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Friday, October 23, 2009

How to start reselling laptops in Lagos Nigeria

By Onwueme Paul

Laptop reseller ship is the buying and re-selling of laptops for profit or commission. A laptop reseller is one who typically buys laptops either in bulk or in units from wholesalers or major laptop dealers and resells in units to retailers or directly to users. The very nature of this business is such that prices are unstable thus making pricing of laptops especially in Ikeja computer village negotiable. The profit or loss margin depends largely on bargaining power and perceived value of the laptop in question.

Flexibility

The business of buying and selling laptops is both flexible and lucrative. One could add engineering services and digital download services with this business to maximize income or open up other avenues for making money.

Entry requirements

Without capital
Entry into the business starts with one being a middleman (marketer of some sort) trying to link prospective buyers with sellers. The middleman scouts for buyers by advertising his services using cardboard signs and other inscriptions or mouthing it to passersby in busy locations such as computer village. Such locations must be close by to the actual seller. Whenever a prospect signifies interest the middleman links the buyer with the seller and earns his commission in the process. Another option available is to become an agent of any laptop dealer. If you are trusted by them, you could enjoy the priviledge of taking some of their laptops about with you for marketing purposes. Of course this offers you the option of selling the laptop at a higher amount above the actual price if you have good bargaining power. The key thing about starting as a middleman is to be a good sales person.


With capital
With limited capital of say =N= 30,000 one could start the business by purchasing a refurbished laptop in good condition to resell for profit. The profit margin of each laptop could be as little as =N= 5,000 or as high as =N= 25,000 also depending on your bargaining power.

Major dealers of laptops are located in computer village in Ikeja and usually rent or own lock up shops or they could be scattered in different parts of the metropolis, whereas the smaller dealers are either roadside dealers or small retailers without shops of their own. Sometimes a laptop specialist providing repair services could also double as a reseller.

Advantages

• Easy to start
• Simple business with low overhead cost and high turnover thus making it lucrative.
• Fairly competitive

Disadvantages

• Low patronage is common with many dealers due to the wide gap between buyers and sellers
• High cost of advertising
• Many sub-quality laptops are in circulation making customer satisfaction and loyalty a difficult thing to achieve.

Recommendation and conclusion

If you venture into this business, make sure you familiarize yourself with the problems and challenges inherent in this business namely; exploitative tendencies of middlemen, unrealistic pricing of laptops by buyers and inadequate information of suppliers especially reliable suppliers. The business will work if you can safely buy from reputable suppliers or major dealers and locate willing buyers. The strategy you adopt will depend on you and your abilities. Also remember to only deal in fast moving product lines especially the major brands dell, Toshiba, hp and Acer which must be internet friendly as well.

3 comments:

  1. Could you please link me up with a reliable Laptop selling company. We require 25 pieces of either of the following models for educational purposes. All brand new,

    1)Dell XPS M140 630M. Pentium M 1.73GHz 40GB

    or

    2)Toshiba Laptops Model: L505-ES5011

    Weurgently require this and need help at getting this done in the simplest of trade manner. Please contact me

    Larry Coinyan
    081-234-00-847

    ReplyDelete
  2. Is true that i can get a used Laptop with #4,000.If what are the steps to be taken. GBENGA(joriwe19@yahoo.com)

    ReplyDelete
  3. It's not true Gbenga beware of scams

    ReplyDelete