What would it take for you to buy parts from a local retailer?

[vasker]

Local business
Hello I have a question for you all. I live in a part of Texas that is very close to a huge military base, with that said I am thinking of opening a computer store primarily catering to people that want high performance pc and gaming rigs. The rent on a retail store from is very cheap with a 1500 sq space on main road renting for about 1200 a month. I also understand that as technology progresses very quickly and building computers on your own is a very rewarding experience. I have always built my oun machines and when you put it all together and you turn it on for the first time I get a feeling of accomplishment. I was also thinking of starting a online store but soon came to the conclusion that i don't have the money for the tech support side of the business model, and knowing that un-happy customers don't make for long term business have since decided against it. My main question is would you guys who put your onw rigs together pay a little more to buy from the local guy. If NewEgg sell the EVGA 320-P2-N811-AR GeForce 8800GTS 320MB for 219.99 would you pay 250.00 for the card at my retail location. Thanks for any and all input.

 

[pyonir]

Nope. Price rules all. I wouldn't pay $30 more for something locally (at least in that price range) unless that was the ONLY place to get it.

 

[Manok]

I would pay more locally just so I don't have to wait for shipping. Most computer shops I've seen are so lame though with nothing worth buying.

 

[polarmystery]

Originally posted by: vasker
Local business
Hello I have a question for you all. I live in a part of Texas that is very close to a huge military base, with that said I am thinking of opening a computer store primarily catering to people that want high performance pc and gaming rigs. The rent on a retail store from is very cheap with a 1500 sq space on main road renting for about 1200 a month. I also understand that as technology progresses very quickly and building computers on your own is a very rewarding experience. I have always built my oun machines and when you put it all together and you turn it on for the first time I get a feeling of accomplishment. I was also thinking of starting a online store but soon came to the conclusion that i don't have the money for the tech support side of the business model, and knowing that un-happy customers don't make for long term business have since decided against it. My main question is would you guys who put your onw rigs together pay a little more to buy from the local guy. If NewEgg sell the EVGA 320-P2-N811-AR GeForce 8800GTS 320MB for 219.99 would you pay 250.00 for the card at my retail location. Thanks for any and all input.

The only thing I'd worry about is actually turning a profit. While of course PC hardware r0x0rz to us all at AT, I think the large majority of computer users in your area probably wouldn't bother unless you had outstanding customer support, a great business model, and some sort of incentive to shop there. Not trying to be harsh, but that's how I see it. I for one would definitally buy from a local shop if it was only $20 more if I saw it no prob as long as the warrenty/customer service was in tact.

 

[Ns1]

don't do it.


/thread

 

[Kirby]

Would you be an authorized iPod retailer?

 

[BEL6772]

I buy locally when the price is close to the online price plus shipping and they actually have the item in stock.

 

[RESmonkey]

Don't do it.

 

[Harvey]

Originally posted by: pyonir
Nope. Price rules all. I wouldn't pay $30 more for something locally (at least in that price range) unless that was the ONLY place to get it.

I disagree. There's value in not having to wait for goods to be shipped and more value in dealing with a vendor face to face if there are any problems with any items.

If I bought a new system, I'd rather toss it in the back seat and drive to a nearby dealer than have to request an RMA and ship it back and hope the seller could reproduce the problem.

In the current market, a good reputation and good service are everything for a B&M shop... and even then, it isn't easy.

Good luck.

 

[Jugernot]

Terrible Idea... I ran a computer business back in the day (ok, 1997-98) and the sheer number of stupid people calling you for "warranty" calls is outrageous!

Me: Hello, how can I help you today?
Customer: My computer screen won't change from blue.
Me: Hmmm, ok, did you just boot it up. Does it have an error message?
Customer: No, it just sits there, no error, just can't change the screen color.
Me: Ok, is the whole screen blue?
Customer: No, just the screen on the computer.
Me: Uhhh, ok.
Customer: It says My Computer next to the computer. It's just a tiny blue screen. I can't get it change.
Me: Wait, do you mean the My Computer icon on the desktop.
Customer: Yah, it won't change.
Me: .............


Stupid people are everywhere!

 

[MrBond]

Originally posted by: vasker
I was also thinking of starting a online store but soon came to the conclusion that i don't have the money for the tech support side of the business model, and knowing that un-happy customers don't make for long term business have since decided against it.

Supporting local customers isn't going to be free. When people buy something from a retail store, they expect some sort of return policy at the store, so you're going to have to deal with people returning "defective" hardware and expecting you to take it back. "Take it up with the manufacturer" isn't going to get you very far and if you offer no in-store returns people aren't going to be willing to shop there.

Trust me, as someone who enjoyed building computers when he was young, then tried doing it for a (part-time) job, you'll end up hating it. If you enjoy doing it, continue to do it for a hobby and continue to enjoy it. Customer support will make you hate computers/people.

 

[pyonir]

Originally posted by: Harvey

Originally posted by: pyonir
Nope. Price rules all. I wouldn't pay $30 more for something locally (at least in that price range) unless that was the ONLY place to get it.

I disagree. There's value in not having to wait for goods to be shipped and more value in dealing with a vendor face to face if there are any problems with any items.

If I bought a new system, I'd rather toss it in the back seat and drive to a nearby dealer than have to request an RMA and ship it back and hope the seller could reproduce the problem.

In the current market, a good reputation and good service are everything for a B&M shop... and even then, it isn't easy.

Good luck.

I've never had an issue with a product bought online. So i've never had to RMA anything (and yes, i make most of my purchases online).

So, price outweighs anything else for me. I don't mind waiting if i'm saving money.

If i was going to purchase it from a store, I'd find the cheapest price first, and chances are it won't be at a privately owned small computer shop.

 

[hanoverphist]

Originally posted by: eaj0010

Originally posted by: vasker
Local business
Hello I have a question for you all. I live in a part of Texas that is very close to a huge military base, with that said I am thinking of opening a computer store primarily catering to people that want high performance pc and gaming rigs. The rent on a retail store from is very cheap with a 1500 sq space on main road renting for about 1200 a month. I also understand that as technology progresses very quickly and building computers on your own is a very rewarding experience. I have always built my oun machines and when you put it all together and you turn it on for the first time I get a feeling of accomplishment. I was also thinking of starting a online store but soon came to the conclusion that i don't have the money for the tech support side of the business model, and knowing that un-happy customers don't make for long term business have since decided against it. My main question is would you guys who put your onw rigs together pay a little more to buy from the local guy. If NewEgg sell the EVGA 320-P2-N811-AR GeForce 8800GTS 320MB for 219.99 would you pay 250.00 for the card at my retail location. Thanks for any and all input.

The only thing I'd worry about is actually turning a profit. While of course PC hardware r0x0rz to us all at AT, I think the large majority of computer users in your area probably wouldn't bother unless you had outstanding customer support, a great business model, and some sort of incentive to shop there. Not trying to be harsh, but that's how I see it. I for one would definitally buy from a local shop if it was only $20 more if I saw it no prob as long as the warrenty/customer service was in tact.

same thing i thought of when i considered opening a shop up. i know that i would have to turn it into a repair shop to make a profit and sell the parts as an aside. building rigs is a tough one to get running, you have to compete with the market online too much. best hopes would be to advertise both super rigs as well as baseline systems for the general public. with enough advertising, you may be able to get some business if there isnt a walmart, target or best buy around.

 

[Viper GTS]

No offense but you'd have to be crazy to try today.

As others have mentioned price rules. The only thing I'm willing to pay a slight premium on for the sake of convenience is cables. These days I'm buying all my cables from a local store that offers pickup (usually within 15-20 minutes):

http://www.pchcables.com/

The guy that runs the place sold computer hardware for years, I've been buying stuff from him for over a decade. I asked him recently how he liked the cable business vs PC hardware & he says it's night & day. No rapidly depreciating stock, if anything his stock might go UP in value with the way copper is lately.

The only time I buy any hardware locally is if it's an unbeatable price (Fry's CPU/mobo combos for instance) or going out of business type events (ala CompUSA).

Viper GTS

 

[GagHalfrunt]

There IS a market for B&M retail sales. That keeps CC, BB, Fry's and others in business. Not everyone is a slave to Price Watch and there are plenty of customers who don't know online prices and/or want something NOW.

That being said, you're looking at a huge investment up front despite the cheap rent. You're not going to make a living selling 8800GTS cards. You'd need to offer a wide range of parts to get any sort of traffic through the door.

 

[Rubycon]

They'd have to be on islands. :laugh:

I've seen some shops in the Caribbean but one has to resort to the mainland for most stuff. Usually when I request something I get two of everything which always works out nice.

 

[vasker]

You know if i charged say 250 for a video card you could get from newwegg for 220 but also i installed that card for the price of the 250 would that make it more attractive. This country's economy is so ass backwards now a days. People hate shopping at places like wal-mart and frys because the clerks don't give a shit about what you want and usually dont know anything about the products, but but consumers always want the best price no matter what. This leads me to an interesting conclusion the backbone of the economy which is small business it being killed by consumers just liek us wanting to save $5 online or by going to wal-mart, this is killing the small guy. To me saving a few dollars isent worht actually getting to talk to a guy in a computer store who is obsessed with the technology and gets excited why i ask questions about what should i buy for my new system. Saving a buck here and there is going to turn this country into one big wal-mart. And i hate that fact.

 

[MotionMan]

Originally posted by: Viper GTS
No offense but you'd have to be crazy to try today.

As others have mentioned price rules. The only thing I'm willing to pay a slight premium on for the sake of convenience is cables. These days I'm buying all my cables from a local store that offers pickup (usually within 15-20 minutes):

http://www.pchcables.com/

Why is their address three blocks away from their location?

MotionMan

 

[MotionMan]

OP: Sorry, but you will lose your shirt - Price is king, there are not nearly enough DIY enthusiasts in most areas to support a B&M store, anyone who you think you will be building a computer for will get it cheaper from Dell (with 24 hour support) and you cannot afford to maintain the inventory that most customers now demand (if they have to wait for you to order something, they will just get it online).

Nice thought, though.

MotionMan

 

[ballmode]

depends on how important it is for me to wait for shipping or not

 

[ViviTheMage]

price and brand.

 

[vasker]

You can do whatever you want if you work hard enough and do it the right way. There is a market for everything, you just have to find a niche and market your company in the right way and keep overhead down. Its not rocket science, stock what people want, offer great advice, be honest, and when people buy something from your store make them realize why next time they need advice or a product why its best to support the small guy. And as for there not being enough DIY's to support the business in 5 years the kids that are 12 now will be so handy with computers that the DIY market will explode, not to mention that World of Warcraft how has 9 million players and has become almost a cultural phenom, and those people are playing on computers computers that they will want to upgrade every 1.5 years, the chance to have repeat business is huge you just have to do it right.

 

[sutahz]

Look at other businesses around the area.
Are there new housing developments going up w/in a mile or 2?
You definatly have to cater to the 'normal folk' more then the enthusiast.
So $1200/mo in rent, $400(?) in utilities, $X in yearly fee's by the county/state, + wages to employee's. Lotta overhead.
Read up on owning a computer shop (there are books specifically about that).
With risk comes reward.
I'm guessing a key to sucess is becoming the computer support/supplier to a few small businesses.
I grew up about 20mi's from a town of 50-60k people. The 3 small towns that were 20mi's from this bigger city/town probley totaled 10k people, so lets just say 60k people total. Growing up there were 3 computer shops (no best buy, staples, office max, etc. Kmart and Wal-Mart of course existed). Now one of the 3 original is out of business (im guessing due to crappy customer care). Now there are 4 ma&pa shops, best buy, staples, (office depot and/or office max), kmart went ouf of buisness im pretty sure, but target is in now. My point? You can make it, but you'll have to be very good (at lying/cheating) or be VERY VERY good at being honest and caring for your customers.
Oh what would it take for me to buy, lets say an 8800GT from you? For one I'd have to know the store exists. Secondly I'd have to want it bad enough to have it in my hands w/ in the next hr (I dont mind waiting for shipping either). Your in TX so your biggest competiton online is probley newegg and directron. If I did want it in my hands w/ in the hr, the price would still have to be good (probley $20 above newegg is about the max i'd pay).

 

[Viper GTS]

Originally posted by: vasker
You can do whatever you want if you work hard enough and do it the right way. There is a market for everything, you just have to find a niche and market your company in the right way and keep overhead down. Its not rocket science, stock what people want, offer great advice, be honest, and when people buy something from your store make them realize why next time they need advice or a product why its best to support the small guy. And as for there not being enough DIY's to support the business in 5 years the kids that are 12 now will be so handy with computers that the DIY market will explode, not to mention that World of Warcraft how has 9 million players and has become almost a cultural phenom, and those people are playing on computers computers that they will want to upgrade every 1.5 years, the chance to have repeat business is huge you just have to do it right.

You're thinking exactly backwards, if anything the DIY market is smaller than it has been in times past since there is no longer a financial advantage to building your own. When Dell regularly sells full systems with a 20" LCD for well under $500 you have absolutely no hope to compete.

Most of us here have been around long enough to go through the process:

1) 10 years ago I always built my own, and I always bought parts locally
2) 5 years ago I was still building my own, but I always bought my parts online
3) 2 years ago I bought a Dell

Computers have become a commodity item, when they get old you toss them and buy a new one. The people you hope to reach (like those who post here) won't want you to install their video card and will buy online. The people who would want you to install it already have Dells, and will buy another one when theirs is too old to do what they want.

Viper GTS

 

[JulesMaximus]

Newegg is my local retailer. I order today, they ship today, I get the parts tomorrow.