Trade-In Tech
by on August 17, 2020
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When you are considering what type of business to start, you may ask yourself if a business that specializes in reselling electronics is really profitable and whether or not the industry will continue to grow in the future. You may wonder if you’ll have adequate access to wholesale products and if you’ll have enough supply of the products to meet customer demands. With careful business planning and structuring, you can start reselling electronics successfully.

 

Evolving and Advancing Industry


Think about all the computer models you can remember in your lifetime. Consider how technology has changed for the better over the years. Computers now have more effective and faster processors; they complete tasks much quicker than they did in previous years. Monitors have greatly improved display quality. Laptops have become significantly more mainstream than they once were. People now have access to things like security doorbells. They have access to home technology devices that they can pose questions to and receive answers. Cameras have more megapixels than they once did. Cellphones have better displays, better cameras and better applications.

Technology does not stop progressing, and it progresses relatively quickly. Because technology evolves so quickly, potential customers are always looking to purchase the most upgraded technology they can for their money. This is good news for when you want to start reselling electronics. You should have no shortage of customers wanting the used and refurbished electronics that you can provide in your store.
 

Numerous Products Available to Make Money


When business-minded people think of the number of electronics options they will have available to resell, they often think of computers, cellphones, and tablets they like. However, many people do not consider the full spectrum of electronics they can sell in their stores.

Stocking an array of used and refurbished computers is wise, and you will want to carry many various cellphone models in your store. However, also consider carrying refurbished printers, copiers, drones, cameras, game systems, repair kits for various electronics, home security systems, cellphone chargers, power supplies, graphics cards, and monitors in your store.

Many people drop their cellphones frequently. Unfortunately, cracked screens are often a consequence of the device falling to the ground. You may find there is a huge market for cellphone screen repair kits. Of course, not every consumer knows how to repair their own cellphone, and not every screen is easy to replace. However, it is a good idea to accommodate your tech-savvy customers with the repair tools they will need to repair electronics on their own. You would be surprised how many people are walking around with cracked cellphone screens that will eventually need replacing.

Do not neglect to stock the add-ons that customers may want as well. You might have a customer come along who wants to purchase a refurbished computer and also wants to purchase certain software for that computer. Software may not always be an item you can sell used due to licensing issues, but you can stock popular software to make add-on sales easy and profitable for your business.

Keep in mind that some people may also want to purchase office furniture to go along with their computers, cases to go along with their cellphones, carrying bags for their laptops and various other items. The list of items you can sell in your store is nearly endless. Keeping a few of these items in stock at first can prove wise. You do not want to overstock your store with things that will not sell well, however. The best practice is to do a test run by purchasing a few items you think customers may want. This will allow you to see if the demand is there for such products before purchasing a greater quantity of those items.

Beyond the product realm, you may want to consider offering repair services as your business expands. Some customers might not have the knowledge to be able to complete computer or cellphone repairs on their own. If you can afford to hire a tech person to accommodate the need for repairs, you may be able to make further profits. Some businesses allow customers to mail their product that is in disrepair to them so that they can fix the product for the customer. Keep in mind that because you are a wholesale business, you can usually get the parts to repair their devices for cheaper than retail as well. Once again, you will want to do a test run of the repair services idea before you expand upon it. If the idea works out well and is profitable, you may find that you must hire more than one tech person to keep up with the demand for repairs.
 

Access to Wholesalers and Manufacturers


When you start reselling electronics, your state may require that you apply for and receive a tax identification number, otherwise known as a TIN, for your business. Once you are sent this number, you will likely be able to access various wholesale and manufacturer pricing lists and order forms online.

Being able to access wholesale and special manufacturer pricing creates a whole new playing field for your business. When you can access such lists, you will likely find that your business profits will increase greatly. The discounts that wholesalers and manufacturers offer on their goods can vary greatly, but you need such discounts to increase your business’s profit margin.

You may also notice that wholesalers and manufacturers will offer steeper discounts if you purchase greater quantities of the products that they offer. This is another perk of becoming a reseller of electronics.

Note that customers typically are not able to access such great wholesale prices on electronics. They also are not typically able to purchase products on the wholesale market because a TIN is usually needed to do so.

One good thing about working with wholesalers and manufacturers is that they tend to be very trustworthy. Of course, you will want to make sure any wholesaler you want to work with has a good reputation. Checking reviews and asking the wholesaler various questions can help you determine whether you want to deal with them. Manufacturers of products tend to be extremely fair and trustworthy as you are dealing with the company who makes the products you want to purchase.

Some wholesalers offer package discounts if they have a lot of one particular product they want to sell quickly. For instance, a wholesaler who has an overabundance of a certain model of cellphone in stock may want to clear out a large quantity of that particular model of cellphone quickly. To do so, the wholesaler may be able to offer you a substantial discount if you purchase the quantity that they have in stock.
 

Ever-Increasing Pricing and Demand


How much money did you pay for your first computer or first cellphone? If you can recall approximately how much you paid for those items, you will notice that the price of such items has largely increased over time. With increase in the quality and specifications of electronics comes an increase in prices. Consider how much Apple and Samsung currently charge for cellphones. These new cellphones are being priced at what laptops used to cost years ago. Some new laptops can be as expensive as a used car if you require that certain quality specifications be built into the laptops. Consumer electronics continue to climb in price, and there is no sign of the prices going down in the future.

The demand for quality electronics is certainly not stagnant. People of all ages, young and old, need electronics to keep up with society. Children use tablets to play games on and complete schoolwork. Adults use various forms of electronics in their lives. The elderly population wants to use electronics to keep up with technology as well. No matter where you live, technology is very important in today’s society.

The demand for refurbished electronics continues to grow because of multiple reasons. If you are able to offer people the electronics they want for less money than what they’d pay for new items, you are most likely going to be able to build a successful business. Placing information on your website advertising how much customers can save is a good business strategy. Oftentimes, people do not realize just how much they are saving by purchasing used goods until you point it out to them. Doing a bit of math to show customers what a good deal they are getting can be very helpful for both your business and for the customers.

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