Computer Store

[dogman_1234]

Okay, I know I have asked this a baggilion times already...

Here is the deal. i want to start a small computer business.

-I am getting my A+ soon, put that on the list of crossed off
-I understand there needs to be capital, that is what all business needs
-I understand if you have a better idea, please do tell
-I am mental capable of operating a system of commerce.

Here is the thing; I know some of you have small businesses in computers, form repair to retail. My idea is this:

Sell computer components to the consumer via retail store.

There are many places where I am at that have vacant lots for a store, prefect traffic, perfect room, and perfect condition.

What I would like to know is any advice on start up.

 

[x Heavy]

I pass by shops that have done exactly what you wrote here. For years.

Those shops are now empty spaces for lease or have been re purposed to craft shops or some other type of business.

We are a college town with a strong tech situation however Newegg rules and the local shops just cannot survive on what was left over. I think there is one still standing in southwest little rock only because they somehow can still source EDO ram to upgrade the machines that trickle into those shops.

 

[jitpublisher]

Gotta agree. PC's are plug and play, too easy to build yourself, cheap, short lived, and disposable for most people. There simply is no demand for the neighborhood PC shop. The best approach I have seen from the successful few shops that are still around is they provide contract and/or emergency IT work for local businesses.

 

[dogman_1234]

Gotta agree. PC's are plug and play, too easy to build yourself, cheap, short lived, and disposable for most people.

Why not, then, after a PC is outdated, go out and buy a new one?

 

[kilo_17]

Maybe you could start a business that focuses less on selling parts and more on service. For instance, you could acquaint yourself with virus removal, repairs, etc. and base your computer store around that instead of selling parts.

 

[guavasauce]

did you also factor in and locale/state lisence fees? and why use a shop front? why not keep yourself moble/in house and save $$$$$$ each month.

 

[techguy911]

I own a computer business sales is a waste of time, getting retail space is a waste of time find a small office or work from home and do onsite repairs other than that you have to compete with other shops that do the same.
Problem is these big box stores can offer product lower than my cost, my sales are very very low.

 

[dogman_1234]

Thing is, there are already 2 shops here. I talked with one I always go see. They say they have had no increase of customers on service.

There is, however, not really a store that has a dedicated components shop. The one I go to has few. One or two CPU types, one motherboard type, few HDD, GPU cards form years ago, and the price is HUGE! However, their CPU sales seems to go clean, even with high prices...including Motherboards.

 

[dogman_1234]

Oh, did I mention the only 'computer store' that we have is Staples?

 

[DelroyMonjo]

Write up a business plan and take to your banker. Have THEM explain to you the real small business situation in your area.
Even Big Box stores have gone belly up selling computers and parts. Remember CompUSA or Circuit City?

 

[dogman_1234]

What about MicroCenter? Frys'? CompUSA?

 

[Guest]

I don't think a business like yours do well if you try to compete in price or quality(the two most popular types of business competition).
Instead I bet a business like yours would do well if you made it more convenient than any other computer store. How about setup a store near a college(students are likely customers)? You can compete with newegg/microcenter/fry's/compusa if you make it more convenient for your customers(in this case college students). Many college freshmen will be likely to buy from your store and others may be willing to buy parts too to make their own. I would definately buy from your store if I was a college student since...
1. I would pay the minimum shipping making waiting for newegg too long
2. I don't want to or have the time to drive far to a microcenter or fry's.

If you become the closest electronics part store to a college I'll bet that many college students will find your store more convenient. Even if big brand's can get a lower price than your's many students will be willing to pay the premium for the convenience.

Individual run computer repair stores run in downtown and any other places would not do well since people won't have the incentive to go to your store. Why go to your store and not somewhere like a best buy? I thought about running a computer store and in my opinion it would only do well if you could go close to a college. I don't think that you can find a better location with a large market of people. Not even inside shopping malls will it do better since although there's a lot of people they likely did not come to buy from your store and therefore don't need anything. It usually takes at least 2 or 3 years for an average small business in an average location to build enough rep to actually build a profit. Take note that for 2 years you could be losing instead of gaining money.

 

[Guest]

Where exactly did you think of opening your store? What kind of market were you thinking of targeting?
I believe location matters most. Even if its a crappy lot with no parking, if its close enough to be walking distant from a college you'll do extremely well.

 

[dogman_1234]

I must perform a market analysis in my area. Specifics of demographics must be met. How about a cooperation with the local paper. It actually goes out of town as well to other locations where there is no service.

 

[jitpublisher]

That was the downfall of Kinko's, setting up shops all over the country close to or on college campuses, and Burger King nearly made the same mistake and changed their business plan somewhat before they got in too deep to pull them selves out. Taco Bell is another one that was on the same track and backed off a little. Sounds like a good plan but, the major flaw with it it that your target market is a group of people who really have very little money to spend!
Service will be the biggest part of your business if you can do it, if you can't, then of course you are going to rely on selling parts, and there is simply no money in that. Too much competition, unless you are big buyer like Microcenter or Frys who can get great prices, and sell parts all over the country.
When my PC is outdated I do buy or build a new one.
I am not trying to talk you out of your dream, but just playing the devils advocate of business 101 and you have to do think outside the box, or it's not going to be profitable for you.

 

[dogman_1234]

What do you recommend? I know service/repair, but what could I offer for service/repair? I feel like I can offer so little...

 

[wikiwikiwhat]

Just go around to businesses, schools, churches, neighborhood and try to advertise your expertise or get into a maintenance contract. I work fulltime IT and then have 4 contracts outside of that. Rake in alot and all it really cost is time.

 

[dogman_1234]

I am pretty sure they have their won IT personnel. Although, the guy at my previous school wasn't so good...as for what I hear.

 

[x Heavy]

Years ago the local computer shop across the street from college filled the math building with dozens of computers. Plainly built well with sticker logo advertising the business etc. Eventually most of the campus ordered hundreds of machines off this very lucky man and his shop. (Heck I even bought a lap top off him as well...)

One day Dell showed up and like the Borg assimilated the entire Campus and the poor man closed up his shop. I still run into him once in a while around my area and my response to his question is always the same, I build and repair my own now thank you very much. Again New egg.

We also learned that the College dumped obsolete and worn out computer parts and computers into local electronic shows for pennies on the dollar upon the clueless general public.

I hung out at Best Buy near the geek desk for a while one day. Virus this Idotten error (A cookie if you figure that one out) and numerous issues that is easily remedied by the user, but like taking candy from a baby because user is clueless. Once user is educated you would not see that business or person again. And eventually see that same person buying computer parts to build as well.

If you had gotten into the building of computers back when the 1 megabyte of hard drive space equaled about 1 foot wide, 5 inches thick and weighed about 20 pounds you would be at the top now. Those days have gone by.

You can always build your own once in a while and try to fix up family and friends. There were two things that drove me out of IT and computer work forever... these were:

Tech support calls when hard headed customers don't shut up and obey your step by step commands. Today you simply remote in and fiddle with it.

India and other nations sent students on Visas to the USA to learn what we teach, take my job and then go back home and teach hundreds more. No thanks.

 

[dogman_1234]

Ouch, this made me sad, for your friend and you.

What if I started a business where the average users comes in to learn more than the basics for computers, but no certifications. On top of that, teach them to self-assemble units and how to choose and buy components?

 

[x Heavy]

Those are called Seminars.

I have not considered those. Who knows? You might be the first.

 

[dogman_1234]

Don't I need a degree in order to do that?

 

[kilo_17]

I hereby present you with your THGC Seminar Degree! :lol: :lol:

 

[rozz]

I agree with everyone, i see numerous PC repair and parts shops close down in my area. One however seems to have grown amongst the rest. yes, they still do PC repair in there shops, but on top of that, the provide onsite services for homes and businesses. They are able to pull network cables, setup wireless networks, be a one stop shop for all IT for a small business. Besides getting your A+, why not get your Network+ and Security+ so you can have the certifications to backup setting up a complete business network and server for them? Pulling cable may sound pretty labor intensive then putting together a PC, but I guaranty that it pays more

One thing if you are gonna be doing that, you MUST make it look pretty. Perfectly strait cables into the networking closet, always use a rack with cable management. Also have perfectly cut cables into patch panels. Do you research on it before doing it. when you complete a project, you want that customer to show of the work you've done. Plus, you are able to have that customer for life, in other words, you are able to charge a yearly fee to come in, perform maintenance on all the equipment and get some more cash income.

Any nerd 16 year old can fix grandma's computer. But give em a Cat6 cable and crimpers and tell em to make a patch cable without using google for a diagram, and you got yourself a business.

 

[dogman_1234]

Any ways possible to perform a market research in my area to see what people want?