Gatley Computers – Price Match

March 5, 2018

I am trying to help both Gatly Computers and Hitec by entering into a partnership deal.

The hight street needs to be creative to fight off Amazon.

I have now been in to see Gatley Computers.

They will not be promoting Redcamel Systems and they do not have nor want a website.

They get there business using Facebook in Gatley. They have been established for over 5 years.

They have said that they will conduct builds for Redcamel Systems and will price match Hitec Computers.

The formulae will go something like this :

Cost of Parts @purcahse price

Less Redcamel discount @ 15%

Plus 1 Hours build cost @ £60 per hour

For a £200 parts list that will mean the build price will be  £230

This would look like we are only paying 1/2 hour for the build  – which is reasonable, an experienced engineer should put a machine together in about 20 minutes according to YouTube.

There will then be a 10% Purchasing Surcharge making  the selling price £253 plus a 10% markup – making it circa £280.

That looks reasonable to me !

It makes sense to increase the Redcamel discount to say 20% – reducing the build price then outsourcing the build. The mark up % could then be increased bringing the selling price back to £280.

I have blogged this so that all parties can see the Redcamel purchasing policy.

We will discuss the merits of stipulating that all parts should be sourced from Amazon as it is Amazon that we are competing against. The idea of becoming an Amazon reseller might be attractive – this could support cash flow as we could insist that buyers supply their own parts ! One for discussion.

If any party says no we have not got a business.

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