How to setup a computer store?

Bluga

Banned
Nov 28, 2000
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e.g NCIX

i'm just windering where did they get the components from? From reseller or manufature? Where can i get a list of the companies?
 

Gunbuster

Diamond Member
Oct 9, 1999
6,852
23
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Ingram Micro, Tech Data, .............

You will get raped if you cant order mass ammounts. $10k a month is a good figure to shoot for
 

Bluga

Banned
Nov 28, 2000
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<< You will get raped if you cant order mass ammounts. $10k a month is a good figure to shoot for >>



are there any other options? What do those small computer stores on the street do??
 

olds

Elite Member
Mar 3, 2000
50,122
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I tried a pricematch for a mobo with my local guy. He was flat out shocked when I showed him what I could get it for from newegg. He was paying more than that.
 

compudog

Diamond Member
Apr 25, 2001
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I'm involved with a small enterprise. Hardware ain't what it used to be. Rather than stock a lot of stuff, we custom build every PC we sell. This creates a delay in delivery, but not near as long as a custom Gateway or Dell. We order everything from low price leaders off the web and assemble and deliver to the customer. Maintaining a showroom and shelf space stocked with product is very expensive. We have plenty of capital to work with but we concentrate on services (software, training etc.) Unless you have a storefront ready to go, you will need to buy from the big guys mentioned above. Check out our site (still very new) for details. http://www.jjsands.com.
 

Gunbuster

Diamond Member
Oct 9, 1999
6,852
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A mom and pop store has to charge high prices

You can make up for it with good service, Impluse buyers, and people who are too stupid or paranoid to buy on the internet
 

tcsenter

Lifer
Sep 7, 2001
18,934
567
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<< i'm just windering where did they get the components from? From reseller or manufature? Where can i get a list of the companies? >>

They get them from wholesale distributors of computer hardware and software like SuperCom Canada, Merisel, Ingram Micro, SED International, and others.

Just net search for hardware or software distributors, that should turn-up a lot of them. In order to get these prices, you must buy volume, and by that I mean buying by the tractor trailer load. I tried my hand as a computer reseller several years ago, and got spanked all over the place. I only had about $5,000 to play with (which I lost plus some), $25,000 would be a shoe-string budget on which to start a business like this. I wouldn't do it again unless I had at least that much (in credit and capital), preferrably in the neighborhood of $100K. But, that's just me.
 

Yzzim

Lifer
Feb 13, 2000
11,990
1
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Building custom PCs and repairing those and other PCs is what will probably make you the most money.

I used to work at a mom and pop shop and we got about 90% of our income that way. The other 10% were people buying surge protectors and new software for their new pc.
 

xyyz

Diamond Member
Sep 3, 2000
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there's really no way to get outta' this... you need to buy in volume to get the low price... if you buy a handful of components you really do get raped.

I gave this a try... but I couldn't compete on prices... service is where you make all your cash.

There's a company that the Intel rep told me about that caters to smaller businesses... who give decent discounts on small quantities... I think it's D&H or something like that.
 

Freejack2

Diamond Member
Dec 31, 2000
7,751
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91
Actually another way is to have family or friends in Taiwan and have them send you components...

If I had family or friends in Taiwan I'd open a computer store up in a heartbeat. I've heard the price difference is big enough to save quite a chunk of change.
 

Kanalua

Diamond Member
Jun 14, 2001
4,860
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Damn NCIX prices are sky high!!!!

$268 for SOYO DRAGON+ on NCIX, $146 on Newegg....
 

wedi42

Platinum Member
Jun 9, 2001
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<< Damn NCIX prices are sky high!!!! $268 for SOYO DRAGON+ on NCIX, $146 on Newegg.... >>



dude, those are canadian dollars
 

LukFilm

Diamond Member
Oct 11, 1999
6,128
1
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<<

<< Damn NCIX prices are sky high!!!! $268 for SOYO DRAGON+ on NCIX, $146 on Newegg.... >>



dude, those are canadian dollars
>>



LOL, and it's REALLY hard to see that considering they have CDN plastered ALL OVER the website ;)
 

Yzzim

Lifer
Feb 13, 2000
11,990
1
76


<<

<< Damn NCIX prices are sky high!!!! $268 for SOYO DRAGON+ on NCIX, $146 on Newegg.... >>



dude, those are canadian dollars
>>



ROTF!!!
 

CromNogger

Senior member
Jan 26, 2001
849
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Some people don't catch on quick ;)

268 versus 146... What's the conversion rate at right now? Which store actually has the better price? ;)
 

dirtboy

Diamond Member
Oct 9, 1999
6,745
1
81


<< What do those small computer stores on the street do?? >>



That's why many of them charge high prices and aren't in business very long. One guy that ran a successful store, did charge higher prices. What he did do is sell systems with top-of-the-line components. Slowly his reputation for providing excellent customer services along with quality computers, built up his business. He also had a contract with the local cable company to install the nic and software for cable Internet subscribers. I know that steady cash flow helped him alot. He also didn't pay his workers very much and hired college students who wanted to spend a couple hours a day working on computers.
 

Russ

Lifer
Oct 9, 1999
21,093
3
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<< Check out our site (still very new) for details. http://www.jjsands.com. >>



Compudog,

That "add to favorites" popup is extremely annoying.

Whenever anybody posts one of these threads, invariably somebody jumps in and says Tech Data and Ingram Micro. Those two are the LAST distributors to consider if you're a small vendor. Beyond the fact that their pricing structure sucks unless your name is Buycom or Amazon, their service is terrible.

The two best distributors for a small shop are ASI and MA Labs.

Russ, NCNE

 

SuperSix

Elite Member
Oct 9, 1999
9,872
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<< Whenever anybody posts one of these threads, invariably somebody jumps in and says Tech Data and Ingram Micro. Those two are the LAST distributors to consider if you're a small vendor. Beyond the fact that their pricing structure sucks unless your name is Buycom or Amazon, their service is terrible.

The two best distributors for a small shop are ASI and MA Labs.
>>



So true.

If you are planning on opening a store and making any kind of money simply selling hardware, you are doomed to fail.

The ONLY way to make money in the computer hardware industry is to offer excellent service, support and quality. Your two biggest markets are service and small-business networking and support.

Yes, there are companies that make money selling hardware, (Newegg, Mwave, TCWO) but they are moving LARGE amounts of inventory, large enough amounts that the money is in the back end, from manufacturers, in the form of rebates and co-op.

I can speak for one of these companies and concur with Russ, Tech Data and Ingram are far from the leaders in hardware distribution. They can have decent spot deals, but are relatively useless for the small systems house.

As for ASI and MA Labs, they both have their ups and downs.
With ASI your experience will depend on the service, support, and line card of the local branch, but with so many branches, they may have a local branch, and/or they may be closer than MA so you get the parts faster for less shipping, and with MA Labs, their shipping is high and thier RMA service can be some of the worst, but overall they are a decent outfit.

Again, overall, unless you are putting some sort of value-add on your hardware, you won't last long.