Is a computer business profitable

[d1rtyju1c3]

I want to start a computer shop and was just wondering if it is worth it.
I would do computer repairs of course, along with selling hardware and software, but I also wanted to build and sell my own computers to. I would also like to do things a little different and do a public lan party on the weekends with computers that I hand built for a small fee.
Any input is much appreciated and feel free to add or remove anything.


Also if anybody knows how to go about getting hardware and software at cost or at a discounted rate please let me know. [:bohleyk:1]

 

[badge]

Sounds like a noble idea, but don't plan on competeing with the prices offered by DELL. Or the local Microcenter, Fry's, Radioshack or Walmart all in the business of selling computers, software, hardwre and some computer repair. If you have a customer walk in your shop, treat them like precious gold. Depend on your customers referring their friends and family to get the same great service/deal you gave them. So, don't open such a business with the idea of immediately competing head to head with the likes of DELL. Look for a specialty area and superior, dependable customer service your customers will recognize and refer their friends to. With a small computer shop your key to success will be how well you understand the idea of 'the customer is always right'.

 

[d1rtyju1c3]

I know that I wont be able to compete with the larger companies in the hardware, software, and PC side that would be just for extra money when/if the repairs are slow.

What do you think about, not only but mainly building htpcs?

 

[badge]

Well, there is not 'special' skill to building a HTPC. I know there is a specialty notebook repair shop near here that does very well. Full spectrum notebook repair and they are expensive. My friend worked as a bench tech for Fry's for many yeras and has a small computer shop he runs out of his house. he refers ALL his notebook repairs to that shop nearby.

I ran across ths site some years ago. I see some of these very products for sale in the big stores around here. It's been a while since I really looked around, but I think you can ope a wholesaler account. You would likely need a resale permit issued to you from your state to buy from them as a wholesaler and skip applicable taxes.

http://www.evertek.com/products.asp?cat=HDD

 

[badge]

Having had success as an entrepeneur in the past, I canned a recent idea I had of getting into the production and distribution of my own coffee flavored baby formula. [:badge:3] [:badge:3]

http://img148.imageshack.us/img148/8352/starbucksbaby38011.jpg

Note I'm only kidding my friend. I sincerely wish you all the success.

 

[d1rtyju1c3]

Having had success as an entrepeneur in the past, I canned a recent idea I had of getting into the production and distribution of my own coffee flavored baby formula. [:badge:3] [:badge:3]

http://img148.imageshack.us/img148/8352/starbucksbaby38011.jpg

http://img148.imageshack.us/img148/8352/starbucksbaby38011.jpg

Note I'm only kidding my friend. I sincerely wish you all the success.

:lol:

 

[badge]

Regarding the laptop computer repair shop. I had work done there once. They overcharged me which I knew when I had the laptop repaired, my daughter was using it in college at the time. Then the power adapter plugin they supposedly resoldered to the MB lasted about 6 months and broke loose againg. Never went back. I can buy a new notebook for what they charge for repairs.

 

[d1rtyju1c3]

Well, there is not 'special' skill to building a HTPC. I know there is a specialty notebook repair shop near here that does very well. Full spectrum notebook repair and they are expensive. My friend worked as a bench tech for Fry's for many yeras and has a small computer shop he runs out of his house. he refers ALL his notebook repairs to that shop nearby.

I ran across ths site some years ago. I see some of these very products for sale in the big stores around here. It's been a while since I really looked around, but I think you can ope a wholesaler account. You would likely need a resale permit issued to you from your state to buy from them as a wholesaler and skip applicable taxes.

http://www.evertek.com/products.asp?cat=HDD

I know there is no special skill to building an HTPC but personaly if I could sell it as the best alternative for media(blue-ray), gaming(like a console), and of course a computer maybe it would sell pretty good. Dont know just throwing it out there.
I know computers can get expensive to repair, but enough to purchase another laptop, thats ridiculous. I know from experience that laptops can be a pain but come on.

 

[d1rtyju1c3]

Ive been on this site before they have realy good deals on some stuff, not only that but they have stuff you cant find anywhere else. Thanks for the reminder.

 

[d1rtyju1c3]

I like your web site. :lol: :lol:

 

[badge]

I have a friend who owns an authotized service center for many TV distributors like Samsung for one. I am totally unaware of what it takes to be an authorized dealer/service center like this, but it may be worth looking into. He has asked me to put computers for sale in his shop and do some repairs for him in the past. I repaired his service computer late one night some years ago. With my skills, I could have had his wife! :lol:

 

[d1rtyju1c3]

That good hugh! :lol: :lol:

 

[badge]

I put some pictures up in his shop of custom computers I had for sale and had no luck. I have tossed around the idea of researching prices onlne for limited services I could advertise in his TV shop. Like installing a hard drive or operating system for example. The other friend who was a Fry's bench tech gets jobs installing networks and also computer related security systems. I don't know, getting $60 an hour to do a PC Tune up and system performance tweak would be nice. I used to do it for my son's friends for free all the time. I built computers for some of his friends. Two of them brough them back in pieces. The TV repair man's kid tried to solder the headers He busted off the MB back on! Video card was physically destroyed. So was the RAM and one of the RAM slots. I got it run and the kid could not believe his eyes. When my son was young he had a friend who would come over and try to see how many instances of virus/spyware he could download onto the computer before he left. He was wildly successful at it.

 

[d1rtyju1c3]

My uncles kids are extremely successful at that to. It is called hormonal teenage kids. :lol:

 

[Saga Lout]

Good luck if you dive in and try this but never forget that the general rule of any new business is to make sure you have enough behind you to take no money from it in the first six months. Here in the UK, more small shops are empty than occupied and it's possible to get one year rent-free deals in a lot of High Streets. Problem is, as more shops pack up the unequal struggle, fewer people use those streets and more flock to out of town centres where new starts definitely can't afford the rents.

I have to confess that I don't exactly make a fortune as a jobbing PC Fixer with no premises rent to pay at all as it's all done from home. I make as much as I want and need but I'm almost certainly a darned sight older than you and I've taken steps over the years to cut my overheads to a minimum so I don't need to make much. A younger person with a family to keep would not make enough doing what I do.

Again - much good luck.
[/#000ff]

 

[d1rtyju1c3]

Good luck if you dive in and try this but never forget that the general rule of any new business is to make sure you have enough behind you to take no money from it in the first six months. Here in the UK, more small shops are empty than occupied and it's possible to get one year rent-free deals in a lot of High Streets. Problem is, as more shops pack up the unequal struggle, fewer people use those streets and more flock to out of town centres where new starts definitely can't afford the rents.

I have to confess that I don't exactly make a fortune as a jobbing PC Fixer with no premises rent to pay at all as it's all done from home. I make as much as I want and need but I'm almost certainly a darned sight older than you and I've taken steps over the years to cut my overheads to a minimum so I don't need to make much. A younger person with a family to keep would not make enough doing what I do.

Again - much good luck.
[/#000ff]

Thanks I will have to consider my family I know, but at the current time I am unemployed and in the state of ohio there are absolutely no jobs, and there are about 400,000 unemployed in the state right now. So anything is better than nothing at this point.

 

[Guest]

Let me offer some advice since I started my computer service business about 8 years ago.

1. Put the minimum amount of money in that you have to.

2. Work out of your house to start with.

3. Forget about building/selling computers. You can't compete with the major manufactures.

4. Learn how to remove viruses/malware/spyware really well.

5. Charge a reasonable rate (I charge $60/hr) and don't nickel and dime customers. Make them feel like they got a good deal.

6. Advertise in the Yellow Pages and get a web-site.

7. Offer free advice and diagnostics.

Good luck!

 

[d1rtyju1c3]

Thanks, I am currently working out of my house. why no building? The diagnostic and repair would be the main source of income and I am not planning on mass producing computers just a few here and there.

 

[Saga Lout]

Thanks, I am currently working out of my house. why no building?

It's all down to costs. I don't know what property costs are in Ohio but if I had the cheapest premises I could find, I'd be paying out rent and local taxes using the money from the first five jobs of every week before I started to feed myself. I charge £40 an hour which equates more or less to Grumpy's $60 and there aren't so many jobs around for me to see five much before Tuesday lunchtime - and that includes working Sundays. On that point - because it's relevant here - how many of that 400,000 jobless have similar skills to yours and the same idea of a way out of the situation? There's only a certain amount of business to go around and we're all still in a slump!

Over here, every time some IT outfit goes down, more folks start up on their own believing they can make a living out of this but it isn't easy. The hourly rate is a wonderful idea but at the end of the day, a job is only worth what it's worth and you can spend hours chasing malware around a system but if you charge all those hours, you'll never see that customer again and word of mouth advertising and repeat busines is going to be your bread and butyter.

The other thought about premises is what to do with them when you're out servicing customers. Do you employ someone or do you close up and wonder how many people traipsed to your closed door?

Take Grumpy's advice - particularly No. 6. No system leaves here without being de-cluttered and checked for malware, with any found being cured. Insides of PCs are vacuumed out and outsides are cleaned. Go the extra mile - 70% of my customers are people I've looked after before and I need them to keep coming back. Getting the other 30% to be able to find me costs around £300 in advertising.

Sorry if this all sounds negative because it isn't - just reality. I really hope you succeed this is from the point of view of the other man's grass and it ain't always that green.

 

[d1rtyju1c3]

Thanks, and you're not scarring me it is scary to even think of opening my own business but it is a chance I am willing to take. I am from a small town and I am sure there are plenty of people who can do what I do but there are few. I just enjoy technology, it has been a hobby of mine for a long time. I just thought that I could use what I have learned to start a business, I know I may never get rich doing it but if I could make a living I would be happy.

 

[Saga Lout]

I know I may never get rich doing it but if I could make a living I would be happy.

That's the way to view it. It's been over thirty years since I last trusted anyone else with something as important as my working life. Go for it and let us know how you get on.

 

[d1rtyju1c3]

Thanks guys. That was all great info I appreciate it. [:bohleyk:1]