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Survival for Mom-and-Pop Computer Stores?
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?"
One thing I would really play on is the personal customer service you can offer - One thing that always worries me about 'mom and pop' buying computers is that they don't really know how to use them.
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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
codegolf.com - smaller *is* better.
you could run introductory computer (and advanced) classes and maybe home tutorials (for money).
;-)
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' =)
Don't be afraid to sell strange things. While most people will buy a whitebox and a copy of Windows for Dummies, there are the exceptions (geeks). Stock cold-cathode lights and window mod kits (a few of each). You can still sell some of these specialty items to regular people (as another poster mentioned) - the artsy or futuristic-deco people might like an aluminum cube instead of a plasticy tower for a case.
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...
Every cloud has a silver lining (except for the mushroom shaped ones, which have a lining of Iridium & Strontium 90)
You need to find some gimmicks to entice people into buying machines from you. Build a box to be as quiet as possible and promote that benefit. Or buy high quality components that have a long warranty and promote that aspect.
c hTV/tec htv_geek_housecalls_020228.html
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.
Service, service, and more service. Of all types. Consider your store your home base and nothing else. Store front retail should almost be the icing on the cake, and give your customers some peace of mind that you are not running a business out of your garage.
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.