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Health and nutrition business, third best selling mlm company in the world, amazing opportunity. Help people with there health and stay in your job untill you earn enough to quit! Find out more.
... |
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J Mellors | How do companies like PCworld make a profit? |
I own a small computer business, and have recently wondered - how do companies like PCworld stock PC's and sell them so cheap and make a profit!
I am asking because I am intrested in stocking PC's to sell, is there some special retail store i'm missing..???
Joe. |
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Mike Sanders
 |
well, for 1, pc world buy wholesale (in other words, they buy processors in the thousands, not the individual items).
and 2 - pc world charge well in excess of the value of the product (just check out price comparisons). |
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poli_b2001
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A company like PC World bulk buy thier products by the 1000's, so they can aford to sell them off cheaper. A smaller company cannot do this so they have to rely on top customer service and product knowledge. PC World is just a converor belt, customer comes in buys product and leaves, where as a small operation would need to tak thier time with the customer, make sure they go away with what is best for them, and that they trust what you are selling |
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Alice Lockwood
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They buy the PC's very cheap because they buy huge quantities from Tiawan. They don't make much on the PCs anyway. They hope you buy accessories such as, cables, disks, software, etc.
Dell has a special inventory process which allows them to build PCs very inexpensively.
You'd have to compete with the likes of Dell, Gateway, PC world, ebay, ubid, etc. |
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Paul
 |
They buy in huge volumes, often direct from the manufacturer and use their size to apply a lot of pressure on pricing.
Their business structure, processes and after-sales support are all streamlined to be minimal cost and they enjoy substantial economies of scale due to their size.
If you approach a wholesaler it's likely the best pricing they'll be able to offer you as a reseller will be barely competitive with PC World or online retail pricing. There is little or no money to be made pedalling computer hardware unless you can find a niche or focus on selling services rather than product. |
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Candy Kisses
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They buy thousands and get them for next to nothing |
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simplesimon
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Wholesale prices are the key, and they can leverage economies of scale (i.e. they buy a lot, so individual assembled units cost little) to an extent you just cannot.
They offer headline grabbing "discount" prices, but there is a sizable markup on a lot of their stock, particularly when it comes to a variety of aftersales. People (the masses that is) are willing to pay a premium because there is a feeling when parting with that much money its worth going for a 'reputable' brand - rather than a small business.
Indeed, their marketing budget explains why this is possible as well.
I would advise against entering this market yourself without a lot more research! It is very difficult for an independent to compete with either big chains, or the internet in terms of price. And when it comes to stock management - its a nightmare! Perhaps a better idea would be to offer a "custom built" service instead - this is enough of a differentiator, and would allow you to buy stock in as needed, rather than sitting on a lot of computers going out of date. |
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greenandred
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they buy in bulk and also they offer finance |
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noitall Yorkshire England (U.K.)
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Thy buy wholesale from manufacturers |
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Andrew B
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Exactly, bulk.
Try and offer other services, like have 1 or 2 pc's set up for internet cafe. |
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Naz
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well suplier is the key, i would not suggest going into this business because the competition is fierce. look around you |
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ccfd9
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Not only do they buy them in bulk they also specify the machine set up, which makes it hard to compare the prices as you can only buy that configuration from PCworld. If you wanted to be able to compete on price then you need to be able to spend tens of millions with each of the manufacturers.
Plus the computers are the loss leaders, they make the money on the printers, the toners, the cables and the extras they can sell with the machine.
You need to try and get a relationship with a computer manufacturer that will allow you to have some loan equipment. the problem is that computers go out of date so quickly and unless you have a large turn over, paying for demonstration models is expensive. What value added can you give to customers? Unless you have an angle and can charge for that PCworld will undercut you at every turn. Maybe a delivery and setup service, linked with broadband and an isp server. So you deliver a complete package to those technically challenged customers. |
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paul m
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they can fix the prices to make a profit,
this company also owns Dixons and Currys
they don't have any competion to deal with, they have the monopoly.
The place where i live has a Currys and a PC world
next door to each other,, WHY? |
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