I used to work in a reel-to-reel duplicating facility "loaning" radio programs to subscribing stations (boy, I just dated myself!). We would reuse our 7" reels 25 times - not because of the oxide "wearing out" but because of physical damage to tape edges by the equipment our member stations "sort of" maintained.
Each tape was degaussed on its return using a unit similar to this one, currently on eBay (I've seen similar ones by Magnetech or Ampex going for $10 - $200)
http://cgi.ebay.com/Comprehensive-Video-Supply-CVC-2500-Tape-Degausser-NR_W0QQitemZ200375864410QQcmdZViewItemQQptZVintage_Electronics_R2?hash=item2ea7550c5a&_trksid=p3286.c0.m14If the unit "buzzes" when turned on, the only thing you have to worry about is whether both of the coils in the unit are working or just one - drop a penny onto each corner of the unit and look for equal vibrating.
You should probably have a variac or similar variable transformer to fade up and down the degausser - it is the slow removal of the magnetic field that actually does the erasing. Technique is:
1. Turn on degausser with variac at zero.
2. Put reel onto the spindle in the center of the degausser.
3. Start spinning reel on the spindle (about 33 rpm should do)
4. Slowly fade up variac to full power - over about 2 seconds.
5. Hold degausser at full power for a second or two.
6. Slowly fade down variac to zero - in about 4-5 seconds.
7. Remove tape reel.
8. Repeat with next reel.
9. Do this for 8 hours while reading Playboy magazine and you'll experience my first real job.
Variac's are also available on eBay for $10 - $100. Make sure voltage and max. current match those of the degausser (the inexpensive 10 amp variac should work for the kind of degausser in the link above). If you can't afford a variac right now, an alternate technique it to leave the tape off the degausser while you turn it on, slowly move the reel into the magnetic field, spin the reel, and slowly remove the tape from the surface of the degausser. Ideally, you keep spinning the tape in your hand while moving it into and out of the magnetic field. Start and end this process with the reel 2-3 feet from the degausser.
This awkward process has been improved on in later models of degaussers that mount the coils under a conveyor belt. Turn the unit on, put a reel on one end of the conveyor and, when it comes off the other end of the belt it has been slowly moved through the magnetic field and erased. These units (by Gartner and others) can also be found on eBay for $500+ or new for $2000+. I suggest waiting for a $10 Ampex or Magnatech unit and a $10 variac.
Hope this helps.
Brian
P.S. After my first week of nonstop degaussing my supervisor informed me that I was now completely sterile and could have sex without any worries - fortunately I didn't have a girl friend at the time on which to test his theories (the supervisor had 6 kids of his own so. even as a dumb teenager, I tended to be a bit skeptical of his prognosis).