Stumped

**cwish001** · 05-01-2009 03:21 PM

Hi Everyone,

It has been a while since I have posted on here. I have been trying to research a business idea that I had that I don't think will work now. I wanted to set up a retail shop that would build high end computers and sell them. I had an idea to make the place look really cool, dim lights, a red or blue glow throughout the store, customers could come in and play the hottest games on different machines, just really neat. Additionally, I had planned to offer a superior customer service program reflected in full service warranties and other perks. It all sounded good to me but the more a research the more I think that this will not be possible. The margins on building computers is very low and I would have to compel customers to spend much higher than anyone around here to be profitable. Trust me, the computers I planned on building would be like the corvettes and Ferraris of the computer world and it would be the best computer you have ever had! I feel that there might be a small niche market in my area, (I live in a university town next to a large army base) but I just don't know if I can make a sustainable business

. I am just racking my brain and trying to find some business idea that is IT related that I can put a biz plan together on and apply for a loan and start after graduations. The business feasibility study and plan is done as part of my honors project so I will have a lot of good support in getting everything together but I just need to come up with a good idea. Please provide me with some feedback, do you think the computer store could work? Is there something else in the IT field I could do? I have already tried a part time computer repair service and that failed miserably.

-Corey

**Gene** · 05-01-2009 03:37 PM

Hey!

I think your computer store idea is kinda cool, but you do have a point in that you may be dealing with a very small group of people interested in that much performance. Have you thought about doing something like that online? You'd be able to reach a larger group of people.

**inexorable** · 05-03-2009 01:13 PM

I agree with Gene: you're targeting a small, specific market. It's not impossible, just risky! I think it could be done if executed properly, although it would take really good execution in every arena.

**cwish001** · 05-03-2009 03:31 PM

I have been thinking on this idea a little and it may be better to focus on refurbishing machines rather than building them new. They will still be high end gaming machines but the components will be used. With this I will still over the three year parts and one year service warranty but my profit margin would be higher and the computers would be significantly less expensive. The idea is not so unlike plato's closet just refurbished designer computers rather than gently used designer clothing. Would you feel comfortable buying a refurbished systems if it was backed by a warranty?

**Klancenet** · 05-03-2009 08:56 PM

Originally Posted by cwish001

I have been thinking on this idea a little and it may be better to focus on refurbishing machines rather than building them new. They will still be high end gaming machines but the components will be used. With this I will still over the three year parts and one year service warranty but my profit margin would be higher and the computers would be significantly less expensive. The idea is not so unlike plato's closet just refurbished designer computers rather than gently used designer clothing. Would you feel comfortable buying a refurbished systems if it was backed by a warranty?

I think your target audience would be too small for a small shop, you could go online, but even then you would be competing with alienware unless you set yourself away from them.

**inexorable** · 05-04-2009 07:42 AM

Originally Posted by cwish001

Would you feel comfortable buying a refurbished systems if it was backed by a warranty?

As a gamer, I would, if you could meet the following conditions:
1. Credibility (do I trust your operation, and that you'll honor the warranty?)
2. Value (can you really create a system that performs significantly better than a new retail one?)
3. Location. I would only buy if you were local.