For the past three months I’ve been tripping over a pile of metal recyclables and wondering why my recycler hasn’t been making rounds. After continuous phone calls trying to schedule a pickup he finally conceded handling costs are more than return. This is a major change from years past when I had hoards of people wanting my waste.
Though the issue seems miniscule, in the grand scheme of business and economy my little waste pile is a major indicator. The manufacturing sector dictates scrap values for steel and refined metals; a reduced cost of steel indicates limited demand and/or increased supply. The morale to my scrap pile issue is rethinking how and why I do business.
I recently noticed a competitor regularly driving by one of my stores and glancing in my window. Business is very slow for everyone and I fully expect he believes I’ve taken his share of customers. Unlike many of my competition, I benchmark against businesses both in and out of my sector. I’m half tempted to pull this rubbernecker aside and give him a copy of my article so he can save gas and energy.
Years ago the most overused business catchphrase was “paradigm shift.” Just about every book I read, whether for school or pleasure, discussed the moving target of business. In my little business I’ve been forced to adjust to the new ‘paradigm’ frequently. In my case I’ve had to adjust to new technologies combined with lower prices of new equipment.
Peculiarly, the television industry went through a shift in the early 2000’s when technology shifted from CRT to LCD. A 19 inch CRT (tube) TV cost around $300.00 in the early 90’s. In the 90’s people paid to repair televisions simply because $300.00 is the equivalent of $650.00 today. People simply don’t repair television sets anymore because a new LCD TV can be purchased for $300.00.
Luckily my business is based on salvaging people’s data. Even if people are replacing a broken machine, most customers want to recover data. Most people think of the computer repair business as fixing plastic and metal; however, I developed my little business under the guise that without data the computer is worth nothing. It’s data keeping my business alive, not cheap computers.
Around six months ago my local big box store competition closed the gap and now does an equal repair volume to my Gardner branch. Most customers who use them over me are stretching their dollar and want the assurance they can return with problems. What most people don’t realize is the big store service centers are designed as a sales arm to aid in selling product. Most adjunct service centers are not equipped with the tools and knowledge of independent specialty shops and most charge more than independents.
Customers are becoming penny wise by not having regular maintenance performed. We see machines come through the door that should have been serviced months before their arrival. Never in my near ten year history have I seen so many people stretch service intervals. Over the past six months I’ve recommended purchasing new over repair many times simply because customers waited too long for service.
I’ve been scouting new locations for possible third and fourth branches. To this point I’ve been flying by the seat of my pants, believing where I go business will follow. My egoistic business model won’t work for future expansions. For the first time in nearly a decade I’ve found myself relying on education, experience, and a lot of chance while expecting to be humbled at every impasse. I find myself waltzing with customers more now than ever before as the market and global economy changes.
(Jeromy Patriquin is the President of Laptop & Computer Repair, Inc. located at 509 Main St. in Gardner. You can text him directly at (978) 413-2840 or visit www.LocalComputerWiz.com.)