Business Ideas in Kenya for Kenyans
Do you want to start an offline or online business in Kenya dealing in refurbished laptops?
If you have such an idea in mind, this is the right place for you. Whether you need a laptop for personal use, for your gaming needs, for your college or business uses, we will give you options to import a refurbished one at low cost.
We will explain to you in detail on how you can import refurbished laptops of the highest specifications and sell them to the Kenyans who need them. Below is a short profile of this business idea and the reasons as to why the idea is likely to succeed in the Kenyan market.
The Business Idea
A good new high performing laptop with the famous core i7 processor will cost a minimum of $1200. If you are able to import this laptop at a maximum of $400 after considering cost, insurance, shipping and custom duties and taxes, you will be in business. This could means being able to sell this laptop locally for around $550 making a profit of $150 per sale. If you are able to sell 5 of such laptops every month, you make $750 profit, i.e. Kshs 75,000 when one dollar is exchanging at kshs 100.
The demand for laptops is very high in Kenya; however, the market to target will dictate the kind of laptop to specialize in.
Strategy for Each Target Market
Selling laptops to the Kenyan Working Class, High Specs i7 or i5
The laptop shown below has an i5 processor and can sell best if a customer is willing to pay $600 for a refurbished computer with good specifications. The target customers for this kind of laptop are the high end business and professional customers. It may however be difficult to sell to this group because of their online presence and availability of laptops provided to them in work places.
Selling laptops to College/University Students $ 200 and below Laptops
This group is best suited for the chrome books and other small laptops with the Intel atom processors; Students market can be categorized into two groups 1) those who opt for very expensive options for the show off and 2) those who just need a laptop for their college work and personal use.
The first group will easily fall for refurbished apple products and therefore if you plan to target this group, earlier versions of apple products may suit them. The second category of students will easily fall for the 10” refurbished Intel atom laptops.
Manufacturer refurbished Apple MacBook 13″ 2006-2009 Model (Cost Below $200 before shipping and import costs)
Laptops for Small Businesses
Small business owners will most of the time try to save cost by buying refurbished computers as opposed to new ones. This approach may require heavy marketing due to the dispersion of this target market. It may be good if you to consider how to reach small business people if you want to target this group as your target customers.
The kind of laptop to target them with will depend on the region in which they come from and the size of the business. Also bear in mind that this group may prefer desktop computers which in real sense will be uneconomical to import.
Laptops for Family and personal uses
This is also a tricky market to deal with and may require a lot of advertising costs to achieve your business goals. If this group is your target market, you need to have your marketing strategy right before you even start to think of the kind of laptops to import.
In conclusion, you need to evaluate your target market before deciding on the kind of laptop to import and also the total cost of the imported laptop in comparison to the amount the customers are willing to pay for the laptop.
The process of Importing your laptops
As many of you may have observed when you tried to buy something online. Most items are not shipped internationally. To be able to import such items, you first need to buy a physical address in the United States. This address is like a mail box where your items are delivered. There are reputable shipping companies who offer such services, myus.com is one such company. Myus.com will rent you a small room for your luggage and give you a physical address where all the items you buy online can be delivered. They then send to you the items on request using either FedEx, DHL or USPS at pre-agreed shipping rates. You can visit our section on imports to understand how the system works.
The Process of buying online
You need to use either a PayPal account, Payoneer account or your credit card to buy goods and services online. To be on the safe side, you can obtain the Nakumatt Global point’s card and load money on it when you want to do online transactions. This will protect you from online fraud. (Online fraud is rare if you get the habit of buying from only reputable shopping websites such as Amazon and eBay.
If you must use your real credit card or debit card, please connect it to PayPal and buy using PayPal instead. You may also need the PayPal account if you take this business idea further to online selling. See our section of how to build and host an online shop.
Import Taxes and Duties
This is the point where you need to be careful if you are importing laptops for resale. Below is the calculation of the cost, freight, and import taxes for a second hand laptop to give you an idea of how this business idea is expected to work. We will work on a real online deal. The HP Elite Book 8460p goes for around $200 online and it has an i5 processor, 14.1″ Widescreen Notebook with Intel Core i5 2.50GHz, 4GB DDR3 RAM, 320GB HDD, DVDRW, Windows 7 Professional 64 Bit
For this particular laptop to arrive in Kenya, it will incur the following estimated costs. Please note that this is an estimation of the highest possible costs you can incur for this laptop for it to arrive in Kenya. The actual cost will be lower, also keep in mind that you can enter into contract with DHL or FedEx to get lower shipping rates. Myus.com charge is also a onetime cost; a higher membership cost will have a shipping package that is a few dollars less and is preferred for business.
Marketing plan for this business idea
You need to start small if you want to engage in this business. Buy a few items of the selected laptop brand/model and import related models only when you are almost out of stock. Note that this business may be risky if you import very expensive refurbished laptop models despite their specifications. The maximum cost, shipping and taxes for a refurbished item should not exceed $400 unless the item has been pre-ordered by a customer who is willing to pay more.
To succeed in this business, you need to find a way of getting customers in need before importing – to avoid losses and importation of obsolete items. You can also partner with laptop repair companies and personnel who may place orders given by their customers, the same people may also ask you to supply rare items and spare parts which you can also import for them.
If you want to start on online shop, make Google Adwords your friend by learning how to set up ad units at cheap prices. Facebook advertising should also become your friend for the same objective. Last but not least, do not underestimate the importance of social media in online advertising and marketing.
Only buy items from reputable online sources such as amazon.com
Amazon is preferred due to their credibility, variety, highly valued customer support, buyer protection policies, and acceptance of returns of faulty items, warranty on new and refurbished items and quick delivery that quite often takes less than three days.
If I have missed a point that you may need to implement this business idea in Kenya, Please drop me a comment below.
Amazon.com Laptop Deals to start with.
- Import Refurbished Apple Mac Book from $115. All costs until it arrives in Kenya (cost, Shipping, Taxes) comes to Kshs 25,000/=
- Import Hp Mini Intel Atom Laptop from $70 : All costs until it arrives in Kenya (cost, Shipping, Taxes) comes to Kshs 18,000/=
- Import the high specs HP EliteBook 8460p; 14.1″ Widescreen Notebook with Intel Core i5 2.50GHz, 4GB DDR3 RAM, 320GB HDD, DVDRW, Windows 7 Professional 64 Bit for business and other heavy uses. All costs until it arrives in Kenya (cost, Shipping, Taxes) comes to Kshs 38,000/=