Survival for Mom-and-Pop Computer Stores? 91
Jeramy asks: "Hello,
In February I entered into a partnership with a friend and now own and operate a 'mom and pop' computer store. In this day and age of PriceWatch and $599 systems from Wal-Mart, it is very frustrating (to say the least)to try to sell anything computer related to anyone. Customers walk into the store trying to haggle down our relatively low prices (relative to what we pay plus shipping to get it here) like we are a discount fish market. So my question is: Since 'every day low prices' are not possible, what can a local store do to attract customers?"
maybe try giving free support (Score:1)
My "mom & pop" store's success... (Score:3, Insightful)
When the economy is bad, People will be repairing their computers all the time.
When the economy is good, People will be buying new computers all the time.
You should place an add in your yellow- pages and be sure to not on there that you repair computers. And don't be worried about price. I live in the bay area and I charge $75 per hour for repair in my shop. Vary your price for where you are, and ALWAYS GUARANTEE YOUR WORK.
Or, You could do like the RIAA does, just sue all your competition in your area until you are all that is left... (lol j/k... it might not be all that smart.)
Next Time, (Score:1, Offtopic)
Re:Next Time, (Score:2)
Step 1: Steal underpants
Step 2: ?
Step 3: Profit
Re:Next Time, (Score:1)
Attract people like me.. (Score:5, Insightful)
SCSI dirves and controllers.
Decent cases with good power-supplies.
Stable motherboards.
Generic mice and keyboards without hidious logos.
Well-built cooling fans.
2U cases.
Don't bottom fish - servers still have good profit margins and there are people like me who will gladly pay a premium for good service. You'll lose your shirt if you sell crappy computers to little old ladies - the suport costs will eat you alive if you don't have the heart to tell them to piss off when they can't figgure out 'winderz.'
Re:Attract people like me.. (Score:2)
Personality Counts (Score:4, Insightful)
Also, get unique (square bare bones) or cool cases/systems with black, aluminum or pre-modded cases (windows, side fans, etc.). Do *not* think for a second these are geek-only enticements. A lot of very normal and/or artistic people appreciate an aesthetically pleasing case without 'Hewlett-Packard' plastered across the front of it.
[OT] Best Buy (Score:1)
That reminds me of a funny experience the other day at Best Buy. I went in just to look around and ended up only buying a Mountain Dew.
Believe it or not, they asked if I wanted a service plan! I assume it was simply out of habit, but funny all the same.
Sometimes I'm embarassed to be human. (Score:5, Insightful)
So here are a few thoughts:
* Consider quality. You probably use higher quality components than your "cut to the bone" competition. Capitalize on that. A few horror stories about eMachines power supplies should be really helpful, especially if you can point out why yours are better.
* Run training classes for computer newbies.
* Do all you can to make your store a comfortable, pleasant place. If you're not going to price to the bone, you can at least try and make shopping more pleasant. Visit one of Apple's new retail stores and note what a nice shopping experience they offer. I know, I know, they spent half a million a store, and you can't. But you should still be able to emulate a few aspects of their model, such as selling Palms and digital cameras alongside computers. These are higher-margin devices, so if you send someone out with a package, you can pocket more profit.
* Hire salespeople who actually know what they're talking about. If you get people who can answer questions well, you'll collect customers who like having their questions answered.
This is a tough business, especially if you're competing against the likes of Fry's "We sell everything!". I'm sure there's still a place for the white box, because it's what my company gets all the time. We definitely feel that we gain from dealing with a local vendor who can be more responsive and less bureaucratic.
Hope that helps.
D
Customer service (Score:2, Interesting)
Sure, their son Jim knows a bit, or the guy across the road can point them in the right direction, but I don't think there is anything like someone being able to run down to a store and get a knowledgable person being able to run through it with them
In fact, if you want to push it even further, include a couple of hours home tuition with it. They aren't gonna get that down at Walmart
A few things (Score:5, Insightful)
Advertise in other mom-and-pop shops. If there's something cool you can throw on a free CD-ROM for them to give away with purchases, you capture the minds of people who aren't living chain-store lifestyles.
Have a local news presence. Make friends at the local TV and radio stations. Be the first with answers about viruses and other computer-related news. It's a given that they let you plug your business in exchange for acting as an unpaid consultant.
Don't talk down your competitors. Don't be afraid to point to them as a source of things you don't have. If you send someone to the best buy to pick up a product you don't have, they remember that you had the answer, not that Best Buy had the product.
Bring the prices up just a touch so you have room to drop a couple bucks for repeat customers before they even ask. People love believing they're getting a bargain on top of good service.
Don't tell them about all the service benefits of being a local shop. Show them.
Look for a few high-profile places to drop a couple free systems. I'd bet most school papers would print a few nice ads and a favorable story in exchange for a system for their school paper, for exmaple. Set up a shelter or a church with internet access and some old PCs that might be thrown away otherwise. Toss in a few old "Learning Word" books or similar and you can be credited with creating a job skill learning center. It doesn't have to be fancy and great. People will talk even so.
Play up the locally owned bit. Patriotism and local pride is very big right now. It's a valid and honest thing to advertise.
Re:A few things (Score:1)
Your in for a hard run my friend. (Score:4, Insightful)
The only people I have known to make this work over the long run have been the guys that sell bulk to established middle to large networks at a fair price. The guy we are dealing with is selling us "Value Added", and giving us the hardware at a very low price. Mind you he still makes a profit just not as much at say CompUSA. He markets the network administrator, system eng, CTO at a middle to large businesss and makes it his job to keep them happy. He delivers everything we need very quickly. We could order online only but it is a hassle for us. That involves shipping, and RMAs if stuff is broke. What this guy offers us is "unconditional" returns on product that is hosed, on the spot, and delivered to our door. This keeps us from having to have the extra helpdesk guy to do RMAs, purchasing, and just not having the hassle of looking for it.
If he does not have it he gets it for us and we know it is going to be about 5 to 8%(which would if trends are the same still net you about 20%) more than we could find online but it is well worth it to us. We spend about 100k to 150k a year with this one guy, and it is well worth every penny. Mom and pop stores are fine, just don't sell to Mom and Pop there is not money in it and they will eat you alive in support. Wrangle in the the business networks around you, bribe the admins and CTO with some free goodies, deliver to the place on the day that they order if you have it and you will have a place that starts to really depend on you.
Then again what do I know, I left that biz about 5 years ago and back then we could mark it up 200% and people kissed us for it.
Anyway,Good luck.
Re:Your in for a hard run my friend. (Score:2)
I buy my stuff from the same guy month in month out. Just like the parent post he's generally 10% more expensive than I *could* get it mail order.
But I know that when I get home if it doesn't work I can walk back in the next day and just say "it doesn't work for me. I think it's the item / my PC" and either get money back or the right part without having to have a song and dance about what I tried etc. Much better than waiting 3 months for an RMA to go to the manufacturer and back!
He also gives me a few quid off his price list price which I value. He knows that I know I can buy cheaper. He also knows that I will take stock that's not in a box or is even cosmetically damaged (scratched cases for example).
Plus you've got to respect someone that doesn't open Mondays and @ about 10-10.30 am on other days. He knows we've just about finished our email by then.
Re:Your in for a hard run my friend. (Score:2)
I don't think this is quite the case just yet.
For one, computers are more multi-purpose than TV's. Thus, you are more likely to want changes or upgrade parts rather than just start over with a blank box.
And TV's don't store large amounts of valuable information.
And finally, getting a new PC often means re-installing or re-purchasing software to have it compatible.
Maybe for first-time computer owners with "typical needs" (email, web browsing, word processor, porn) the TV analogy works, but that is not the whole market.
The answer: differentiation (Score:3, Insightful)
How does Starbucks get away with charging $1.00 for a cup of coffee when you can buy a cup of Folgers for 50 cents? They've differentiated their product by emphasising the quality of the bean, the uniqueness of thier roasting process, the skill of their baristas... But when it comes down to it, you've still paid twice as much for a cup of coffee. (I'm not implying that you got ripped off... You're getting what you've paid for, which includes the beans, the service, the comfy couch you sit in while you sip your latte.)
I would suggest looking for a niche in the market that you can serve well. Maybe you play to the Linux crowd by preinstalling Debian... You could play to the needs of the home user by offering installation or SOHO network services... Or you play to the small-businesses by offering complete server systems with installation and configuration services... There are plenty of opportunities where a small, local shop can service their customers better than Walmart or one of the cutthroat Pricewatch vendors.
Competing on terms of price alone is suicide... You'll get spanked by the retailers whose buying power dwarfs yours.
The answer: location (Score:1)
Actually, I go to Starbucks because they are everywhere, and they're open when other stores aren't. (This Easter morning, when everyone was off at church, I was looking for some coffee and only Starbucks was open.)
I used to work in a very tall building that had an airline counter in the lobby. I'm sure most people who worked in that building used that airline because it was so convenient. So if you want to sell to businesses, try opening up the shop in a big building (or next door) and try to sell hardware and service to every company in the building.
Re:The answer: differentiation (Score:3, Informative)
That's easy enough , but what's the product?
If it's a commodity that you are selling you are the product.
Service, hand holding, installing software, doing upgrades, bla bla bla.
Think like a consultant. Find a niche. Or a few niches. Sell to artists. Sell to Musicians. Sell to Farmers. Figure out you customer's businesses I knew a Mac consultant that made an excellent living making house calls to (mostly) scriptwriters as far as I could tell.
Another thing to consider, visit businesses that have cult followings. If you are near NYC, visit Tekserve on 23d street. They are a Mac Shop and do mostly service, but there are a remarkable number of folks who drop in to buy something just because the vibes are so good. The bad side of a cult following is you end up with a bunch of customers who hang out all the time. The good side of a cult following is you end up with a bunch of customers who evangelize for you. The crowded restaurant effect doesn't hurt either.
Remember the store is the product, not the stuff you are selling.
Re:The answer: differentiation (Score:3, Interesting)
Figure that you basically are not going to make anything on a base computer. Focus on upgrades (even for new systems,) Repairs, software enemas, etc. Market yourself to other small local businesses as a resource. If you are in a small town setting, you may be able to pickup service contracts for government offices, schools, etc. The smaller offices / businesses generally don't have their own IT person.
To support small businesses, check out POS systems, and learn accounting software. You need to be the "goto guy".
Know networking inside and out. Be able to setup routers, network printers, firewalls, file servers, and focus on security. Find an electrical contractor to partner with to run conduit and wires for you
(both from a labor / equipment point of view, and license / liability point.)
Don't forget backup systems / UPS's, and remote access for troubleshooting (Timbuktu.)
Hey, this isn't easy stuff. Running a small business is Hard Work. You are going to put in more time than you ever did at a regular job. You also need to be an expert in everything.
bad timing... (Score:1)
my advice is to use service to generate revenue. fix computers, get certified by companies like gateway and dell to service their systems, and sell training. networking for businesses is also a good play. basically, though, don't try to compete against players who are in a league of their own.
I think your best bet... (Score:1)
is to offer quality services in addition to hardware.
If people come back to you whenever they need some sort of training, upgrades, or repair work done, that would greatly increase your chances of survival.
I don't think this is a market in which you want to compete with companies like Wal-Mart and CompUSA by narrowing your product list to physical hardware.
Other ppl2ppl services (Score:2, Interesting)
the first will help improve the ur customers computer literacy, and the later is very helpful/assuring to them.
you'll maybe need more ppl for it, and maybe some will need to go on a simple teaching course (cause it not as easy as u think to communicate alien ideas to ppl
and maybe use the popular buzz words, like this pc is 'internet ready' =)
Some ideas (Score:3, Insightful)
Also, perhaps offer free seminars teaching people about their computers. You'll only get a certain type of people showing up, but my guess is that type of person would be more inclined to upgrade in the future and also more inclined to talk to other people about your store.
And finally, don't screw the customer. Fry's motherboards are about 10% more expensive than online stores' motherboards, but Fry's memory is about double what I can find online. That's why I recently bought my upgrade hardware online instead of the more convenient local store.
small shops (Score:1)
I'd recommend possibly playing in on the tech-geek aspect by supplying high-end hardware, such as new GF4 vid. cards, new socket478 cpu's, etc..
My second recommendation would be to provide good service. My largest complaint w/ compstop was the degraded service as their store got bigger and bigger (now they have two stores..) What especially pisses me off, is the fact that most of their parts are only warranteed for 30days, some less, such as processors and ram. This is horrible!!!! After the 30 day period, you are stuck hassling with the manufacturors directly, which is a total pain, such as when dealing with Asus or Gigabyte for example. If you could somehow offer longer warantees, say a year on parts like vid. cards, sound cards etc etc, I'd be interested in shopping at your store!
Hope this helps....
Provide superior service and housecalls. (Score:1)
That's it. Give your customers something the big discount chains can't. Think Walmart provides tech support? Nuh-uh.
So sell them the computer, and justify the price with a support contract. x house visits a year or something, and make sure you develop a relationship with them.
Otherwise, get the hell out of the hardware business unless you can do significant volume.
Do more than just sell (Score:1)
support for your systems(free for x ammount of time) and others(charge em)
Parntner with an ISP. i see it done around here im sure there has to be bennifts to that. maybe a cut of money for the referal.
house calls.
networking
do more than just sell computers... fix them, network them, upgrade them and what ever else you can do.
Extended Warranties (Score:1)
A friend of mine used to work for a tiny company that sold medical billing software as well as the computers the software ran on (PCs running some flavor of Unix). They made some pretty good money on that.
But they made a killing by selling $10K/yr extended warranties. If anything went wrong (which was rare), someone would be there within hours working on it. My friend says that they rarely had to visit the clients, so most of the $10K (x 200+ clients) was pure profit. But the doctors knew that downtime would be a big pain in the butt so they paid the extra money. (I guess you can get that sort of support more cheaply these days, so perhaps you wouldn't be able to charge the full $10K unless you could offer things that Dell can't.)
The company made so much money on this that it had its own boat that the employees got to use on the weekends. The boat was 800 miles from the office and the company paid for the plane tickets.
Upgrades (Score:2)
Re:Upgrades (Score:2)
Re:Upgrades (Score:1)
Service Plans! (Score:2)
Lure them in with good service. Even service PC's people didn't buy from you if you get enough questions about it.
If all else fails... turn tricks.
Point 2 (Score:1)
House calls are good. (Score:1)
You would lose considerable time and money by providing every customer with this service, so it's probably good business policy to reserve in-home support to young, single, attractive women.
Don't be this: (Score:2, Insightful)
"Oh, we don't have any cd-rom drives. We have dvd-rom drives for $20 more"
"No, I don't want a dvd. I just want a cd-rom"
"Well, all I have are dvd-rom"
"well, then $OTHER_PLACE has cd-rom's. I'll get one there"
"Oh wait... no I guess I *do* have a cd-rom after all"
If you rip off the customer, better enjoy that sale, that's likely the only sale from them you'll get.
Sell to everyone (Score:2, Interesting)
Keep that dead motherboard that the manufacturer won't take back or that P166 you got on a trade-in - some people (mainly me, but there might be others) need those for one thing or another. Ever try to find an RTC chip with a battery soldered to it? It can be pulled from that dead mobo that you just threw away.
Be sure not to invest yourself heavily into software - I know of two types of purchasers for the latest 'Winderz.' Those who go to Wal-mart, and those who pick up a Warez release. Don't bet your business on a third type coming into the picture - it's unlikely to happen.
Have a good return policy. Sometimes you'll sell a dud, but the customer will keep coming back if you take it and hand them a new one with no hassle. It will take a bit of your time to get it back for a manufacturer's RMA, but it's worth the extra business from a satisfied customer.
Sell higher-end parts. Let the customer know that their onboard shared-memory AGP won't cut it for that copy of Doom 3 in their hand (assuming you ignored my previous point about software), and offer them the choice of a GeForce 5 or a Radeon 10000. Offer also to install it and configure the drivers - even the simplest of choices can throw a user for a loop (or a BSOD). I personally would rather buy my stuff locally, because I have had some bad experiences with internet retailers recently.
If someone comes in inquiring about a NIC, or a "networking kit," offer the service of installing a small network in their home. Odds are that you'll catch a demi-poweruser who wants to have two machines on the cable modem at the same time, and who can set up his own network. However, you'll occasionally run into someone who can't understand the concept of an IP address, and this is where you come in. Just don't overcommit yourself, and don't get them started on the idea of having you install network cables in their walls...
Have cool stuff in the store. Let someone come in and try your latest gamerz machine with a preloaded copy of Jedi Outcast up and running, or allow them to stare at the window-modded fileserver tower, with a terabyte of disk and all those spinning fans and blinking lights. If people like your store for the amusement value as well as the products, they'll come back more often. I have two choices of local stores - a dusty old hole in the wall with a dog that tries to rape your foot whenever you come in, or a newer store with machines up and running, just waiting to be crashed^Wplayed with. Which do you think I'd choose?
Anyway, enough rambling...
Use Alternative markets (Score:1)
A music instruments shop in town was barely staying afloat, and had a few things that hadn't moved in over 6 months. They started listing product on E-bay, and now they're actually keeping new things on display in the store all the time (because they're always turning over their stock.) They have both the walk-in convenience of a local store, and are getting a market somewhere they couldn't physically get to before.
Also, Pricewatch isn't all bad. If you've got product, put up a website and submit your prices to Pricewatch... you may actually get some business that you didn't have before. I've seen at times on Pricewatch that one company that has horribly high prices on video cards may have a day or two when they're near the top on hard drives, or other things.
Build white-box for local business / colleges (Score:1)
Both the college and pharmeceutical have their own IT depts to maintain the computers, so all the shop has to do after the intial sell is offer 3 year warranty on parts (if a part goes bad, we'll deliver you a new part that afternoon.) They just RMA that part, and are all set. Granted, they lose a little on the 1 year parts like keyboards, but the ones they sell are bulk $5 keyboards, so not much loss there compared to the profit they gain from the sale each year.
Play the local computer fairs (Score:1)
Plus, make sure to take a lot of stock with you to sell. A lot of people going are impulse buyers, and will buy what looks like a good price without looking at the table 3 down from you. Also, when it gets later in the afternoon, a lot of the good tables will be sold out of a particular product, but if you still have some, you'll make a lot of buyers happy.
Deliver. (Score:2)
This is probably obvious to you, but be careful what you buy in bulk, but do make bulk purchases.
Things that are safe to buy in large quantities:
Things you should never buy in quantities you're not sure you can sell in a few weeks:
Everything else is a close call.
Ideas (Score:2)
2. Sell quiet computers. Keep the showroom quiet so you can point out how quiet the machines are.
3. Except for the simplest things like picking out the right cable, charge for support. Keep the rates reasonable, and charge in small (5-10 minute) increments. Support includes helping them select virus scanners and firewalls, setting it up to call their ISP, recovering from crashes and infections, backups, etc. Many people have real trouble with the most basic things.
4. Charge for training. I personally would not want to do training, but if you can stomach it it's a revenue source. There are companies that do nothing but computer training.
5. Promote the price-saving aspect of upgrades.
6. Hopefully this is so obvious you've already done it, but standardize on a few models of boards (motherboard, video card, etc.) Hunting for upgrades and drivers, and making them play well together, burns time and therefore money.
7. Use OEM OSes. Retail Windows 2000 is $200. (Or is it $300? I forget.) OEM Win2K is $85.
8. If you're doing free/discounted support, choose OSes that tend not to break. E.g., use Win2K and set the security up properly.
9. Sell support packages. (Other people have mentioned this.)
10. It's hard to sell premium services if the shop feels like a grocery store. Have comfy chairs for the customers to wait in. If you need to discuss, e.g. different options for a custom machine, have a table that the two of you can sit at.
11. Housecalls. People who can pay for them, can pay a lot for them.
12. Promote your services. Advertise, have signs in the store, make sure machines leave with pamphlets, get their address and follow up with mailings, bring it up as you're selling.
13. Salesmanship. How you sell often determines whether you make the sale, not what you sell. Don't offer a maintenance contract, ask them what they're going to do when the software inevitably eats itself. Don't be exaggerate or be melodramatic, just tell it like it is. If they decline, tell them they can always come in for service later.
Put up a website... (Score:2)
I'd love to be able to order online and pick up at my local mom-and-pop store. In fact, if you're anywhere near New Jersey I'd be willing to set up the website and give you 50% of the profits on orders through it.
Inventory (Score:2)
But here's where I think the real money is (and there's a small shop here in Portland that does this very successfully): geeks. Geeks are impatient, they love tinkering, and they often break things that are vital to their system's health and will do anything to get a replacement in the shortest amount of time possible. So stock what geeks want. Do some research and find out what people are searching for on PriceWatch. Find out what Ars Technica [arstechnica.com] is recommending.
Stock up on motherboards (especially Asus, Abit, and Tyan). Buy OEM processors if you can, because they're cheaper and geeks don't mind. Stock lots of cooling accessories. The latest video cards from NVidia and ATI. That sort of thing. If your prices are within $20-$30 of the average price on PriceWatch, most geeks would rather buy their stuff from you and not have to wait for shipping. And if the attitude of the guys at my local store is any indication, you don't even have to be nice to your geek customers. They don't care about you, they just want their hardware.
Good luck!
Re:Inventory (Score:2, Insightful)
Re:Inventory (Score:2)
high volume, lost cost (Score:1)
a dollar or so markup, plus high demand & volume = income.
Mind you, it's mostly local traffic + companys
Re:high volume, lost cost (Score:2, Insightful)
A very well-designed web site. Goes along well with my main reply, down below [slashdot.org]. However, they break one of my 'rules' for a good price website:
Don't use "$CALL" when giving your prices.
As a consumer, when I see $CALL , I don't call. I just go elsewhere.
What this amounts to is that you're too lazy to update your website when the prices change, so you want the customer to call you to find out.
Re:high volume, lost cost (Score:1)
Maybe if there was several other choices in the area, and the other place never used *call* (but outdated prices) I might switch. However since tom is just around the corner, and he's always reliable, there is no reason to go anywhere else
Re:high volume, lost cost (Score:1)
assistance (Score:2)
Website that shows the current store prices (Score:1)
There's a local computer store where I live (Vancouver, BC) that has a great web site [www.atic.ca] with all their latest prices [www.atic.ca]. You can't order online (I don't think, anyway), but you can do a quick price check, and make up your mind before you go there.
They update each page if just one item's price changes on that page. All the pages are organized by category (CPU on one page, memory on the next, then mainboards, etc...) Their prices are competitive, around the cheapest in town (if you're comparing, remember these are Canadian loonies). If you're going to update the web site daily, you can then place a few computers around your store with that web page preloaded, to allow customers in the store to check the prices. Also, the staff at the store above [www.atic.ca], uses the web site on the computer in front of them to check the prices as you pay.
Each of their products has a brief description, e.g. Intel P4-RD, D850EMD2: i850E/S478, 533FSB, AGP4x, 3PCI/CNR/5USB2.0, RDRAM, Audio, which are useful in taking a look at all the choices in one place.
I think it's a Mom and Pop run place, at least it looks that way... The store isn't it the best of shape physically, but damn, there's always a line of people waiting to buy stuff. They must sell one hell of a load of items every day. There's no price haggling, and the they probably make a low profit margin. But they make up for it in volume (i.e. always 5+ people in line to buy stuff, in a customer area that's only ~20x20 feet.)
Oh yeah, skip all the fancy graphics, flash, pull-down menus, pop-ups, whatever, on your site. They're only annoying [mconcept.com]. Don't bother with making the user turn the page to find page #2 of the CPU prices, either - that's what the Page Down button is for. Page flipping through links makes it a pain in the butt to print a price list.
Bottom Line to My Point: Open a web site with your latest prices.
/Dave
don't sell plain boxes: sell real solutions (Score:1)
Video editing: Sell a Sony camcorder and PC with enough speed, memory, and a firewire card to do video editing, including some easy-to-use editing software. Include the ability to compress movies and store them on your webserver so people can stream them to their friends, maybe. This will sell a very nice, high-powered PC and a lot of disk capacity. Building one from scratch is difficult -- there are many choices and it takes a lot of effort to find the 'best' HW and SW combination.
Multi-PC broadband: Sell a NATting router for its additional security and ability to connect multiple PCs (the kids and the parents). Configure it for your local cable and DSL providers. "Networking is hard."
WiFi: Sell accesspoints and PCMCIA cards for WiFi and configure it, and configure NAT.
You can have a "add another computer to your house" package which includes WiFi to get to the PC upstairs from the cablemodem running downstairs. Sell the whole solution, not just the single PC.
Re:don't sell plain boxes: sell real solutions (Score:1)
Selling points (Score:1, Interesting)
Maybe you can provide cheap, on-site computer troubleshooting. I saw this article about a company that does that.
http://abcnews.go.com/sections/business/Te
And of course providing high quality, friendly service and personal attention that the big mega computer stores can't match will take you a long way too. Build up a good local reputation and word of mouth from happy customers will bring more customers to your door.
Matt, is that you? (Score:4, Insightful)
Anyway, most of the input so far has been on the ball. Let me mostly just repeat what others have said.
First, have some stuff in stock. If you don't have anything, there is no reason I shouldn't go mail order. It's going to cost me just as much. You don't need everything. But you do need some RAM, drives, etc. that aren't committed to machines you are building.
Second, tell folks your name. "I'm John Smith, when you have a problem with your computer, you will talk to me." Well, not exactly, but knowing the person behind the counter is a good thing.
Set an upgrade plan for people who don't buy all-in-one boards. Include it in your probably overpriced (IMO) service plan. "If you buy the warranty, we will sell you upgrades at 10% list price".
Remind people that there is no shipping. If they really can't get through life with phone tech support, they can go to someone in their neighborhood and drop their machine off. This is the number one reason my office does not use Dell/IBM/Gateway machines. I don't have to ship them to who knows where for service. I go there on a Monday, they look at it by Tuesday, and I pick it up by Wednesday.
Someone mentioned making the techs and machine builders accessible. Once upon a time, I would have laughed my ass off at that. Not anymore. It made them more 'human' to me. Also, I feel like I'm getting special attention. True, they are going to give away a little bit of money (extra IDE cables go bye-bye, a little tech support that isn't charged for, etc). But I'm also a damned good customer. Eventually, they figured out that if I come in with a diagnosis, I'm 99% right. It makes their lives easier, and I'm not spoken to like a moron. That's the biggest thing. Of course, if they are busy, I have sense enough to clear out.
And the final thing that I saw mentioned in the replies that I also believe in is serious customization. I'm sitting next to a reasonably new Athlon. I could have EASILY built it myself. But I haven't had a new machine, all my own, not owned by work, since college. I got EXACTLY what I wanted. I even brought in a print of prices from Pricewatch. And paid more for every single component. Because I knew that it was worth a few bucks to have the machine built for me. Instead of tinkering, I just wanted the thing to run. But I also wanted very specific things. A certain motherboard, a certain video card, etc. (Of course, I also wanted the RAID set up a certain way. It wasn't. I was pissed. But that guy was fired.) Hell, I wanted a certain case! All done without a problem. 'Just tell me what you want'.
I think that white-box shops are best suited to the second or third computer purchaser. First timers want the Dell or Gateway with the reassuring corporate logo on the front. But after getting the runaround with tech support, they'll be happy to have a name to bitch at. Similarly, gamers, etc. want Falcon NW and Alienware machines, but not at those prices. I KNOW you can undercut them. My guy can do it, so can you. Get one of the benchmarking programs and benchmark your gaming systems. Include an individual benchmark on their actual machine. It's like some of the car manufacturers who include dyno results with each car.
Good luck with it.
Re:Matt, is that you? (Score:1)
Dell provides onsite service for all their machines.
Re:Matt, is that you? (Score:1)
Re:Matt, is that you? (Score:1)
Closer (Score:1)
The important thing about an over-the-top closer is that it is far enough away that only about 10% of your customers will take advantage of it, and the ones that do will need to come into your shop at a time when their HD, moniter, RAM, and OS could use upgrading. If you charge 850 for an 800 dollar system with an therotical 200 dollar closer, and 10 % of the people take advantage of it, you just made 30 dollars cream per machine and earned a group of dedicated customers who will tell their friends about you.
And remember, you ARE selling computers that are better from the ground up. They have more slots, quieter fans, no winmodems, HD's without problems, strong power supplies, and a service person who knows your machine from the inside out. And of course they'll want an ergonomic keyboard, which is much more affordable than you might think. You'll even knock some off of the price if they buy it together with the computer. Your computers are ready to be delivered and setup any time by a skilled technician... All the customer needs to do is swipe that little plastic card, and everything will be taken care of.
Be friendly, outgoing, positive, happy, do whatever you can to make the customer more comfortable. Never let the customer know that you are carefully hedging your numbers. If they ask, you can tell them that the G4 you removed during their complimentary upgrade to a G5 will be used as a "gift" for another customer's computer, but don't let on that it was carefully calculated.
You might have been a geek, but now you are a geek salsemen. Congratulations, it sounds like you have a lot of fun hard work ahead of you, with the freedom to be creative and the financial responsibility if you fail. How I envy you.
Its all about who you cater to (Score:1)
Repair work is a big money maker. I saw one poster say they charged $75 an hour, we charged $40. Whatever is competitive. Also, when we sold a complete machine, we gave the customer "one free fuckup." You break it, and we'll fix it for ya.
A lot of people will come to a mom and pop store because of the personal service they can get. We had a lot of old people buying their first computer, and they felt more comfortable around us (an 18 year old kid, a cigar smoking old guy, a middle aged family man, and a psych tech guy) than someone trying to sell them the latest and greatest computer just to do email their grandkids with.
One thing you need to watch out for is telephone calls from morons who think you exist only to answer their questions about software/hardware they bought from best buy. We'd tell em that we can't answer questions like that over the phone, but if they want to bring the box in, we can take a look at it- going rate is $40/hr.
Service Service Service (Score:1)
People don't want a computer, they want to DO something with the computer. If you have people that are willing to talk to these customers and find out their needs, you will be able to form bonds with customers that will out-last any hardware you may sell them.
Some people have said that you need to find those med-large businesses, but I'd say one of your best bets would be to find those businesses that are like ours. If a business is built on servicing their customers, they are very likely to appreciate a service that you can provide them. Business works when your customers can say, "They just take care of me". They really honestly won't care about the 5-15% increased cost of hardware. As long as they are getting the service they pay for.
Get rid of the 'showroom' (Score:1)
SERVICE! (Score:2)
Pray for destructive viruses... They are lucrative. Pray that Microsoft and Apple never get their acts together. Their crap software and hardware generates Lots of service. Thank all the major hardware vendors for all their crap hardware too. Never put a crap power supply, motherboard, CPU cooler or generic memory into a machine you build for sale. It will come back-and service will be on your dime. Never flash a bios for a customer unless you have an Identicle motherboard in stock AND you put the system on battery backup. Check out VIA's Eden platform to build an OEM price undercutting system. Never attempt service on a computer older than PII/Win98SE/SDRAM/FlavoredMac. You will break more than you fix by changing anything in their system. Spend 2 hours a day MINIMUM researching hardware and software [google.com] online. Learn apply a mechanic's lien to a computer when you put $300 labor into a system and the customer won't pay. Get on a first name basis with your sales rep at each of these [google.com] places. If your shop is really small, use pricewatch [pricewatch.com] and RESELLER RATINGS [resellerratings.com].
I've got it down (Score:1)
1. Don't build cheap PCS. The big boys can, and will build them better than you.
2. Go for 'high end' desktops and servers. The more money the system will cost them (hardware wise) the smaller your markup will be.
3. Consult with each customer. Interview them, take a week researching components, or take a week to make sure you feel right about the system you're building for them.
4. Make them pay before you order any components. They will appreciate the system more when you deliver it (or have them pick it up)
5. Warrantee everything hardware for 1 year.
6. As for business. Try to get to know the people, you're building something that should last them for as long as they want it to. If you know them, you'll really know what they want. Tell them you'd like them to mention you to their friends.
7. Don't mark up parts. Setup a flat, 'consultation/build' fee for desktops, perhaps another for servers. This part worked very well for me, people liked knowing that I was building a system for THEM, not for my pocketbook.
People who came to me first for systems ended up coming to me for EVERYTHING else. Don't sell 'hardware'; it's cheap, a no win buisiness. Sell yourself, your skills. The hardware should just be a vehicle for delivering that.
This formula works, just ask Mr Dell.
Re:I've got it down (Score:2)
Keep a "default" image of the pre-installed software that you setup for clients. It makes life MUCH easier when you need to service the machine. CD's are cheap. Keep them in a numbered box with a database to help you find the correct CD by serial number of machine (YOUR serial number, not the MFR's. I assume you will also sell some name-brand boxes. Oh yeah, have some ser number labels printed up.) The database should also have ALL the details about the machine as you sold it. Ram, HD, vid cards, software, bios, etc. Keep a history of the machine. Put your phone number on the serial number tag too.
Your database will also allow you to send out "tech update" notices to people. First, they will appreciate the info. Second, that will entice them to come to YOU for updates, fixes, etc.
This is the kind of thing a mom&pop can do that big companies and stores never will.
Service...... (Score:2)
Fastest way to my heart (Score:2)
Here's what I like to see:
1. Carry the stuff big stores don't: Keep a few lease-returned systems (and ESPECIALLY monitors) around, Y-power adaptors, silver heatsink compound, ISA and PCI video cards... Simple stuff like that will probably at least get me to come back.
2. Service needs to be your life. Keep the geek in the back happy, and send him on the odd no-charge housecall for your small business customers. Pay a bonus for good, fast work. Don't nickel and dime service customers (installing RAM or an optical drive should be free) when an hour of your tech's time is $100. Service can also be used to build incredible goodwill.
3. Interview your customers if they're looking for whole systems. Can't stress that point enough. Talk to them. Most people stop at price.
4. Don't sell all generic. Don't sell all namebrand. Don't sell all retail. Don't sell all whitebox. The mix is important.
5. Don't stock crap equipment. Step away from the Jetway system board and the truly generic NIC. Name-brand RAM is a good thing to see, too.
Ignore the middle (Score:1)
For the high end, have every little gizmo you can find, repackaged into small quantaties. Screws, ties, adaptors, fans, antistatic bags, drive sleds, etc. See http://www.startech.com/ and www.directron.com for ideas.
Keep a small stock of very high quality parts on hand, like gold cables from www.scsipro.com, kingston drive sleds, power supplies, online type ups, etc.
For the newbies, have an "out of the box experiance" set up, so they can, under your guidance, set up a system in the store. It's amazing how many people get paniced at the sight of an instruction sheet and loose cables. If they do it once, then chances are they will be able to do it again at home. Also, bundle all the manuals, disks, warrenty cards etc into a folder. Make up a general troubleshooting booklet, perhaps velcroing it to the case. This can avoid the "is it plugged in" questions.
Another idea is making a presale video on "what to look at when buying your first computer" which you can lend out with a small deposite on the tape.
Reliability (Score:1)
Personality Plus! (Score:1)
Yes, I understand that those of us who want to run shops like this are typically that way, but to have enough understanding that we don't all necessarily LIKE each other and that the more personal, bubbly service counter/warehouse person just my be the bright spot in our day seems like a lost concept. Of course actually just having a FEMALE behind the counter would be a big draw as well. . .
My point is this, in an area with several choices and all components being within a few dollars of each other, I will go to the place where someone does more than grunt when I walk up to the counter.
/rant
and if I may be so bold, the two places on the west side I'm thinking of are Pace Computers and ENU.
You can build it NOW (Score:2)
The other day I decided I needed a computer. I didn't want some name brand piece of proprietary junk. I was about ready to buy one from Wal-Mart's web site, but first I had to pick up my girlfriend from the train station. While there, I saw a small mom + pop computer shop had opened up.
I walked in, talked with the owner a bit, asked him for a quote, and I ended up with a brand smacking new computer 3 hours later (took him a few hours to put it together). THAT's why you shop at these places. Almost instant gratification.
Build to Spec + £25 (Score:2)
The solution adopted was stack it high and sell it cheap. Use a low margin/mark-up (~5%) on componets price and a published price list list. Gain a reputation for being the cheapest, keep your margins low and offer a build to spec service for the component price + 25 pounds (dollars/euros).
Target special groups like schools, with blanket advertising and make special approaches to the new University/College intake each year and can shift 200-400 units in two weeks. This can be enough to get your volumes up to the level where YOUR purchasing discount is really worth having.
Get your suppliers to discount based on your monthly volume rather than on each order and play your suppliers off against each other.
Also talk direct to the big players, they are constantly changing the case designs and upgrading and always have end of lines that are perfect OK and heavily discounted.
As it happened I didn't agree with this strategy, though it was doomed to ever more discounting and wanted to go up market with value added services, so I went my own way. I was wrong, The chain has gotten stronger going from 1 to 4 stores in 3 years.
Fast Internet Access (Score:1)
We've got a large brand computer store up the road (PC World) but three smaller shops within 2-5 mins walking distance are still doing very well, how? One offers cheap fast internet access (think pc shop crossed with internet cafe). Another unlocks mobile phones so they can be used on any network (not strictly illegal here in the u.k.) and another sells second hand as well as new kit, so people wanting a large hard-drive/extra memory etc. don't have to break the bank.
The last one has been used as a location in a T.V. drama and so made some money that way too!
Carry what I need now, and I'll come back (Score:2)
What I really want in a computer store is someone who has that special cable/card I need now. Best buy is miles away, and they don't carry the details I want. There is a large markup on cables, and If you will open at 4am I'll pay double again.
Look for industy in town. Every town has (normally several) small buisness in town, some with many computers. They want local support. Many cannot afford, and do not need, a full time system administrator. You are their administrator. Make sure you (or your helper) can run out at any moment to deal with their problems. Printer doesn't work? No problem, I'll run one out, and have it working in minutes. (Make sure you have something in stock that is at least as good, better they replace a 4ppm laser with a 20 ppm color duplex laser than the other way around)
Get everyone to backup. Ideally you will have a secure system to backup to your location. (secure in that you can't get the data, just in case there is an audit). You should be able to charge for this, but consider implimenting it for the smaller customers at no charge, when they need it chrage a lot extra for having a spare copy of their data.
Refer to others, and get their referals back. If Joe sells office supplies tell everyone looking at the one ream of paper you have on the shelf that Joe is cheaper and has a better inventory (and make sure you overcharge to make that true), you carry paper only to give away with new purchses. Only do this if Jow is a fairly nice guy though, you should be careful who you refer buiseness to.