Some regional appliance and electronics retailers are flourishing despite intense competition from national chains, thanks in part to a retro retail concept: commissioned sales staff, trained to explain increasingly complex televisions and washing machines to customers.

These smaller retailers such as publicly traded hhgregg Inc. of Indianapolis and Conn’s Inc. of Beaumont, Texas, as well as closely held P.C. Richard & Son of Farmingdale, N.Y., are pursuing ambitious store expansion plans. They are aiming to capitalize on the slumping commercial real estate market and the collapse this spring of Circuit City Stores Inc., once the nation’s second-largest specialty electronics chain after Best Buy Co.

Though large retailers such as Best Buy, Wal-Mart Stores Inc. and Amazon.com Inc. are widely viewed as the biggest beneficiaries of Circuit City’s liquidation, analysts said that regional chains stand to make sizable gains. Deutsche Bank has estimated that Circuit City had $11.1 billion in annual revenue that is now up for grabs.

Customers such as Enora Tucker, 79 years old, said they prefer a knowledgeable staff. She visited a Houston Conn’s store Tuesday to make a monthly payment on her refrigerator. “I like the fact that I can go in there and talk to someone who knows what they’re talking about,” she said.

Hhgregg, which operates 111 stores mostly in the Midwest, opened 20 stores in its fiscal year ended March 31, up from the 15 to 18 it had originally forecast. It is accelerating previous plans to reach 400 stores in the next decade, said Chief Operating Officer Dennis May, who is set to take over as CEO in August

Mr. May said hhgregg’s commissioned sales staff is an advantage over national chains with young, lower-paid hourly workers that tend to stay for shorter periods. “We have sales people that have been with us 10 to 20 years, and customers who come in and ask for them by name,” Mr. May said.

Hhgregg reports fourth-quarter earnings June 2, but said based on preliminary results, it expects earnings between 39 cents and 42 cents a share, up from 32 cents a year ago, on a 13% sales increase. By contrast Best Buy reported a 23% earnings drop to $570 million for its quarter ended Feb. 28, on a 9.7% sales gain.

Best Buy and Wal-Mart dismissed the suggestion that the regional firms have a sales edge. “Our employees are exceptional at demystifying complex technology,” spokeswoman Kelly Groehler said.

“With electronics data so readily available online today, many customers come to us looking for a particular brand or item, knowledge in hand, and may not want or feel comfortable shopping with a salesperson,” said Wal-Mart spokeswoman Melissa O’Brien.

Hhgregg has successfully expanded outside its Midwest base into states such as Florida and Georgia by blitzing new markets with numerous stores, instead of tiptoeing in with one or two. “In a lot of these markets, there is room for a second consumer electronics retailer beyond Best Buy,” said William Blair & Co. analyst Jack Murphy.

Conn’s, which operates 75 stores in Texas, Louisiana and Oklahoma, has opened seven since February 2008, and has hired former Circuit City managers. The retailer said it has navigated the recession better than some rivals because it owns its financing business. It has been extending credit to customers cut off elsewhere when larger chains tightened requirements.

“When credit gets a little bit tougher, like it is now, it is an advantage,” said Timothy L. Frank, who takes over as the chain’s chief executive next month, replacing his father, Thomas J. Frank.

Conn’s said earlier this month that sales for its quarter ended April 30 rose 2.6% from the year before, to $200.1 million. Mr. Frank said the gain was aided by a 35% April increase in television unit sales.

Sales clerks who earn commissions have an incentive to understand products, he said. “Is your mother going to want to buy a washing machine from a 19-year-old with a pierced eyebrow?” asked William C. Nylin Jr., the chain’s executive vice chairman.

P.C. Richard, which began in 1909 as a hardware store in Brooklyn, doesn’t release its financial results, but President Gregg Richard said it was taking advantage of commercial real estate vacancies to expand. It has acquired six former Circuit City sites in the New York City region, bringing it to a total of 56 stores.

Write to Miguel Bustillo at miguel.bustillo@wsj.com

Printed in The Wall Street Journal, page B1

The LCD Monitor

For both the consumer and the manufacturer of 2008, the LCD monitor became a cost-efficient solution for both home computing and even entertainment needs. And while manufacturers are still focusing on creating for the home user, they could very well render the higher-quality, smaller-sized monitors obsolete.

“If you want an all-purpose 19-inch monitor with good color reproduction and large viewing angles for reasonable money, you won’t find one,” according to X-bit Labs, in its winter buyer’s guide. “There are no such monitors anymore.”

As for other reviewers, they can still see why Samsung stands as the market leader, controlling 15.5 percent of the market. Its SyncMaster 2053BW, for example, proved to be a favorite among both professional and home users, according to ConsumerSearch.

Is it still worth sourcing?: Yes.

The Smartphone

The emergence of the iPhone only marked the beginning of mainstream smartphone use. Now Microsoft and Nokia are even focusing on their new applications stores, as they announced at this year’s GSMA Mobile World Congress.

But U.S. consumers may not be as excited as the industry to see the latest developments. An NPD Group study conducted last month showed that 45 percent of cell phone users only used their devices to make calls, while 20 percent used them as an all-in-one multimedia device.

“Sure, smartphones are a bright spot in these dim economic times … But we can’t help but be a little skeptical that the offerings aren’t outgrowing [the] market,” said Rita Chang of Advertising Age.

In sum, though anything besides the BlackBerry and the iPhone may take some time to catch on, perhaps consumers are just waiting for a device that is less daunting and more affordable.

Is it still worth sourcing?: Yes – but choose carefully.

The Netbook

As Ars Technica has noticed, the netbook had already been 14 years in the making before the Asus Eee PC701 surged its popularity in late 2007.

But the biggest reason why the netbook took off is perhaps rather simple: it finally became affordable. The most noteworthy of the 1990s – the Psions 5 and 7, in addition to Toshiba’s Libretto – costs between $1,000 and $2,000. Meanwhile the Asus Eee PC 1000HE, armed with a 160GB hard drive and a 9.5 hour battery life, is priced at $374.

In addition, buyers can look forward to having a wider selection to choose from, as more manufacturers than before work to create the latest. Experts predict that the most popular improvements will be larger screens, better specifications, and integrated 3G, as reported by Business Week.

Is it still worth sourcing?: Yes.

Retailers: what do you think will come of these products? Do you think that 2009 will be another big year for them?

Tens of millions of DSi’s predecessor, the DS Lite, have sold worldwide since its release in early 2006, according to Nintendo. In the meantime, the company anticipates that DSi unit sales have already reached an estimated 100 million worldwide, according to CNET.

Available in both blue and black, its retail price is set at $169.99. And along with the DSi’s release also comes a game new to U.S. gamers, “Rhythm Heaven.”

The DSi offers a longer stylus and larger screens, now 3.25 inches each. But in favor of a slimmer body, Nintendo removed the Game Boy Advance slot and replaced it with a SD card slot – a notable omission for anyone who, for example, just purchased “Guitar Hero: On Tour.”

Nintendo also added not just one but two cameras, with one fixed on the external body and the other pointed toward the user when open. This, as one company representative said to Go Nintendo, is part of the reason behind the ‘i’ in DSi, as it gives the gaming unit “eyes.”

“If the touch screen gave Nintendo DS a sense of feel and the microphone allowed it to hear, the two cameras gave Nintendo DSi the sense of sight,” the company explained in a press release last week.

These cameras have 11 different interactive “lenses,” each of which manipulate the photos in different ways. One, the Emoter lens, can create new facial expressions on the photographed person. Another, the Color lens, manipulates the colors of specific areas.

What also expands upon that personal aspect, or yet another reason behind the ‘i’ in DSi, is the enhanced sound application, featuring both a music player and voice recorder. Users can even manipulate the pitch and speed of their voice recordings, and save up to 18 ten-second clips onto the gaming system.

But perhaps its crowning feature will be its online DSi Shop, where users will be able to download games through a Wi-Fi connection. Nintendo is also encouraging developers in the meantime to create software through its DSi Ware application.

Nintendo hopes that all of these features add up to another indispensible product, that “becomes more than a game system and more of a personal tool to enrich our daily lives,” a company representative said.

But technology reviewers wonder if the upgrade is worth purchasing. Jeff Backalay, CNET reviewer, said that players with the first edition DS should consider the DSi. But to those with a DS Lite, “are all of these features enough to warrant an upgrade? In our opinion, the simple answer is no.”

On the other hand, Wired’s Chris Kohler anticipates that Nintendo’s push for digital distribution will become its main incentive.

“Downloading games will be awesome,” he wrote in his Nov. 17, 2008 preview.

VG Chartz, a video game sales tracking Web site, calculated that 40.2 million units of Wii Sports have been sold – surpassing long-time chart topper Super Mario Bros. Like Wii Sports, Nintendo sold Super Mario Bros. bundled with a console, that being the first Nintendo Entertainment System in 1985.

Nintendo has yet to confirm the unit sales numbers that VG Chartz has calculated, though its annual fiscal report states that it sold 1.484 billion Wii software units by March 2008. The company also sold 24.5 million consoles by then – an amount that has since doubled – while Microsoft sold 28 million Xbox units only by this month.

Since its 2006 release, the combined forces of the Wii and Wii Sports have lured in even the casual video game player. As total industry sales in the third quarter jumped to $2.91 billion, according to market researcher NPD Group, the two also led industry sales through a tough holiday season – in turn, surpassing expectations of even veteran video game reporter Steven Kent.

Kent told USA Today last year that he thought “the Wii bubble would burst any day” – that is, unless the company could deliver another game with such wide appeal, as he explained to Wired about two weeks later.

But today, Kent admits he was wrong.

“The Nintendo Wii not only survived the rest of 2007, it was the clear winner of 2008,” he wrote on his blog. Kent still wonders though if Wii Sports can continue to peak interests as the rest of the Wii game line remains comparatively lackluster.

When planning to start your business, developing a solid business plan will help you consider all operating costs and expenditures. In addition a well-devised plan will help you secure the funds necessary to start your business. Another area where research will be of tremendous benefit is by carefully studying trade laws for export and import in particular on trading zones. Additionally caution should be exercised when locating business partnerships in foreign countries. Scammers abound in this and any business. International laws regarding trade vary widely and understanding the law of the land is a wise recourse. Arbitration is often used as a means of solving these kinds of disputes. Arbitrage may or may not result in a satisfactory conclusion.

Another area that appears to be problematic for many wholesalers of mobile phones is the transfer of funds. Some vendors use bank-to-bank transfers, Paypal and Western Union. All of these means can be convenient, but caution should be exercised when establishing a business relationship with an unknown partner. Some vendors find that brokers and agents can act as good intermediaries for establishing terms and conditions of international money transfers.

Telltale signs of a scammer:

1. Upfront payments required to be made via Western Union or Bank Wire (TT). Unscrupulous companies love these forms of payment because it allows them to quickly abscond with your money without leaving a trace. These types of payments are unsecure and offer no protection to the payment sender. You should only do business with electronic wholesalers that accept secure payment options, such as credit cards, Letter of Credit (LC) or escrow–these types of payment offer you security and protection of your money in case the goods you order don’t arrive or aren’t what they were claimed to be.

2. Wholesale prices seem too high. Many companies claiming to be wholesalers of electronics are really just middlemen purchasing products from the manufacturer’s factory-authorized distributor and then marking the prices up to unsuspecting buyers. Always call the manufacturer whose products you wish to sell and ask them who their factory-authorized distributors are. Ordering through the manufacturer’s distributors will ensure you are getting the very lowest prices.

3. Wholesale prices seem too low. If you have already called the factory-authorized distributor and received a price list, then you know what the lowest prices are. Unless you are a well-known store purchasing in quantities of 10,000 units or more, the distributors price list is the lowest you will be able to get. Profit margins are low on electronics to begin with; depending on the item, you should expect a 10%-20% discount off of the retail price. There are plenty of eBay auctions listing electronics at seemingly discounted prices. Most likely these listings are fake and will send you nothing after receiving your money (don’t trust positive feedback, as many eBay accounts are temporarily hijacked each day for this purpose).

4. Charging upfront or monthly fees to be your drop-shipper. In the electronics industry, it’s doubtful you would ever find a manufacturer or factory-authorized distributor willing to drop ship for you. However, there are plenty of middlemen companies that are. Because you’re paying a higher price for the products (by not going to the factory-authorized distributor yourself), it’s truly doubtful you’ll be able to find a buyer for the merchandise. So rather than wait for sales that probably won’t happen, these companies require upfront or monthly fees.

Is there any recourse once I’ve been scammed?

There are several consumer protection agencies that you can file a complaint with. It’s best not to get your hopes up in their ability to actually get your money back; however they will take your complaint seriously and investigate if necessary.

* DC Attorney Generals Office: (www.oag.dc.gov )

* Federal Trade Commission: (www.ftc.gov )

* Better Business Bureau: (www.bbb.org )

* National Association of Consumer Agency Administrators (NACAA): (www.consumeraction.gov/state )

Electronic wholesale scammers prey on people who want to "get rich quick" by selling electronics at a discount. The truth is, name brand electronics’ prices are controlled by the industry manufacturers and there just aren’t any "dirt cheap" prices to be had on new, name brand electronics. It just takes a step back and some thoughts of common sense to think through the problem: "Why would Apple let some no-name distributor sell their Ipod Nanos on eBay?" It’s unfortunate, but many buyers never take the time to do that and wire hundreds or thousands of dollars to the seller (usually from another country)–never to see their merchandise or money.

The Internet revolution has opened a global market for popular electronics, and no electronics company has enough people to cover all of those markets. Companies are beginning to realize the advantages of licensing their brand name, and electronics companies know this more than most. Income opportunities abound if you’re willing to chase down the companies and put in the time and legwork to make the sales.

In order to sell brand name electronics, you will need a license. This shouldn’t be too much of a surprise, since it takes a license to do many things in the world of commerce. If you don’t have a business license, this is the first thing on your to-do list. Once you have a regular business license, if you are going to buy or sell electronics as a wholesaler, you will need to have a reseller’s license. This license permits you to buy merchandise without paying the sales tax and is a standard addition to most business packages.

If you think you’re ready to sell brand name electronics, sit down with a notebook and pencil and make sure. Brainstorm about the kinds of electronics you would like to sell and any particular name brand that interests you. Answer the following questions:

1. Do you want to sell new or used merchandise?

Overstock.com and other clearance sites allow you to purchase pallets of electronics for a set price. Once you receive the merchandise you can divide it and price it as you wish. If you don’t have the room or the patience to inventory a pallet of merchandise, you can work through a drop shipper , for whom you will serve as an intermediary.

2. Do you have an established business or specialized knowledge in the subject?

Yes: If you have been in business for a while or have a good business reputation, you may approach a local sales representative of the brand that you would like to sell. Ask them about their resellers program. It is rare that they would simply hand over product for you to sell, but if nothing else you can walk away with a reseller’s application and some honest respect.

No: Going to a trade show is a good way to pick up lines of electronics to sell, since many manufacturers will bend over backwards to work with people who show they are serious about their product. If you are new to the sales game and your business is still in the fledgling stage, you may have to prepay for the merchandise and keep it warehoused.

Even if you are going to work through a manufacturer at a trade show to sell electronics, you will want to know the steps you need to take to follow through with a reseller’s application. The questions on a resellers application may appear to be overly detailed and thorough, but don’t be offended. You are applying to represent a company’s pride and joy, and they are simply taking the same precautions in screening individuals as you would if it was your company. Expect to find questions asking your company name, length of time in business, last year’s financial dealings, how many employees you have and what type of business you run as well as other questions about financial strength and monetary position. They will also ask what you plan to do with the license should they award you one. You have more of a chance at acceptance if you are honest here instead of flattering.

3. Are you ready for the responsibility that comes along with selling brand name electronics?

When you agree to a licensing agreement with a brand name company, you will be bound by contract to work with that company for a specific amount of time, selling a certain number of products. If you don’t want that kind of commitment, you might be better off sticking with selling the occasional brand name stereo or appliance. Before you sign a contract, read everything carefully. They will ask that you sign a Non-disclosure agreement (aka NDA) to guarantee that you don’t pass any industry secrets along.

Besides signing a contract, you will have to take responsibility for the products you sell, or the products that you manufacture to sell. Once the merchandise has been sold and distributed, you are responsible for collecting payment and remitting the proper percentage to the company that you represent.

There are some advantages to being licensed to sell brand name merchandise. The world of electronics is full of potential, and licensed resellers often receive generous discounts on merchandise, a heads-up and a free preview of new releases, and the advice and mentorship of a company executive to boot. Finally–and this is often an unappreciated benefit–you have an opportunity to specialize in an area of sales that is often more profitable the more you know.

The phenomenal economic growth in China has had an ever-increasing effect on world trade, and in the world of re-selling products on the Internet. Anybody looking to source products just has to start their search in the Chinese wholesale markets. Many Consumer Electronics re-sellers in the United States and Europe are aware that the way to make a quick fortune is to order in bulk from China, and sell at competitive prices locally.

China already has a good reputation for quality clothing, shoes, and basic commodities, but increasingly China wholesalers are turning to high-technology products.

With this in mind, importing consumer electronics from China is quite simply the way to go at the moment! Of course you can look elsewhere on the internet, but the main point that I would like to make here is that Chinese electronic products are manufactured and exported cheap without compromising quality.

Just Remember, your goal in buying goods from China is to buy low and then sell high. Where do you find these suppliers and manufacturers? Thanks to the wonders of the Internet, the problem of having to locate reliable suppliers from China has been passed on to your fingertips. Doing business can’t get any easier than doing it online. Search them out one by one and contact them through email, and even give them a call to make yourself feel content that you’re about to do business with the right people. I can’t emphasize more the importance of really building good relationship with these suppliers. These wholesalers are not picky as long as you build good relations with them and they are really into exporting their goods to US and European markets. So before your competition already starts capitalizing on it, take advantage of importing consumer electronic products from China now, whether it is for business or for pleasure.

There are a few excellent resources on the internet with a lot of expertise in sourcing China wholesale products. You can visit this website at http://www.alibaba.com , which offers excellent advice, and can immediately supply details of Chinese manufacturers for your chosen product.

Article Source: EzineArticles.com

For buying the latest models of popular brand name merchandise, it’s best to work directly with a factory-authorized dealer. In order to make sure you are dealing with the right company you MUST call the manufacturer and ask for a list of their factory-authorized retailers. Never take the word of the distributor, as many of them make their money by fooling companies into thinking they are authorized, when in fact they are not.

For electronics that are not popular brands or are not the latest styles you may opt to buy from importers, distributors, liquidators or wholesalers on eBay. Here’s a brief description of each:

Importers: These are companies who will import various electronics from an overseas manufacturer. They store the merchandise in their warehouse and will ship to you or they may possibly drop ship for you.

Distributors: They have acquired electronics through a variety of sources: direct from manufacturer, from other distributors, auctions, liquidators, etc. These are not factory-authorized distributors but may still have good prices because they are dealing with off-brands or older style electronics. They may offer drop shipping services as well. You will especially need to check the reputation of these companies before dealing with them, as many are small, fly-by-night operations

Liquidators: You can get a great bargain from buying closeout merchandise from a liquidator. They receive their products from a variety of sources: manufacturers, distributors, importers, and retailers. Just remember the products may be there because they are outdated styles or because they were slow-sellers.

eBay wholesalers: Many times wholesalers sell electronics on eBay. Most likely you’ll get the best prices on off brands or older models, since these wholesalers are typically not buying direct from popular electronic manufacturers.

If you plan on buying a good-sized quantity of a brand you are unsure of, you may want to ask for a sample to check the quality of the product. That way you won’t be in for a surprise when the full product shipment arrives. You’ll also be able to test the product to answer any questions your customers may have.

Also, if you’re looking for the latest and greatest electronics, one of the best ways to be in the know is to attend an electronics trade show. You’ll see all sorts of new products and meet distributors as well. Many times a trade show is a great way to get started in sourcing electronics because you will be able to make a lot of good sourcing contacts-from quality manufacturers to reliable distributors. Plus, if you’re into electronics, these trade shows tend to be fun, with plenty of product demonstrations and hands-on testing. You’ll get to see the quality of the merchandise in person, lowering your risk of receiving disappointing, cheap products.