Our StoryFROM RETAIL AND REPAIR TO a WHOLESALE MOBILE ELECTRONICS SUPPLIER
Macalegin Electronics was founded in May of 2004. Until that time, we frequented eBay for personal purchases and sales of household items that we no longer needed. One of the pastors at our church knew we were familiar with eBay and asked us to research smart phones for the staff. Through many hours of research in an attempt to find the best deals for the church, we became quite skilled at buying phones at much lower prices than the average going rate.
This got the wheels turning in our heads. Why not continue to buy phones at lower prices, re-list them on eBay for higher prices, and make some extra cash? We found our first wholesale contact about a month later on eBay. We spent 3-4 hours a day scouring eBay for new suppliers and the work paid off. We now had a large enough product stream to begin selling on eBay full time.
We moved from California to Colorado with the intention of running the business as our primary means of income. We ran the business out of a single car garage. As our eBay business began to grow we received multiple requests from friends, acquaintances, and other eBay sellers to buy from us wholesale. Our product volume began to quadruple and as a result, we were able to move more and more of our inventory through wholesale channels. The single car garage no longer facilitated our growth so we began looking for a new home for the business.
We moved into a house with a walk out basement. We finished the basement to accommodate the next phase of growth for Macalegin Electronics. With more space available we were able to further accelerate our growth. The increased volume allowed us to make the transition from a blend of retail and wholesale to strictly wholesale. In order to reduce costs for our customers and increase our margins, we began to expand into refurbishing and repair.
During this time, we supplied multiple eBay sellers with their product. In addition, we performed repair and refurbishing work for our wholesale customers.
We began to phase out the refurbishing portion of the business and began working with multiple companies that preferred to refurbish on their own. This allowed us to once again increase our volumes and also target a new demographic of customer. As volumes began to increase we once again outgrew our basement business, and for the first time in our history, we pursued commercial space.
We purchased our first commercial property. It was much more space than we were used to and we wondered how long it would take for us to make use of it in entirety.
As supply increased so did demand and within about 2 years we were completely out of space. We made the most of the limited room through creative storage options, but we knew that it would not be a long-term solution. We had developed a solid team of repair and QC techs and to use them to their fullest ability we needed more room.