Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, October 20, 1993                   TAG: 9310200100
SECTION: BUSINESS                    PAGE: B8   EDITION: METRO 
SOURCE: SANDRA KELLY
DATELINE:                                 LENGTH: Medium

WHAT TO DO WITH THAT LOW-MILEAGE USED COMPUTER?

Or where can you find an inexpensive used machine to begin on or to send to college with a freshman?

In places like California's Silicon Valley and in some large metropolitan areas, used computer stores have become plentiful. In Western Virginia everybody wants to sell you a new machine, and nobody wants to deal with old ones.

Well, almost nobody.

The Computer X Exchange opened in March at the Plaza of Roanoke-Salem and already it's expanding. Also, the American Computer Exchange, based in Atlanta, started up seven years ago and now distributes weekly "offer, bid and close market" prices on computers.

Computer X Exchange is the brainchild of two former insurance agents, Randy Dolan and Richard Maddox Sr. For two years they custom-built computers in their homes, but decided to go public with a store after their wives rebelled at giving up any more house space to the sideline business.

The results: "Unreal," said Maddox. Both men have since quit their insurance jobs and are thinking about hiring a technician.

Dolan and Maddox will take your old machine on trade, sell you a new or used computer, or upgrade the one you've already got. In their shop this week machines were selling for as little as $80 for a used word processor to as much as $2,049 for a custom-built sweetheart of a machine, a 486/DX33 with 4 megabyte memory, 245 megabyte hard drive and CD ROM.

The best thing about these guys, though, is they love computers and love playing with them. They can appreciate the San Diego Zoo Animals CD or one featuring Bob Dylan; or the new equipment that turns the computer monitor into a television screen.

Maddox said he and Dolan used to talk to each other via computer until 2 and 3 in the morning when computing was just a hobby.

Now they work 60-hour weeks with computers and still think it's fun.

"Computers can become an obsession if you don't watch out," Maddox said.

Dolan said they take pride in building computers designed to be upgraded as a buyer's finances allow and that they can speak the language of the customer - technical to "tekkies," or common English to the rest of us.

Computer X Exchange, which is a dealer and repair shop for Star products, this week was incorporated as Big Dog Inc. The name is an inside joke.

"When we get a deal to build as many as 10 computers, I always say we're running with the big dogs," said Dolan.

American Computer Exchange in Atlanta does appear to run with the big dogs; it operates a national business matching sellers and buyers.

John Hastings, president, said his company brings a lot of used computers from the abundant California market for individuals and companies.

AmCoEx tries to provide an outlet for the old machines and give owners an idea of what they can expect to get for them. It also handles the purchase, bringing the computer into its offices to be checked over and collecting the money.

And it takes a 10 percent commission on each sale.

Hastings, who has 20 years of work with computers, set up the business when microcomputers became popular.

The market potential of his business is found in his company's data, which point out that 56 percent of all new microcomputers sold today are replacing existing systems and that most of the existing 150 million micros will be replaced within the next five years.

Those could fill a lot of used computer lots.

\ Need a Kmart? Call (800) 866-0086.

The chain that wants to overtake Wal-Mart has launched a system that allows customers to learn the location, phone number and typical store hours of the nearest Kmart store.

It also lets callers connect directly to the store's auto service center, pharmacy or a Little Caesars Pizza Station by pressing the designated key.

The immediate connections will not only help customers, but will save stores' service-desk clerks from answering so many calls, so they can give more time to in-store customers, said Dick Voss, director of customer service and associate activities.