anyone here build computers for a living?

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DrPizza

Administrator Elite Member Goat Whisperer
Mar 5, 2001
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www.slatebrookfarm.com
Locally, I've seen at least 5 attempts to do this fail... If you're going to do this as a hobby, that's one thing... If you're going to do this as a business, you may be able to work out of your garage or basement UNTIL someone notices you're running a business out of your house and your house isn't zoned for commercial business. Not that this is definitely the case, or that someone will complain, but be prepared if this happens. In which case, in addition to your profits covering gas money, they'll also have to cover rent and utilities for a shop.

I see no reason against doing this as A HOBBY and making a few bucks off other people... if people respect your skills with computers, it's not hard to convince them that they may be better off selecting the components they want.

As far as getting parts cheap... take advantage of cheap prices after rebate... But, most rebates have limits of 1 or 2 per person/household. In these cases, you can probably undercut Dell and others, but if you're just paying regular retail, or slightly less than regular retail for most of the components, you're not going to be able to make much (if any) of a profit. Plus, check out the price of Windows XP. And, most users use some sort of office or word processing program... add in the price for these two categories, and it's difficult to make gas money. As an example, look for the thread on the computer Aldi's had (medion)... someone in the deals forum on anandtech figured out the cost to build that system from scratch, using components purchased at the *best* deal price found in a while for each component, and Aldi's was *cheaper* than the do it yourselfer could do. Her post was criticized for underestimating the cost to build the system.

Good luck.
 

Electric Amish

Elite Member
Oct 11, 1999
23,578
1
0
Originally posted by: fonzinator
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
Wow! A bunch of pessimists in the crowd today! :D 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. :)


Yeah, they got started in someone's garage 20 years ago!!! BEFORE there were any big OEM companies to compete with.

amish
 

DrPizza

Administrator Elite Member Goat Whisperer
Mar 5, 2001
49,601
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www.slatebrookfarm.com
Originally posted by: fonzinator
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
Wow! A bunch of pessimists in the crowd today! :D 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. :)

Sorry, but I disagree. "How do you think these companies got started?" They got started when there was a huge demand, but few choices. There aren't a lot of new twists that you can add to selling computers... the niches have been filled.

But, so as not to be too negative about doing it as a business.... I *think* you could be successful if you sold your services for networking computers.... Building computers could be a side job (more or less) that you could do. You can also offer services to upgrade computers. (ie if you can get a bunch of 48x burners for $20 apiece, advertise that you will install 48x burners for $75 PLUS give the purchaser a 1 hour lesson in burning CD's and throw in 50 blank CDR's) That amounts to about $30 per hour, if the cdr's are $10 for 50.
(75 - 20 - 10 = $45 for install and lesson). Note that I calculated 1/2 an hour for install... That's based on the people I've run into with HP and Compaq computers.... egads, those are a pain in the neck!
Someone suggested networking for small businesses.... why not do networking for homes? More and more homes are passing the old computer on to the kids when the parents get a newer faster computer... Majority of these people don't have a clue how to network their computers together... tell them about the advantages (shared internet, etc.). You don't have to charge much... cost of components, plus $25 or more per hour (depending on the market area). Plenty of gas money!


Hmmmm.... maybe I've figured out my summer job?! Plus, I can advertise "certified teacher will instruct you to..." :D
 

newbiepcuser

Diamond Member
Jan 1, 2001
4,474
0
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Sure, why not?

You better lay out some rules for warranty issues, tech support and how much to charge for house calls, loaning your backup copy of OSes, Office, or "I must have PhotoShop" etc.



Just be stern on your rules. I'm sure you can earn a couple bucks. Just keep as hobby and you'll do fine.





 

aswedc

Diamond Member
Oct 25, 2000
3,543
0
76
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.
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

500/yr? You could work minimum wage and make more than that in a month. Is it really worth the time and effort?
Hell yes its worth the time and effort. For the time I actually spend on these things, its probably 50/hr. Hes just asking for "gas money", if he needs a real income of course you have to get a real job, no easy way of getting around that
 

yoda291

Diamond Member
Aug 11, 2001
5,079
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0
Originally posted by: aswedc
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.
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

500/yr? You could work minimum wage and make more than that in a month. Is it really worth the time and effort?
Hell yes its worth the time and effort. For the time I actually spend on these things, its probably 50/hr. Hes just asking for "gas money", if he needs a real income of course you have to get a real job, no easy way of getting around that

that 50/hr however, is spread out. Building a machine might take u an hour or so...assuming relatively low rate of incidence and very quick software deployment. Tack on the task of managing software licenses, those 2am "You machine fscked up and you must help me" calls, and god help you the day you get a damaged or bum shipment. 50 bux an hour doesn't seem all that tempting.

All in all, I'd still say it'd be better just to get an afterschool job or something. or do freelance work. Even better, network some small businesses and have them sign onto a service contract. you could get about 500/month off the service contract alone...and be guaranteed x hours of work per month too.
 

psteng19

Diamond Member
Dec 9, 2000
5,953
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Why is everyone mentioning retail or "slightly" less than retail?

If he's serious about this, he would be looking into getting a resellers license so he can purchase at distributor wholesale prices.
 

Jzero

Lifer
Oct 10, 1999
18,834
1
0
Originally posted by: rpbri2886
I am not trying to get rich off this, I am just trying to make myself some gas money.

Mow lawns and save yourself a boatload of headaches and up-front costs.
 

Gunbuster

Diamond Member
Oct 9, 1999
6,852
23
81
If he's serious about this, he would be looking into getting a resellers license so he can purchase at distributor wholesale prices

You do know markup on most computer hardware is less than 5%

Only place you can markup like crazy is little stuff like cables and ink
 

Apathetic

Platinum Member
Dec 23, 2002
2,587
6
81
Originally posted by: Geekbabe
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.

I completely agree. I have some friends who make decent money on the side doing network installations for small businesses. Be careful about building PCs for people who have no clue. Eventually, they WILL break it (delete stuff from system32, etc) and then BLAME YOU for a "defective" computer.

Dave
 

LeStEr

Diamond Member
Dec 28, 1999
3,412
0
0
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?

 

BHeemsoth

Platinum Member
Jul 30, 2002
2,738
0
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Thanks for the help guys, I'm leaning now more in the direction of in home service and classes, and maybe a little bit of PC building on the side.

BTW, I work at Staples 35 hours a week, but I know I wont be able to keep up that big of a schedule next year.
 

Soybomb

Diamond Member
Jun 30, 2000
9,506
2
81
If you like messing around with hardware why don't you get a job at the local computer store? You can make a few bucks on the side without the headaches, and you'll have something to put on your resume and might lead to something else.
 

BHeemsoth

Platinum Member
Jul 30, 2002
2,738
0
76
Originally posted by: Soybomb
If you like messing around with hardware why don't you get a job at the local computer store? You can make a few bucks on the side without the headaches, and you'll have something to put on your resume and might lead to something else.

there arent really any local computer stores...
 

I was thinking about this last night. If you venture into something like this you'll need to find your niche. Maybe something like custom home theater PC's, and some high end gaming machines. On the gaming machines, I believe there's still a good market. Not all gamers know how to build their own PC's. But with the home thater concept you could expand it to include design/installation/and consulting of the rest of the home theater....if you know this sorta thing.
My point is, you need to find something that people need, or want badly, plus something unique that can't be had right away at the local superstore.

One more thing to consider as a means of follow up income would be service contracts, or small in home classes. Whatever you do I wish you the best of luck.