Markups and etc.

[prokewl]

Hi,

I'm considering setting up a small shop in my home town to sell computer hardware, but know very little about the subject, and was hoping to get some insight from here.

Where are the best places to get wholesale deals on computers? And what are the typical markup ranges for retailers?

I just wanted to get an idea of the profit margin each unit would generate for inclusion in my marketing plan.

Thanks in advance for any help!

 

[ZZZZZZ]

Welcome to Anandtech, and I hope you enjoy you time here.

Please note you post realy belong in the Off Topic forum not the For Sale/Trade (here). I recommend you edit this post and move it over to the correct froum.


Good luck

Rob

 

[prokewl]

Sorry about that -- new to this site. How do I move it to another forum? I clicked on "Edit" in my post and when I tried to change the forum by selecting "Off Topic" in the Categories drop down box on the top right, it didn't move my message to the forum, but just instead displayed that forum?

 

[Gunbuster]

markup at big stores (BB, Compusa) is only around 3-10% on computer hardware, but they make a killing on cables and such.

 

[Dameon]

understand that you are entering a cut-throat business with wildly fluxuating prices, preferences, and products. And that even if you are local, you are still competing with the internet for business. It is NOT for the faint of heart.

 

[prokewl]

Yeah, I was hoping that by offering a local service which seems to be absent for miles around that the business might have something to offer in terms of service (e.g. fast since it's local and the ability to talk face to face with someone). 3-10% may not be enough for a small shop, but is probably a lot to companies like CompUSA, Dell, etc. since they sell a lot of computers.

I'll keep on doing some more research on the topic to see how many units I would have to sell (with some variance factored in) for a time period given a certain amount of startup capital to burn through before it reaches profitability. From the information gathered so far, it seems that selling hardware is a risky and potentially unprofitable business, so I'll have to add some other twist to the business plan such that the company wouldn't be entirely dependent upon the sales of hardware (e.g. some of its revenue streams could come from billed hourly technical support, consulting, etc.)

If anyone has anymore info that might potentially help me I would certainly appreciate it!