I have been running a computer repair business for around 2 years now. I now want to start my own line of computers - like Dell, Gateway, and Alienware. I have a name - its a great name - and I know my buisness model - but where do I start when it comes to parts. How did these companies start - what sort of money am I looking at to start this up. I live in the DFW area - and have a few customers who need computer built. However, I am trying to build a website that will allow people to customize a PC to their own likeing, so this will be a huge part as well. Thanks to all in advance!
Starting a PC business - need some help
- Thread starter OHFunds
- Start date
Before everyone starts flaming the hell out of you, I'll try to give you a starting point. You need cash, and the only way to do that is through raising capital, through business loans and private investors. To get them to give you money you need an awesome business plan. Start by googling and then go to the book store for deeper reading.
well....
u better start building CREDIT line w/ Distributors...
I work for a PC CASE + PSU manufacturer. That's my #1 suggestion.
know ur Monthly Quantity.
Find distributors near by.. and start gaininng reputation w ur svcs
u better start building CREDIT line w/ Distributors...
I work for a PC CASE + PSU manufacturer. That's my #1 suggestion.
know ur Monthly Quantity.
Find distributors near by.. and start gaininng reputation w ur svcs
When I was about 16 (10 years ago... damn I'm old) I had a lot of people requesting upgrades, new machines, etc. I found a local wholesaler, went to the tax office in my city and got an appropriate tax identification number for resale. I was paying probably 30-50% less than what you get for retail on the parts, and I was making a little extra in labor.
If you can match supply with demand you won't need that much capital and thus no inventory. Take the orders and buy the parts as necessary; somewhat of a lean manufacturing process. That might get you started at least.
Just look for a wholesaler that's local or at least nearby. You don't want to have to deal with shipping parts.
Good luck!
If you can match supply with demand you won't need that much capital and thus no inventory. Take the orders and buy the parts as necessary; somewhat of a lean manufacturing process. That might get you started at least.
Just look for a wholesaler that's local or at least nearby. You don't want to have to deal with shipping parts.
Good luck!
1. Start with the premise that nobody makes money on hardware
2. Make sure your services are valuable enough and profitable enough that they will subsidize your hardware business
3. Preapre youself to realize negative economies of scale
4. Maintain positive energy while socking away enough for a good bankruptcy lawyer.
2. Make sure your services are valuable enough and profitable enough that they will subsidize your hardware business
3. Preapre youself to realize negative economies of scale
4. Maintain positive energy while socking away enough for a good bankruptcy lawyer.
Starting your own line is a bit ambitious for only a few customers that need a system. Think of it this way: people buy Dell for the warranty, or they believe for some reason (lots of advertisement) that Dell makes good stuff. Where are you going to market your stuff to compete with Dell? TV? You would need tens of thousands of dollars, if not hundreds.
I'll second that with the notion that you can't really compete with dell in terms of pricing, and you'll never win enough customers by just winning over quality of products. What you have to differentiate yourself is service. Try getting small companies that needs their systems looked at on a regular basis, and provide them with some sort of consulting service. Money's good in that area, and if you do your job well, they'll spread the words and you can slowly expand, and eventually push your own branded products.
My 2c.
So
Lifer
- Jul 2, 2001
- 25,923
- 17
- 81
Why would you jump into a field where the profit margin has completely disappeared in the last decade. Methinks you're thinking like a computer nerd and not a businessman. I predict that if you seriously jump into this, you stand a good chance of losing your shirt.
rhino56
Platinum Member
- Oct 6, 2004
- 2,325
- 1
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tough business to get into, even the laptop business has gotten highly competitive.
its hard to start and compete when big places sell the same thing at lower than what you can buy it for.
so usually the work you put into it is for free, its not like it was 5 or 6 years ago when a person may have stood a chance.
but if your willing to work hard and for free for the next 5 years you might get up and running and be somewhat stable.
but why?
its hard to start and compete when big places sell the same thing at lower than what you can buy it for.
so usually the work you put into it is for free, its not like it was 5 or 6 years ago when a person may have stood a chance.
but if your willing to work hard and for free for the next 5 years you might get up and running and be somewhat stable.
but why?
AgaBoogaBoo
Lifer
- Feb 16, 2003
- 26,108
- 5
- 81
Forget the website, you want to focus on face to face transactions in your local area. You have to be personable to differentiate yourself from these opaque monsters out there that will undercut you no matter what.
I agree with everyone thusfar in the thread.
To even begin this, you must be able to answer each of the following CONVINCINGLY to non-technical people in less than 30 seconds:
To even begin this, you must be able to answer each of the following CONVINCINGLY to non-technical people in less than 30 seconds:
- Why should I buy from you rather than Dell or HP?
- Why should I choose your service over the Geek Squad guys at Best Buy?
- How would you deal with an angry, unreasonable, but loud-mouthed customer?
- What if my bill gets too high for my old PII 266 you spent hours reinstalling and I say "I'd rather upgrade - keep it!"?
That's only if you're a 14 year old with no design skills. DUH!
Anyhow, if you want to succeed you have to expect things to last for at least a year before you start doing more than breaking even. The truth is, Dell, Gateway, etc. are cheaper and people who don't build their own PCs don't care about what's inside, they care about price.
I have seen 3 of the 4 non-chain computer stores within driving distance from me tank in the past year because of slumping sales compliments of the internet. (Sucks if I need a part TODAY.) Be careful of the investment you make in it, whether it's monetary or not.
Overall, you are better off marketing yourself for the service, and picking up some extra small-profit work when someone asks you if you build PCs.
This sounds like a bad idea. I know a lot of us have thought about doing something like this in the past but its just a hard way to go. Sure, you can make some small computers for customers here and there. Maybe they trust you more, or you can customize their PC better...but those view customers are all you are going to get. Starting your own line against huge companies is just not going to happen.
Not to dismiss those that have replied, but you can really ignore their naysaying. Most of those that reply in these threads haven't even attempted to run a successful business. They acquiesce to the large companies and tell others they have no chance.
If you think you have a shot, go for it. Don't listen to any of the negativity from anyone else. Had AT existed in this same manner when Michael Dell started people would have said the same thing. To be fair, it was a vastly different market back then.
Good luck!
If you think you have a shot, go for it. Don't listen to any of the negativity from anyone else. Had AT existed in this same manner when Michael Dell started people would have said the same thing. To be fair, it was a vastly different market back then.
Good luck!
Keep your service business in the forefront first off, what others are saying is true, it's REALLY hard to make a living in the PC sales business, if anyone knows this I do.
However, if you want to put some effort into a web site for custom computers here you go, osCommerce. Will take some work to setup, but hell it's free, after that install the custom PC creator contribution & your set.
Check my site out below for an example.
Again, keep the service aspect of your company on the main page, that's what i'd concentrate on.
Good luck.
However, if you want to put some effort into a web site for custom computers here you go, osCommerce. Will take some work to setup, but hell it's free, after that install the custom PC creator contribution & your set.
Check my site out below for an example.
Again, keep the service aspect of your company on the main page, that's what i'd concentrate on.
Good luck.
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