Action computers borrows from Used-car business model.

• Author: Taylor, Mike
• Position: SMALL biz

MARK HOPE WAS ON THE CORPORATE fast track at 32, a vice president for an insurance firm back East pulling in six figures, when he quit to launch Action Computers in 1994.

"I hated my job," says Hope, 49, a graduate of Littleton High School who used to request a back seat on business flights so he could run an extension cord for his T-1000 Tandy computer to the outlet in the plane's rest-room. "I thought, Tm going to try to do my own thing. If I fail, I can put a suit back on and march in line with all the rest of the guys again.'"

Starting out of his house in Aurora, Hope quickly built a retail presence with stores in southeast Denver and Arvada. Action Computers is built on the promise of prompt service - one day from check-in to technician's bench is the goal - and the notion that while just about everybody needs a computer, not everybody wants to pay cutting-edge prices.

"We're really about providing that technology that's one or two steps back," says Hope, who earned an undergraduate degree in business administration from Western State. "We're the place where you go buy a used car that's two or three years old that's still really good, but it's not nearly as expensive as a new car."

Continuing the car-dealership analogy with regard to computer repair - a big part of Action's business--he adds, "And there's a full service department where you can get your oil changed."

Much of Action's inventory comes from companies that are going out of business or getting new computers. Hope says that while Action's sales volume has remained steady over the years, the average computer sale has dropped dramatically--from S700 to $800 five years ago to an average of S135 to S160 today.

"Right now I've got computers on the show floor that are selling for S45 apiece - with Windows installed," he says. "We have $400 and S700 computers available, but there's a lot of folks coming in and saying, 'Look, we've got to save some money.'"

[ILLUSTRATION OMITTED]

Not surprisingly, small businesses are among those looking to save: insurance companies, call centers, dentists, veterinarians. "It's crucial for them," Hope says. "Let's say they want nine or 10 computers. Well, nine or 10 computers and a server here is S2,300." Compared to? "Oh, four or five times that ... 10 grand, maybe. And when...