Hardware at Cost + 2%?

O

ooh_pee_see

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Hi Guys and Gals

Just a quick one....

Would users on my broadband be interested if an IT company had come up with selling all computer hardware and software at cost + 2%?

The 2% markup will only be for logistics and banking costs.

Any response will be appreciated as we need to check for market requirements before proceeding.

Thanks
 
If you can some how do that then yes.
I honestly dont see how you would be able to stay afloat at that markup % though. GL!
 
Our main business is services. Hardware is just something that we have to give as a VAS to our clients.

Our current clients get all their hardware from us at cost + 2% and some at cost + 3 %. We are not in this market to make money of the cost of hardware or software.

We however will only be starting this service in JHB (Until Cape Town and Durban office is opened) on a pick up bases otherwise we can arrange with a courier company for deliveries and that will be paid for by the customer.
 
Problem: Your cost + 2% is still more expensive than the big boys with buying power.
 
Brawler said:
Problem: Your cost + 2% is still more expensive than the big boys with buying power.
Click to expand...

That is true to some extent. The problem is the big boys with buying power still put their usual 15% - 10 % markup.

I am not saying we will be the cheapest with all items but we play open cards... One day when you guys start supporting us then we will be able to play with the big boys
 
ooh_pee_see said:
That is true to some extent. The problem is the big boys with buying power still put their usual 15% - 10 % markup.

I am not saying we will be the cheapest with all items but we play open cards... One day when you guys start supporting us then we will be able to play with the big boys
Click to expand...

It's pretty much what everyone does. Been there, done that. Good luck!
 
Perhaps give a rough estimate of what some of the pricing would be on popular products? I think monitors and HDD's are the most bought components right now.
 
Go for it. If your prices are competitive and you have queries + after-sales sorted, then people will use it. :)

I like transparent pricing, though if you're starting on 2% you may run into problems if you suddenly need to hire staff to deal with sales load. A transparent 3-5% is just as good in my books, and much more sustainable.
 
not making sense. how are you going to pay the bills? and ideal mark up is around 8% + card fee's.

if you can make it work and get a courier that can ship at a decent rate, I'm in.
 
mika1000 said:
not making sense. how are you going to pay the bills? and ideal mark up is around 8% + card fee's.

if you can make it work and get a courier that can ship at a decent rate, I'm in.
Click to expand...

I don't think you'd be getting credit card options or free delivery with this service. EFT and mandatory courier fee is fair enough.
 
FuLL_MeT4L said:
I don't think you'd be getting credit card options or free delivery with this service. EFT and mandatory courier fee is fair enough.
Click to expand...

You are 100% correct.

It is EFT only, also if you require delivery then it is at the courier rate.

We have engaged couriers requested pricing and will choose the best option from there.

Will keep you guys updated.
 
It would be great, but I don't think you've factored in the cost of returns. Everything would be great if it worked all the time, but there are a high number of returns in components.
You need to have someone test all the returns and you'll get into situations where components get returned, but aren't faulty and then there is a whole investigation that must be done.
 
me_ said:
It would be great, but I don't think you've factored in the cost of returns. Everything would be great if it worked all the time, but there are a high number of returns in components.
You need to have someone test all the returns and you'll get into situations where components get returned, but aren't faulty and then there is a whole investigation that must be done.
Click to expand...

We did look into this therefore our lawyers are busy drawing up return policies in correlation to supplier returns. We will iron out the nitty gritty for everyone to view and then the choice is theirs.

As stated.... This is not our Prime focus for the business and is just a VAS from us to the public.
 
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