New Vs Used Inventory

[kamo287]

Short example:

I go to a repair site, customer has 1 new computer 2 old. They do not want the older computers and I offer to take them/scrap them/ recycle.

1 of the 2 is worth "refurbishing" and reselling. The other "parts".

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This has brought me to the point of having around 20 basic level desktops and 5 laptops that i have refurbished and are ready for resale.
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I have looked around and talked with some about their NEW computer inventory they keep around and i am way below par it seems (i have 2 desktops and 1 laptop)

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So where is the balance? My fear is that if you buy a new desktop and do not resell it then the value drops rather quickly.

My other fear is i have 20 refurbished computers that i do not have the space for lol

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What do you do? what is your New to Use ratio/numbers?

Selling tactics?

Hope everyone had a great thanksgiving who celebrated.

 

[kamo287]

also

For those who want to know:
(everything listed is used but worth selling...there are many other things but i keep only for testing purposes etc)

10 sets: Keyboard/mouse (USB)
2 sets: 2.0 Speakers
2 video cards
2 sound cards
2 20 inch LCD monitors
15 20 ft Ethernet Cables
15 VGA Cables (ill stop listing cables)
2 External Wireless Adapters

Should i stock these things new? I usually only purchase new accessories/addons on a per-job basis- should i not?

 

[venist]

I would say that the items sound like they're worth selling. Just be careful and of course make sure you stress test the machine thoroughly. And after going through that put it in an area where the customer can see or interact with it. (With a guest account of course ) Aside from that good luck in your sales and check some of the other posts within the last few days about this subject they have a great deal of info in them.

 

[vdub12]

I build new systems as I sell them. I don't keep them in stock.

About the used systems. I would keep them around for a while and if they don't sell donate them to a church or something. At least you will get a tax write off.

 

[kamo287]

I build new systems as I sell them. I don't keep them in stock.

So you and I are on the same page with building new computers as they are ordered.

I ordered some compaq desktops through staples (selling them 6 months ago at $299 when their value was at least $399+)

I bought 3 of those and sold 2 at $399. Now i have one left and hope to sell it this week.

Is this common for you fellow investors to do? I usually will see a low end computer and think it's garbage because most of them are- this compaq was an exception. My thoughts are that when you're looking for a computer past the low end custom building it would be cheaper in the long run and a better build.

Is this the case and thinking of others?

 

[vdub12]

So you and I are on the same page with building new computers as they are ordered.

I ordered some compaq desktops through staples (selling them 6 months ago at $299 when their value was at least $399+)

I bought 3 of those and sold 2 at $399. Now i have one left and hope to sell it this week.

Is this common for you fellow investors to do? I usually will see a low end computer and think it's garbage because most of them are- this compaq was an exception. My thoughts are that when you're looking for a computer past the low end custom building it would be cheaper in the long run and a better build.

Is this the case and thinking of others?

Personally you can't compete with Dell and other cookie cutters when it comes to low end PC's and honestly I personally would not want to. The profit margin alone has to be cut to almost nothing to even come close to being competitive and then you have to use low grade parts. I only compete on the mid to high level. My prices are still higher then Dells but the PC's I build are better and i support them. My profit margin is high and my customers are always happy.

I refuse to build a crappy PC. If a customer wants that I just let them go to Dell.

 

[Robert]

Personally you can't compete with Dell and other cookie cutters when it comes to low end PC's and honestly I personally would not want to. The profit margin alone has to be cut to almost nothing to even come close to being competitive and then you have to use low grade parts. I only compete on the mid to high level. My prices are still higher then Dells but the PC's I build are better and i support them. My profit margin is high and my customers are always happy.

I refuse to build a crappy PC. If a customer wants that I just let them go to Dell.

Ditto. We changed our business model a few years ago, and can now sell half the computers we used to [and subsequently have half the warranty and issues] and still make the same money.

It all comes down to what sort of clientele you have/want. Those who will pay for quality will more often than not require less hand-holding [or be willing to pay for it if they do].

 

[kamo287]

great info- glad to know im just about on the same page as everyone else.

I hope to sell some of the used/referb computers i have during the christmas season- i just dont want to hand them out at too low-a-cost

 

[pceinc]

As your business matures you will have a better idea on what you can stock that isn't already sold. We could never keep a demo system on display for very long, usually a week or less. Residential customers are impulse buyers. If they can see it and touch it they will buy it. We no longer have the space for a demo system as we are slowly moving away from retail. However, when I order cases, I order 10-20 at a time because my vendor gives free shipping on orders over $1000. That can be $100-$200 savings in shipping alone. We stock a fair amount of what we can typically use during a 2-4 week period. If you run your business short staffed like most businesses, time is of great value. Product searching and ordering takes a lot of time away from other tasks. Don't stock items that have a high price fluctuation. Especially this time of year. There are some products you can safely stock more than you will use due to the manufacturer setting the prices. You can almost set your watch by Intel price drops. And if you have a good relationship with your vendor, they will tell you when you should and should not buy bulk. My rep at Wintec was very good about this.

As far as new builds go, we also build to order. It takes about 1 hr to build and image a new machine if you have everything in stock. We don't do much in the way of used systems because the profit margin is usually much lower than a new system. Keep the used systems in the back hidden for those cases when someone is tire kicking or doesn't have the money to go new.

 

[budsandbytes]

Used Stuff

Used is a liability unless you make everybody sign a massive no-liability contract, at least here in the US.

My general procedure is to do the following:

1. Laptop's: $100
2. Desktop's: $50

7 day warranty. Customer fully accepts that this is a computer lottery. I will not express that these things are going to last beyond the 7 days. You get what you pay for, sorry, but I fix 'em, I don't sell 'em. If I sold computers, I would be like Geek Squad and just tell everybody to trash it.

I do my best to not sell machines, but every now and then you get stuck with hardware. Obscenely low prices mean you don't have people coming in 4 years later complaining about their now 7 year old system, and even better yet, you don't have to look at old crap with price tags on it. I would slit my wrists if I had to work at a Computer-Go-Round and sell used systems for a higher price than they were new. That is if karma didn't find me first...

 

[red12049]

Used is a liability unless you make everybody sign a massive no-liability contract, at least here in the US.

My general procedure is to do the following:

1. Laptop's: $100
2. Desktop's: $50

7 day warranty. Customer fully accepts that this is a computer lottery. I will not express that these things are going to last beyond the 7 days. You get what you pay for, sorry, but I fix 'em, I don't sell 'em. If I sold computers, I would be like Geek Squad and just tell everybody to trash it.

I do my best to not sell machines, but every now and then you get stuck with hardware. Obscenely low prices mean you don't have people coming in 4 years later complaining about their now 7 year old system, and even better yet, you don't have to look at old crap with price tags on it. I would slit my wrists if I had to work at a Computer-Go-Round and sell used systems for a higher price than they were new. That is if karma didn't find me first...

Eh. I find them to be a great buffer when times are a bit tough, and they help folks who can't afford new.

I guarantee mine for six months, and have virtually no comebacks for warranty. Average retail for desktops is about $225, and for laptops about $350.

Rick

 

[pcpickup]

We try to keep just a few used computers in stock all the time. Many of the people that buy the used ones are people who come in with a computer so trashed and old that its just not worth fixing. Its handy to have a used one is stock that we often for a small fee copy over their documents and photos over and away they go.

The new ones are made to order and I tell people if you are looking for the dirt cheapest new computer then head to your local Big Box store and remember to use us for service.