1,000 or more.
Starting point is 00:33:29 Right. Especially with the prices of drives now. So it's worth the extra $10, $20, $30. Well, you'd hate to lose a drive or an order on cheap shipping, right? and having damage or an unsatisfied customer because of that. The other thing we do also is like we say, I think, a 3 or 3.30 cutoff, but these guys, they ship all the way to 6 o'clock, as many orders as they can get out. So a lot of times customers will place an order at like 4.45 and then they'll get it the next day.
Starting point is 00:34:01 And they'll be like, how did this happen? Yeah. But we just say that for safety, but we just go all the way till the end. Well, part of the process is. that we said before is the organization. So even with all these skews, having it set up so that it's easy to execute to get the order through your system, to go, to pick the right drive and pack it, like, you've got it set up so it's pretty fluid. Yeah. The mistakes have just been, you know, constant improvement, constant improvement, and a great team, like I have to say. Yeah. Yeah, well,
Starting point is 00:34:32 you let them have lunch. I wouldn't do that if I was the manager. So that's very, that's very magnanimous of you. So what do you want people to do? Check out serverpartdeals.com. That's the best way to get engaged with you and your inventory. Absolutely. Everything we have is listed on serverpartdeals.com. We're in exciting times. I think the market is shifting and changing.
Starting point is 00:34:55 We've brought on a lot of dedicated account managers now because our customers are asking us to help them procure, so they have procurement as a service, help them recover value. Sometimes many customers have to plan out their spend, so they not only want 100 units of something today, but they want to know that they can get that consistency next month. Right. So we can put things on hold like we were speaking about. Right. So all these factors.
Starting point is 00:35:22 But generally speaking, we're very flexible and open. We have a lot of connections. Sometimes if we don't have something and we can help somebody, we can steer them the right way. Well, that's an important thing that might have gotten glossed. over is because we looked at servers and hard drives and you guys do NVME too, but you do the whole stack. So if you've got customers that want GPUs, for instance, you have access to that, complete systems, you have access to that. So I want to make sure that we talk about that. The scope of what you can do here is not limited to hard drives. While that might be the bulk of the business,
Starting point is 00:35:56 there's so much more that can be done. And for customers that are facing the shortages, or they're going to their main supplier and they're getting word back that it's going to be six months, 12 months, 18 months, something like what you guys are doing can slot in there if they're not already familiar with this style of acquisition. Absolutely. Even we've had customers where we're able to get things
Starting point is 00:36:19 that are faster lead time because of the people in the industry that we know or be able to help them get allocation. Right. And in terms of the full stack, Absolutely, like the number of servers we're bringing in now with GPUs, with RAM, right. Even Flash SSDs, the higher-end stuff. All that's coming through the pipeline.
Starting point is 00:36:41 And we're excited because, again, our customers are actually turning into our suppliers and our suppliers are turning into our customers. So it's even more rewarding. So to be clear, if it's not listed on server part deals and you still need it, The best thing to do would be to drop a contact form or call and say, hey, I know it's not on the site, but I need a bunch of H-100s, for instance. And you guys can go and procure that and get it done. Yep, we just launched a button on the cart.
Starting point is 00:37:14 It says, you know, trying to find something you don't see. You click that. You can put anything you want in there. The next day, somebody's going to look into it and reach out to you and either guide you or find it for you or, you, or quote it and let you know. A lot of times things are coming in. Right.
Starting point is 00:37:31 So like it's not live. Has it hasn't hit the dock yet. Yeah. About to come in. Right. Especially if it's like mainstream, like they're constantly, the supply chain is coming in. Right. So definitely always great to reach out to us.
Starting point is 00:37:44 All right. Max, this is awesome. You guys have a great facility. Thanks for having us down here. And thanks for an amazing dinner last night. Appreciate you. Appreciate you. Thank you.

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