Venn diagrams are one of the first principles taught in any Statistics class. A Venn diagram is used to foretell commonalities between sets of data. You’ve most likely seen them in your travels; they’re a group of overlapping circles filled with data. Where they meet, or overlap, is the common set used to make the prediction.
Why would a computer guy delve into Statistics? I’ve opened and closed stores in different markets and am currently looking at popping in two or three stores in Western Massachusetts and Vermont. Part of my research involves looking at commonalities between current and future locations.
Though software issues are always common, specific types and models of computer equipment vary from location to location. Toshiba, Dell, HP, Acer, and Apple are the major brands we see in our day-to-day routine. Specific models tend to show up more than others in different regions depending on the availability of major retailers and local demographics.
I now know that in each of my service zones I expect to see a dominance of certain models. For example, in Gardner I see a ton of Toshiba D655 laptops which ranged in price from $400.00 to $600.00. Athol customers bring in a ton of HP G6X series laptops which are typically in the $280.00 range. Had I known this ten years ago I would have pointed the Gardner store in a different direction.
Because of Venn, I can predict that Greenfield will most likely see machines in the $500.00 range due in part to local demographics being similar to Gardner. Additionally, the big box store retail mix is similar to what’s available here. I can also predict the types of repairs because we have a good understanding of those specific makes and models of computers.
From a business owner’s perspective, projecting the types of market I’m entering makes opening day much easier. There are certain items like LCD screens, wall chargers, and keyboards that I try and keep in stock. Knowing that most people in a certain region have specific machines makes my job a flash.
Ten or so years ago I started servicing laptops by mail order. I did a substantial business in Boston, Worcester, and New York. My original theory proved to be a logistical headache because each of the cities was a melting pot of students and other transients. Managing inventory for laptops coming from throughout the country proved a nightmare and the business tanked.
A longstanding component of my business is servicing other computer repair companies. A good example is a repair business in Worcester. Rather than open a store in Worcester with the intent of forcing them out of business, I contracted to service their laptops. Like my old mail order business, the laptops are all different and I would estimate less than 30% fit my Venn diagram.
Venn is helpful for setting my labor rate and predicting how much time I will be spending in each store both during normal hours and after hours. I can predict Gardner, Greenfield, and Brattleboro will each require a similar amount of time and labor rates will be equal. Digressing a bit, towns with lesser per capita income tend to generate a higher percentage of labor sales than do locations with higher income.
Walking into new markets armed with a logical prediction makes my job much easier. Not only can I strategize inventory items, but I can predict the types of sales and how much time I need to schedule for myself. Taking a look at major retailers in the area and how customers make purchasing decisions plays a major part in my pre-opening day decisions. I only wish I could apply Venn diagrams to my personal life so I could predict what tomorrow might bring.
(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.)