How to Start a Small Computer Building Business

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cncmasterw

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Like the Title How would i go around and Say Im a computer builder Do you need A new computer?

If thats not simple enough for you then maybe this will Clarify (I am a System Builder For those Who needs a new computer From budget to Extreme Hard Core Pc gamers.

So is there a way to do this With out Posting Ads Because i want to be able to keep up with the Orders if it Sparks and gets going really fast. I was thinking about using Ebay say like.

Home build computers, Parts will be bought based on Need.

Cost 500$ For Budget Computer.
Type of Computer Based on what you need (between Gamer to basic Computer use)

If this were actually on ebay i would have Put way more Options and More Description. But i cant think of any at the time.. >>


Thats not really whats i was thinking but it gives a small idea I will try to Avoid Ebay for trying sell computers. But can you help me give me Ideas on how to start this Small business?
 

cncmasterw

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Thats not really Advice, My brother is a System builder for his buddies and Gets paid to do it so i figure it wouldnt be so Different if i worked with people/Friends too.
 

kamikazimunkey

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In my opinion, it would be hard to start up a small business for building computers for a couple of reasons. There are numerous reasons in my mind but the main one to me would be the fine line of charging enough to make it worth your time and effort and still being more affordable than the big box sellers (Dell, HP, Compaq, Etc.). Their prices are starting to come down more and more and most people don't understand that even though you may charge them only $50 less than a comparable Dell, the parts will be all higher quality. People don't understand that those parts that don't get mentioned like the mobo and power supply actually are crucial the comp. I think that when the price is close on something like that they are going to go with what they know. I run a local payroll service with another family member and that is the hardest thing we face, convincing people that even though we have the same price as the big name Payroll companies, that we have way more to offer than they do and there is more than just the name.
 
Actually its not bad advice. There is alot more to running your own business than just finding a way to advertise. You need to know how to handle the taxes (sales and income) and probably get a business license. Where I live there is a government agency called the SBA that is specifically there to help people start small businesses. You might see if something like that is available to you.
 

cncmasterw

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Thanks for the Advice. Maybe Not a Business then But more or less a Way to sell computers For Revenue
 

1ce

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I looked into this myself a while back. I did alot of research. One thing that kept coming up was that you won't make boatloads of cash on the sale....but you can make money on service calls. As you currently have no brand-power or market visibility, the only thing you can compete on is price. I wouldn't expect to make more than $50 profit for a budget computer, $100 for a higher end build. Considering the time you spend ordering parts, building it, and shipping it, that's not alot, especially if something goes wrong and you get into RMA's.

When somebody buys a computer from you, if they need help/training/upgrades/repairs, you are their point of contact. They will ask you for help, and this is something you can charge for (Don't be a nice guy and do it for free, however tempting it is). You can easily ask for $50 minimum for a visit even if it only takes a couple minutes to fix the problem, more depending on how long the fix takes. If you get the picture....that's as much profit as the actual sale, and takes way less time.

If you just want to do this in your spare time, use word of mouth advertising to start. If you want more business, then don't shy away from paying for advertising. Get creative....advertising in a hard-copy paper newspaper for repair service will give you exposure to people who are less computer savy and need someone else to fix things for them (otherwise they'd be reading the newspaper online right). Facebook advertising gives a huge amount of control on your target audience.
 

cncmasterw

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Aah hA! i knew there was Good Advice Somewhere :D thanks so much. You have Excellent Idea's and Im a nice guy who doesnt like to charge for a fix :D but you are right i should charge >D but Yes i know i need to Get into Advertisement and Get it going but I want to make sure i can Handle the Problems that May Occur Say like RMA so far I have Had No and i mean NO bad Luck with Newegg HP and Other such Sites for Computers Parts Everything i have bought so far has Been Gold ;D I think the trick is to Order 2 items at a time so they are not all Packed to gather so tightly.

Shrugs I hope To try this. As 50$ for a Budget Pc sounds about right and 100 to 150$ for a Hard Core system is Right too Water cooling i would most likely Charge more. As i have a simple Water cooling set and Still far from Advanced at putting it into a computer. I am most likely going to Get my friend Into this To help me Control whats going around. One note though Im not trying to create a Company like Microsoft or HP and or Gateway Im Just a Simple Home Computer Building Guy Who wants to Make some Extra Cash and if life goes Good i will try To Expand with More of my friends and Teach them the Life of Building.

But You have Great ideas:D i appreciate this. As i will work hard and get to the point i Hope to get.
 

cncmasterw

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So far Me and A buddy of mine Have Started in the Planning stage. We came up with a few ideas Including "1Ce" ideas. Put down a Few Files on how things Might work out. Going to start Small and work hard. So far its only going to be me and a friend and if i need more people go Around and look for a few more of my friends to Get into this As a small job. should work out. Any more Advice would be nice > any more ideas for what we can do would be even better
 
Keep good records including dates, work done, expenses and miles driven. You will need documentation of your expenses to offset the income when you file your taxes. They can also come in handy if an unhappy customer decides to sue you for something.
 

cncmasterw

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Great point i totally forgot about the suing ... Ill have to make them sign something there for they cant :D unless its a Legit Reason
 

jeffcustom

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As far as charging, you have to decide what your time is worth and stick to it. If you don't, some customers will eat you alive looking to get something for nothing. When you're a nice guy, it's the toughest lesson to learn.

The best piece of advise I can give is if you are serious about doing this, you have to be good at diagnosing. If you aren't, you need to take the time to learn. There is no x=y in PC diagnostics. There is only x=y maybe z maybe q..etc. I take great pride in accurate diagnostics and knowing how to pull data off bad drives that others can't do. Nothing makes me angrier than the terrible, terrible mis-diagnostics of the Geek Squad. Many a person as thrown a good computer away or has lost data needlessly because of that group. They are ill equipped for good diagnostics. I have stories in the dozens.

Oh, and one other piece of advise...have a good backup procedure. I mean it. You can quickly hose your reputation by losing someone's data. I have a home server in a raid array and another backup besides that. I do three types of backup before I reinstall or do anything major to a customer's computer. It has saved my bacon more than once. You might think it's overkill but I sleep well at night.

Good luck!
 

cncmasterw

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Good advice :D

As i know so little about Server computers but i do take care of the equipment that i handle. And i know there are some people out there that will try and ride me For nothing but Me and my friend are going to Go all out on the rules and Regulations to make sure we get just as good a deal as the buyer. Yes being a nice guy gives limitations but Thats why i have a friend to Help me go through the Tough/Nice guy act XD.

As i can be mean when i want to be and i will never let anything slip with out thinking it through. If they cant pay i wont accept. Nothing will be given out unless its national COUPON day or something. (lol) Jurassic park lol(i think i will watch that tonight :D) I have just bought a new 640 gig hard drive and will back Every bit of Information that Is given out to the Buyer. Im starting small if i can handle whats going around then Yes i will Try and move bigger. but non the less I need to figure a working system Get a hold of Better Payment Methods Return Policy Will Have to figure something out till the income is right.

As i need Some Spare cash just in case The Buyer needs to make sure that when he/she pays for the computer that He/she is going to only be able to get the money back if its in range of say 500$ as anything higher will Not be accepted because they have planned on getting a High end computer in the first place and had the extra cash.

I will not go into Full detail as i need to keep some of it with my friend.

Thanks for the Advice i will take that with the Most Consideration.

If anyone has more ideals Im still open and would mostly Appreciate it
 

belial2k

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As someone who is doing what you want to do for a living, my only advise would be DO NOT DO IT. The others have pointed out a few of the things that can go wrong above, but that is just the tip of the iceberg. You will never sell computers and compete without offering some sort of warranty, which means you are on the hook if something goes wrong. Expect about 10% of the parts you get to be bad...motherboards are the worst in this regard. Also keep in mind you CANNOT compete with Best Buy and Wal-Mart on budget computers. You cannot build a system for the price they charge. Your only hope is to carve out a niche in your community that isn't already filled. In my area that is the extreme high end gaming computers and other high end specialized computers...stuff you won't find at Best Buy and Wal-Mart. In your area that might be business machines or something else...find out the need, then fill it. And forget about ebay as you mentioned in the OP...You cannot compete with all the sellers dumping their stuff off for no profit, and once you take into account the ebay fees, paypal fees, and shipping cost, you have to add at least another 12 - 15% to cover just that. In my experience it is a feast or famine job, I've had $10,000 profit months followed by months where I make NOTHING. Since the economy has been in the tank, high end systems are not selling too well, so it has been a real struggle the last year just to pay the bills. I fist had to cut my employees back to part time, and a couple of months ago I had to let them go entirely. I wish you luck if you decide to go forward, but remember this is one of the hardest businesses there is. Even restaurants have a higher success rate.
 

yash

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I don't mean to be rude, and it may just be me but it seems to be that you're still quite young.

One thing, in life and/or business, be sure you can type properly.

Again, I don't mean to be rude, but the capitalization and punctuation in your posts need serious improvement. If you were to type an email or advertisement like that most people wouldn't read past the first few words.

To reiterate what's been said already: you may want to turn your business into more than just building computers. As it has been stated numerous times, you can't compete with the companies offering computers for cheaper. As belial2k said - you have to find your niche and work with that. One area that you may find some reward in is data recovery - it can be VERY simple to do for the average home user or even SMBs (small-medium sized businesses). I used Knoppix (Linux) to back up a number of people's data off computers whose OS had malfunctioned - and that's a free tool. Look into that a bit and you can price it on a one time cost + sliding scale (i.e. initial fee $25 bucks, 1 - 25MB recovered - $50, etc, etc).

I would say start small - go around passing flyers (or if you can afford to get flyers sent to your area through the post office) offering computer builds and/or tech support. You're probably more likely to make more money off basic tech support than doing builds.

Pointing out the comment about suing people - you better be sure that document you get them to signed is legal. A piece of paper that says "You can't sue us for any damages" won't get you anywhere.
 

cncmasterw

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Hi you are correct but my Grammar is fine. As i type Seriously only when needed. I write Reviews for somethings in my house, Say my computer speakers (" http://sharedreviews.com/r/47285-logitech-z2300 "). You can see that I can write and that's is not even my best. That's me thinking i should be Honest and Be polite about my Review. Ya starting small is what i have Planned for all this time IM still going to Stay with Computer builds and Such because Thats What i know and do best. I can be Very persuasive. My age im not Young young but Im average :D (17) Me and my friend are going to take this up over the Next few months. then were going to start small and stay somewhat Int he Neighborhood and See how that works then Over the course of time Expand to Places around us. As this should be Fairly Well. As you and i both know. That Store Built computers are a Piece of Trash and Cost as Much as a Mid ranged Home built Computer. :D
 

belial2k

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Do yourself a favor and go to Dell's website (I think they are still number 1 in desktop sales) and check out their builds and their prices. Keep in mind, in order to compete against them you have to be cheaper since you don't have name recognition, offer at least a 1 yr warranty on all your builds (which means always having the capital to make good on that), and still charge enough to make a profit. Then go to newegg and price out something similar to their builds and see if it is even possible. I'm not saying don't build computers for your friends and neighbors, but that is not exactly a business. I don't think you've actually done the research needed to see if you can even make a profit. The average computer buyer cares more about reliability and service from a big name company, so the sales pitch of "those OEMs are crappy" won't get you far with the average buyer who doesn't care if the parts are better, even if they DID understand why.
For example Alienware sales 1000s of computers a year over $3000. My builds will run circles around them for half the price....but for someone who wants the name "Alienware" on their desk none of that matters. That is what they want....the name. Alienware had to SPEND millions before they developed that reputation through marketing and advertising. You can't expect to say "I'm a computer builder and my stuff is better than Dell" and have people flock to you. You need capital to start a business, and a business plan. As of now you have neither.
 

cncmasterw

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Your points are Legit and Understandable But No matter what any of you say i will continue to go after My goal. As this is something i really want to do and will my Time to Practice and get good at. I know money will not just FLOW in quickly I know and i will compete with the Prices. I have this act of getting people to understand that Big named Computers is just a Logo on the computer saying hey Im a ("Dell,Gateway,Alienware") Most of that doesnt really matter. They claim to have better stuff But in this Economy People will want to go cheaper for better. But thats my opinion on how the people will act. I will try and Ideas will happen. The one Key thing i want to make sure Happens is The customer is happy and Can not Sue me for something they have done. As i test the computers I build Extensively and Make sure they work 100% I will have extra Parts At my work place just in case of Emergency Say like the Motherboard Fried. As i Get a Refund on that Particular Motherboard i can Give them one of the Extra (most likely the same version) and send it there way with No delays.
 

jeffcustom

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Careful now.

These guys are giving you good advise and you would be smart to pay attention.

To survive, you will have to become proficient in repair, data recovery, networking, etc. You don't have to be an expert but you have to have good general knowledge. I love building computers but the fact is that people will go for price most of the time regardless of what you tell them. If you try to compete with Dell, Acer, etc... you will drive yourself nuts and probably end up losing money. I don't want to buy cheap components and sell a computer with a flimsy case, loud PSU or whatever just to compete. Again, you have to decide what your time is worth. Let me say again, you have to decide what your time is worth.

I have decided what my labor is worth to build a PC. I also make sure I choose components with at least 3yr warranties. Good PSU, memory etc have lifetime. With these things I then offer a 2yr parts and labor. I have been fortunate that in 4yrs I haven't had a PC with a part failure. I use my base warranty plus the fact they talk to me instead of someone in India as my selling point. These things appeal to some but not enough to the majority to resist the $399 Walmart computer. But no worries because I'll be working on that Walmart PC eventually and charging for the repair. It's a rare day that someone calls me and tells me they have a grand or more for a quality PC. It's a beautiful thing when those people do come around...not for the price but for the opportunity to build a quality machine for a customer.

So, everyone is trying to tell you not to hang your hat on hardware because you will fail. I watched a computer store in my town go under for that exact reason. He was tired of messing with repairs and wanted to just build computers...it doesn't work. While working on computers can be a lot of fun, doing the work for other people can be difficult, frustrating and just plain boring when you are doing the same old spyware/virus cleaning.

Just like financial investments...diversify, diversify, diversify.

I have have spent probably thousands of hours learning Linux over the last 6yrs to the point of creating my own operating systems. That has served me very very well. I can come up with solutions that many others would never think of doing. I taught myself VBA so I can write macro solutions for businesses. I can offer inexpensive Linux server solutions to small and medium businesses. I can also offer data recovery services that a neighborhood Windows geek wouldn't even know was possible.

Anyway, just understand the people here are trying to help you go into this with eyes wide open. That's a huge advantage that many of us would have liked to have had when we started out!
 

yash

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This is sound advice.

Don't get any of the detractions people are posting twisted - nobody is saying you can't succeed in this..just realize it'll take significant work if you want it to be a success.

Best of luck.
 

cncmasterw

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And i stand by all of your Opinions/ Advice / Tips

As I'm going way into The Research and Finding tips tricks and Other stuff to figure out things Hence The things you mention above. I'm working hard to figure things out I'm teaching my self A lot and over the course of time have taught my self Pretty much everything i know in computer electronics and Software. I'm a Very easy learner for things i want to do. .. And yes most people would have had loved this Advice you People are giving me and This is why i started this Forum to Expect harsh Answers and Truth to Everything. But i will figure out a Basic Understanding of it all and Work with it to help get my Small Business going. :D

 

fdisale

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Before starting your business first write a plan. Identify the challenges that your business expects to face, and write a strategy to overcome those challenges.. Also write down a budget for starting your business, as well as projections of how much money you will expect to earn in order to cover those costs. There are several websites that provide free business plan templates. Download the business plan template from the websites and use it as a guide to write a plan for your computer store.
 

cncmasterw

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^_^ I have been planning with a friend For over a month now and its Still in the planning stages We are now writing our way to safety a Contract for our asses not to be sued. But thanks for the tip ^_^.
 

Silmarunya

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Either ask a friend to help or purchase a grammer course. It's not an insult, but even basics like correct capitalisation seem absent in your posts. What you write is a first impression towards a customer and if the quality of it is below standards, you'll need to make a damn good offer to keep someone's attention.

Follow some part-time lessons to get a license (if you don't have one already) or whatever its equivalent in the US is called. A basic grasp of commercial law and accountancy might be handy too.

Get a sound knowledge of your products, including numbers. Facts always help to make a good impression. Spend enough effort in explaining why a home-built pc is superior to an out of the box one, especially in the budget segment.

If you can't afford advertising, worth of mouth is a close second. Treat your first customers even better than you'd normally do and if they're happy, they'll inform their friends and family. That could be what you call 'a spark'.

Offer service. A home-built pc is better than any brand name one, but for ordinary users performance doesn't matter. You'll have to add value through top-notch service. Even when someone does something stupid like using the CD-reader as a cupholder, you'll have to help them out.

Other than that, make certain you find a niche to thrive in. There are many pc-builders of all scales in the market already and you'll have to offer that little thing that others don't offer to survive and grow. An innovative and helpful service, or customized purchase advice or something else. Don't try to serve every end of the market (at first), but prioritize and build a name in one field at a time.
 

cncmasterw

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No disrespect taken, But this is a forum and i was in a rush and didn't care about grammar. Me and my friend are going to go around school and get the word out. Then i am going to see how business will roll out. If all goes well which i can hope for, we will get good enough concept on how things will work out and we will grow enough to have people out there to get a chance to check out our builds. We plan to do a few things say like " repairs,builds,extreme machines, and other such things. "

Thanks for your tip i will take what you said into consideration. If our legal plan to save our behinds fails then we are going to find ideals all over.
 
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