Go Back   Technibble Forums > The Computer Repair Business > Business and Legal Issues

  Technibble Sponsor

Reply
 
Thread Tools Display Modes
  #1  
Old 12-07-2010, 03:40 PM
Ricksta121 Ricksta121 is offline
 
Join Date: May 2009
Posts: 4
Ricksta121 is an unknown quantity at this point
Default Packaged Products for Small PC Businesses?

I was wondering if there is a need for bulk packaged products for small PC businesses. All of you who own your own business obtain parts from various sources and resell them to your customer at higher rates.

My question is would you consider purchasing your cables, cards, etc in bulk with packaging custom to your store? Packaging could include business name, logo, and website, your custom item number, and price in addition to item information. The packaging would allow any employee to easily identify the product, display on a peg/shelf, and sell to a customer.

The margin would still be high on these products, only you don't have to deal with packaging them yourself. Personally, I think a customer would be willing to pay more for a network cable on display in packaging, vs watching a tech pull one out of a box of 50.

Any feedback would be greatly appreciated. I am interested in getting into the business not as a technician, but as a supplier.
Reply With Quote
  #2  
Old 12-07-2010, 04:02 PM
rapidcom's Avatar
rapidcom rapidcom is offline
 
Join Date: Jun 2010
Posts: 171
rapidcom is an unknown quantity at this point
Default

I do this with network cables. I always have a box of 1000 or so ft. on hand and I just build and package cables, works out to be a bit cheaper than pre-packaged.

Uline is where I normally get packaging materials.
Reply With Quote
  #3  
Old 12-08-2010, 12:38 AM
Ccomp5950's Avatar
Ccomp5950 Ccomp5950 is offline
 
Join Date: Sep 2010
Location: Marshall, Texas
Posts: 889
Ccomp5950 will become famous soon enough
Default

Quote:
Originally Posted by rapidcom View Post
I do this with network cables. I always have a box of 1000 or so ft. on hand and I just build and package cables, works out to be a bit cheaper than pre-packaged.

Uline is where I normally get packaging materials.
Once you tack in your opportunity costs (Your time not spend doing other things) and what your time is worth making your own cables for lengths shorter than 6' is a waste of time.
Reply With Quote
  #4  
Old 12-08-2010, 01:03 AM
Ricksta121 Ricksta121 is offline
 
Join Date: May 2009
Posts: 4
Ricksta121 is an unknown quantity at this point
Default

Quote:
Originally Posted by Ccomp5950 View Post
Once you tack in your opportunity costs (Your time not spend doing other things) and what your time is worth making your own cables for lengths shorter than 6' is a waste of time.
Ccomp hit the nail on the head.

Take your hourly rate and multiply it by the time it takes to make a network cable and then add in the material cost.

Example: It takes you 10 minutes to cut, crimp, and test a 10 foot network cable. Your hourly rate is $40 and the material costs are $2.50.

While the cable only costs $2.50, when opportunity costs are added in, that cable costs a little over $9. Multiply that by a few hundred cables a year and you can see how much those cables actually cost.

Instead of wasting time making a cable, you could be finishing tickets faster or expanding your business through marketing.
Reply With Quote
  #5  
Old 12-08-2010, 01:13 AM
emsbronco's Avatar
emsbronco emsbronco is offline
 
Join Date: Jan 2010
Location: Wayland, NY
Posts: 265
emsbronco is an unknown quantity at this point
Default

I buy cables in lots. So far no problems with any of those purchases. But I look for the lots where each cable is individually packaged. I break out the lots and attach half folded card stock with the hanger hole and staple it to the top of the bag. So far, it works well.
My last big cable order was for 100 - 3foot network cables. I needed 25 for a network project and put the rest out on the shelf. My cost was around 60 cents each and I made my money back (with profit) on the 1st 25. The rest are hanging on the shelf at $3.99 and each sale is basically pure profit.

I did something similar for USB A-B 6 foot cables, etc. The trick is to buy them in large bulk quantities when you know you will sell several at once or ina very short period of time that will cover your cost, then who cares how long the rest hang on the wall, after all they effectively didn't cost anything.
Reply With Quote
  #6  
Old 12-08-2010, 01:53 AM
vdub12's Avatar
vdub12 vdub12 is offline
 
Join Date: Mar 2010
Posts: 2,509
vdub12 is on a distinguished road
Default

Quote:
Originally Posted by rapidcom View Post
I do this with network cables. I always have a box of 1000 or so ft. on hand and I just build and package cables, works out to be a bit cheaper than pre-packaged.

Uline is where I normally get packaging materials.
Quote:
Originally Posted by Ccomp5950 View Post
Once you tack in your opportunity costs (Your time not spend doing other things) and what your time is worth making your own cables for lengths shorter than 6' is a waste of time.
I make all my own cables. It only takes a minute or two to crimp a cable together and I can buy 100' of cat5 at lowes for just a hair over $20. The ends are less then .50c based on a $10 pack of 25 ends. I don't find it at all a waste of time. Also I can make them as long or small as I want. I charge $1 per foot and make a great profit, especially off longer lengths. Most of my cables are 10'+ but I have made smaller ones. I think in the long run its better. The cables are exactly the right size minimizing cable clutter behind a desk and the raw materials are dirt cheap. I have looked at all angles and every time its cheaper to make them yourself.
__________________
CyberCPU Computer Repair
Reply With Quote
  #7  
Old 12-08-2010, 02:39 AM
Ccomp5950's Avatar
Ccomp5950 Ccomp5950 is offline
 
Join Date: Sep 2010
Location: Marshall, Texas
Posts: 889
Ccomp5950 will become famous soon enough
Default

Quote:
Originally Posted by vdub12 View Post
...I have looked at all angles and every time its cheaper to make them yourself.
What is your time worth? Okay here let me break it down.

I order 100 5-foot cables from you I'm going to pay you $500.

Your material costs: $180 // 1.80 per cable.
Cable: $100
Ends: $80

Your time to make it (let's assume 2 minutes per cable for the first 20 and 4 minutes for every one afterwards, because your hands are going to start hurting and breaks needed) is 6 hours.

This is a conservative estimate, I'm sure someone can speed through a cable or 4 but when you get into hours of making cables and your hands are hurting good luck making a cable even within that 4 minute window, I'm being VERY giving by saying you can make a cable that fast.

So 6 hours you've made $320 dollars in profit. Or just over 50 dollars an hour.

Now if we bought all these and resold them...say from Amazon

Our material costs are 13.39 x 10 or $133.90 (plus shipping if you need it faster).

We spend perhaps 30 minutes of our time (You really like to look for good deals right?) shopping and turn around and sell it for a profit. Our labor costs are negligible but for good measure let's say 5 dollars.

Making them yourself:
$320 dollars in pocket, hands that can't feel, and are probably bleeding if you maintained a 4 minute per cable pace...and practically shut your business down for the day.

Order them:
$366 dollars and change in pocket, hands don't hurt and you could have helped other customers that day.

====================

All this aside it is practically always economical to make single cables when they are longer than 6 foot, then to sell premade cables. For smaller orders on cables less than 6' the same principles apply, just in smaller quantities with less hand strain.

Last edited by Ccomp5950; 12-08-2010 at 02:50 AM.
Reply With Quote
  #8  
Old 12-08-2010, 02:58 AM
Xander's Avatar
Xander Xander is offline
 
Join Date: Oct 2008
Location: Niagara region, Ontario
Posts: 6,730
Xander is a jewel in the roughXander is a jewel in the roughXander is a jewel in the roughXander is a jewel in the rough
Default

Why does this read like "You all like to make money, right?" sales pitch?


(Might not be the intent, but that's how it reads to me)
Reply With Quote
  #9  
Old 12-08-2010, 03:36 AM
Crgky127 Crgky127 is offline
 
Join Date: Feb 2008
Posts: 598
Crgky127 is an unknown quantity at this point
Default

Make em while watching TV.
Reply With Quote
  #10  
Old 12-08-2010, 04:55 AM
NeutronTech's Avatar
NeutronTech NeutronTech is offline
 
Join Date: Apr 2010
Location: Grayling, Michigan
Posts: 1,355
NeutronTech will become famous soon enough
Send a message via Yahoo to NeutronTech
Default

I make them while I'm on the toilet.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT. The time now is 08:07 AM.


Powered by vBulletin®
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Technibble.com is based out of MELBOURNE, AUSTRALIA.