Should I become a reseller?

[rpoling]

I'm a mainframe systems programmer, expecting my job to be sent offshore within the next year or so, and I'm looking to expand my skills to:
- be ready for the eventual 'downsizing'
- provide extra income while my children are in college.

I've been a PC hobbyist from the beginning, building many for friends and family, as well as fixing hardware and software problems. I have no PC certifications.

My question for you PC techs - Is there any money in the PC business - either as a consultant (Repairs / Networking / etc), or as a reseller with a web storefront? Can a web reseller actually make a living, or is it very difficult to compete with the giants like newegg.com?

Thanks for any and all insights!

 

[Zepper]

Newegg is kind of like WalMart - they sell lots of stuff, but nobody working there has a clue about the stuff they sell (or if they do, they won't let the customer know). IOW, no tech support.
. So if you can find a niche where you can provide expertise along with (or built into) the product, you could do well. The hard part is cutting through the clutter. That's where "Guerilla Marketing" techniques help. There are at least two books out there with GM in the titles that can help with that.
. IAC, it won't be easy as the Web is the land of "something for nothing."
.bh.
Almost :beer: time!

 

[bendixG15]

I've seen a lot of smart guys try to make it in the reseller business
and they don't make it. Big reason is that the inventory kills them.
You can't keep inventory, the prices drop too fast. And too much competition.

Also have known a few programmers who took a year off to write some
software package, and then they didn't have the marketing talent to sell it.

Only possible way as a consultant is if you can get hooked up with a
large corporation, they have the deep pockets. Forget the general public,
they don't pay.

Thats my opinion in a nutshell and I have a few scars to back it up.
Good Luck.

 

[cirocorby]

Originally posted by: bendixG15
I've seen a lot of smart guys try to make it in the reseller business
and they don't make it. Big reason is that the inventory kills them.
You can't keep inventory, the prices drop too fast. And too much competition.

Also have known a few programmers who took a year off to write some
software package, and then they didn't have the marketing talent to sell it.

Only possible way as a consultant is if you can get hooked up with a
large corporation, they have the deep pockets. Forget the general public,
they don't pay.

Thats my opinion in a nutshell and I have a few scars to back it up.
Good Luck.

 

[cirocorby]

Originally posted by: bendixG15
I've seen a lot of smart guys try to make it in the reseller business
and they don't make it. Big reason is that the inventory kills them.
You can't keep inventory, the prices drop too fast. And too much competition.

Also have known a few programmers who took a year off to write some
software package, and then they didn't have the marketing talent to sell it.

Only possible way as a consultant is if you can get hooked up with a
large corporation, they have the deep pockets. Forget the general public,
they don't pay.

Thats my opinion in a nutshell and I have a few scars to back it up.
Good Luck.

 

[CrackityJones]

The real problem with being a reseller is the end user. You need to be ready to support anything that they could possibly need. If you can't that's when the big boys got you. Why should I buy a computer from you, especially if your tech support is non existant. I'm not saying that you couldn't do it, but when someone's college kid is trying to get their system to boot at 4:30am because they have a paper due in 4 hours and you aren't awake enough to help them or don't even answer the phone, you just created yourself a bad reputation for not being able to help your customer.

Like someone posted saying, you need the big company to be your gravy train, but that's not that easy to do.

I hope that is at least a little insightful

 

[Workin']

I have my own IT consulting company that I run as a side business (I have "real" full-time job as well).

I make enough money from consulting to pay the payment, insurance, and never-ending stream of modifications on both a 3-series AND a 5-series BMW, and to pay for my insane computer habit. I've been in business for a little longer than 3 years.

Being a reseller with a store (either B&M or on the web) is no way to live. I do sell anything and everything computer-related, but I buy it from newegg or elsewhere and then mark it up (a lot ). I NEVER have anyone come to me "just" for a computer. There's always some problem or special case that needs to be resolved. If they want just a computer, I tell them to call Dell.

I have 5 core small business clients that rely on me to keep their computers/networks/website/etc running. In addition I have about a dozen other "regular" clients. So far all have been obtained by word of mouth and recommendations from other clients. I've never had a client that I've only done one job and then never hear from them again. I have done zero marketing. None. I have a web site but it has been neglected for nearly 2 years and no one has noticed.

A lot of it has to do with your personality. If you are not people-oriented, you will fail as a consultant no matter how good your technical skills are. It helps immeasurably if you can explain technology so someone who's head is filled with rocks can understand it. And of course if you can figure out weird problems quickly that helps too! You have to know a lot about a lot of things, or at least know where to find answers while not looking stupid in front of the client.

Many small businesses have been burned badly by greedy and incompetent "consultants". I've found that being up-front about costs and potential problems goes a long way. As does occassionally working for free on those really thorny problems that take longer than expected. That builds a lot of client goodwill, and is the kind of stuff they tell their peers about, and makes them happy to pay their bills.

Bills - that's another thing. There's a LOT that goes with having your own business besides doing the work. Getting people to pay, or having the confidence to convince them to pay when they really don't want to, that can be difficult. At first I hated that part, many people are not comfortable talking about money - especially asking other people for money. Now I don't mind at all. And taxes, and all that other stuff. That's harder than the technology side of the business! I'll say one thing - it's never too soon to start learning a little about accounting, taxes, insurance, and all that other stuff that goes with running a legitimate business.

Well, I rambled on a little long here, if you have any specific questions post them or PM me if you like.