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OT: Computer sellers how do you compete w/ newegg


cgchris99

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How are you computer resellers competing with places like newegg.

I have had reseller accounts with places like Ingram Micro, TechData, etc. and Newegg is generally cheaper.

 

So How can I compete for Web sales?

 

thanks for any info

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Hi Chirs..

 

The answer is: You can't!!

 

Yes.. I know the feeling! <_<

 

I too have had reseller accounts with distributors like Techdata (to open this account i had to pay US$100 :angry: ... what a mistake!) Asi, Amax, and some others. Believe me it was horrible and frustrating to see that the prices that these distributors gave me were even more expensive than the selling price of the same products on places like Newegg.com or Buy.com

 

Now i am trying to figure out what else to sell for other projects i have! ;)

 

Hope it helps!

 

Dec.

No more outside links here!

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I compete with them daily.

You think computer parts are difficult, try the InkJet Cartridge market.

The answer is 3 fold.

1- Customer service People will pay extra and thank you for it.

2- Old school. Brick and Morder. This folds into -1

3- Purchase from second sources. I find OEM products for 20-30% less than I can get them from the sources you listed above. It takes time and endurance but the product is out there. Try looking for Going out of business sales (OUCH) You have to have working capitol to get good prices.

 

 

NEVER be afraid to try different markets. Sector markets are great. Pick a group of people and let them know who you are over and over and over again, it will pay off. Its a lot more cost effective to get 50% of 5000 people to know your name than it is to 1% 500,000.

 

Go get em tiger!

 

-Ed

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I work for a multi-million dollar company and if theres one thing I learned, printer cartridge salesman are cutthroat. Those guys are crazy, calling up saying that the person before had ordered these products and they need payment before they can ship, when no one had placed an order to begin with. I've seen them try to side step the ordering department all together, and go to someone else in the company that doesnt know much about the process.

For an osCommerce and STS Tutorial click the www button in my profile.

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  • 2 months later...

1st thing...

 

You have to order in quantity so that the shipping does not kill your bottom line

 

2nd thing

 

If you study Newegg.com carefully, they price certain items at a small loss, and some at a bigger gain. THey do this so that people will 1 stop shop and therefore they make money!

 

3rd thing

 

Sell to people in your region. I can guarantee that someone will buy something from you if it is $10 more than newegg if they dont have to wait for it in the mail. IE having it TODAY, and in front of their face with someone to talk to about it is a very powerful advantage. That does mean you'll have to carry some inventory though.

 

4. Negotiate Negotiate Negotiate. You can, and should negotiate your prices with your distributors when you have regular sales. Trust me, Newegg and IBM, and Dell all negotiate the bottom line and don't just take what they are handed.

 

Good Luck.

 

 

Amit

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When dealing with these major electronics and computer ditributors, you have to buy in quanity at a regular frequency. ALso, paying with a CC does you no good. If you offer them a cashiers check, you will see that they will lower the price (only if you buy in large quantity).

 

Bottom line, in these markets, it is really hard for the small guy to compete especially on the net. You simply do not do the volume the large corporations do.

 

Also, I understand that selling what you love maks the whole project bearable, but I cannot for the life of me understand why anyone would want to make such low margines on prduct like computer and consumer electronics. As far as ROI, the market is just terrible. Why tie up $500.00 for a peice of equipment just to turn that into a measly $50.00 if you are lucky??? But again, I suspect most do it because it is what they know and love.

 

Personally, I do not sell anything i cannot mark up 50% at the very least, but a 100% markup is my norm. Let me tell you, making a good 100-300% ROI in a short time almost nearly makes any project worthwhile. But I guess it's just all preference.

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  • 1 year later...
  • 3 years later...

Hello all, new to the boards.

 

 

I like many of you are a struggling retailer faced with the same issues. When I got in this business I like many others here have added multiple distributors in hope of getting a better wholesale rate. I noticed about 99% of my products wholesale rate was higher than Neweggs retail price. So I took it on myself to do some extensive research.

 

Now most of you have heard to buy in bulk to get a better price. True it will give you a better price, but this isn't exactly what the big boys are doing. What I and others have discovered is that there is a 2 tier system (double standards?). This might surprise you all, but Newegg does not use a distributor. It buys direct from the manufacturers with contracts. This I confirmed with Newegg, right from the horses mouth.

 

Here is another example. Now some of you maybe system builders and required to purchase an OEM OS from your distributor with a License and Holographic disk. This policy is set by Microsoft. Now here is the double standard. HP buys its licenses direct from Microsoft and they use their own media (aka restore disk) for the OS. This I confirmed with a Microsoft Rep, who hung up on me over this subject.

 

So the facts are there is a double standard . One for the Rich and one for the rest. Now I have contemplated over this as far as finding possible realistic resolutions through a series of steps or options depending on your current situation.

 

1. Consider of setting up a Business line of credit with your bank.

2. Research products. Sometimes I find products I can sell cheaper than newegg, even on a rebate. Push those products.

3. Push hot items. Sometimes newegg runs out. Know your customers.

4. Get a distributors license. You don't need to be a mulimillion dollar company to compete. All you need is credentials. Start buy adding a Computer Memory manufacturer. This is about the lowest investment I can think of but you will be able to add name brands to your list in which other manufacturers will see. Going this route has some good benefits in conjunction with system building and pc repair services. Ram, PSU's and Mobo's

5. Another option is a purchasing Group. A purchasing group has set contracts with distributors and manufacturers and members pay an x monthly membership fee.

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