DiscountElectronics.com Rakes in the Dough as Seller of Refurbished Dell Gear
Rick Culleton’s tech “trash” is another person’s treasure. In fact, the economic slump is a boon for his Austin, Texas-based used-computer business.
In the first half of this year, DiscountElectronics.com rang up record revenue of $7.5 million. Culleton expects revenue for 2010 to exceed $16 million, up from $12.5 million in 2009.
“In this economy, the thrifty shopper can’t pass up the deals at Discount Electronics,” the Austin Chronicle raved in naming it the readers' choice for best computer store in 2009.
DiscountElectronics.com sells refurbished end-of-lease Dell computer equipment, including laptops, desktop computers and flat-panel monitors, as well as new accessories, printers and software. The company bills itself as “the world’s leading retailer” of refurbished Dell computers and parts.
“The values we offer are too good for consumers to pass up,” Culleton said.
With revenue shooting up 268 percent from 2006 to 2009, DiscountElectronics.com ranked No. 1119 this year on the Inc. 5000 list of the country’s fastest-growing small businesses.
Culleton said that “as the rest of the retail world struggled to survive the economic downturn,” his company opened two more stores in 2009.
“Our growth was fueled by opportunity,” said Culleton, CEO of DiscountElectronics.com. (His LinkedIn profile lists these other duties: chief operating officer, tech support, marketing, HR, project manager and fireman.)
In March 2009, DiscountElectronics.com bought a vacant Hollywood Video building in south Austin for its second retail outlet. A few months later, the company opened its third location in Round Rock, an Austin suburb that’s home to Dell.
Aside from its original store in north Austin, the company maintains a separate site in northeast Austin for its Internet sales division.
“We have grown significantly over the past 18 months. It will be another year or two before we consider future expansion,” Culleton said.
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