🚀 go-pugleaf

In article <BxBzJK.BqK@news.udel.edu> bew@brahms.udel.edu (Ben Williams) writes:

   I've just read this thread containing 50+ complaints about Radio Shack.
   What I would like to know is:  Why do we have to shop at RS to get
   electronic supplies?  Why aren't there other electronic stores in
   competition with RS?  Well, maybe there are in your area (let me know)
   but where I live they are the only thing going.  And boy is that ever
   frustrating!  Aren't there laws about monopolies?  Aren't we living under
   a competitive free-market economy where stores that customers do not like
   to go to will be competed with by other stores?  Isn't that the way it's
   supposed to work?  I mean, RS does seem to usually have what I am looking
   for, but I still would like the option at least to do business elsewhere.
   You know, like maybe an electronics store where the salesmen know what
   they are talking about...

Three things Ben.

First: For all its warts, our free market system is still top notch
when it comes to matching up a supplier to a demand.  Cripe!  I've
even seen people do well by creating a demand AFTER they've set up
business.  Now, since there aren't a large number of suppliers, I reason
that it's because there is so little demand.  This isn't 1959 anymore.
People aren't as interested in electronic construction as they used
to be.  If you think differently then go out and raise the capital
to start your own electronics hobbiest supply shop.  Go head to head
with Radio Shack.  Expand into other cities, other states.  People
will talk fondly of you in the same spirit as they do about Ray Crock.
(founder of McDonalds).

Second:  If you're looking to provide your customers with the kind
of top notch technical support that you envision then you'll have
to make a ton of profit off that handfull of components that your
salesman sells.  Highly qualified individuals with a technical
background won't consider working for less than premium wages.
If you plan to run your business as a charitable organization then
this point may not matter.  Otherwise consider how much you'll have
to make off those 10 or 20 minute consultations.  Depending upon
your inventory, rent and pay scale, you may be able to get by grossing 
as little as $70 per hour per employee.  

Third:  Fact of life...  After getting their free technical answers
at your store, be prepared to see your customers filling their parts
needs via mail order or at the Radio Shack across the street.

Retail sales is a cruelly demanding business Ben.  

-val-
--

Val Breault - GM Research - vbreault@gmr.com - N8OEF
Instrumentation dept., 30500 Mound Rd., Warren, MI 48090-9055
The opinions expressed by the author do not necessarily reflect 
those of GMR or those of the General Motors Corporation.