Custom Build Buisness good or bad idea?

[rayzor]

I am thinking about advertising around my neighborhood in the attempt to make a little money off custom computer builds. I am a college student and have a car here on campus and live within half an hour of my neighborhood, so I'll be able to provide support for at least a couple years.

That said, I'm not what you'd call a true professional, though I know I am fully capable of building rock stable systems. Do you think it's a good idea for me to go ahead with this? I don't see any reasons for concern, but when we are talking thousands of dollars some people spend on their systems, I don't want to overlook anything that could get me in trouble or sour the good relationships I have with my neighbors.

Do any of you have any personal experience to share, specifically relating to issues I should take into consideration?

 

[g-paw]

Make sure you get the money for the parts up front, they can pay for labor when it's delivered. The biggest issue to think out is support. This can get pretty time consuming. I'd limit support to 6 months or at most a year. You can guarantee the parts for the mfg warranty. If you install Windows, you're likely to get a lot of questions on programs, etc., and this is what can be time consuming. I guess one issue is how to say, "It ain't my problem" in a way you don't alienate a customer, get a bad rep, or get the crap beat out of you.

 

[rayzor]

ok, thanks. I hadn't considered the software side of things much. I'm guessing I would get lots of calls from people complaining about not being able to install this or not being able to download that. Some people just don't understand that these are not physical problems.

 

[nhobo]

If you don't mind getting calls at midnight from people who can't find the 'any' key, go for it.

 

[g-paw]

For most people it's a computer and it either does what they want or it doesn't. They could care less if it's hardware or software, assuming they know the difference. One way to eliminate some of this would be to offer to teach them how to build a machine, let them pay for a lesson. Then you just charge them time to be there when they assemble it. If they want you to order the parts, jack up the labor for the time you'll spend doing it. Won't eliminate all the problems but you'd be dealing with a more computer sophisticated costumer I would think. If they build it themselves and have a hardware problem, better chance of taking care of it by phone. If you tell them to remove a part or install a new one, they should what you're talking about.

 

[cb62fcni]

Well, I've actually done quite a bit of custom computer work on the side, and by far the biggest issue is support after the sale. One big downfall is that many, many people who choose to go the custom route know so little about computers to begin with, but having a "custom" computer makes them suddenly decide that they're experts. I would write up a document spelling out exactly what you will and will not deal with. For instance, changing bios settings should void any support from you, changing the hardware as well. For example, I had a guy who went out and bought some extra RAM without telling me, then called me up complaining that his system was suddenly unstable. He had dropped some 2.3V RAM in there and it was only getting 1.9V, an easy fix, but it still ate up an hour of my time driving out there and poking around on his system and then driving back. Stuff like that gets frustrating, and fast. Windows issues are always a pain. This accounts for easily 80-90% of my trouble calls. One way to get around this is to provide retail copies of Windows with your systems, as this allows them to get free Microsoft tech support, although it does cost a bit more than using OEM software. It is definately worth it, because you can just refer them to Microsoft once you determine the problem is windows based.

Overall, it's hard to turn a decent profit in this business. There's simply not that huge of a market, and bigger manufacturers are able to undercut you considerably. There's more money in doing tech support, as you can easily charge 50 or 60 bucks an hour, and the majority of the problems you face are mind-numbingly simple. For instance, Firedog charges something like 30 bucks to install a stick of RAM into a computer. Yea. That's right. 30 bucks. Chew on that for a minute. Or how about 230 bucks to install windows? Oh yea, tech support is where it's at. Take a look for yourself at how much computer-ignorant folks are paying here: http://www.firedog.com/pcs_improve.html?cm_re=firedog-_-content-_-Improve
$130 for a tune-up. It's amazing, you could probably get a Porche tuned up for less than it would take these crazy, crazy fools to tune up your 400 dollar dell pos. That's my 2 cents anyway. Good luck with whatever you decide to do.

 

[asgallant]

If you want to go ahead with this, make sure that you incorporate as an LLC first. That way, if anything goes wrong - say, a customer's computer catches fire and burns his or her house down - you are not personally liable for the damages. The worst case scenario is that your company goes bankrupt, but even then, you get away relatively unscathed.

Sure, it's a pain in the *ss to incorporate, given the costs and the tax and payroll reporting. But if you choose not to, and something goes wrong, you could be royally screwed.

 

[qwertycopter]

Alright, I had thought about doing this too, but there are some big road blocks. Most people don't need a power-rig, only the basics. Dell/HP will undercut your price because of bulk parts and assembly-line construction. You can't compete at the low-level. All this, plus they provide tech support and warranty. The only way you're going to turn a profit is if you're building a high-end rig, because then you can charge for your knowledge and expertise. They can't just buy one of these rigs off the shelf, so you can charge for building a power machine. Good luck finding the market in your neighborhood, however.

By far the best way to make money is tech support. This is where YOU can do the undercutting. Geek Squad's support prices are ridiculous. You could easily charge $15 to install some RAM or CD-RW, $45 to install Windows, $80 to clean up viruses (don't forget a seperate charge if they want their data backed up). Those prices are reasonable. Consider what Best Buy would charge. And a lot of people need those services.

Unfortunately, anyone that does some research will find they can buy a basic PC for $500, with monitor and tech support. You just can't turn a profit in that area.

 

[rayzor]

lol! ok i'm having second thoughts now, especially about what asgallant said. I suppose I could get into big trouble if someone's computer caught fire.

Anyway, i'm not trying to start a major business, just build a couple rigs for a couple neighbors. But before building I would take these matters into consideration.