Slashdot Mirror
Competing With The Larger Computer Manufacturers?
mach-5 asks: "I am currently in the process of starting my own business, building custom computers. Our business model is to offer friendly customer support without the big corporation BS, waiting in the phone que, etc. My big fear is that most people will be turned off by the higher prices we are forced to have because we don't have the buying power of big brother corporation. Basically, I'm worried that Joe Consumer will see a Compaq priced for $500 (after $500 MSN rebate) and would rather pay that than the $1000 that we are initially charging. I'm also worried that Joe Consumer will not be able to grok the quality of computer they will be getting as compared to a mass produced machine, with proprietary drivers, etc. What can I do to market my machines so that the public knows they are getting a quality machine, and friendly service? What niche can I position myself in to attract business? Also, what qualities would you Slashdotters like to see in a computer hardware vendor that would make you purchase from them, rather than Dell or Gateway?"
Better yet, leave one machine of each model you configure running in your showroom all the time with the tool running on it.
Even if you sell machines preinstalled with Windows, let your customers know that they're getting machines that are of more robust hardware quality - if they're pass these tests thrashing the system under Linux, well you can figure it'll be pretty reliable running Word under Windows 98.
Also have a bin near the door full of "Free - take one" floppies duplicated with Memtest86 - and test the memory you install with Memtest86 before giving it to a customer (to some extent it should validate CPU's and motherboards as well).
Ask your customers to take memtest86 home and try it out on the machines they may already have. (You boot off the floppy to run the test; on Linux systems you can install it in LILO or Grub).
They may get a suprise - I have a PC-133 DIMM that failed memtest86 when the machine was brand-new from a small PC shop like yours; I doubt they tested their memory with more than the BIOS test - my BIOS test still doesn't show any errors, but memtest86 consistently shows the same error on this DIMM.
Michael D. Crawford
GoingWare Inc
-- Could you use my software consulting serv
The answer to your question is SUPPORT! Did I mention support? And you should also provide support for your customers.
As we all know, selling computers is not like selling oranges - "Here you go sir, don't let the door hit you on the way out."
Be available for your customers and take the time to talk to them and explain things. And sound like you know what you're talking about.
If someone needs a ten-minute fix (re-seat a video card, for example) then have him bring it in and re-seat it for him. And say, "That's complimentary, no charge." He'll remember that the next time he wants to purchase a computer.
Be prepared to spend time on the phone doing some hand-holding, especially with new computer buyers. "I want to get something for the kids."
Don't be too anxious to nickel-and-dime people, as I said above. If it's just a few minutes of your time, well - you'd just be drinking coffee for that few minutes anyway. If not, then you're so busy that you can afford to hire some staff to turn screws for you. Not an hour or more, that would be charge-able. But a ten minute fix, well that comes back to you in good will.
One of the most frustrating parts is when someone phones you and says, "I just purchased a new computer from Office Superstore and I don't know how to set it up." Your first inclination is to tell him to go to hell, of course, and you'll provide the shovel. But resist the urge. Just explain that you are prepared to set it up for him at $x per hour. You might also explain that you provide a certain amount of "free service" for your customers, of course, but that you can't afford to support Office Superstore at no cost.
If a customer wants a "house call" say "Sure! I'll be right along." But explain that you must charge per-hour for all of your time there, whereas if he brought the unit in to your shop then you could work on it and while it was, for example, formatting the hard drive, you could be working on another customer's unit and therefor the cost would be less as your per-hour charge would be "shared" between the jobs. If you're at his house (store, whatever), which you would be PLEASED TO DO if he wants, he will have to pay the full rate for each hour on-site.
If you're a zombie and you know it, bite your friend!
We did this several years ago. I found out that people will in fact go elsewhere to save $50 on a $2K system, even if that means calling some faceless company's support. They don't care about customized systems... You won't be able to compete on price or other included items that Joe Consumer wants...like Internet Access....extra software...etc...etc...It's truly amazing how cheap some people are. But don't worry, they'll be more than happy to call you and ask you about the system they bought at another store!
I hate to sound like you can't win..but have a good plan. You'll find that your wholesale price on parts is what others can get from pricewatch, unless you order 500 of them.
It's hard to work the computer guru angle. They know enough to shop around and order exactly what they want, without paying your markup you need for overhead. The best you can offer them is to have parts when they need them NOW.
Now, the thing you WILL make money on is service. Promote your service...uprades, repairs, small networks, WHATEVER. But this is where you will be profitable and can beat Best Buy and CompUSA.
You will likely never be able to compete with even Dell on price - but you won't normally be selling all-in-one system boards, will you? That's what Dell and others sell in order to lower their cost. You need to know that the parts and systems you sell are of better quality than those provided "off the shelf" from a cookie-cutter manufacturer. If you don't believe it (sounds like you don't) then your customers won't, and they'll go elsewhere.
Networking and connections count for far more than advertising. If you can't make it as a small business without advertising, you may as well choose another line of work.
Many customers want cheap. Most customers want cheap. Take the time to explain the difference between cheap and inexpensive. You sell inexpensive equipment. The computer they showed you in the ad is cheap. (not always the case, make sure you know what you're talking about)
Customer!=client. A customer will walk in, purchase, and walk out. A client will call you for every need that is computer related. Maintain client relationships. A computer company can make money selling computers for only so long, this is where you get your clientelle from. After everyone who is going to buy from you has bought from you you will live off repeat business. Expect and plan for a finite number of customers, and work from day one turning them into clients.
Distributers such as Ingram Micro, D and H, Infotel, Tech data, etc don't mind working with smaller customers. You can sell inexpensive good quality parts as a small store, you'll just have to tell clients (customers won't understand this) that often parts will take a day (or two at the most) to get, and if they want something immediately then the part will likely be more expensive (ie, you run to another computer store to get it - they don't mind you doing this even though it does cost more - if you have developed the client relationship then they would rather work with you and through you so they will only have one point of contact for all their needs and problems) And, of course, distributers like these will give you what you need to offer MSN and other rebates as well, so you CAN offer the $400 MSN rebate, if that's what they want - I try to steer people away from MSN and AOL as it increases my own support (MSN and AOL both routinely claim "it's a computer problem" when, in fact, it is an internet service problem (ISP))
KEEP ACCURATE RECORDS. Your company will die a horrible bloody death otherwise. DOCUMENT EVERYTHING.
Consider the entire life cycle of a computer system. Customers will not want to spend much, so suggest that they upgrade their old computer - replace the motherboard, CPU, memory and it costs a fraction of a new system.
-Adam
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