Even for large companies, turning a profit on computer hardware sales can be tough. Dell and HP PC divisions regularly operate with single-digit profit margins. And in May 2012, both industry giants announced massive job layoffs directly attributable to slumping sales.
Can a small computer shop franchise survive on sales to consumers alone? If you offer nothing more than the same PCs they can buy online or in chain stores, the answer is no.
But if you sell services with higher margins and set your sights on larger customers, you can enjoy sustainable profits and grow your business.
Seek Corporate Customers
Most business owners—or at least the IT personnel those business owners employ—will value one thing more than the latest and greatest specs in their PCs: consistency.
A diverse assortment of makes and models is a nightmare to maintain, update, and repair. Standardizing on one model allows the use of a single software image and reduces the number of repair parts needed to be kept in inventory. As older models are discontinued, corporate customers will be willing to pay a premium to upgrade in an orderly fashion.
Standardization can benefit your computer shop franchise if you can become their repair contractor as well. The same inventory and software advantages apply when you're called in to fix a malfunctioning machine.
There's a reason you're always offered a service plan with every television, stereo system, and yes, PC that you buy. They're much more profitable than hardware.
Let us know what you've offered in your computer shop franchise in the comments!
Creative Commons Image Source: flickr Commodore Gandalf Cunningham
Topics:- Computer Consulting Business