04-20-2017 05:04 PM
I was thinking about starting up a part-time business installing wireless networks. I got Unifi Wireless Admin Certified! (woop woop). Obviously starting out I'm not going to be able to purchase thousands of dollars ($100K I was reading on one post) of equipment in a year (unless I'm incredibly successful) to make a case to be a reseller from Ubiquiti. I talked to one distributor and their pricing was like $3-10 discounted off the MSRP. In fact I found some of the equipment even less online from like BHPhotoVideo.com. I was a little shocked, that doesn't seem much at all. I already filed for a business license and everything legal to make me a legitamite business so that won't be an issue. haha.
Any recommendations or suggestions?
04-20-2017 05:59 PM
04-21-2017 05:51 AM - edited 04-21-2017 05:55 AM
The other problem is it's easy for your customers to go online and see the same pricing you are getting and some will then buy it direct and expect you to install it. We sell at MSRP + shipping and charge hourly for our time - people understand paying for expertise.
Bigger distributors will give you discounts depending on your volume, but it's more like 10% at the high end. And last I talked with UBNT it was $250,000 per year to set up as a distributor (and realize that the margins aren't all that big even for distributors - UBNT's business is based on high volume, not 30-40% margins...)
"Humans are allergic to change..They love to say, ‘We’ve always done it this way.’ I try to fight that. "Admiral Grace Hopper, USN, Computer Scientist
04-21-2017 07:32 AM
Agree with Jim here, and we do the same thing. Sell at MSRP, figure on keeping ~10% on material sales if you buy right and if you plan ahead to deal with the inevitable distributor stock issues. Can't keep the doors open at those numbers, so charge for your value added -- and be ready to walk if a customer doesn't understand the value proposition.