Second time around: Second Byte scores big by refurbishing and servicing old computers

Black Enterprise, August, 1996 by Raoul Dennis

Second Byte scores big by refurbishing and servicing old computers

No one is interested in cheap information. But good information arrived at inexpensively turns heads every day of the week. Second Byte, in Pikesville, Maryland, inexpensively refurbishes and services old computers. Owner Michael Barry Howie and his wife and partner, Anne, compare the development of a used computer industry to the beginnings of the first used-car sales lots in the early 1940s.

"The business is going places fast," says Howie. "People can't afford to pay $1,500 for new computers when they need one for the home and one for their child," Michael Howie explains.

Second Byte started eight years ago with Howie repairing four or five machines a week out of his home. He now operates a two-story space complete with a computer showroom with over 500 computers, ranging from old Macintoshes to IBM-compatible Pentiums. Second Byte also sells software, computer parts and service contracts. Moreover, about 20% of the business involves customizing units. A home system (Pentium 133 with 8 megs of RAM, 1.2 gig hard drive, four-speed CD-ROM, 1440 fax modem and SVGA color monitor) would sell for under $2,000 from Second Byte. The company's clients range from profit-driven up-and-comers, such as Ultimate Network Integration, a computer consulting firm, to local telemarketing firms.

Second Byte is a boon to small companies that need to get in step with computer technology, but without going for broke. Audrey Moore can certainly testify to this fact. As executive director of Northwest Baltimore Youth Services and youth director at her local church, Moore is raising some 300-plus young people every year. The agency is city-and state-funded, but its $600,000 annual budget covers only the basics. Even so, Baltimore Youth Services boasts an 85% success rate with wayward teens.

"Second Byte came in and assessed what our needs were and worked within our budget. They sold us new computers at a rate under $800," says Moore. That was four years ago. Today, Second Byte maintains a $1,500 annual service contract with Youth Services.

Howie is now looking to expand the company's services and client base. He recently established an online computer parts sales division. And he is working on strengthening relationships with affiliated black-owned service centers and agents across the country.

Second Byte is interested in developing franchise operations in other parts of Maryland and the South. "There's a demand there because people want to get into computing, but they feel closed off," says Howie. "They want someone they can relate to."

Second Byte, 1114 Reisterstown Rd., Pikesville, MD 21208; 800-405-4097