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PowerSource Online Magazine-Global Marketplace
Books | 2008-06-27 11:59:23
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    ?A Mediagrif Interactive Technologies Company July 2008 | PowerSourceOnline.com PowerSource Online BUSINESS CIRCLING THE DRAIN? What Smart Buyers Need Page 6 Best Practices: Businesses Pushing for a Green Future Page 16 Growing Your Business With Uncle Sam Page 38 Small Business Best Bet Reduce Your IT Hardware Costs Page 20 Did You Know? Interesting facts throughout the History of the Computer Industry Page 44

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    BECOME THE COMPANY HERO when you buy a refurbished PC Buying refurbished PCs can make you a hero. The secret? Be sure you always buy from a Microsoft Authorized Refurbisher. Discover new ways to: ? Cut costs - Get great PC value at a great price. ? Save time - Deliver complete PC solutions out-of-the-box with Windows XP preinstalled. ? Minimize risk - Microsoft Authorized Refurbishers are an assured source of genuine Windows XP software which minimizes risk. ? Go ?green? - Keeping PCs in business and out of landfills is good for the planet. 2 PowerSourceOnline.com | July 2008 Contact a Microsoft Authorized Refurbisher now. [ Reuse | TM Recycle] SM www.aptosolutions.com/mar/ www.converge.com since 1984 company www.epcusa.com/mar/ www.intechraoutlet.com/ www.redemtech.com/refurbishedcomputers/used-computers-special.aspx http://store.techturn.com/

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    July 2008 | PowerSourceOnline.com 3

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    Monthly Membership Plans: A Bright Idea for your Company. Call PowerSource Online today for your free demo of how only $49.95 per month membership access benefits your company. Your monthly membership includes full access to source from hundred of suppliers, post Want to Buys & For Sales to be email broadcasted to thousands, and utilize Government Opportunities and the TelecomFinders CrossSearch. Your company will also be able to have multiple users each set up to receive For Sale & Want to Buys from other members in personalized Categories & Manufacturer options. Call or email PowerSource Online today to start your membership. 4 PowerSourceOnline.com | July 2008 www.powersourceonline.com Learn more: 813-675-6320 support@powersourceonline.com

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    PowerSource Online Business Circling The Drain? What Smart Buyers Need. by Craig Zimmerman Without the Internet, plenty of IT equipment resellers simply wouldn't exist. The ironic thing, though, is that the very medium that keeps resellers in business is also putting them out of business by eating up local markets and creating end-users that many resellers would say are just too smart for their own good. 16 20 PAGE 6 News... Best Practices: Business Pushing for a Green Future by Digitek PR Firm Small Business Best Bet -Reduce Your IT Hardware Costs by Matt Brodsky 38 44 The Industry Talk... Growing Your Business with Uncle Sam by Matt Brodsky Did You Know? Interesting facts throughout the History of the Computer Industry By Kim Cullen 53 48 51 51 In Depth... CONTENTS Featured Online Product: The Advertising Zone: More than Uploading Inventory by Kim Cullen Manufacturer Index Advertiser Index Crossword Puzzle July 2008 | PowerSourceOnline.com 5

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    BUSINESS Circling THE DRAIN? What Smart Buyers Need By Craig Zimmerman 6 PowerSourceOnline.com | Top Story Without the Internet, plenty of IT equipment resellers simply wouldn't exist. The ironic thing, though, is that the very medium that keeps resellers in business is also putting them out of business by eating up local markets and creating end-users that many resellers would say are just too smart for their own good. Ask an IT equipment reseller how their local market is doing, and you're apt to hear, ?What's a local market? In the Internet Age, where an end-user can just as easily buy a part from three time zones away as from three blocks away, ?local market? starts to make about as much sense as ?jumbo shrimp.? For Russell Crochetiere, owner of Modern Computing systems of Coquille, Oregon, local sales don't make much of an impact on the bottom line. ?As far as product sales in our local area, less than a quarter of one percent is local sales. It's absolutely miniscule.

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    Local market? There isn't one. Even local as far as Oregon, we're still talking .5% ? not much at all.? In a global marketplace, access to far-flung resellers, real-time stocking information, and instant comparison shopping has made end-users smarter and more cost-conscious than ever before. Russell Crochetiere echoes the sentiments of resellers across the planet when he says that, ?You have XYZ product. One hundred different people also have it, and they post it a thousand times. The only way you're going to win is with your feedback and your price. If your feedback is outstanding, then you can probably get a couple dollars more. But it's more focused on price. They have oversaturated the market, and a lot of the time, it's a lose-lose situation. The only person who wins is the end-user.? So what do you do about shrinking local markets and smart endusers? Get smarter. Smart Buyers Pay a Premium for Expertise. While there's always going to be Rather than deal with lost time and money arising from incorrect parts and DOAs arriving on their doorsteps, wise buyers often will pay more to buy from a specialist who demonstrates deep knowledge of his product line. a class of end-users who will go for the cheapest solution to a problem, smart end-users tend to like a little expertise to go along with their low prices. Rather than deal with lost time and money arising from incorrect parts and DOAs arriving on their doorsteps, wise buyers often will pay more to buy from a specialist who demonstrates deep knowledge of his product line. Modern Computing Systems draws smart end-users because they've carved out a niche and become the go-to experts in it. According to Russell, ?About 70% of the products we deal with are laptop parts, specifically HP/ Compaq business system parts. Obviously, there are millions of HP/Compaq laptops in the marketplace. When a part breaks, it's very specific to that system. So if we have it in stock, it can usually go for market price or sometimes a little above market price. And that's true for the big customers and for individual users. A lot of the time, you have an individual user at home, out in the middle of nowhere, and they call up HP. HP gives them a $400 to $500 replacement cost. Well, they can't afford that. This is where specialty and expertise come in. And that's where I come into play.? Control eBay Costs For many IT equipment resellers, eBay is a necessary evil. While eBay sales do add to the bottom line, cut-throat competition slashes auction profits and spiking shipping costs are often eaten just to make a sale. There are, however, ways to improve your margins on eBay. ?You've got to find other ways and get creative,? Russell says. ?We'll bundle items together and try to sell more in one whack. We try to take advantage of the eBay fee structure when they have promotions or discounts. Utilize everything you can to reduce the cost of doing business.? Sell Globally. Service Locally. As Russell mentioned, there is no local market anymore ? at least when it comes to parts resale. Service sales, however, are another story. ?From a services standpoint, it's actually increased quite a bit, because of the people who really don't understand technology around here. They're more apt to use a professional to help them out Top Story | PowerSourceOnline.com 7

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    with their computing needs. That's definitely increased for us.? MySpace and Blogs Aren't Just for Kids Anymore. When it comes to advertising your products, it pays to look beyond the standard media and methods. Recently, Russell noted a surprising upsurge in HP tablet sales. ?We had 20 [units] of a specific type of tablet screen in stock,? he says. ?Someone purchased one, then went on a blog or social site ? I'm not exactly sure where it was ? and talked about how we had this specific type of end-user laptop, 8 PowerSourceOnline.com | Top Story one of the HP Pavilion tablets. They blogged about it: ?This has a great screen. It has this feature. It has that feature. And this is where I bought it.' Next thing you know, within three weeks, we sold them all.? When asked if this meant more attention to non-traditional advertising on social networks, Russell answered, ?I think social networking is absolutely crucial. It's one of those things that's on my list to do.? Have Modern Computing Systems' strategies worked? According to Russell Crochetiere, ?We've definitely been in a growth phase for the past two years ? quite dramatically, actually.? For Modern Computing Systems, a narrow market focus, cost-cutting eBay strategies, local service, and non-traditional word-of-mouth have meant an enviable degree of success, even in a market where local markets disappear without notice and buyers grow savvier by the day. |PSO|

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    m With an inventory of over 350,000 parts representing 30,000 SKUs, MPD's quality and price allow us to compete and win every day against other parts suppliers and OEMs, retaining a perennial role as the primary parts provider for many major retailers and service providers. We want to compete for your business as well. FREE Air Freight For Key Accounts! mpdparts.com System Board Repair (800) 993-5673 (305) 594-3022 ext. 5715 pssales@mpdparts.com Micro Product Distributors, Inc. Micro Product Distributors, Inc. Buy from the Largest Consumer PC Service Parts Supplier in the World! All logos and trademarks are registered to their respective companies. Since 1991 Dealers Welcome BGA Starting at $ 50 * *Subject to quantity and volume. We ship same-day! AND MORE! July 2008 | PowerSourceOnline.com 9

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    Need a TOSHIBA part, repair or logistic solution? Call ...that's ?The Easy Part." We'll do the rest. Vendor List CDR Global (405) 749-7989 10 PowerSourceOnline.com | July 2008 National Parts Depot ? Parts Distribution ? Depot Repair ? Logistics Services ? Outsourcing ? Fulfillment Services We We Want Want IT IT ALL! ALL! We BUY everything Vendor of the Year We are proud to announce that TOSHIBA America Information Systems (TAIS) has been selected as our ?Vendor Of The Year? for 2008. TOSHIBA has consistently proven that they can deliver top quality LAPTOP parts and service to NPD with an emphasis on ?customer retention.' They also rank at the top with respect to the overall experience of working with a professional organization. Phone: (845) 469-4800 ? (800) 524-8338 Fax: (845) 469-4855 ? Email NPDMail@nationalparts.com NATIONAL PARTS DEPOT Get the BEST Return on Investment for your surplus IT equipment! ???????????????????????????????????????????????????????????????? ????????????????????????????????????????????????????? Sell Your Assets Our broad suite of asset recovery solutions can be customized to address the specific needs of our partners, such as logistics and asset management, all IT liquidation and refresh services. In the market to upgrade or replace installed equipment? Look no further! We have equipment in stock ready to ship today! www.cdrglobal.com

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