Starting my own pc repair business, please read.

[Alvis]

I am starting a pc repair business. This is not meant to be a means of supporting myself, although I wouldn't mind if it turned into that. Right now, I would just like to learn more about pc's(I do have enough experience to repair them) and get experience with different kinds of pc problems. I would also like to earn a little extra income. This is going to be a "see how it goes" thing. Right now, I am not planning on making a lot of money, just not losing any.

I have already read up on the negative aspects of having your own pc repair business. But I believe my attitude of at first wanting to learn and just making a little money will serve me well. I have already read the book "Start Your Own Computer Business, the Unembellished Guide" by Morris Rosenthal. It has a lot of good tips, but of course it can't replace experience.

So far I have a dba license. Here some things I am looking for comments on:

1. Who do I get replacement parts from for maintenance on customer pc's? By mail, such as Newegg, or a place like Fry's or Best Buy? Or all three?

2. What kind of rates should I charge?
I am currently thinking $50/hour in home and $35/hour at my shop(garage). I probably need to raise these a little. I have noticed that some places like Best Buy charge a set fee for certain tasks(such as virus removal) but charge by the hour for troubleshooting. I live in the Dallas area.

3. When you buy and install a replacement part(i.e. modem), do you mark up the part's cost or do you charge what you paid?

I'll probably think of more questions later. Your responses would be appreciated.

Thanks.

PS
Sorry if this doesn't belong here.

[another_noob]

I'm curious, if someone walked into your shop with the problem that their windows keep crashing will you solve it by installing linux??

[WayStar]

I suspect that initially you'll use whichever hardware source fits best given the time/money factors. Need that PSU right away? Best Buy might be your best bet. Need it in a day or two, and trying to keep costs lower, even if it means waiting on the part? Use an online vendor. You'll want to ask your customer which savings is more important - time or money.

If you become successful at it, you may consider keeping certain items as inventory, and establishing long-range relationships with vendors as suppliers. But for starting out, you're going to need to get the parts any way you can.

As for what fees to charge, that would depend on your official level of experience, certifications, and what the market is like in your area.

I'm not sure which way works best, but I think that a labor rate separate from a parts rate is familiar to folks thanks to the auto repair field. If you only pass on your cost of the part (include shipping and taxes, of course), you can always show your receipts if a customer tries to claim you ripped them off.

No real answers for you, but more to think about...

-Waylena

[Alvis]

Originally posted by another_noob
I'm curious, if someone walked into your shop with the problem that their windows keep crashing will you solve it by installing linux??

Well, like it or not, as far as the average consumer is concerned we live in a Windows world(proof of a monopoly in my mind), so no.

However, if someone is already interested in Linux, I'd be in a good position to help them.

[cereal83]

1st thing I would do is get A+ certified. The book that you read to prepare for the test will teach you everything. How to replace motherboards, hard drives, cd roms. It will also teach you how to fix a computer or how to know if the hard drive is ****ed and needs changing. It basically teaches you everything. I am in Canada and it was paid for but I think it's around $150 US and you have to get 80% or higher to pass.

Best of luck with your own company. If you get lots os customers and do good work, I am sure you could make it into a carrer. Like charging somebody $50 to install a cd/rw or a dvd-rom and it should only take 5-10 minutes to accually put it in and then an extra 5 minutes to start the machine and make sure it works and then a extra 10 minutes if you screwed up. But if you know what your doing i say 15 minutes tops.
Charge somebody $150 to change the motherboard which should take 30-45 minutes as long as the install goes without any problems.

[pickarooney]

There's food for thought in that - why get paid €9 an hour to tell people on the phone how to fix their machines when you could do it yourself for ten times that!
Need a partner? :D

[voidinit]

I'm trying to start my own service support company here in Phoenix. It's hard....really hard... You see, most people and companies already have their own "computer guy". This "computer guy" isn't nescessarily in house, but he's the guy they've always called, so why would they call anyone different? Answering that question is pretty tough.

Originally posted by Alvis

1. Who do I get replacement parts from for maintenance on customer pc's? By mail, such as Newegg, or a place like Fry's or Best Buy? Or all three?


Hardware is competetive market. Basically, a good general rule is that you want to make a profit off any hardware for which you charge customers. However, you don't want to charge more than what the customers could get at Best Buy or Fry's. After all, you are spending your time finding where to buy the hardware, ordering it, and getting it shipped. Shouldn't you be compensated for this? On the other hand, why should the customer pay more? My advice is to register with an online warehouse company like Ingram Micro (http://www.ingrammicro.com). This and other companies out there that operate like IT co-ops. It costs you to register as a reseller with them, but you will find much better deals on all types of hardware, software, media, everything! Then you can resell this hardware with a small profit margin, and still match the price of Best Buy or whoever. No, you do not need to order in bulk to get the price cuts.

Also, register yourself as a Dell Reseller or an HP Reseller, or whatever reseller. The point is, on many occasions, a customer is going want you to put application X, that requires an XP upgrade, on a box that barely has the hardware to run 95. You are going to tell them they need a new box. Wouldn't you like to be the one that makes a (albeit small) profit margin on the new box they need to purchase? As a reseller your cost for this new box will be roughly 5% less than what the customer can buy the new box for directly. So you sell it at MSRP and keep the 5%.


2. What kind of rates should I charge?
I am currently thinking $50/hour in home and $35/hour at my shop(garage). I probably need to raise these a little. I have noticed that some places like Best Buy charge a set fee for certain tasks(such as virus removal) but charge by the hour for troubleshooting. I live in the Dallas area.

The hourly rate should be > 3X whatever your hourly wage is. Meaning, since you are you own boss in this endeavor, determine a fair wage (what an employer would pay you based on position/skills) and multiply that by a factor of 3. This could be considered your base rate. On big jobs, like a site upgrade, factor in +10% for overhead. For steady or repeat customers it is usualy wise to offer discounted rate. If you are ever expected to give a quote, estimate your time, then add 10%. You are going to burn that extra time quickly.


3. When you buy and install a replacement part(i.e. modem), do you mark up the part's cost or do you charge what you paid?


See above. Their are ways to mark up hardware without increasing the customers cost if they were to buy it from a competitor. That is fair.


Here are some general notes on good practice. Though my own business is thus far failing miserably, (did I mention getting clients is hard?) the company I work for allows me to manage my own accounts. This means that I'm pretty much left to my own devices for whatever solutions deploy.

Never, ever, ever let the customer settle for less.

A case in point are my many Point of Sale customers. Nearly half of my business is dedicated to POS systems. These are systems installed in Restauraunts, Bars, and Retail shops. This should throw a huge red flag up that screams high credit card traffic to both the administrator and anyone who may want the cc information. Prior to my arrival at the company my boss, who is 90% marketing and 10% tech savvy, offered the option of a $350 watchguard hardware firewall, or a $90 SMC home firewall. Which option do you think the customer chose? It didn't matter to them that a script kiddie with a couple hours of spare time could brute force or exploit our remote admin holes to get past the SMC piece of junk. All that mattered was to the buyer was that there was a cheaper option. In short, if something isn't going to suit the customer don't even offer it as an option! If they can't afford what they need, then that is their problem. Otherwise it's going to look bad on you when what you sold them doesn't work!

Don't grossly inflate your profit margin.

If a customer bought a high-end workstation from you for $1000 over retail, then learned that he could have gotten the same machine for $1000 less, would he recommend you to friends? Would he buy anything from you again?

You are thier CIO.

Remember when dealing with either home users or end users that aren't computer savvy that you are making decisions for them. Look into the future and make sure that whatever solution you set up for them will still suit their needs at least until the warranty runs out. Don't sell a small business or anyone a PC that will serve their needs for use and expasion for a year, when they expect to get three years out of the investment. See above. If they can't afford the right solution that's thier problem. Otherwise it will look bad on you when they don't get what they expected.

Always use what is best for the given job. Linux for servers. BSD for security. Mac for Graphics. Windows for Solitaire. :D

[DMR]

voidinit's responses are pretty spot-on; good recommendations there. Just to add a couple of suggestions:

- In tems of the hourly rate, that can vary widely from area to area, or even within a given area. Living in a major metropolitan area usually means that you can charge a higher rate than you could in a smaller city or rural area. Big cities have more people with big wallets, and those people will be willing to pay your ~$50/hr if it means their problem gets fixed. They will also send their friends and associates (who will have big wallets too) to you if you do a good job for them. The downside is that you'll have much more competition in a big city, and a lot of your competitors will be willing to work for much less than market rate, going under the asumption that a lower rate will garner them a higher volume of clients. For example, in my area (San Francisco) hourly rates for PC tech work range from $12/hr to over $60/hr. To get an idea of what the range is in your particular area, call or visit other support/repair businesses and, posing as a prospective client, find out what they charge. One thing you'll find is that many businesses simply charge a flat rate to perform common tasks like upgrading memory, adding a new hard drive, etc.


- As voidinit said, don't mark up hardware in an unrealistic way- the cold hard truth is that there is a huge profit margin in hardware sales. Do shop around for low-cost suppliers though, you can significantly lower your cost by doing so.

- Don't just focus on repairs- you can make a decent amount of quick, easy $$ offering services such as home/small office network installs. Projects like that will gain you long-term clients.

- Sell yourself!!! Visibility is key; just placing an ad in the yellow pages isn't going to make you stand out any more than the 8 million other people who are offering the same services. Plaster your local papers with (creative) ads; plaster your city's business areas with eye-catching flyers; get a few friends and go mailbox-stuffing, anything it takes- just get seen.

Good luck! :)

[teeitup]

A lot of good advice given here. Especially if you want to make a living at it.

I do quite a bit of work on the side for extra cash. Word of mouth is a powerfull thing. Sometimes you can find a niche. Mine seems to be doctor offices. They talk and I get referrals.

Since this isn't my "day job", I can pick and choose and set the rules. I only work evenings and weekends. This works out because I would only be in the way during the day. If something is very important I tell them to find a local shop for immediate attention.

I have a good relationship with a local computer store. They know me. I have given them a lot of business over the years. They will hold parts for me, order parts over the phone. They usually give me good advice on whats parts have been reliable for them.

My prices aren't the best. I'm the one doing the shopping and I tell them up front. I mark up everything. I don't rip them off but I am the one doing the leg work and my time is their money.
If they want to shop around and find the best prices and have the parts for me that's OK. I just don't guarantee it will all work.

I charge an "onsite" fee. Just for me to step into their office is X dollars. Then I charge by the hour or a fixed fee per PC. Depends on the tasks.

I never do cableing. I give out a buisness card of a guy that does good work. He will call me and ask what is needed. After that he bills the customer directly.

Again I'm not telling you mine is the best way. I don't have to do it so I have leverage.

Relationships with good people and businesses is critical. They can make you look good and they can make you look bad.

Again I don't run a business. My experience is from a side job point of view. I make a fair amount of money this way. I come from a service background that helps me feel comfortable in these situations.

Good Luck,

[DMR]

Originally posted by teeitup
I never do cableing. Hell, I do (and I do it well). If you ever get a network, A/V, or telco wiring gig that your guy can't take, send me a PM.

I'm starving enough to drive over to the East Bay if it puts some extra $$ in my pocket. :D

[dalek]

I used to work for a major office supply store, long time ago. They sold copier, typewriters and computers. It was a huge business locally. They charged $90.00 a hour for the "main frames" like NCR and such, $75.00 a hour for IBM PCs and $50.00 a hour for Apple stuff. Apple was easier to work on, usually two screws and off the top came.

I left there in early 90s. Those techs were highly trained though. We were dealers for IBM, NCR, Apple and a few others major ones at the time. We did NOT work on Compaq. The techs had to go to Apple, IBM, NCR and other schools for two to three weeks for whatever they were permitted to work on. It was very costly. I can remember one IBM class cost over $25,000 just for the class. No hotel or anything.

If you are good and can get a good reputation going around, you can and will make a good living off of it. People don't know how anything works anymore, they just know that they push a button and it is suposed to do it for them. Same with cars. They don't know how the brakes work, they just know how to push the peddle.

Wish you the best of luck though.

:D :D :D :D

[BaVinic]

There is an awful lot of great advice been given here, and I am impressed by that (nothing personal people, but a question like this normally gets a "And this has what to do with Linux" response. I am very glad to see that is not the case with this one.

Now for my 2 cents.

What works for me, may not work for you or anyone else, but it does work for me.

Buying parts wholesale is not something I do much of any more, most of the parts I buy these days come from newegg.com this is what I do.

I have the customer pay cost on the parts (with whatever shipping charges there are) and I charge them a flat rate to install/upgrade thier computers. as an Example, I charge 20.00 to install and configure a modem or nic or video card etc. if it is a hard drive with OS , I charge 75.00 .
cd roms (cd /rw or dvd /rw) I charge 15.00 this is just an example, I think you get the point. If I wanted to stock up on parts, I could make more money by buying wholesale and selling retail, but i don't want to have stock on hand, so I let them buy at cost ( either through me, or they can buy at a store and bring the parts here) and they still save money, and they are always happy with my service.

Word of mouth is the BEST form of advertising, there is none that beat it, if you make a client happy, he will tell 10 people, of that 10, you are more than likely to get at least 5 contacting you for computer solutions.

What I would add as actually advice is:

1: Be honest, don't sell someone something they don't need
2: be ready to answer those "Stupid" questions, over and over again.
3: be Fair, don't over charge on labor, also give good prices.
4: Recycle/Reuse by this I mean, someone wants to upgrade a motherboard from a 500 MHz to a 2.5 GHz, well reuse the old parts, don't trash them ( unless they don't work) build a small machine, and donate it, you can use the tax right off, and you would be helping others at the same time. or use the parts to build a collection of Linux servers for your house ( hehe, had to get that in there).

If you are an honest person, with even a small amount of personallity, you will do fine, just don't give up your day job just yet. I have been doing this for 20+ years, and i still don't have that Million dollar check on my wall :)

Good Luck with your new venture.


BaVinic

[Alvis]

Thanks for all the great feedback. I don't doubt my ability to fix a pc or to solve a problem, what I am lacking is experience in charging people for my work. I want to be fair, but I also don't want to rip myself off.

I have a question on a job I might me offered. It involves setting up a network so that three computers can use the same printer. Two of the machines are laptops and one is a desktop. Currently, there is no network set up. My suggestion to them will be to set up a wireless network as I really don't want to wire the house and I think it would end up costing them more than going wireless. Incidentally, the client does not have broadband they are sharing with all three machines so that is why they don't have a network. I think they will need a wap/router, 2 pcmcia wifi cards(for the laptops) and a pci wifi card for the desktop. (I am open to suggestion for different equipment set ups.)

Here are the prices I am thinking of charging(labor only, doesn't include parts costs):

Wireless LAN Access Point Hub $50.00
Wireless PC Card Installation (per system) $50.00
(This is from my tentative price list.)

Based on these prices, would you charge $200 in all(3x$50 for each pc card and 1x$50 for the wap/router) ?

Or would you cut them a slight discount because of setting it up all at one time?

I know that most of this I am just going to have to learn from experience. To reiterate, I would also like to be fair, yet also not rip myself off.

[gehidore]

i my self already have a successfull repair business in washington

i charge $18 +10 an hour after first hour +parts

i only buy from newegg/googlegear

and it seems to work out great i also build and sell custom rigs at or below wholesale for the norm of the market.

it tends to work in my favor just dont rush any thing always give a delivery date of 3 days or more past when things are reallly due. this gives a cusion for bad shipping or boken parts replacement.

when i buy modems or sound cards and such other cheaper items i go to techbargains.com and look for a rebate item then mark up half of the rebate to the remaining cost. less the rebate

[mdwatts]

Originally posted by Alvis
what I am lacking is experience in charging people for my work. I want to be fair, but I also don't want to rip myself off.

Or would you cut them a slight discount because of setting it up all at one time?


I did a lot of work for the convenience store owner in my building and once around 2 years ago I sold him a newer system with 17" monitor, upgraded one of his pc's to a PIII and fixed two of his broken pc's. With parts a labor, it came to $2500. with me getting less than $3 per hour for my work and a used a entire week of my own vacation from my full time job to do him a favor to fix his broken pc's. He then wanted me to accept $2000. of which I would have then worked for free and lost money on the hardware. He eventually paid the $2500 and then I refused to do any further work for him unless he pays my NOW $50 a hour charge with a 2 hour minimum.

As others have suggested, check around your area for pricing from competitors.

[The Whizzard]

Originally posted by Alvis
Thanks for all the great feedback. I don't doubt my ability to fix a pc or to solve a problem, what I am lacking is experience in charging people for my work. I want to be fair, but I also don't want to rip myself off.

I have a question on a job I might me offered. It involves setting up a network so that three computers can use the same printer. Two of the machines are laptops and one is a desktop. Currently, there is no network set up. My suggestion to them will be to set up a wireless network as I really don't want to wire the house and I think it would end up costing them more than going wireless. Incidentally, the client does not have broadband they are sharing with all three machines so that is why they don't have a network. I think they will need a wap/router, 2 pcmcia wifi cards(for the laptops) and a pci wifi card for the desktop. (I am open to suggestion for different equipment set ups.)

Here are the prices I am thinking of charging(labor only, doesn't include parts costs):

Wireless LAN Access Point Hub $50.00
Wireless PC Card Installation (per system) $50.00
(This is from my tentative price list.)

Based on these prices, would you charge $200 in all(3x$50 for each pc card and 1x$50 for the wap/router) ?

Or would you cut them a slight discount because of setting it up all at one time?

I know that most of this I am just going to have to learn from experience. To reiterate, I would also like to be fair, yet also not rip myself off. For the desktop, you can probably skip the wi-fi and wire it to the wireless router, save the customer a little $$. Most wi-fi routers that I know of do have a 10/100 output port.

[Alvis]

Originally posted by The Whizzard
For the desktop, you can probably skip the wi-fi and wire it to the wireless router, save the customer a little $$. Most wi-fi routers that I know of do have a 10/100 output port.

Thanks, wasn't thinking. :o