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Thread ID: 51657 2004-11-26 08:49:00 How do these Supercheappc.biz and the likes work? george12 (7) Press F1
Post ID Timestamp Content User
296693 2004-11-29 00:55:00 they seem to seem cheaper for Hard Drives noone (22)
296694 2004-11-29 01:40:00 I have spoken to the guy who runs Supercheappc.biz / aka Global Computers and his story is that they import all stock themselves, hence they have a price advantage over most other retails in NZ. Marlboro (4607)
296695 2004-11-29 14:14:00 > If I was in the pc retail business I'd be competing
> on more of a service level rather than on component
> prices. I'd aim for the domestic/soho markets, sell
> kit at virtually cost, but charge a reasonable whack
> for installation, network management, troubleshooting
> etc. It shouldn't take long before this could
> sustain a one/two man band


Greg,

This model will be/is the future of PC and O/S marketing Just a little over virtuall cost. (Like real cost out the door + 2%).

The real profit comming from support charges.

Many in the market, only selling component, dont like talk like this, but they will have to change, or die.

How else can the indeginous compete with:

The direct from china mail order house's, with a minimal NZ brick prescence, frequently staffed buy parttime students, (Half the reason they come to study here, so they can circumvent the work/business visa rules). With sale or return stock.

D.
drb1 (4492)
296696 2004-11-29 14:17:00 > Not always cheaper:
>
> Supercheappc.bix:
>
> MSI K8N Neo Platinum Athlon™ 64 processor (Socket
> 754)
> [SCMOTMSIK8PL] $202.60 +GST+Freight
>
> From my NZ Supplier for exactly the same board: $140
> +GST+Freight.


That marketing trick dosent work on you, but how many will fall for it, or the like, there are plenty dooing the same.

D.
drb1 (4492)
296697 2004-11-29 21:29:00 Just out of curiosity - anyone here actually in the pc industry - tech/sales - (i know metla is), some of the remarks i've heard - (no offense to anyone) - "if i was in the pc industry..." etc. i have been around since 1995 & never tried to compete on price. in the real business world - you have to charge more. yes, there will always be people who charge pittance, but i have seen these guys come & go - 1 guy i know only lasted 3 months. Take note: you are charged ACC on every dollar that comes in - including a $12 modem (cost) - to sell that on virtually cost - say $13 - that extra dollar goes to ACC, & don't forget prov tax. etc. So you will actually lose out of the sale.
NB: this is not meant to antagonise anyone.
xtraka (1984)
296698 2004-11-30 00:31:00 Yes, I'm in the PC industry. If I sold at those prices I would lose money. I agree with what you are saying, money is not a good way to compete.

In fact, practically no sales of mine are from prices, but word of mouth - people who are impressed with the service tell others. That is where about 70% of sales come from.

Cheers George
george12 (7)
296699 2004-11-30 02:21:00 it depends on the company weather they use price or non price competition , they both have their advantages and disadvantages. I think ascent stresses its service and not its prices yet smaller companies will tend to use price competition to get more customers noone (22)
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