considering starting a custom PC building service in my local area

[waggy]

Originally posted by: OOBradm

Originally posted by: tranceport
repost.


This thread will end up with you realizing you cannot compete with dell.

link to original?

And secondly, I just checked newegg prices for a computer similar to one at the local BB, and I could build it for $400 less... with better parts....

And let me add, for a $500 computer, yes, the margins are so low that its not worth it. but for computers that are ~$1000, I've been noticing that I can usually build them for 100-200 less

you can NOT build a computer for $400

 

[PingSpike]

Originally posted by: Cdubneeddeal
Not worth it. The ones you're going to build a higher end computer are most likely smart enough to build their own from parts from Newegg, the rest will just spend $500 at Dell or Gateway for the whole shibang plus warranty and service. Sounds like a grand idea and we've all thought about it but the trouble is more than the benefit.

Thats the trouble...when you get to the high end your potential customers are sliced down because only hobbiests really want those things...and they know enough to build them themselves and probably enjoy it.

 

[PingSpike]

A better business model would be saying you'll diagnose any computer problem for $50, and then just tell them to buy a new computer after looking at their screwed up spyware box.

 

[fuzzybabybunny]

Originally posted by: OOBradm

Originally posted by: tranceport
repost.


This thread will end up with you realizing you cannot compete with dell.

link to original?

And secondly, I just checked newegg prices for a computer similar to one at the local BB, and I could build it for $400 less... with better parts....

And let me add, for a $500 computer, yes, the margins are so low that its not worth it. but for computers that are ~$1000, I've been noticing that I can usually build them for 100-200 less

You are probably completely forgetting about the cost of the operating system.

 

[BigRig04]

Custom PC building service is a nice side project for your computer repair business. Repair business you get labor costs and parts mark-up (but the markup has to be very small).

All things said and done, with almost any kind of industry out there (this is IMHO) that repair will make you more money then sales. It's cheaper for you and more expensive for the customer usually.

 

[piasabird]

Probably can make more money on service for dell owners. Another side line might be MP3 Players or wireless home networking installation. How about yearly cleaning service. Just need a screw driver and a can of compressed air. For Cheap computers you may as well just sell them some kind of computer that you order and tack on $20.00 or more for profit. Or Sell them a 3 year Maintenance Contracts for $100.00.

 

[ultimatebob]

The problem with this plan is that most people are cheap bastards and just want whatever the $399 Dell special happens to be at the game. Many of the hard core PC gamers who actually want a fast computer are smart enough to build their own, so your remaining sales demographic is kinda small.

It would make for a decent side business, but don't expect to earn a living from it unless you move to a major city.

 

[teclis1023]

I agree with dsity.

Start collecting old computer, refurbish them and sell them "as is" It's almost 100% pure profit, and you don't have to worry about support issues.

You'll find hundreds of people interested in a $250 Dell system that you simply reformatted and cleaned out.

 

[waggy]

Originally posted by: fuzzybabybunny

Originally posted by: OOBradm

Originally posted by: tranceport
repost.


This thread will end up with you realizing you cannot compete with dell.

link to original?

And secondly, I just checked newegg prices for a computer similar to one at the local BB, and I could build it for $400 less... with better parts....

And let me add, for a $500 computer, yes, the margins are so low that its not worth it. but for computers that are ~$1000, I've been noticing that I can usually build them for 100-200 less

You are probably completely forgetting about the cost of the operating system.

yeap as i said. there is no way he is going to build a computer for what he thinks.

most kids who want to do this just price out the hardware (useing cheap crappy stuff) and forget to add the software.

so yeah they can build the machine for a about what dell does. but then they need to add $200 for the OS.


not to mention he is going to front a LOT of money to even get started. few are going to be willing to fork over the money and wait fo ryou to get the parts and build it.

 

[ultimatebob]

Originally posted by: waggy

Originally posted by: OOBradm

Originally posted by: tranceport
repost.


This thread will end up with you realizing you cannot compete with dell.

link to original?

And secondly, I just checked newegg prices for a computer similar to one at the local BB, and I could build it for $400 less... with better parts....

And let me add, for a $500 computer, yes, the margins are so low that its not worth it. but for computers that are ~$1000, I've been noticing that I can usually build them for 100-200 less

you can NOT build a computer for $400

You can't do it if you're including the monitor and a copy of Windows, anyway. Once you eliminate those expenses, you can get the price down to $300 fairly easily.

We used to do NewEgg "price wars" in General Hardware, and I've seen some impressive builds sans monitor and OS priced in the $350 range.

 

[FoBoT]

you won't make any money

people will expect 24/7/365 tech support including helping them with crap that you have nothing to do with

they'll go to a web site and it will not work right, something like needing flash installed and they'll call you to fix their computer



don't do it

 

[alkemyst]

Originally posted by: OOBradm

4) Also, feel free to call us within 30 days after we deliver your new computer regarding any questions or problems you may have in reference to installation and/or operation of your new customized computer

oh trust me, long after 30 days is up you will hear from them.

Originally posted by: OOBradm
Now, basically, i just plan on ordering the parts from newegg, tigerdirect, etc and then building the computer for them and charging a little over cost so I make some money.

My big concern is what about return/replacement policy. Is it going to be an issue with newegg if, say, something goes bad and my customer tries to RMA the part with the receipt with my name on it? I've also considered keeping all of my customers' receipts on file and if anything happens they can go through me for replacement.....

any thoughts on this?

Businesses don't buy retail to resell. This is the first place your model fails. Second you won't compete with dell/hp and the like selling $300-400 boxes and those wanting to drop mid 4 figures will usually go Dell anyway or Alienware types.

The market has dried unless you want to offer 'buy here pay here' PC's to poor/no credit people and deal with that mess.

There is a big market in repair work, but you have to be available 24/7 usually.

 

[SludgeFactory]

It would have been easier 15-20 years ago. You'd probably have better luck with selling services as needed instead of hardware, as others have suggested.

Based on past horror stories here, I wouldn't want any part of troubleshooting random peoples' email/porno boxes. Be prepared to deal with nasty attitudes, threats, and completely unrealistic demands from your customers -- and that's if they're your friends & family

 

[mrrman]

PC parts drop like a rock in price. before you know it your high end parts on the shelf are now old and outdated. I build PC's for friends and I ask them what they want and its intended use, I order parts as needed.

 

[intogamer]

Originally posted by: dsity
its a little off subject but

i know of a guy who began selling refurb dells at flea markets and such...eventually he started making $2000-5000 every weekend, eventually opened up his own store (in austin,tx) he now makes about $15,000 a month mainly targeting the hispanic population.

Yup. THere are plenty of other ways to make money. You just gotta the most efficient and profitable environment.

 

[TheKub]

Remember Dell and other major manufacturers have other revenue models. Id be impressed if the sub $500 econo-boxes they sell make them much profit by themselves.

If you ever had a PC from one of them you know how much crap comes preinstalled (which is why most tech people elect for fresh install) well most of those companies PAID Dell to install that on the machines. Ever looked in the box that your PC came in and saw the dozen or so brochures and fliers? Yep they paid to be put there too. They also make money on extended warranties and accessories.

Best bet would be to offer services like virus/spyware removal or repair service.

 

[Ns1]

I don't see how you can compete based on the cost of the operating system alone

 

[waggy]

Originally posted by: SludgeFactory
It would have been easier 15-20 years ago. You'd probably have better luck with selling services as needed instead of hardware, as others have suggested.

haha yeah 10+ years ago it was great. you could buy a new pc for around $2k. BUT i could build one (with os) for around $1k.

did that on my own eventually started a succesfull business. man i loved it.

people had no idea that they could get teh same pc built for half (sometimes 1/4) the price.

 

[natep]

I thought about doing something like this, and then a friend referred me to someone (i was told she wanted to spend to get top of the line, so i figured i could save them money and make some profit). she called, we talked for about a half an hour, and then mentioned she was going to go for a $700 sale somewhere and wanted to save money off of that by going through me. I told her to just buy it and hung up the phone.

 

[tcsenter]

Originally posted by: natep
I thought about doing something like this, and then a friend referred me to someone (i was told she wanted to spend to get top of the line, so i figured i could save them money and make some profit). she called, we talked for about a half an hour, and then mentioned she was going to go for a $700 sale somewhere and wanted to save money off of that by going through me. I told her to just buy it and hung up the phone.

This is very common. I really loved the ones who would tell you their budget was $1200, bring you an advert or specs from an HP or DELL, so you spend 30 ~ 40 minutes checking online to find the prices/components you need to build an equal or superior system for a comparable price. You call them back to tell them the specs, and they say "we just decided to buy that $600 deal that Dell has on TV. Thanks, anyway."

GAAHHRRR!!!!

To paraphrase a line from Bruce Almighty, 'people don't have a f-cking clue what they want'.

They will use you to help them decide what they want, then buy it from someone else or pull something like "but HP has it for $200 less", even though you personally spent a f-cking hour answering all their questions and helping them decide what was best for them.

 

[ch33zw1z]

oh man, good luck...you're gonna need it.

 

[RagingBITCH]

No offense but everyone and their mom does this. Unless you're a good networker it's not going to be very profitable or worthwhile.

 

[evident]

do it on a small scale, less than part time business. work from your basement. seriously, i do it and it works great. i tell friends and family that if they want a cheap pc get a dell, but if they want anything mid to highend , come to me, and some do, others buy dell. but the ones that buy off me i make a couple extra bucks, and they refer their friends to me. again, it's a real small scale to have some extra bucks. but it works ! the naysayers here definitely have valid arguments, but its still a great way to make extra cash on your spare time !

 

[xanis]

Good luck with that. Make sure you advertise good tech support because that can be a huge selling point and something to set you aside from the big companies.

 

[Fern]

Originally posted by: OOBradm

any thoughts on this?

If you tailor to smallish business that need their PCs networked and repaired, might be do-able.

Bigger businesses have inhouse peeps. Smaller ones don't, and can't handle ordering several Dells and installing their office software and geting it all networked and auto backups functioning etc.

You can also branch into POS (point of sale systems). Sell support packages and the markup on the HW side is much better.

Fern