E-Retail IT/Gaming *or* Remote IT Services?

[Sparx]

Hi there,

In the next year or so, I am looking at starting my own business; IT is my passion, I love building computers; repairing laptops/pcs; installing broadband systems, wireless networks, etc - I do all sorts of hands on bits with IT; so I could just do remote IT repairs and services locally.

But then I also love the idea of having my own online IT/Games retail business either selling things such as games (pc & console), consoles -- or! -- Selling computer hardware (prebuilt pc's, motherboards, ram, gfx cards, monitors, etc); each I know have there own competitors and pros and cons.

What I am curious about is, what do you think would be personally best for me to start up with? In terms of startup costs, I guess doing remote IT services would be cheaper and more ideal.. But at the same time I like the idea of being at home or in a local office with myself and a few employees running an online business selling games, consoles or IT hardware; I don't know really either what the startup costs would be for stock, or know any distributors, wholesalers, etc? Or whichever market would be more easier to get into and start myself up in?

I am highly passionate about IT/Gaming and would put 110% into any of these concepts, just would like some further advice on people who know the industry better than myself of course or have any advice/tips and do's/donts?

Thanks ! ..

 

[Drpepper]

Don't want to put a downer on it, selling games and related hardware is tough and very very low margins combined with high stock holding costs. You have to ask what you could offer that the likes of Amazon, Play etc don't - and generally those that shop online are looking at price, delivery time and security.

Also keep in mind that doing anything online cost £1'000's in getting traffic to your website and then you have convert the visits into sales. So keep this in mind when doing the sums (don't make the common mistake of thinking it's a few quid for a domain and hosting and job done!).

 

[Sparx]

Don't want to put a downer on it, selling games and related hardware is tough and very very low margins combined with high stock holding costs. You have to ask what you could offer that the likes of Amazon, Play etc don't - and generally those that shop online are looking at price, delivery time and security.

Also keep in mind that doing anything online cost £1'000's in getting traffic to your website and then you have convert the visits into sales. So keep this in mind when doing the sums (don't make the common mistake of thinking it's a few quid for a domain and hosting and job done!).

Definately, I understand they require a lot of funds to startup in terms of stock, marketing, etc, definately a £x000+ number and would be much smaller profit margins and more hardwork.

I'm thinking providing services would be much more straight forward and easier, as well as being a hell of a lot more profitable.. Operating under a trading name as a Sole Trader and no hefty startup costs will be required then; All I'll need is the odd pieces of equipment and a few spare bits of hardware; routers, ram, hard drives, usb drives, phone/ethernet cables, etc; then monthly costs probably be an Accountant, subscriptions to odd things, etc..

Also, more than likely a GPRS Mobile Card Terminal to take card payments on? Wondering wheither that would be the best option for a remote technician or wheither to just get an online MOTO Merchant account and bring a laptop with me which is on mobile broadband and process payments online that way? I'm unsure, I think a physical mobile terminal may be best..

Any input anyone? Thanks.

 

[simbathedog]

I would have thought your best bet to start would be to offer a local computer repair service & system setup etc.

 

[Wubbleyou]

Also, more than likely a GPRS Mobile Card Terminal to take card payments on? Wondering wheither that would be the best option for a remote technician or wheither to just get an online MOTO Merchant account and bring a laptop with me which is on mobile broadband and process payments online that way? I'm unsure, I think a physical mobile terminal may be best..

Any input anyone? Thanks.

Have you looked into the cost of those payment methods? I don't know how much portable payment systems are but I bet they aren't cheap.

It might be worth your while dealing with cash/cheques to start with, that saves you an expensive card reader and a monthly subscription to run it. If you have money set aside for that, you might be better piling it into marketing instead.

 

[Sparx]

Have you looked into the cost of those payment methods? I don't know how much portable payment systems are but I bet they aren't cheap.

It might be worth your while dealing with cash/cheques to start with, that saves you an expensive card reader and a monthly subscription to run it. If you have money set aside for that, you might be better piling it into marketing instead.

Yes I have, I work for Cardsave currently anyway; a merchant services provider.. Standard rental fees of a GPRS mobile terminal is £29.95 + VAT p/mo for a startup / low income business, I could get a deal of about £25.95 + VAT p/mo if I did need one though however..

I think I may just get an online MOTO Merchant Account for £10 p/mo, 2.5% a credit card tranx and 10/20p for debit cards; there low cost and have no cancellation fees or long-standing contracts for the first couple of months, and if the requirement arises for a physical mobile terminal, I will look further into it..

Cheers, definately going to be IT remote services locally then doing repairs, installs, etc.

Thanks.