crazlunatic,
Take my advise. Don't Start A Computer Store. The market is extremely flooded. And by offering lower prices, it just mean that you just have to work that little bit harder just to make the same amount of money.
You say that you have skills in computer in building custom pcs, adware / spyware removal, computer maintenance, networking, troubleshooting, OS installation. The problem there is the market is FLOODED with those skills. And just because you can say you can offer $X for service, garranteed you are going to be competing with some back yard computer tech that can do it for less.
Like I offer the same services as you just mensioned there. My rates are $80+GST per hour, and yet I am still compeating with Backyard Computer Techs / Collage Student Techs and "People-That-Know-All-About-Computers" that will do it for less.
Like here a one of my more rememberable phone converations a few years back
Customer :- What are your rate for fixing computer problems.
Harper :- $80+GST per hour. $40+GST per 1/2 hour after the first hour. The first hour is chargable as it my call out fee.
Customer :- That's expensive. I can get $30 per hour.
Harper :- Well that good. I suggest you go for that one instead.
Customer :- But this guys still has classes until the end of the week. I need the computer first now.
Harper :- If that's the case, $80+GST per hour. $40+GST per 1/2 hour after the first hour. The first hour is chargable as it my call out fee.
Customer :- But this other guy is offering $30. Can you match that?
Harper :- You want your computer fixed now? Or do you want your computer fix later this week?
Customer :- So you can come later for $30.
Harper :- No. That the price rates of your uni student computer tech at the end of the week.
Last week end, I had some one call me up asking if I could look at his computer for free just because his "freind-that-knows-all-about-computers" was not avalable.
Like the only reason why I have survived as long as I have is that i have put the time in to specialise in some very specific area.
And I am ready to jump ship and change my skill set again if I feel that the market gets too flooded in that area.
Selling prices cheaper than the competator. There is only so low you can go. Keep in mind, your overheads and out going expences. Like a rough out line for expences I have are this :-
Store Rental : $650 per week
Electricity : $300 per quarter
Water : $50 per quarter
Insurance :- Paid once a year
* Thieft
* Fire
* Public Laibility
Wages & Super
Back To Base Monitoring Security
Advertisement
Sales Tax (and the list goes on)
On average, I think I need to make at least $1000 per week just to make sure my doors are open.
Lower Prices = Lower Margin (money made) = More work just to make the same amount of money.
Like I might put 30% mark up on a memory module or a harddrive. But I got to make end meet when I have building a $1000 computer system in order to make $50.
Keep in mind that you are also competing with those people that are running an ebay business from home. A few year back, we were looking at setting one those thing up, however I am competing with a lot of people that have lower over heads and yet have the buying power to purchase a lot of wholesaler's overstock. Or parralle importing goods from over seas.
Now if you are planning on doing the parralle importing route, be prepaired to where the expense of warranties yourself. I have see companies like AMD, Seagate, Canon, Pioneer, Sony that will have their local officers gladly not honor a warranty as goods did not come into the country via offical channels. Normally they will tell customer that you need to take those goods back place you purchaced it from. And that will be YOU.
Setting up the store. Keep in mind that you want to make sure your store looks attractive and professional. You just can not get any hold shack and put the work "Computer Store" on it and expect people to walk in. Like we just changed location 6 months ago, we prolly spent about $20 000 alone on shop fittings.
aliasaid said:
would companies like intel/amd/ati/nvidia sell their products to wholesalers in other countries for the same amount of money as they would for american companies? just wondering why prices in other countries are more expensive... is it supply/transportation etc.. or do those companies just screw other countries...
Comes down to a lot of things. If the product has very strict control, (Eg. Apple Products), then not really. Like I find that there is very little saving in my purchasing a Mac or an iPod oversea as appose to locally.
However most over products, it really comes down
* to location and how hard is it to get to that country.
Like I live in Sydney Australia. It takes about 6-8 weeks to send a boat into here.
* Buying power of that the local importer.
A distributor's buying power can make a big difference on their selling price.
* Customes Duties, Tax, GST and all that other expences that we got to pay when bring good into the country.
Like over all, Australian Computer Prices are about 30% more than the US Prices. THe only reason why I don't get my goods from overseas is because of warranty reasons where
insert manufacture name Australia might not honor the warranty of good from
insert manufacture name USA
