Yet another geek update..

A "short" rant on the IT hardware retail business (in Digital Mall)

I think out of ALL the other 123456789 industry there is in this world, the only industry that can have a huge impact on a measly RM1 difference in pricing between competitors is the end-user IT hardware business.

I'm serious, selling your thumb-drive at RM39 or RM40 can either mean a day without any sales at all, or a sold-out on that day. Sometime it can get very frustrating as all the products you're selling must be competitively priced, or else you'll definitely lose out in terms of sales. I'm surprise end-users shopping for such high end product (computer hardware are considered high end right? Most of the things is not cheap!) can be so, insanely kiam siap!

And because of this, the IT hardware business in Malaysia is actually getting very very terrible (compared to Singapore, US, Australia, even Thailand!), simply because there are too much competition, and everyone out there is trying to grab hold of your customers, and the customers themselves are very kiam siap. Many times I lost customer to competitors just because they're selling their stuff RM0.10 cheaper! YES, I'm serious, just because of 10 cents they rather walk up another floor, is like RM399.90 and RM400.00 can save them ALOT. Geez.

But I also very kiasu one la, normally I try to be cheapest. If they put RM399.90, I would normally change my price to RM395 or even RM390 straight away if I can. Please bear in mind that because of all these terrible competition, the gross profit margin (gross profit devided by cost, times 100 percent) in this business has drop way below the average level. Normally retail business (buy and sell, exclude food) you should be able to get around 20-30% gross profit margin, manufacturing business can get about 35-50% and of course higher for trading and food industry. Now, for the IT hardware retail business, you're considered very lucky if you can even get 15% gross profit margin!! That's if you sell mostly computer accessories like blank CDs, USB hub, mouse, keyboard, laptop bags (those stuff u can import in bulk from China). But if it comes to computer hardware, you're looking from as low as 0.8% to the most 10% only! Yes guys, believe it, it's THAT bad, why?? Cause you all love to bargain so much!

So when you see my prices to the right and you start to think: "Hmm, how much cheaper would Jeffrey give me leh??", hold that thought and let me tell you the truth now, for thumbdrive (the 1gb and 2gb), I'm earning not more then RM2 each! And for the 4GB, not more then RM5. If you look at the external hard-disk, let me just tell you my cost straight; for the RM178 - 80GB 2.5" external hard-disk, my cost is RM174.50!! Yesss..I only earn RM3.50 from a capital of RM174.50, my profit margin is only 2%. And I'm only able to get such low price on my hard-disk (is considered low) is because I've to commit to order 650 units a month from my suppliers. So..still want to bargain?

But I love this business. It's very challenging and it's very fun trying to beat all those bigger outlets in terms of sales volume, and even profit margin! I always like to compare my 96 sq ft kiosk with outlets which are at least 6 times my size, challenge myself to do things which is way past it's limit.

Like Sam Walton said: "Not much happens without a dream. And for something great to happen, there must be a great dream. Much more than a dreamer is required to bring in to reality; but the dream must be there first."

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Temptation

Today after having our usual weekly Monday meeting at office, I decided to stop by Digital Mall again before I go home (or normally I'll go straight home to sleep). After checking up on my little outlet and made sure operations is going smoothly, I did my usual surveying routine around Digital Mall on all my competitors, checking up on prices (to make sure I'm still the lowest on the hot selling products) and also try to see and learn from them. If you pay attention to every shop you enter, there are actually alot of things you can learn from each one of them. Their people, customer service, how they run their operations, product marketing, pricing, even how they arrange their products and even to the smallest detail, like what they write/draw on those small promotion tags and stick on their product to entice you to buy it. After all, a great idea must come from somewhere right? And most ideas out there are actually base on existing ideas, is just up to you to gather it, and improve on it.

Anyway..I was walking in ALL IT and then suddenly I saw a promotion tag that says: "50% discount!!". And if you read what I said above, you should know that this mean they're selling stuff under-cost (Since most you can earn is also only 15%)!!, at least I did and I went over to the next isle where the sign was. And the next thing I know..I'm at home with this..


Logitech diNovo Cordless Desktop keyboard set

Argh..I'm a sucker when it comes to geek stuff like this. But I always wanted to get this set and I always told myself that it is way too expensive for a measly keyboard
(<>even though it is omg so darn sexy and beautiful and the keys are like so nice to type and some-more the numerical keypad is seperated with it's own calculator function and media keys and everything is wireless, oh and did I say it looks darn sexy? <>)
, SRP is RM429 and I think that's abit too over-rated. BUT now they're having a 50% off on it, how can I miss out on a chance like this?? A quick check with my supplier and he confirmed that they're definitely selling under-cost, so now I've a new uber sexy keyboard.


Logitech diNovo Cordless Desktop keyboard set with my Logitech MX610 laser mouse. My perfect desktop combo!


My desktop


Closer look on the diNovo keyboard




Closer look on the wireless numerical keypad cum calculator.


I love my new keyboard. MSN me more people!! So I can type more on my new keyboard.. =p

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Something not-so-geeky

Went to Fraser's Hill last weekend to "crash" Agape family camp for one night. It was a great getaway, even though it was only for a night, but it sure is good to take some time off from work, and to finally stop thinking about work (although I still did at night).

How can you blame me? I'm a young businessmen trying to be successful, I've to eat, sleep, drink and play - work...if you get what I mean.
"What you think about most of the time is what you become. If you think about achieving your goals and put your time, energy, and effort behind achieving them, what you think about most of the time is what you will become." - Sam Walton (again).


Sorry side tracked again, anyway the main point of this section is to post something funny about the camp..


Beautiful, quiet, peaceful, green and small little town-centre of Fraser's Hill.


But right behind me..


Hahaha, check out all the Agape-ians swarming the marble stone which describe a little of Fraser's Hill background. I'm sure this stone is quite important to this little town, and the Agape-ians are all over it..literally!