Is there room for another IT shop

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gboy

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What do you guys think is there enough room in the SA market for another online computer shop, good quality parts low prices, buy low prices I mean seriously low between 10-15% less than current market related, great service and a good RMA policy. If it's stuffed we get you running fast even if it means sending you a new component.

Your response is greatly appreciated.
 
gboy said:
What do you guys think is there enough room in the SA market for another online computer shop, good quality parts low prices, buy low prices I mean seriously low between 10-15% less than current market related, great service and a good RMA policy. If it's stuffed we get you running fast even if it means sending you a new component.

Your response is greatly appreciated.
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Yes, possibly. Only thing is, it's hard to get into it starting from scratch especially developing trust.
 
Mark up on parts are low in general, not just you, meaning you need to sell large volumes to make decent money.
Parts/whole units make up less than 30%(most months around 20% mark) of my monthly income.
Rest is other services, investmemts and labour.

Is what you plan possible? Sure, but remember it will be hard work and will require much of your time in the beginning to get your name out there and to become a trusted brand.
So in short can you stick it out for a minimum or 2 years?
 
Hi that is for the info, I am quite prepared to stick it out for 2 years or more. Time is something I have on my side luckly. The shop idea was born out of my consulting business and people/clients kept asking why don't I sell parts or whole systems. But I do agree that advertising and trust is very important.
 
@gboy, remember to open new accounts on mybroadband now, today. Start interacting with random members.

When you need fake reviewers to comment on how awesome "yourpcshop.coza" is, you don't want a bunch of one post reviews with new accounts. ;)
 
saor said:
Books in general or something specific (technical manuals, non-fiction etc.)?
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It is a starter to an OT-Rant, so sorry about that. Just tired of paying 1k for books and then R600 on top of that for shipping and clearance.

In any case @OP see what Venomous said. Do you best and good luck if you go that route.
 
The most important aspect to launching in a highly competitive market which is very much closed out by our etailers is to establish a niche. Selling to the general market won’t cut it, in the long-term, yes, move toward expanding your market.

Everyone can say that they have great service and a good RMA policy, BUT it is the consumer who will need to experience your service to establish where they will rate it individually and that rating generally turns into a public opinion.

There is no such thing as a good RMA policy, your policy needs to comply with the related laws and the warranty in general. Yes, you can add value to this service, but I that going to be by a case-by-case basis.

Look, I only sell to businesses, but that is only because I have partnered with companies to retain my service levels in regard to distribution and supply. I am still pondering whether I want to take this business online. I have studied it in depth.

You will need a business plan, and you will need to know that you won't be competing against the big brands, surely not in the beginning. Do your research and target your market accordingly, and look at least at a 3-year plan to be sustainable as earlier expectations will drown you.
 
ekske1 said:
It is a starter to an OT-Rant, so sorry about that. Just tired of paying 1k for books and then R600 on top of that for shipping and clearance.

In any case @OP see what Venomous said. Do you best and good luck if you go that route.
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Get a Kindle already.
 
gboy said:
What do you guys think is there enough room in the SA market for another online computer shop, good quality parts low prices, buy low prices I mean seriously low between 10-15% less than current market related, great service and a good RMA policy.
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I honestly can't see you doing that.
 
ponder said:
I honestly can't see you doing that.
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Yeah, that is seriously optimistic. The 8% margin is already pushing it on reselling, although most suppliers recommend between 10-20% it isn’t doable in the online marketplace.
 
If you can just match the current best prices but offer superb service and simple warranty process you'll still win.

You'll need a good mill or 2 to start an operation that can think of playing against Evetech and Wootware etc, and a fair appetite for risk.
 
luckly my bussines model does not require a large capital outlay. I have done a few business build from Zero to a few million in 6 months to a year. so i know how to lake small margins work. Shipping works as well. luckly i have enough cash flow from to keep it running at a loss for a good period of time. I just belive that the time is right to alter the traditional business model.
 
What is your USP? Unless you can somehow come in as a disrupter, either in terms of service or cost, what would you be selling that I can't get elsewhere?

gboy said:
Hi that is for the info, I am quite prepared to stick it out for 2 years or more. Time is something I have on my side luckly. The shop idea was born out of my consulting business and people/clients kept asking why don't I sell parts or whole systems. But I do agree that advertising and trust is very important.
Click to expand...

I think if you want to register a small closed corp and just supply additional services to your clients that's probably a great place to start, and then when you have extra time/capital see if you can pivot it into something bigger, but to be honest I think the big buyers in Gauteng/WC are covered by Rebeltech/Evetech/Wootware.
 
I would not bother unless I had huge capital, but give it a try and see?
 
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