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The end of Small Business Support Niche
Posted: 4:25 pm
September 3rd, 2006
Post a comment
IT Business

Many have been hinting for quite some time that the end of the SPF is near. But nothing strikes quite so literally when you get to see it and touch it. Geek Squad has been on the forefront of this carnage with VW bugs around town, something that many foolishly dismissed as a failure that no business would ever trust. Go figure, they have money to advertise – I got this flyer in the mail today along with a ton of SMB Nation spam:

Bestbuy

But is this just Best Buy’s territory? My local Staples seems to disagree as they too have a banner right as you enter the store:

IMAGE_00012

I even have a picture of a Scion in front of Circuit City offering a similar service.

I can sense your mouse sliding towards that bright red X in the corner of the window, after all, you’ve heard this story before. Best Buy sucked, sucks and will suck forever! Right?

Wrong.

As much as this may have been a pluge by Best Buy into differentiating themselves as a full service retailer, it has taken on larger proportions. What may have been a quick stunt for them now has others following suit and the snowball grows as it rolls downhill. Would Staples, who likely has a tiny share of the market, love to drop their service? Absolutely. But they won’t because then how do they compete with Best Buy? Same for Circuit City and everyone else.

Are these companies better than your average IT computer consultant? Maybe, maybe not. That however is not the point. The point is that these businesses now exist, for the long term, and are diluting the marketplace with affordable offerings. Do they have to be better to crush the SPFs? I do not believe so, they just have to raise a question in the mind of the consumer.

Read the Vista (writing) on the wall here, computer maintenance and network buildout are not what they used to be and with simpler and more reliable applications an entire industry will cease to have its purpose. Yes, people will always have computer problems, but will those problems be enough to justify $50–100 an hour, and will you have enough billable hours in a week to justify not having a job?

15 Comments

AlNail |

They took uuuuuur jobs@!



Carlos Taria |

Just what I was thinking… those f*ing goobacks!



AdamK |

OMB has been going down the toilet for a decade what these retailers do is just flush it once and for all. If all one does is plug gadgets in and install software that a 3 year old could then I see no reason for them to get more than minimum wage.



Alio2 |

Got the same postcard

Are SPFs still around? I have not encountered any lone rangers in a while and they just cancelled the TS2 in Orlando so they might not make it another quarter without a Microsoft shirt ;)



ThinkFranchise |

Fight fire with fire, join a franchise.



Tony |

OK, I give….I feel like an idiot asking this, but what is an SPF?

Support Professional Freelance?
Single Professional Freelance?
Single Professional Female?
Sucessful Professional F#@kup?



chris rue |

tony:

single point of failure

aka

one person shop



Ken Edwards |

SPF

Those individuals that practice IT with clients, but do not have the business sense to grow or the ambition to grow.

They typically would not buy any of the excellent books that would help them run the business side as they see no reason to be a business manager. They only take free training and only if it does not get in the way of their favorite sport/tv show/food or comes with a free t-shirt. Their idea of network documentation is scribbling on pieces of paper and stuffing the paper in their glove compartment/desk/sock.

If they (God forbid) suddenly die, their clients are screwed as they have not provided any plan for failover to another company.

This is the typically definition of a SPF.



James Harbidge - Small biz IT |

The Dixons Group (1450 stores and 42,000 employees worldwide)has just launched http://www.thetechguys.com here in the UK this week . This seems to be something very similar to Best Buy / Geek Squad. The prioblem is their services are so limited, that I cannot see them getting anywhere very fast.
For example their server call out charge is £399 / $760 but won’t work on
- non-Wintel servers (No AMD, Linux or Apple)
- servers with more than 20 clients attached
- servers with any removable or Hot-plug devices
- Servers with 3 or more drives
- Configuration of user settings such as file shares, user accounts, views, wizards, printer drivers etc

Am I worried… well when their ‘value PC’ that they are selling on their website is a Cel2.26/256/40G/Cd/LanLinux Machine for £125/$240… Ok, but they are selling a PC that they can’t support (only Wintel remember) and the reccomended upgrade is to install microsoft office 2003… onto Linux?

Am I worried… only for the poor souls who put their trust in The Tech Guys!

James
http://www.small-biz.it



Erick |

This is Vlad’s 10th or so post on the death of the SPF, with two major notes:

1. SPF’s are alive and better than ever
2. People trying to kill SPF’s are alive, growing, learning and expanding.

The lesson? The bigger and better retailers get the harder it will be for SPFs to grow and easier to just fold and die. Vlad’s just showing you an update where you can see plain as day… competition is serious.



Erick |

…. so ignore it and die.



Small Biz IT - James Harbidge |

I cannot aggree more Erick, those who ignore it will curl up and die.

Just as Vlad says at the bottom of this page, more of us need to think for ourselves. The more we see who and where the competition is,the better. Look at what they are doing and see if you think its going to be a threat to YOUR business.

Personally, The Tech Guys won’t affect my business today or tomrrow… but thats not to say they won’t next week, next month or next year. They have far bigger issues to address before The Dixons Group will have a reputation for good service here in the UK and my small slice of the pie won’t get much smaller as a result.

If you consider yourself an SPF, then use the Small Business Specialist community to partner and grow. Remove the weak links in the chain and replace them with strong bonds – 99% of the time it will give you back far more than you put into it.

James
http://www.small-biz.it



Mark |

Thats the reality you’ve been showing us for some time now. New computers and networks are being supported by those that sell them. Those companies have built up trust, reputation and convenience with business owners when they started their business.

I think in the short term that loyalty just lets them think “why not, let me try” where in the long run it leads to “let’s do it.”



Nick |

I did a post on this a while back here… http://addicted-to-it.blogspot.com/2006/03/business-best-buy-and-smb-consulting.html … I think Best Buy represents a real threat. Real competition is coming to this fractured SMB-space. And I don’t care how good your customer-relationships are, how great of an engineer you/your-employees are, because if you don’t have a good business model, and can’t grow your customer base, and can’t scale your offerings, you’re not going to survive long-term. I think that these next few years will tell a lot about the future of the SMB-IT space.



Tony |

Erick – I don’t read Vlad’s blog all the time so I missed the posting where he went into detail about SPF’s until after I hit submit.

I felt like a SPF when I saw it come up. I narrowed the google search to the site and found the May posting…initially I was getting all sorts of hits for Sender Policy Framework which obviously wasn’t the right answer.



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