So I recently lost my job since IBM did some downsizing and I was thinking about starting a computer tech company where I could fix PC's and make computers for people. I'd really like to be able to sell computers since that would probably be the most straightforward way to get some cashflow going but I'm finding it difficult to compete with bestbuy or other retailer's prices mostly due to windows and it being 100 bucks. Is there anyone out there already who could give me some advice and tell me how profitable it is?
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Anyone have a computer tech company?
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Riddlinkidstoner
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I have a few friends that own computer repair shops...margins are thin, most people go for BB, CC, or online. Unless you get some good advertisement, don't expect much.
My friend also hosts an internet cafe in his store though which brings in a ton of buisness, especially since he builds all his own machines and makes them look sexy so people come in and want the same thing at home. He also hosts contests and stuff every week for stuff...
Just ideas.
My friend also hosts an internet cafe in his store though which brings in a ton of buisness, especially since he builds all his own machines and makes them look sexy so people come in and want the same thing at home. He also hosts contests and stuff every week for stuff...
Just ideas.
how about this: LINUX COMPUTERS! Are you tired of spyware and viruses ruining your computer? With a Linux computer you are guaranteed to have no spyware, adware, malware, or viruses or any kind EVER! Get a Linux computer and NEVER HAVE TO BUY ANOTHER COMPUTER AGAIN.
Riddlinkidstoner
Supreme [H]ardness
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Eh dunno man, might drive your buisness down. Remember Windows is what a big portion of the population uses...if thats in your name your tossing out all your windows-user customers.
Besides thats false advertising, Linux isn't completely virus/adware/spyware free.
Besides thats false advertising, Linux isn't completely virus/adware/spyware free.
Clockworks
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You have to be careful with this stuff because as pointed out before, the margins on computers are razor thin. I worked at CompUSA and currently at Office Depot, and there were very low margin items, mid-range margin, and a holy-shit-might-as-well-be-a-thief margin.
Low margins are usually complete items such as the computers and some software. (around 5-10%)
Mid-range margins are usually the monitors, printers, extra stuff that they try to fluff with your order. I would also consider a PC's internal components as mid-margin. (around 15-25%)
Big-ass margins are cables and warranty. We get the cables for around $2-3 and sell for 10x that amount. Warranty is not that extreme markup but at around 2-3x what we get. (around 200-1500%)
You also have to be very careful with this business thing because the liability is huge with technology. Who will fix the machine when it breaks? Who will pay for the parts? What will happen to the data if it is lost, how will it be recovered? Are you going to sell your own brand or make contracts with HP, Gateway, and so forth (assuming they even consider your store)? Around where I live/work, there is a guy that owns his own PC business but he always comes to my store (Office Depot) looking for deals in order to keep the savings and then he sell the machines for full price. He's a good guy but the way he does business is very shaddy.
I'm not trying to kill your enthusiasm (feels like I did though) but if you can overcome these issues, by all means go for it.
Low margins are usually complete items such as the computers and some software. (around 5-10%)
Mid-range margins are usually the monitors, printers, extra stuff that they try to fluff with your order. I would also consider a PC's internal components as mid-margin. (around 15-25%)
Big-ass margins are cables and warranty. We get the cables for around $2-3 and sell for 10x that amount. Warranty is not that extreme markup but at around 2-3x what we get. (around 200-1500%)
You also have to be very careful with this business thing because the liability is huge with technology. Who will fix the machine when it breaks? Who will pay for the parts? What will happen to the data if it is lost, how will it be recovered? Are you going to sell your own brand or make contracts with HP, Gateway, and so forth (assuming they even consider your store)? Around where I live/work, there is a guy that owns his own PC business but he always comes to my store (Office Depot) looking for deals in order to keep the savings and then he sell the machines for full price. He's a good guy but the way he does business is very shaddy.
I'm not trying to kill your enthusiasm (feels like I did though) but if you can overcome these issues, by all means go for it.
but the thing is I should be able to make good money fixing computers...the geek squad charges $150 minimum if you look on their website and they will only do 1 thing if you want another thing done you gotta make another appointment and thats just annoying. compusa also charges a lot just to put together a damn computer from what ive heard...
Chernobyl1
[H]ard|Gawd
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- 1,674
Its quite a tough business to enter into from a smallscale startup.
Try not to hold stock on expensive items unless you really have to as if they depreciate in value, you can lose a ton of profit.
Get more than one supplier for each item in case you have an issue with a supplier or if they have problems/low stock/bad pricing.
This will also allow you to quote prices you can buy from other suppliers to try and keep prices down.
Write a decent database to handle contact data on all suppliers, buying prices from each supplier, selling prices which can be printed out/emailed and customer contact/sales data etc.
With well written queries you can quickly pull up any information/prices so it looks like you are on the ball when ordering on the phone.
MSAccess is a very good tool for a starting database.
Once you get good at using Access, you can write databases for customers and they will need to buy Office/Access to use it (if they dont know you can compile them)
Beware of suppliers that slowly bump prices up.
Try to get credit from suppliers so you can place orders with less hassle and give yourself a bit of breathing space financially.
Talk to them about credit when you first use them and ask what terms are needed to get it.
Make sure you sell support contracts for onsite visits/installations.
Everything else should be return to base unless you need to impress.
Theres more but my brain hurts.
Try not to hold stock on expensive items unless you really have to as if they depreciate in value, you can lose a ton of profit.
Get more than one supplier for each item in case you have an issue with a supplier or if they have problems/low stock/bad pricing.
This will also allow you to quote prices you can buy from other suppliers to try and keep prices down.
Write a decent database to handle contact data on all suppliers, buying prices from each supplier, selling prices which can be printed out/emailed and customer contact/sales data etc.
With well written queries you can quickly pull up any information/prices so it looks like you are on the ball when ordering on the phone.
MSAccess is a very good tool for a starting database.
Once you get good at using Access, you can write databases for customers and they will need to buy Office/Access to use it (if they dont know you can compile them)
Beware of suppliers that slowly bump prices up.
Try to get credit from suppliers so you can place orders with less hassle and give yourself a bit of breathing space financially.
Talk to them about credit when you first use them and ask what terms are needed to get it.
Make sure you sell support contracts for onsite visits/installations.
Everything else should be return to base unless you need to impress.
Theres more but my brain hurts.