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anyone here build computers for a living?

B

BHeemsoth

Platinum Member
I am a full time high school student and I am looking into staring my own company for building and selling computers. I have a few questions for people who do this now.

How much do you markup your prices to compensate for labor?

What are some good things I can do to cut costs?



Thanks for your help,
-Brian
 
Truthfully good luck competing with dell. Software can kill a deal because they get it so much cheaper than what we can get it for. Newegg has some of the best prices on the parts.
 
I hate to break it to you, but it's nearly impossible for you to make a business like this work. If you want to build cheap computers for mom & dad types to get online or use word, why would they buy from you when they can get a Dell with a nice fat warranty for next to nothing? And if you're planning on building super-fast gaming rigs which appeal to the already computer-savvy, why would they buy from you when they could build themselves for less?
 
Originally posted by: rpbri2886
I am a full time high school student and I am looking into staring my own company for building and selling computers. I have a few questions for people who do this now.

How much do you markup your prices to compensate for labor?

What are some good things I can do to cut costs?



Thanks for your help,
-Brian
Click to expand...

you're about 5 years too late.
 
Originally posted by: werk
I hate to break it to you, but it's nearly impossible for you to make a business like this work. If you want to build cheap computers for mom & dad types to get online or use word, why would they buy from you when they can get a Dell with a nice fat warranty for next to nothing? And if you're planning on building super-fast gaming rigs which appeal to the already computer-savvy, why would they buy from you when they could build themselves for less?
Click to expand...

alienware is still in business
 
Truth hurts. If you want to to build computers for a living get a job at a moms and pops shop that builds them.
 
Originally posted by: ElFenix
Originally posted by: werk
I hate to break it to you, but it's nearly impossible for you to make a business like this work. If you want to build cheap computers for mom & dad types to get online or use word, why would they buy from you when they can get a Dell with a nice fat warranty for next to nothing? And if you're planning on building super-fast gaming rigs which appeal to the already computer-savvy, why would they buy from you when they could build themselves for less?
Click to expand...

alienware is still in business
Click to expand...
So is Falcon Northwest. 2 more reputable companies that someone would go to before buying from the kid down the street...
 
As others have said, the time when you could undersell the big names is long gone.

The people who can appreciate hand selected components will build their own, & the people who can't will get a cheaper box (with better support than you can hope to provide) from Dell.

Don't even try, you can't win.

Viper GTS
 
The only way I make any money off this is to fix stuff for them and build the occational computer for somebody who want to know theyre getting a good system... A really good machine can be built for around 1200 bucks with printer and flat panel and what not (these are the types that dont care about software). Software is what is going to kill you. If I were you I would get into the fixing computers and teaching people how to use them one on one, this isnt enough work to do it fulltime though.
 
Originally posted by: rpbri2886
I am not trying to get rich off this, I am just trying to make myself some gas money.
Click to expand...

There are plenty of good ways you can get gas money, this is not one of them.

Repair and/or teaching would be MUCH better (be careful on the repair, though, you don't want to play tech support).

Viper GTS
 
Don't do it. I speak from experience. Way too much competition from business that have more resources than you. And if you try to compete by offering cheap prices, you'll do a lot of work for next to nothing and get tired of it quickly. Building computers is so easy now everyone does it, look for something where you actually can get paid for your expertise.
 
Networking,software solutions and support are the only way to make any real money these days.Some of these end users feel that paying you a couple hundred dollars one time means they own you for life.
 
Originally posted by: ElFenix
Originally posted by: werk I hate to break it to you, but it's nearly impossible for you to make a business like this work. If you want to build cheap computers for mom & dad types to get online or use word, why would they buy from you when they can get a Dell with a nice fat warranty for next to nothing? And if you're planning on building super-fast gaming rigs which appeal to the already computer-savvy, why would they buy from you when they could build themselves for less?
Click to expand...
alienware is still in business
Click to expand...

Alienware gets great OEM pricing from MS, too.

There is no way for you to compete in the marketplace.
 
I build Computers on the side and I also do Networking and Consulting. I get good business because I Build the computers for the people I do networking for.

Ausm
 
Originally posted by: ausm
I build Computers on the side and I also do Networking and Consulting. I get good business because I Build the computers for the people I do networking for.

Ausm
Click to expand...

That is another way to go but it seems to me to make better sense profit wise to basically sub contract the hardware end to Dell.
 
Originally posted by: rpbri2886
I am not trying to get rich off this, I am just trying to make myself some gas money.
Click to expand...
Don't listen to everyone in this thread, building computers can bring in some decent gas money, I get maybe $500 or so a year and I don't advertise at all, just do it for the people that ask for it. You aren't going to get any business competing with the big OEM's or even local shops, but what you have to do is use your connections. Friends, family friends, just try to get the word out that you are awesome at building and fixing computers and they will come to you
 
Originally posted by: Geekbabe
Originally posted by: ausm I build Computers on the side and I also do Networking and Consulting. I get good business because I Build the computers for the people I do networking for. Ausm
Click to expand...
That is another way to go but it seems to me to make better sense profit wise to basically sub contract the hardware end to Dell.
Click to expand...

I build Custom computers using the best parts available, I sit down with my customers and their businesses order the parts and I put the systems together and integrate them with either new networking or Existing networks. My clients prefer to have computers which a readily upgradeable and with DELL computers that is not the case.


Ausm
 
You won't be able to make a living from it, but you can get some decent money. You probably will need to get into networking, and be willing to wire networks for small companies. Plenty of companies are still using dial up. So you need to find a company in your area that sells fractional T1s or other high speed internet options to companies, and then use them.

Building computers, no. Supplying internet and networking, yes.
 
Like any other business, you have to bring something to the market that the competition doesn't have. You won't be able to compete with Dell on price, but you can compete on service. This means talking to your customers and understanding what their needs are.

To set your margins, you'll need to figure out how much it's going to cost you to build the box, but also how much time and effort it will take to sell it, install it, and support it after the sale. I've worked with several integrators, and that can range from 15-80% mark-up depending on the level of service and complexity of what you're doing.

Realize too, that some experience in business is necessary to make something like this successful. People won't take anyone seriously if it's obvious that you're just some kid who's trying to sell computers like you'd sell lemonade on a street corner...

Good luck.
 
Originally posted by: aswedc
Originally posted by: rpbri2886
I am not trying to get rich off this, I am just trying to make myself some gas money.
Click to expand...
Don't listen to everyone in this thread, building computers can bring in some decent gas money, I get maybe $500 or so a year and I don't advertise at all, just do it for the people that ask for it. You aren't going to get any business competing with the big OEM's or even local shops, but what you have to do is use your connections. Friends, family friends, just try to get the word out that you are awesome at building and fixing computers and they will come to you
Click to expand...

500/yr? You could work minimum wage and make more than that in a month. Is it really worth the time and effort?
 
Originally posted by: rpbri2886
I am a full time high school student and I am looking into staring my own company for building and selling computers. I have a few questions for people who do this now.

How much do you markup your prices to compensate for labor?

What are some good things I can do to cut costs?



Thanks for your help,
-Brian
Click to expand...
Wow! A bunch of pessimists in the crowd today! 😀 I may have a few words of advice for you Brian. First, these guys are wrong in that you cannot compete against Dell, AlienWare, ect. Tell me fellas, how do you think these companies got started? You think they started out as some hulking beheamoth of a company with purchasing power out the wazoo?? No, they probably all started in someone's garage (or dorm room in Michael Dell's case). Brian, you can compete! In fact, I know you can offer things that these larger companies cannot. Mainly, customer service. This is one area in which you can always raise the bar above the next guy. Do yourself a favor and read Raving Fans: A Revolutionary Approach to Customer Service by Ken Blanchard and Sheldon Bowles. It shows how the little guy can compete and is an amazing read.

One thing you should do is take a careful look at Alienware, Dell, ect. and brainstorm how you can do something better than these guys. You probably won't beat Dell's price, nor Alienware's look, but look at every angle. Ask friends to help you brainstorm. If you need help, I'll even volunteer my brain. 🙂

All these naysayers can shove it! Go Brian!!....and remember the little people when you make it to the top. 🙂
 
Not really. To really setup a company presense requires a LOT of work and some seed money.

Originally posted by: yoda291
Originally posted by: aswedc
Originally posted by: rpbri2886
I am not trying to get rich off this, I am just trying to make myself some gas money.
Click to expand...
Don't listen to everyone in this thread, building computers can bring in some decent gas money, I get maybe $500 or so a year and I don't advertise at all, just do it for the people that ask for it. You aren't going to get any business competing with the big OEM's or even local shops, but what you have to do is use your connections. Friends, family friends, just try to get the word out that you are awesome at building and fixing computers and they will come to you
Click to expand...

500/yr? You could work minimum wage and make more than that in a month. Is it really worth the time and effort?
Click to expand...

 
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