Advice needed on computer retail business

[philelmo]

It's really hard to stay competitive with the recent 20% on the dollar. Futureshop is selling $599 computer + 20in monitor. Although we sell quality custom builds, customers always seem to be looking for the cheaper alternative.

The only thing making us money is our labour, since we fix computers alot better than other stores and established a reputation.

My suppliers are supercom and synapsis. Im wondering if anyone knows good suppliers with a better price? who does NCIX get their stuff from?

thanks!

[CatDog]

ingram micro..

but to get good prices you're going to need a big account.

GTA is saturated with computer stores, Id just continue to promote pc repair etc. personally and move away from trying to get the best prices on hardware.

[ali123]

NCIX doesn't have a middle man, they get their stuff from the manufacture.

[philelmo]

NCIX doesn't have a middle man, they get their stuff from the manufacture.

interesting. so they register with hp and acer etc? theres just no way we can match the sales volume to become a official manufacturer reseller...

[van]

The smart thing to do would be to drop the reselling part of your business. With no purchasing power, it's cut-throat with very low margins. You can make a lot more money if you focused on services alone.

[rice_smuggler]

:arrowu: I have to agress with van, I used to work for CDW and the margins on hardware were rediculously non-existent. All the money is in the service and value-adds you can provide. There's too many big resellers/VARs who have purchasing/volume purchasing power which makes business for the smaller mom and pop shops more difficult to make a living.

[lewisamalor]

It's really hard to stay competitive with the recent 20% on the dollar. Futureshop is selling $599 computer + 20in monitor. Although we sell quality custom builds, customers always seem to be looking for the cheaper alternative.

The only thing making us money is our labour, since we fix computers alot better than other stores and established a reputation.

My suppliers are supercom and synapsis. Im wondering if anyone knows good suppliers with a better price? who does NCIX get their stuff from?

thanks!

I own a computer store.

1) The majority of your profits will be in service. You're not in the computer retail business, you're in the customer service business. Realize that.

2) I have accounts with:
- IngramMicro
- ASIPartner.com
- Synnex
- TechData
- SuperCom
- Link Canada
- NCIX/DirectCanada/TDDirect/MemoryHouse/NXSource/etc.
- Mobel.com
- Daiwa
- Dell Canada
- Apple Computers
- Samtack.com
- PowerNode.com
- DealExtreme.com

3) You should apply to Apple, HP, Toshiba, Dell, Microsoft, Brother, IBM, Lenovo, etc. and get direct accounts with them and also get exclusive reseller rights in your market area.

4) For Toshiba, you should apply to be an Authorized Repair Center. I'm under the assumption that you know how to repair all laptops. You can also apply to be a repair center for Lexmark as well. If you don't know how to fix laptops or printers, you should learn how. As I said in point #1, your profits are in service. As for myself, I can fix anything. I can disassemble, replace any laptop part or resolder any laptop part, re-assemble it, in less than an hour. Same thing for printers and LCD Monitors. For the parts, I usually order directly from the manufacturer or I just get them from eBay.

5) For computer items that have warranty across USA and Canada, I sometimes buy from the States, and import them to Canada. I pay the customs on these items. I cannot give you the details about this procedure because I use it as a competitive advantage.

6) I browse RFD religiously and get in all the price matching opportunities that I know are worth it. Since I pricematch so often and in large quantities, I have developed relationships with ALL the managers of FS/BB/Staples in the Ottawa area. I know all of them by name and I know the district managers as well. I'm a friendly guy and the managers know that I resell it. When I pricematch, nobody gives me a hard time and I'm usually in and out of the store in 15 minutes. That's why in Ottawa, when you are looking to price match something and it's "out of stock", it usually because of me and my employees.

7) You can also buy direct from China. As an example, the cheap generic OEM Cases only costs like $3 and the Delta 500Watt PS only cost like $5 when you buy them by the shipping container. Of course, you still have to pay for shipping and customs.

8) Data Recovery and Ink Refill are additional value added services you can offer. If you don't have the equipment or know how, then you should purchase the equipment and learn how to do it.

All of the 8 points that I have listed above is actually NOT going to make your computer business any better or more competitive. The real important items are the techniques that I use to grow the business, to bring in additional revenue from the same customers, to get new customers, customer retention, employee training, etc. I can't tell you those items but I can tell you everything else so feel free to ask away.

What you should have really asked were these quesitons. You should start another post asking RFD Members:
- What are your strategies to acquire new customers?
- What are your strategies to retain old/inactive customers who have not purchased from you 6 months?
- What are your strategies to upsell/cross current customers?
- What are your strategies to grow your business?
- What are your strategies to sell to residential customers?
- What are your strategies to sell to corporate customers?
- What are your strategies to sell to government customers?
- What are your procedures to hire high quality employees?
- What are your procedures to retain high performing employees?
- Why would someone want to buy from you rather than from someone else?
- How do you differentiate yourself from your competitors?

I'm sure someone will give you an answer to your questions.

P.S. nay low mo...:)

[Owbist]

Wow, lewismalor, a very nice and informative post. I love it when people like yourself are so willing to help another. Your customer service is probably second to none as well. Continued success.

[supsx]

7) You can also buy direct from China. As an example, the cheap generic OEM Cases only costs like $3 and the Delta 500Watt PS only cost like $5 when you buy them by the shipping container. Of course, you still have to pay for shipping and customs.


I always wondered about those cases, man that it super cheap and these things are marketed up to $40 at most places.

[philelmo]

I own a computer store.

1) The majority of your profits will be in service. You're not in the computer retail business, you're in the customer service business. Realize that.

2) I have accounts with:
- IngramMicro
- ASIPartner.com
- Synnex
- TechData
- SuperCom
- Link Canada
- NCIX/DirectCanada/TDDirect/MemoryHouse/NXSource/etc.
- Mobel.com
- Daiwa
- Dell Canada
- Apple Computers
- Samtack.com
- PowerNode.com
- DealExtreme.com

3) You should apply to Apple, HP, Toshiba, Dell, Microsoft, Brother, IBM, Lenovo, etc. and get direct accounts with them and also get exclusive reseller rights in your market area.

4) For Toshiba, you should apply to be an Authorized Repair Center. I'm under the assumption that you know how to repair all laptops. You can also apply to be a repair center for Lexmark as well. If you don't know how to fix laptops or printers, you should learn how. As I said in point #1, your profits are in service. As for myself, I can fix anything. I can disassemble, replace any laptop part or resolder any laptop part, re-assemble it, in less than an hour. Same thing for printers and LCD Monitors. For the parts, I usually order directly from the manufacturer or I just get them from eBay.

5) For computer items that have warranty across USA and Canada, I sometimes buy from the States, and import them to Canada. I pay the customs on these items. I cannot give you the details about this procedure because I use it as a competitive advantage.

6) I browse RFD religiously and get in all the price matching opportunities that I know are worth it. Since I pricematch so often and in large quantities, I have developed relationships with ALL the managers of FS/BB/Staples in the Ottawa area. I know all of them by name and I know the district managers as well. I'm a friendly guy and the managers know that I resell it. When I pricematch, nobody gives me a hard time and I'm usually in and out of the store in 15 minutes. That's why in Ottawa, when you are looking to price match something and it's "out of stock", it usually because of me and my employees.

7) You can also buy direct from China. As an example, the cheap generic OEM Cases only costs like $3 and the Delta 500Watt PS only cost like $5 when you buy them by the shipping container. Of course, you still have to pay for shipping and customs.

8) Data Recovery and Ink Refill are additional value added services you can offer. If you don't have the equipment or know how, then you should purchase the equipment and learn how to do it.

All of the 8 points that I have listed above is actually NOT going to make your computer business any better or more competitive. The real important items are the techniques that I use to grow the business, to bring in additional revenue from the same customers, to get new customers, customer retention, employee training, etc. I can't tell you those items but I can tell you everything else so feel free to ask away.

What you should have really asked were these quesitons. You should start another post asking RFD Members:
- What are your strategies to acquire new customers?
- What are your strategies to retain old/inactive customers who have not purchased from you 6 months?
- What are your strategies to upsell/cross current customers?
- What are your strategies to grow your business?
- What are your strategies to sell to residential customers?
- What are your strategies to sell to corporate customers?
- What are your strategies to sell to government customers?
- What are your procedures to hire high quality employees?
- What are your procedures to retain high performing employees?
- Why would someone want to buy from you rather than from someone else?
- How do you differentiate yourself from your competitors?

I'm sure someone will give you an answer to your questions.

P.S. nay low mo...:)

a very informative post.. i will start with #1 :)

thanks

[cdnNick]

I own a computer store.

1) The majority of your profits will be in service. You're not in the computer retail business, you're in the customer service business. Realize that.

2) I have accounts with:
- IngramMicro
- ASIPartner.com
- Synnex
- TechData
- SuperCom
- Link Canada
- NCIX/DirectCanada/TDDirect/MemoryHouse/NXSource/etc.
- Mobel.com
- Daiwa
- Dell Canada
- Apple Computers
- Samtack.com
- PowerNode.com
- DealExtreme.com

3) You should apply to Apple, HP, Toshiba, Dell, Microsoft, Brother, IBM, Lenovo, etc. and get direct accounts with them and also get exclusive reseller rights in your market area.

4) For Toshiba, you should apply to be an Authorized Repair Center. I'm under the assumption that you know how to repair all laptops. You can also apply to be a repair center for Lexmark as well. If you don't know how to fix laptops or printers, you should learn how. As I said in point #1, your profits are in service. As for myself, I can fix anything. I can disassemble, replace any laptop part or resolder any laptop part, re-assemble it, in less than an hour. Same thing for printers and LCD Monitors. For the parts, I usually order directly from the manufacturer or I just get them from eBay.

5) For computer items that have warranty across USA and Canada, I sometimes buy from the States, and import them to Canada. I pay the customs on these items. I cannot give you the details about this procedure because I use it as a competitive advantage.

6) I browse RFD religiously and get in all the price matching opportunities that I know are worth it. Since I pricematch so often and in large quantities, I have developed relationships with ALL the managers of FS/BB/Staples in the Ottawa area. I know all of them by name and I know the district managers as well. I'm a friendly guy and the managers know that I resell it. When I pricematch, nobody gives me a hard time and I'm usually in and out of the store in 15 minutes. That's why in Ottawa, when you are looking to price match something and it's "out of stock", it usually because of me and my employees.

7) You can also buy direct from China. As an example, the cheap generic OEM Cases only costs like $3 and the Delta 500Watt PS only cost like $5 when you buy them by the shipping container. Of course, you still have to pay for shipping and customs.

8) Data Recovery and Ink Refill are additional value added services you can offer. If you don't have the equipment or know how, then you should purchase the equipment and learn how to do it.

All of the 8 points that I have listed above is actually NOT going to make your computer business any better or more competitive. The real important items are the techniques that I use to grow the business, to bring in additional revenue from the same customers, to get new customers, customer retention, employee training, etc. I can't tell you those items but I can tell you everything else so feel free to ask away.

What you should have really asked were these quesitons. You should start another post asking RFD Members:
- What are your strategies to acquire new customers?
- What are your strategies to retain old/inactive customers who have not purchased from you 6 months?
- What are your strategies to upsell/cross current customers?
- What are your strategies to grow your business?
- What are your strategies to sell to residential customers?
- What are your strategies to sell to corporate customers?
- What are your strategies to sell to government customers?
- What are your procedures to hire high quality employees?
- What are your procedures to retain high performing employees?
- Why would someone want to buy from you rather than from someone else?
- How do you differentiate yourself from your competitors?

I'm sure someone will give you an answer to your questions.

P.S. nay low mo...:)

Nice post. Makes me wonder what store you are and if I have shopped there.

[jackwest]

6) I'm a friendly guy and the managers know that I resell it. When I pricematch, nobody gives me a hard time and I'm usually in and out of the store in 15 minutes. That's why in Ottawa, when you are looking to price match something and it's "out of stock", it usually because of me and my employees..

You've got balls to admit that you use RFD to snipe deals and resell them for a profit to the point noone else in the area can get them. Managers are ok with reselling?...some retailers don't like that usually since many items are loss leaders. Aren't you worried you could get banned?

[lewisamalor]

a very informative post.. i will start with #1 :)

thanks

Hey, I didn't see you start a new post asking RFDers how to grow/improve your business. Starting with #1 doesn't mean anything if I can't see your plan. Post your strategy/plan on how you're going to:

1) Get new customers?
2) Retain current customers?
3) Grow the business?

I'm 100% sure someone will be able to give you some insight.

[lewisamalor]

Nice post. Makes me wonder what store you are and if I have shopped there.

Maybe, maybe not. I don't know. But if you walk into my retail store and you see a lot of items that were posted on RFD Hot Deals, then yes, you'll know it's my store. lol....:razz:

[bubble.tea]

...
6) I browse RFD religiously and get in all the price matching opportunities that I know are worth it. Since I pricematch so often and in large quantities, I have developed relationships with ALL the managers of FS/BB/Staples in the Ottawa area. I know all of them by name and I know the district managers as well. I'm a friendly guy and the managers know that I resell it. When I pricematch, nobody gives me a hard time and I'm usually in and out of the store in 15 minutes. That's why in Ottawa, when you are looking to price match something and it's "out of stock", it usually because of me and my employees....
OUCH...that's brutal :lol:...Otherwise, Very informative post., kinda eerily over-helpful.

[Canuck2fan]

It's really hard to stay competitive with the recent 20% on the dollar. Futureshop is selling $599 computer + 20in monitor. Although we sell quality custom builds, customers always seem to be looking for the cheaper alternative.

The only thing making us money is our labour, since we fix computers alot better than other stores and established a reputation.

My suppliers are supercom and synapsis. Im wondering if anyone knows good suppliers with a better price? who does NCIX get their stuff from?

thanks!

I used to work in the same plaza as a guy who ran a computer store at another location.... When he moved to the new spot he gradually grew into a business center offering printing repairs photo copying UPS drop off. After about a year he no longer sold computers because the margins were small and once people starting using his printing services that paid for the store and employees everything else was gravy according to him....
So if you can still do service, sell parts only and grow other aspects that tie into computing it might be the way to go.

[Jokez Guy]

I own a computer store.

1) The majority of your profits will be in service. You're not in the computer retail business, you're in the customer service business. Realize that.

2) I have accounts with:
- IngramMicro
- ASIPartner.com
- Synnex
- TechData
- SuperCom
- Link Canada
- NCIX/DirectCanada/TDDirect/MemoryHouse/NXSource/etc.
- Mobel.com
- Daiwa
- Dell Canada
- Apple Computers
- Samtack.com
- PowerNode.com
- DealExtreme.com

3) You should apply to Apple, HP, Toshiba, Dell, Microsoft, Brother, IBM, Lenovo, etc. and get direct accounts with them and also get exclusive reseller rights in your market area.

4) For Toshiba, you should apply to be an Authorized Repair Center. I'm under the assumption that you know how to repair all laptops. You can also apply to be a repair center for Lexmark as well. If you don't know how to fix laptops or printers, you should learn how. As I said in point #1, your profits are in service. As for myself, I can fix anything. I can disassemble, replace any laptop part or resolder any laptop part, re-assemble it, in less than an hour. Same thing for printers and LCD Monitors. For the parts, I usually order directly from the manufacturer or I just get them from eBay.

5) For computer items that have warranty across USA and Canada, I sometimes buy from the States, and import them to Canada. I pay the customs on these items. I cannot give you the details about this procedure because I use it as a competitive advantage.

6) I browse RFD religiously and get in all the price matching opportunities that I know are worth it. Since I pricematch so often and in large quantities, I have developed relationships with ALL the managers of FS/BB/Staples in the Ottawa area. I know all of them by name and I know the district managers as well. I'm a friendly guy and the managers know that I resell it. When I pricematch, nobody gives me a hard time and I'm usually in and out of the store in 15 minutes. That's why in Ottawa, when you are looking to price match something and it's "out of stock", it usually because of me and my employees.

7) You can also buy direct from China. As an example, the cheap generic OEM Cases only costs like $3 and the Delta 500Watt PS only cost like $5 when you buy them by the shipping container. Of course, you still have to pay for shipping and customs.

8) Data Recovery and Ink Refill are additional value added services you can offer. If you don't have the equipment or know how, then you should purchase the equipment and learn how to do it.

All of the 8 points that I have listed above is actually NOT going to make your computer business any better or more competitive. The real important items are the techniques that I use to grow the business, to bring in additional revenue from the same customers, to get new customers, customer retention, employee training, etc. I can't tell you those items but I can tell you everything else so feel free to ask away.

What you should have really asked were these quesitons. You should start another post asking RFD Members:
- What are your strategies to acquire new customers?
- What are your strategies to retain old/inactive customers who have not purchased from you 6 months?
- What are your strategies to upsell/cross current customers?
- What are your strategies to grow your business?
- What are your strategies to sell to residential customers?
- What are your strategies to sell to corporate customers?
- What are your strategies to sell to government customers?
- What are your procedures to hire high quality employees?
- What are your procedures to retain high performing employees?
- Why would someone want to buy from you rather than from someone else?
- How do you differentiate yourself from your competitors?

I'm sure someone will give you an answer to your questions.

P.S. nay low mo...:)

This a Great Post man!


Anyways I know some one what he does is buys computers that were previously used or leased and resells them to the public for cheaper and also exports I don't know much but yeah

[m4gician]

Great post, I would go one step further and build electronic databases that automatically calculate margins and savings on price matching so long as you fit in the metrics to make it work quickly.

As for price matching, do you price match straight up? Or do you get lucky and get manager's discrestion or price error matches as well? I'm sure you have some insiders at each store giving you the flyers weeks ahead of time :)

[slavka012]

Laptop repairs could a good business IF you hire somebody knowledgeable.

My laptop broke last week. All of a sudden it stopped seeing power coming from the AC adapter. I worked off the battery fine.

I thought it is a broken jack. Took the unit apart, and it was fine. The power was coming to the main board. Put it together, and brought it to service center at Staples. Surprisingly, HP does not have dedicated service centers in Canada. Anyway, they told me I'm looking at m/b replacement at cost of 200-300 bucks + 40 for diagnostics. No thanks.

Now, this is an HP laptop which has a docking station connector. I specifically asked the guy if maybe it will work with the docking station? He said, no, unlikely, and we don't have it anyway. Too bad for you.

I went to BB, got the docking station, and hooray, the laptop was indeed getting power from it. I took the unit apart again, and soldered a wire from the main DC jack to the expansion port, and voila, laptop is fully functional again. Docking station goes goes back to BB.

My point being, if you can find somebody who can do actual repair and not just swapping components, you can get a lot of business (over time).

[Bullseye]

A local computer store here seems to do pretty good business buying computers coming off leases, re-imaging them, and then reselling them for very decent prices. I've bought several $100-200 PC's there over the years.

I'm sure there is a decent market in lower-end users who want a cheap PC.

[jayD3rd]

a very informative post indeed:D

[MoreMiles]

Laptop repairs could a good business IF you hire somebody knowledgeable.

My laptop broke last week. All of a sudden it stopped seeing power coming from the AC adapter. I worked off the battery fine.

I thought it is a broken jack. Took the unit apart, and it was fine. The power was coming to the main board. Put it together, and brought it to service center at Staples. Surprisingly, HP does not have dedicated service centers in Canada. Anyway, they told me I'm looking at m/b replacement at cost of 200-300 bucks + 40 for diagnostics. No thanks.

Now, this is an HP laptop which has a docking station connector. I specifically asked the guy if maybe it will work with the docking station? He said, no, unlikely, and we don't have it anyway. Too bad for you.

I went to BB, got the docking station, and hooray, the laptop was indeed getting power from it. I took the unit apart again, and soldered a wire from the main DC jack to the expansion port, and voila, laptop is fully functional again. Docking station goes goes back to BB.

My point being, if you can find somebody who can do actual repair and not just swapping components, you can get a lot of business (over time).

When a laptop is only $300 and desktop $150... It is NOT worth any time-consuming type of diagnostic repair. You pay a tech $50 per hour... so a couple of hours... you can already pay for half of a brand new item. I will throw it away as we know repaired items tend to break down again soon...

Unless you are repair hard drive for data or expensive component, most people will throw it away and buy brand new. Let's see... a CD-ROM drive used to cost $400 yes... it was worth the repair. Would you do it these days? Even if the laser head or motor is broken, so what, just spend another $50 and get it brand new.

Service business will go out of fashion soon, with these "disposable" Atom-based computers costing $200-300 only.

[slavka012]

When a laptop is only $300 and desktop $150... It is NOT worth any time-consuming type of diagnostic repair. You pay a tech $50 per hour... so a couple of hours... you can already pay for half of a brand new item. I will throw it away as we know repaired items tend to break down again soon...

Unless you are repair hard drive for data or expensive component, most people will throw it away and buy brand new. Let's see... a CD-ROM drive used to cost $400 yes... it was worth the repair. Would you do it these days? Even if the laser head or motor is broken, so what, just spend another $50 and get it brand new.

Service business will go out of fashion soon, with these "disposable" Atom-based computers costing $200-300 only.

I hope not. I don't like or share throw-away mentality and I would gladly pay 100 bucks for two hours of tech's work. But they want that AND 400 for the mainboard.

And no, new laptop does not cost 300 bucks. Equal to the one I have would cost at least 600 if purchased today. Having to deal with reinstalling OS and all the s/w that I need to work, and having to learn all new quirks and bugs the machine would have will cost me a lot more in lost productivity.