bdw0617-ga,
The full year 2002 figures aren't available yet, but in 2001
(according to IDC), Dell sold 10.82 million units (29644/day) and
Gateway sold 3.22 million units (8822/day).
http://lamswww.epfl.ch/Teaching/Course/Marketing/PDFSTSCourse2002/PCsize.pdf
The sales numbers for Alienware are not publicly available as they are
a private company, but according to the International Herald Tribune,
Alienware PCs have an average selling price around $3000, and they did
28 million in business last year, so they are selling about 26/day.
According to the same IHC article, their sales are expected to climb
to $50M this year, almost double.
http://www.iht.com/articles/62450.html
There's a great article on the CNet site on the subject of specialty
PC builders, which includes Alienware, as well as Voodoo, Hypersonic
PC, Falcon Northwest. I'm mentioning it because they feature Voodoo,
which only sells about 400 units a month (around 13/day), so you can
compare the Alienware numbers "Apples to Apples".
http://news.com.com/2100-1040-867534.html?legacy=cnet&tag=lh
Actual sell-through (conversion) rates are in the single digits. My
own conversion rates on high quality click-through as an Amazon
Associate run in the 3% range. According to the annual Shop.org
survey, conversion rates have improved from 2.2 percent in 2000 and
1.8 percent in 1999 to 3.1 percent in 2001. These numbers are for all
goods sold online, including computer hardware.
http://retailindustry.about.com/library/weekly/02/aa020612a.htm
The ROI part of your question depends entirely on how you set up your
business and what margins you sell at. Dell is the acknowledged leader
at the margin game in mass market PCs and servers, achieving 7.2% net
margin on sales. Your margins should be higher if you are entering the
specialty game PC market, but since those companies are private, they
don't have to report their margins (and they don't).
http://www.dell.com/us/en/gen/corporate/press/pressoffice_us_2002-02-14-aus-000.htm
According to "Buying and Selling Computer Parts" the general rule in
the PC business is that you have to sell at a minimum gross margin of
15 points in a computer business without a retail storefront. To
compute a 15 point margin, just divide your cost by 0.85.
http://www.fonerbooks.com/buying.htm
For more information about running a computer business, you might also
join the computer business group at Yahoo
http://www.groups.yahoo.com/group/computerbusiness
Putting it all together, if you were really getting 100 high quality
clicks per hour with a sell through rate of 2%, you'd be selling 2
computer an hour or 48/day. If you're in Alienware's market, selling
$3000 PCs, your gross sales would be $144K/day or about $52M/year. At
a 15 point margin, you'd have a net profit of around $7M. However, you
need a ton of cash or credit to finance $144K in sales every day, and
I suspect you're real conversion rate for high end PCs would be well
under 2%. Consider that Alienware has been in business for years and
they only sold around 26 computers a day last year! If we reduced the
active window for sales to 12 hours a day, that would halve the
number, but it still strike me as a bit high.
I hope you find this information useful.
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