How much to set up a computer store ? And how much profit ?

[Capt Caveman]

Originally posted by: darkmandaddy
Thanks, I was thinking $300 + $200 for utilities per month.
If I buy and sell laptops, and make $100, then only need to sell one laptop a week. Maybe for desktops too.
On the side, build custom desktops and sell barebone for $25-50 profit.
Sell Windows software, maybe $25-$30.
So, technically, I need to make about 500/4 = 125 a week profit in order to keep it up.

5 motherboards on display - 5 in stock of each. I would estimate that the cost will be like $2500.

5 different CPUs, 5 stock
$5000

I'd have 10,000 money to invest, if it doesn't sell, I guess I need to sell them for discounts.
Is this too linear ? What do you guys think ?

Stop with this insane idea immediately. You're not even in the ballpark for costs.

 

[kranky]

First, the reason computer stores do not do well is that their target demographic includes the people who are most likely to buy online (i.e., not from a store) to save a buck. There used to be a thing called record stores but you don't see any of those anymore, do you? People you sell systems to will bleed you dry for free "tech support" whenever they have a question - remember, your customers won't be people who are good with computers.

Off the top of my head, I don't think you could do it for under $4-5,000 a month.

 

[Born2bwire]

Originally posted by: darkmandaddy
Rent here is $300 for an apartment, guessing it would be the same for store, but I'm just throwing it out there.

:facepalm;
Apartments traditionally do not generate revenue for their tenants.

 

[bobdole369]

"Rent here is $300 for an apartment, guessing it would be the same for store, but I'm just throwing it out there. "

Just to put it in perspective - my off-the-beaten path office - which is not a retail location at all but in a mostly industrial area (read: low priced) - costs about $6000 per month, and the electric and other utils are over a grand on top of that. Granted its 2500 sq feet.

I happen to know someone who did exactly what you want to do, in the end a couple slow months wrecked it for him, his rent was nearly $10k in a strip mall for the tiniest storefront.

 

[Alphathree33]

Take some marketing and product development courses. Take some business courses. Read some books. Get back to us in a few years.

You have no business plan, no business model, no target market, no value proposition, no competitive positioning, no brand, no NOTHING.

Here's a quick angle to explore: you could open a store that did 100% customized computer work. Listen to your customer's needs and develop complete in-home solutions. Full-install them. Charge a small monthly retainer fee for ongoing services.

Your target market would be empty nesters who don't have their kids to do their tech stuff for them, or singles who can't be bothered. You'd be high margin, low volume. And you'd need only a limited storefront.

THAT's the beginning of a business plan... but barely. Now you need run some numbers and do some market research (talk to real people who you think would be your future customers) to see if this is anywhere close to a feasible idea.

 

[Inferno0032]

And, here's another hint. Newegg makes an average profit of 7%, to get the profits you are asking, you'd have to move alot of volume. As far as selling MS software for 25-30, my current distributor sells copies of Vista Premium 64/32-Bit for 108...... newegg's price, 99.99. It's a rough market.

Newegg is essentially a distributor that takes it's products straight to the consumer. You'd need a distributor since you won't be able to get factory-direct, so you fight a middle-man markup.

It's not a feasible idea. Not at all, Storefronts are incredibly expensive, which is why most malls only have clothing/toy stores, high margins on such items, about the only way to break even.