Sourcing suppliers.

bogwalrus

I am thinking about setting up a computer store with a friend that sells enthusiast pc gear (mainly for gamers), high end/home built pc's and a repair service.

Since the enthusiast components needed to build these pc's arent exactly available in your local store (or even in Ireland) i am just wondering where i go to find the right kind of supplier and distribution lines.

There is so many different brands and manufacturers that i would like to sell so what would your advice be in where to start looking for a good supplier and getting a good distribution line going??

Any help would be much appreciated:)

lanod2407

Bogwalrus - is this not already being done by shops such as PC World, Maplin, etc, many of whom now have dedicated pc component sections.

Niche market being addressed by some of the big players - may be hard to break into and make a decent living from....?? .... like your thinking though!

bogwalrus

Yes its true that Maplin and Pc World do have certain "enthusiast" hardware and compnents for the hardcore pc gamers but to be honest with such a wide variety of manufacturers of top end enthusiast hardware, pc world and maplin only ever stock a small number of brands and they usually are low end components in relation to specification and current technologies on the market. The cases and fans they have are cheap and tacky and to be honest they dont seem to have that gaming market at all or at least the right idea about it. Its more like your usual pc hardware store that sells toy cars and lights and that is where i see my niche.

I would set up a specialised pc gaming store with server room in the back. I would stock a large variety or pc motherboards, Fans, hard drives (basically everything pc) and sell the newest of the gaming technologies. Basically, the image i have is this funky modern store that doesnt look like your common pc shop but something new and energetic.

My future prospect would be for it to be a franchise and get the stores all over the place. Also to build up a healthy relationship with Game and play off their current sucess. Some kind of business deal that associated my store with theirs would be fantastic. They benefit from me selling kids computers that can actually play the newest of games.

I got a funny statistic off my buddy who is manager of a GAME store in Cork. He said that when a new pc game comes out, 50% of customers come back to try and return the game but since they have a no returns policy on new pc games....tough to the customer.This would be my angle to create a healthy business relationship=)

Once i figure out this supplier business i should be ok to go with rest of business plan. Can you believe that the biggest pc component supplier in Ireland does'nt even deal with some of the biggest computer component manufacturers in Europe and Asia. Its crazy. Will probably just end up buying direct from China and getting stuff flown into Ireland. More costing needed there.

jetsonx

think carefully about this concept...

1) you are competing with online suppliers from Ireland, the UK and the whole of Europe ( if not the world)

2) most geeks buy alot of their stuff online. This is why PC World et al don't have huge sections of their stores devoted to specialist components.

3) reason most Irish firms don't deal direct with China for stuff like components is because - we are too small a marketplace. The genuine Chinese / Taiwanese manufacturers of components have miniumum order quantities that would shock you. Hence, you will find "buyer groups" or consortiums of buyers that all club together and overcome this problem.

4) "Getting stuff flown into Ireland" - fine for really small high margin industrial components for manufacturing processes etc but would be too expensive for PC components.

5) Overheads for a well placed store in any commercial area in Ireland can be exhorbitant.

6) And lastly, sales rates for the desktop computer as we know it have been in decline for over 3/4 years now. Portability is becoming more important - even for gaming geeks!

jetsonx

think carefully about this concept...

1) you are competing with online suppliers from Ireland, the UK and the whole of Europe ( if not the world)

2) most geeks buy alot of their stuff online. This is why PC World et al don't have huge sections of the stored devoted to specialist components.

3) reason most Irish firms don't deal direct with China for stuff like components is because - we are too small a marketplace. The genuine Chinese / Taiwanese manufacturers of components have miniumum order quantities that would shock you. Hence, you will find "buyer groups" or consortiums of buyers that all club together and overcome this problem.

4) "Getting stuff flown into Ireland" - fine for really small high margin industrial components for manufacturing processes etc but would be too expensive for PC components.

5) Overheads for a well placed store in any commercial area in Ireland can be exhorbitant.

6) And lastly, sales rates for the desktop computer as we know it have been in decline for over 3/4 years now. Portability is becoming more important - even for gaming geeks!

bogwalrus

i like the way its posted twice. I actually read your comments twice:)

Firstly, importing straight from china was me being kind of sarcastic, but nonetheless your comment was very informative.

Secondly the market i wish to target is not just the "gaming geeks" but the gaming community as a whole. Such as those kids that only know about playstations and X-boxes and have never ever really thought about pc gaming and the fun of it. Putting some of the mad pc's i have built on a window display is most sure to attract a few of these kids. Especially when kids these days are far more technically advanced and do know alot more about pc's then one would think. I have a pc that i built which would retail for about 700e with top of the range components and a case that looks amazing with red fans and LED's.I showed it to a few mates that are avid apple mac users and two have put in orders, building them soo. Now these guys are always slagging pc's but were well impressed with the "awe" factor and speed of the PC. Good price also=)

Up until two years ago i was always the ps2/xbox kinda guy until one day i decided to upgrade my PC. A mate told me not to get a dell and recommended that i build my own pc. I said fair enough and went walking around Maplin and Pc world to see what was on offer. It was interesting enough learning to build my own pc and the child in me was awed at the cool mods and cases that could be bought (though the ones in Maplin are nothing comapred to the ones you can get online "for cheaper").

I have now been building pc's since and only seriously started getting into the gaming pc's, building for cousins etc. My young 11 and 12 year old cousins were first to give me the idea when they first saw my pc with the lights and played the games etc.., they wanted one straight away. The advantage of a gaming pc also is that it does far more things then an xbox and playstation could ever do.

So what i am saying is that there is an obvious niche for bringing gaming pc's into direct competition with the current gaming consoles and in my view gaming pc's are far more superior in terms of them being more personalized,utilized, better performers graphically and upgradeable. The main disadvantages of course being larger and less portable but certain gaming builds with unique cases are easily carried around. Another main disadvantage is reliability on software downloads and patches but i feel this to be minor and not really a detrrant to a kid that wants a gaming beast=)

I think i have thought this idea out well enough to know what i am doing. I really do appreciate the advice been given etc but i feel i have gone past the stage of whether the idea is feasible and want to try and see if there can be a profit made in this country considering the poor list of suppliers for the types of components i would be ordering and maybe high rental costs of commercial premises.

Please if you have anymore criticism or ideas i would really love to hear them. Its good to be brought into perspective and it will help my idea develop more efficiently limiting possibilities of failure.

ShooterSF

Thought about the PC building business myself. Remember not to write off trends completely, sure you and I might like having a gaming beast of a desktop but if their sales are on decline others might be turning away. Then again maybe you can turn them back

The big issue I see with home built PC sales is the old warranty issue. Personally that's why I went against the idea myself. You're going to have to at least offer a return to base service if something goes wrong. Now try explaining to Jimmy's mom that paid you €700 for the computer 6 months ago that it's not your fault Jimmy looked up sites he shouldn't and has now fubar'd the computer cause she's just going to think that it was shoddy workmanship and that she got no help of the rude manager. Then fairly or unfairly word of mouth spreads.

Keep in mind the cost (in hours of your own time) of the warranty when pricing your machine or you could end up making less than minimum wage on it All well and good when it's family and friends.

Also if your going to stock a range of top of the line components remember that computer component prices do not hold up well and if say you bought a motherboard 6 months ago for say €120 and are selling it at say €170 and overstocked it you might find online stores who are selling nationally and therefore turning them over faster are now buying them in for a lot less and can actually undercut your price.
Think of components like fruit and veg, do not keep a huge stock or you'll end up selling at a loss as the technology is constantly updated and surpassed.

It could be a good idea but work out the maths first to make sure you can still sell competitively. All well and good selling for €700 to family. But tack in rent, electric, advertising ect. on to the price of your machines and see how you are then.
Anywho good luck with it! Hope I didn't come across as shooting you're idea down just shedding light on things you mightn't have thought of yet!

Kenmare

bogwalrus wrote: »

i like the way its posted twice. I actually read your comments twice:)

Firstly, importing straight from china was me being kind of sarcastic, but nonetheless your comment was very informative.

Secondly the market i wish to target is not just the "gaming geeks" but the gaming community as a whole. Such as those kids that only know about playstations and X-boxes and have never ever really thought about pc gaming and the fun of it. Putting some of the mad pc's i have built on a window display is most sure to attract a few of these kids. Especially when kids these days are far more technically advanced and do know alot more about pc's then one would think. I have a pc that i built which would retail for about 700e with top of the range components and a case that looks amazing with red fans and LED's.I showed it to a few mates that are avid apple mac users and two have put in orders, building them soo. Now these guys are always slagging pc's but were well impressed with the "awe" factor and speed of the PC. Good price also=)

Up until two years ago i was always the ps2/xbox kinda guy until one day i decided to upgrade my PC. A mate told me not to get a dell and recommended that i build my own pc. I said fair enough and went walking around Maplin and Pc world to see what was on offer. It was interesting enough learning to build my own pc and the child in me was awed at the cool mods and cases that could be bought (though the ones in Maplin are nothing comapred to the ones you can get online "for cheaper").

I have now been building pc's since and only seriously started getting into the gaming pc's, building for cousins etc. My young 11 and 12 year old cousins were first to give me the idea when they first saw my pc with the lights and played the games etc.., they wanted one straight away. The advantage of a gaming pc also is that it does far more things then an xbox and playstation could ever do.

So what i am saying is that there is an obvious niche for bringing gaming pc's into direct competition with the current gaming consoles and in my view gaming pc's are far more superior in terms of them being more personalized,utilized, better performers graphically and upgradeable. The main disadvantages of course being larger and less portable but certain gaming builds with unique cases are easily carried around. Another main disadvantage is reliability on software downloads and patches but i feel this to be minor and not really a detrrant to a kid that wants a gaming beast=)

I think i have thought this idea out well enough to know what i am doing. I really do appreciate the advice been given etc but i feel i have gone past the stage of whether the idea is feasible and want to try and see if there can be a profit made in this country considering the poor list of suppliers for the types of components i would be ordering and maybe high rental costs of commercial premises.

Please if you have anymore criticism or ideas i would really love to hear them. Its good to be brought into perspective and it will help my idea develop more efficiently limiting possibilities of failure.

I also had the same idea and still do to an extent . The problem with your xbox/ps2 argument is that a ps2 costs 60euros and xbox around 70. a xbox360 can be had really cheap and the ps3 is coming down in price. People know that they can buy a console and thats it. They can buy a game and thats it. they slot it in and they are away.

PC games now .................... anyone remember splinter cell double agent?

Add to the fact that jimmys mother brought her son a l337 gaming pc that kicked ass. Except that 6months later, crysis came out.......

I've personally had a few ideas myself and have been building a few plans. We shall see

bogwalrus

Some great advice off you guys.Much appreciated:)

I have thought about the financial side of it a good bit. All my family are in the marketing/commerce industry and i have a few years of advertising/marketing under my belt. There has been two consultations with accounts so far and i believe i have nailed the right way to go about selling the products to the market. But of course just because i believe i have nailed it does not me there will be a few shockers in the midst.

I Believe advertising and a good marketing campaign will be key to the success of the shop. Creating a good brand image and provide an excellent servicing guarantee will be big up on the businesses image. A friend runs a small advertising company in Cork and we have already talked about interesting ways of selling the store. I will be spending quite a bit on promotions and just getting the name out for the first 6 months (it has to be done)

So in saying the above i do not believe in being too conservative about the finances until i get some kind of sales forecast together and start working out what is really going on etc

As i said before it will be me and a friend starting the business sharing the work load and i have no doubt there will be many "exciting" obstacles to overcome but this comes with the package of setting up a new business.

Hey Kenmare, maybe you would be interested in setting up one of my comp stores in Kenmare. Near opus music maybe? I hear upstairs in quills is going to be leasing soon:)