What would it take to open a computer repair shop?

[mztykal]

As far as insurance, etc?

Is there anything else besides rent, electricity, water, internet, cable, digital phone?

Do I need liability or shop insurance?

LMK, me and my friends are thinking of opening a shop soon and kinda need a guideline as to what to expect.

I'm thinking for a small shop around 1000-1200 a month total expenses.

Thanks!

 

[techs]

I have had my own shop for 8 years.
I have 'professional liability" as well as insurance for theft, fire, etc. I had great difficulty finding this after my first insurance carrier got out of the computer shop business about 3 years ago.
You need to get an ad in the Yellow Pages. It costs me about 50 per month. In most areas of the country you need to get in right now, in some areas the time has passed for this coming year.
Dial up account (for those customers on dial up you need to test)
Wireless router for connecting customers computers and testing their wireless.
Microsoft Action Pak. Sign up as an MS partner and it costs 299.00 a year. You get every piece of software MS makes. Includes ten WinXp pro and ten office licenses (and disks).
I could get more specific like good disk clone software, diagnostic software, power supply tester, grounding station, laptop computer if you make house calls, etc.
btw I live in a small town and there has been like 15 computer shops that have come and gone in the last 8 years. Low overhead keeps me in business. In the summer I sit around alot and the low overhead is essential.
Let me know if you have any more questions. Try pm'ing me.

 

[mztykal]

You've got a PM! Thanks!

 

[MisterJackson]

I own a shop too and it's not an easy business to start. I've been at it a year (opening our second store) but I've been with this company for 4 years. They've been around for 12. I think I've been doing well because we are already established and our other store eats almost all of my overhead, which as techs said is a big deal, ESPECIALLY during slow times.

Know this, there WILL be slow times, sometimes a month or more. This is a feast or famine business so it's imparitive you plan ahead for that. Track your hours and use that first year as a guidline for the years to come. that also helps because it sets a benchmark and as your business grows you can see tangible growth.

Your first year will be very very tough. Even for me, established as we are, this first year has been pretty tough. I lucked up because another small shop in the area shut down and I bought out his customer base. Without that I'd still be struggling. I've also just now started seeing steady repeat customers.

Your customers are everything. Word of mouth will make or break you. Good word travels slow, but it does travel. Bad word of mouth travels at light speed. Granted you will get that customer that you can do nothing about and will get upset, think you ripped them off, think you screwed something up and no matter how hard you try they will never be satisfied.

The BBB and Chamber of Commerce are a necessary evil and you must make them your friends.

Establish your business to a point where it's autonomous enough that you can bring in a part time guy to watch your store / do repairs so that you can go out and hit the pavement.

Come up with a fee schedule. You'll want a minimum bench fee/diagnostic fee. You'll want a flat hourly instore rate. Call other local shops to guage what you should set yours to. I also set a seperate rate for component laptop repair (i.e. if I have to crack the thing open vs. a virus clean or format reload). Finally your onsite rate should be fairly high because in the beginning it will be you doing it meaning a closed store.

You want to diversify. Do not just be "Joe repair shop", be a total solution provider. If there's something you want to offer and can't find someone in your area to partner with (Apple repair, web design, networking, cable running, etc.)

Used PC's have also been an excellent source of revenue for us.

As techs said you MUST get a yellow page ad. I'd give a number that will ring to you 24/7. Take calls at 9pm or 2am if you have to. Turn down no job. Consider yourself on call 24/7.

We also do really well with contracts. We sell in blocks of ten hours to customers who need an "IT guy" but not full time. Doctors offices, lawyers, accountants, professional people are a good candidate for this.

If you have any other questions just post and I'll try to answer.

 

[techs]

Originally posted by: MisterJackson
I own a shop too and it's not an easy business to start. I've been at it a year (opening our second store) but I've been with this company for 4 years. They've been around for 12. I think I've been doing well because we are already established and our other store eats almost all of my overhead, which as techs said is a big deal, ESPECIALLY during slow times.

Know this, there WILL be slow times, sometimes a month or more. This is a feast or famine business so it's imparitive you plan ahead for that. Track your hours and use that first year as a guidline for the years to come. that also helps because it sets a benchmark and as your business grows you can see tangible growth.

Your first year will be very very tough. Even for me, established as we are, this first year has been pretty tough. I lucked up because another small shop in the area shut down and I bought out his customer base. Without that I'd still be struggling. I've also just now started seeing steady repeat customers.

Your customers are everything. Word of mouth will make or break you. Good word travels slow, but it does travel. Bad word of mouth travels at light speed. Granted you will get that customer that you can do nothing about and will get upset, think you ripped them off, think you screwed something up and no matter how hard you try they will never be satisfied.

The BBB and Chamber of Commerce are a necessary evil and you must make them your friends.

Establish your business to a point where it's autonomous enough that you can bring in a part time guy to watch your store / do repairs so that you can go out and hit the pavement.

Come up with a fee schedule. You'll want a minimum bench fee/diagnostic fee. You'll want a flat hourly instore rate. Call other local shops to guage what you should set yours to. I also set a seperate rate for component laptop repair (i.e. if I have to crack the thing open vs. a virus clean or format reload). Finally your onsite rate should be fairly high because in the beginning it will be you doing it meaning a closed store.

You want to diversify. Do not just be "Joe repair shop", be a total solution provider. If there's something you want to offer and can't find someone in your area to partner with (Apple repair, web design, networking, cable running, etc.)

Used PC's have also been an excellent source of revenue for us.

As techs said you MUST get a yellow page ad. I'd give a number that will ring to you 24/7. Take calls at 9pm or 2am if you have to. Turn down no job. Consider yourself on call 24/7.

We also do really well with contracts. We sell in blocks of ten hours to customers who need an "IT guy" but not full time. Doctors offices, lawyers, accountants, professional people are a good candidate for this.

If you have any other questions just post and I'll try to answer.

Used PC's have also been an excellent source of revenue for us.
I agree. Often people ask to move data from an older computer to their new one. If the old one is still fairly recent, often the customer will trade the computer for the labor you have done. And you can sell the used computer at a nice profit, plus make a grateful new customer.

As techs said you MUST get a yellow page ad. I'd give a number that will ring to you 24/7. Take calls at 9pm or 2am if you have to. Turn down no job. Consider yourself on call 24/7.
I agree here too. Though I would suggest getting caller i.d. Sometimes I get a call at 2 a.m. from a customer who just wants to leave a message and I realize that when I see the caller i.d. So I just go back to bed instead of answering.

 

[SoulAssassin]

I would consider working from your home for a while to significantly reduce expenses. If you register your business and do it on the level you can do pickups or have people drop off. Still get an ad in the yellow pages or whatever but this way instead of paying to rent/lease space you can actually take a tax writeoff for the space in your home you're using. If business picks up then get an actual office.

 

[techs]

Originally posted by: SoulAssassin
I would consider working from your home for a while to significantly reduce expenses. If you register your business and do it on the level you can do pickups or have people drop off. Still get an ad in the yellow pages or whatever but this way instead of paying to rent/lease space you can actually take a tax writeoff for the space in your home you're using. If business picks up then get an actual office.

Thats the way I started.

 

[Kelnoen]

I'd love to do something like that but around my way there's about 20 decent PC repair/purchase places already

 

[ballmode]

The mindset of wanting to go broke

 

[MisterJackson]

Originally posted by: ballmode
The mindset of wanting to go broke

while you will starve at first, as you would with any new business really, this is actually still a very viable business to start. Depending on the area and his skill level/commitment, he can do VERY well.

We're a multi million dollar company. It's allowed us to grow into other ventures that set us apart from other mom and pop shops in the area.

Also OP, find a mentor that does this if you haven't already. It will be invaluable.

 

[mztykal]

I work in the industry already. I've been doing repair/network setups/cleanings in home for customers for around 4-5 years. I've got a semi-decent customer base in the area already.

As far as overall, we're doing it with 2 of my good friends. One is a network, server specialist and the other does general repair and network setups on a normal basis.

So as far as the shop, we're kinda using it as an excuse to go out. Basically a hang out spot. All your information is invaluable though as we don't wanna go out of business asap.

In the area we're thinking of opening there are NO shops within 10 miles of where we want to be. So as far as competition we should be alright. We plan on undercutting flat-rate for the first year by 10 bucks lower than the cheapest I've seen.

We've got a business plan lined out that is pretty sound, but nothing in life works how you want it to.

Overall is there anything else I need to do besides register as a business, find a location, save all receipts, make stationary/invoice papers, and the necessary utilities, and insurance?

Thanks again!

 

[her209]

Honestly, I would do something else. Why you ask?

1. How many times have you heard people say, "I'll just buy a new one if this one breaks". Computer prices are getting cheaper and cheaper. This means your margin of profit shrinks on every repair you do if you want to stay in business.

2. Computers come with manufacturer warranties. The longer they are, the less likely you're going to get their business. And when their warranty is up, the customer will just buy a new one.

3. Last but not least, this isn't exactly a niche market. I don't think I need to explain this point.

 

[mztykal]

You'd be surprised how many people DON'T want to buy a new one here in Hawaii. It makes a difference.

 

[Ayah]

Originally posted by: mztykal
You'd be surprised how many people DON'T want to buy a new one here in Hawaii. It makes a difference.

:beer: Good luck!

I was thinking of maybe entering this niche too sometime. There are 2 computer stores in this town.

 

[mrrman]

thats one business I would not want to do as a business....I dont mind fixing/building PC's for friends myself but couldnt deal with the idiots out there

 

[bctbct]

referals and since I am on hold with a MSN rep concerning the latest version of MSN, if you can resolve this faster than them I will highly recommend you

 

[techs]

Originally posted by: mrrman
thats one business I would not want to do as a business....I dont mind fixing/building PC's for friends myself but couldnt deal with the idiots out there

The key, I have found, is finding the right customers. For the first few years of my business I tore my hair out. Now I have gotten good at finding ways to get my difficult customers to leave me. And thanking me for it!
Another good tip.....find a few people who fix computers as a sideline. The sort of person who works out their home and is no competition but does an ok job. And explain to your customer they can better meet their needs.....

 

[AgaBoogaBoo]

What others have said is very good advice. There is a LOT of potential in this business, more than most expect actually.