Packaged Products for Small PC Businesses?

[Ricksta121]

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.

[rapidcom]

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.

[Ccomp5950]

Originally Posted by rapidcom

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.

[Ricksta121]

Originally Posted by Ccomp5950

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.

[emsbronco]

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.

[vdub12]

Originally Posted by rapidcom

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.

Originally Posted by Ccomp5950

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.

[Ccomp5950]

Originally Posted by vdub12

...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.

[Xander]

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)

[Crgky127]

Make em while watching TV.

[NeutronTech]

I make them while I'm on the toilet.