Tim Watts wrote:
With 100% hindsight, I wondered what they should have done? Focussed on
toys and phone and computer accessories (small rather than bulky items)
and run with things like arduinos and Pis when they came along (again
small, not massively high value stock.

There are some things that could have been done...
- Build a 'core components' range that every store had in stock, and clearly
label what's core and what's an 'extended range' item.
- Introduce automated component machines - most components are tape and reel
these days, so have a dispenser where you insert your credit card, click on
what you want, out pops the cut tape nicely bagged.

But, fundamentally, there's no profit in tuppenny resistors. You could sell
bulk packs like Screwfix ('all the E12 resistors') but that doesn't work for
other components. You can cut costs by automating, but the volume isn't
there - someone on minimum wage serving 20 customers an hour is cheaper than
a machine serving 20 customers an hour (because that's all there are), and
making less profit than selling a single 10 pound HDMI cable.

I think they've also been hit hard by the amount of shady VAT practices from
Chinese sellers on ebay and Amazon - subsidised shipping from China,
sneaking under VAT thresholds/lax customs inspection, claiming goods are
outside the EU and then fulfilling from a warehouse inside the EU. If the
HDMI cable is 99p free shipping, who is going to say no?


So I think they had a choice:
- go much more against Farnell and RS for commercial customers, who do buy
stuff in enough volume to make it worthwhile. Companies like Rapid have
managed to make this work

- go into services. For example, why was mobile phone unlocking the preserve
of market stalls and backstreet shops? Where do people go when they break
the charging port on their laptop? Maybe also 3D printing on demand (send
your model by 5pm, it'll be ready next morning) and quick-turnaround PCB
fab.

Would it pay? I don't know, but it's probably harder work than selling £4
coffees.

Theo