My Computer Repair Business Plan (comments and opinions wanted) - Page 2

Krehator · 12-15-2005, 01:57 PM

Quote:

Originally Posted by Chevy

My markup is based on my proforma. However, since I refuse to compete with the $499 systems (garbage if you ask me), I focus on solid systems that are built to last. I also offer a 3 yrs parts / 1 yr labor warranty on every system, in addition to 1 year of telephone tech support (software and hardware). So, while the $1199 may at first seem high - when you factor in it being built to last 5 years, better performance than Dell systems priced $500 higher, and the extended support - well, I have no problem selling them.

I agree the cheapo dell/compaq/hp/gateway systems are pure crap. For a little extra cash you can build a premium system that will last much longer. I shiver every time I see a cheap motherboard (ECS, Chaintech, ect). Some cheap things are okay but the the major parts have to be high quality.

It's hard to explain to a customer that doesn't want to spend a lot of money but they eventually learn after being nickle & dimed by a cheap system. You get what you pay for.

Quote:

Originally Posted by Chevy

Arrogant? Every techie worth his (or her) salt has some kind of arrogant streak .. ... Like you, I offer a prayer to the continued existance of Geeksquad, AOL, and all the spyware kiddies ... They send me so much business ...

Of course...a little. It's hard not to be when you see some of the shotty work performed by many of the so-called experts. I haven't ran into Geek Squad techs yet, are they paper certed dimwitts?

I left my job as an RF systems engineer. I was doing 80% travel, living out of hotels, and dealing with very stressful contractors. When had I first got out of the army it sounded like a great opportunity but after calculating the hours I worked (I was salaried), I found myself making peanuts and never having any time to enjoy for myself. Plus my wife returned to work so it just wasn't a required arrangement any longer.

I attempted getting a low stress IT job close to home but found that many of the businesses don't value experience. They want certs, CS degrees, and figured I was "not qualified". Whatever the reason, they deserve the poor employees they get. I've been doing this too damn long to be considered "not qualified".

It annoyed me though. So now I steal their customers, offer better service, and keep all the profit for myself. I get the last laugh and I enjoy every minute of it. I'm obviously qualified enough to steal their business.

I enjoy the work. I love building, fixing, and tweaking systems. It's hard to find a job that you love. Working for yourself has its rewards.

[Mystic] · 12-18-2005, 06:07 PM

Quote:

Originally Posted by Krehator

Sorry if I'm reviving a dead thread. I haven't been around.

How do I survive with a flat $50 rate?

What do you mean? If I have enough constant work I’m making enough money. It’s a good profit for off-site repairs where you can fix multiple computers at the same time. The average computer repair only takes about an hour. That’s $50 for one hour of work. I charge $40/hr for on-site repair.

I do markup parts but only slightly. I keep a stock of common parts which I purchase in bulk. I pick them up very cheap and still can compete with stores after I markup.

If I make $700 a week, that’s fine for me. I don’t rely on this as my main source of income. This is just extra revenue. Remember that areas like California have a higher cost of living so prices will be lower in my area.

(no offense)

Looking at some of the rates posted, I wouldn't bother having my computer repaired for that much. That's the problem with most computer repair places. The bill for a repair will often cost you +50% the value of the computer.

The price of a computer is dropping. If you keep charging high prices for repairs you’ll end up like TV/VCR repair shops….out of business. All the stores and techs that charge high prices only make it easier for me to take their customers.

Also, I must say that many of the computer techs in major stores are complete idiots. They think DOS means two in Spanish. I'm constantly fixing screw ups from other techs and stores that cheat and lie to customers. You don't get experience by paying $150 for a certification. I've been working with computers since my trash-80 days. I don't mean to be arrogant but there aren't many computer geeks in my area that have that much “hands on” experience.

Customers are sick and tired of shops that:

- Offer incompetent work.
- Lie about repairs.
- Sneak used parts in.
- Bill for huge mark-ups on parts.
- Charge for parts that are covered under manufacturer warranties, and then keep the replacements.
- Charge huge hourly rates for off site repair which is "shared" work time. Everyone fixes multiple computers at the same time when possible.

Customers want to see results and save money. It comes down to supply and demand. They have a demand and I have a supply. My new customers consistently make one remark after seeing my flat fee bill and quality work. "We're using you for computer support from now on".

So far this has been profitable for me. I see no reason to change what I’m doing.

If that works for you, great.

This is the reason I don't deal with anyone but business. They keep coming back to me too.

There are alot of people around here who charge $40,$50,$60, yet I still get alot of business charging $75.

A low fee also sends a message saying this guy isn't as good as the rest. This is what I have come across time and time again. I use to charge $50 an hour, upping it to $75/hr I got more business... go figure eh?

Deja-vue · 12-18-2005, 10:02 PM

Quote:

The average computer repair only takes about an hour.

That only shows me that you really haven't been around too long, it does take longer most of the time.

Quote:

I do markup parts but only slightly

We are all in this to make money...why don't you?

Quote:

I wouldn't bother having my computer repaired for that much.

Believe me, my customers just want to get back to work and making money rather than waiting for the next computer-guy with the better rate.

.

Quote:

How do I survive with a flat $50 rate?

I assume, because you probably do everything under the Table, paying no taxes, insurance or licenses. We call you guys the Shade-tree-tech or Backyard-tech. You screw customers computers up, install non-licensed Software and never show up on time.
You are the reason we (computer-businesses) have such a bad name sometimes.

Quote:

Customers want to see results and save money

I agree with you on this one.

Quote:

If I make $700 a week, that’s fine for me

That wouldn't even pay for my expenses.

**crazijoe** · 12-19-2005, 07:00 AM

Quote:

Originally Posted by [Mystic]

If that works for you, great.

This is the reason I don't deal with anyone but business. They keep coming back to me too.

There are alot of people around here who charge $40,$50,$60, yet I still get alot of business charging $75.

A low fee also sends a message saying this guy isn't as good as the rest. This is what I have come across time and time again. I use to charge $50 an hour, upping it to $75/hr I got more business... go figure eh?

I have to agree with Mystic on this.
I would have to say about 85% of my business is with the corporate world and 15% is with home/consumer level.
Since I deal mostly with the server, OS, AD, and Domains, a lot of the work usually gets approved because they do not want any kind of downtime. On the consumer level it's kind of hard to twist their arms to get any kind of OK on the jobs, just because they do not want to spend any money.

As far as being a paper cert dimwitt. I tend to take offense to people that say that. I have 30 years of experience to back up my certs. All the way back to working on an old Honeywell 6080 mainframe. I'm not trying to plug myself (unless there is an employer in Florida that is looking for someone.), but here, in the midwest, Microsoft certs are appraised quite highly. Mostly because not every Tom, Dick and Harry are brain dumping them like on the east and west coast.

My business is only part time work but because my day job is so flexible with hours, I can cut out of work to do my other business.

Krehator · 01-05-2006, 08:49 AM

Crazijoe:

My situation is the opposite. I deal more with home users. If I was doing a lot of travel and working with 85% businesses, then I might feel differently about my fees.

Please don’t take offense to the “cert dimwitt” statement if it doesn’t apply to you. I’m referring to guys/gals that have no experience to back it up. I’m sure you’ve ran into to many techs that have tons of certs but somehow don’t seem to know anything when it comes time to prove it. It seems to be very prevalent in my area. There have been countless times that I’ve gone out on calls for my previous employer, only to discover that the network admin/IT guy I meet has no clue how to accomplish the most basic tasks. It’s amazing to me how some businesses keep going. Many of them waste so much money on outsourcing while they’re paying their own IT guy to sit around the office playing World of Warcraft all day.

BTW: Do you do work with any large series Cisco’s? I’ve got an OC-12 blade sitting here without any purpose that I’m looking to unload. (OC12 STM-4 SM/IR/POS) I was going to ebay it but they don’t seem to be popular there.

Deja-Vue:

It does not take that long. Identifying a hardware failure in a desktop is quite easy. Replacement can be accomplished in minutes. Yes, laptops are a bit tougher but I also charge more. I’ll admit that software issues can be a bigger problem and do take some time. Network issues are a whole other can of worms and I would be crazy to charge a flat fee in that situation. My flat fee is for off-site desktop computer repair only.

Of course I like to make money. It’s not my only motivation though. I also enjoy doing the work. I get personal satisfaction from it. It’s a passion. Just because I have knowledge the customer lacks does not give me the right to charge an arm & leg. This is especially true for a home customer. If you charge too much you become obsolete. It makes no sense for them to repair a computer if they can buy another for a little more. No matter how you attempt to persuade a customer to buy a high quality system from you, it’s often futile. The #1 barrier to any sale is price. The average computer user is a novice. They don’t understand the importance of quality and you’re going to have a hard time convincing them otherwise. Dell/HP/Compaq/Gateway may suck for quality but they’re smart enough to know that price is most significant concern to customers.

I do not screw up computers, show up late, dodge taxes, and install illegal software. That’s ridiculous and I do not condone that type of activity. Just because you’ve seen others do those things does not mean that I am like that. Having a shop on Main Street does not guarantee quality service. If that was the case then what excuses do many major stores have for performing so poorly? Does your honesty and workmanship come from you or the building you own? The packaging does not change the contents within. My service is low cost, on time, and dependable. Your statement (“You are the reason we (computer-businesses) have such a bad name sometimes.“) sounds like a personal attack. If a business has a bad reputation, it earned it.

sayno2computers · 01-07-2006, 03:08 PM

Where are you all findind Insurance for 300 - 500 a year, I've done internet searchs and the lowest I've come to is in the 1100 - 1200 dollar range for a year. I use Auto Owners for home and auto and they tell me they havent heard of tech insurance.

NWPhotog · 01-08-2006, 12:58 AM

Quote:

Originally Posted by sayno2computers

Where are you all findind Insurance for 300 - 500 a year, I've done internet searchs and the lowest I've come to is in the 1100 - 1200 dollar range for a year. I use Auto Owners for home and auto and they tell me they havent heard of tech insurance.

State Farm. $238 for 1 mill in coverage but it does vary from state to state.

01-05-2006, 08:49 AM	#25 (permalink)
Krehator Registered User Join Date: Sep 2005 Location: NY Posts: 5 OS: ALL lol	Crazijoe: My situation is the opposite. I deal more with home users. If I was doing a lot of travel and working with 85% businesses, then I might feel differently about my fees. Please don’t take offense to the “cert dimwitt” statement if it doesn’t apply to you. I’m referring to guys/gals that have no experience to back it up. I’m sure you’ve ran into to many techs that have tons of certs but somehow don’t seem to know anything when it comes time to prove it. It seems to be very prevalent in my area. There have been countless times that I’ve gone out on calls for my previous employer, only to discover that the network admin/IT guy I meet has no clue how to accomplish the most basic tasks. It’s amazing to me how some businesses keep going. Many of them waste so much money on outsourcing while they’re paying their own IT guy to sit around the office playing World of Warcraft all day. BTW: Do you do work with any large series Cisco’s? I’ve got an OC-12 blade sitting here without any purpose that I’m looking to unload. (OC12 STM-4 SM/IR/POS) I was going to ebay it but they don’t seem to be popular there. Deja-Vue: It does not take that long. Identifying a hardware failure in a desktop is quite easy. Replacement can be accomplished in minutes. Yes, laptops are a bit tougher but I also charge more. I’ll admit that software issues can be a bigger problem and do take some time. Network issues are a whole other can of worms and I would be crazy to charge a flat fee in that situation. My flat fee is for off-site desktop computer repair only. Of course I like to make money. It’s not my only motivation though. I also enjoy doing the work. I get personal satisfaction from it. It’s a passion. Just because I have knowledge the customer lacks does not give me the right to charge an arm & leg. This is especially true for a home customer. If you charge too much you become obsolete. It makes no sense for them to repair a computer if they can buy another for a little more. No matter how you attempt to persuade a customer to buy a high quality system from you, it’s often futile. The #1 barrier to any sale is price. The average computer user is a novice. They don’t understand the importance of quality and you’re going to have a hard time convincing them otherwise. Dell/HP/Compaq/Gateway may suck for quality but they’re smart enough to know that price is most significant concern to customers. I do not screw up computers, show up late, dodge taxes, and install illegal software. That’s ridiculous and I do not condone that type of activity. Just because you’ve seen others do those things does not mean that I am like that. Having a shop on Main Street does not guarantee quality service. If that was the case then what excuses do many major stores have for performing so poorly? Does your honesty and workmanship come from you or the building you own? The packaging does not change the contents within. My service is low cost, on time, and dependable. Your statement (“You are the reason we (computer-businesses) have such a bad name sometimes.“) sounds like a personal attack. If a business has a bad reputation, it earned it. __________________ -=[ Krehator ]=- "The human brain is the most complex computer ever designed. We just don't have enough qualified operators." Last edited by Krehator : 01-05-2006 at 08:51 AM.

01-07-2006, 03:08 PM	#26 (permalink)
sayno2computers Registered User Join Date: Nov 2005 Posts: 60 OS: xp	Where are you all findind Insurance for 300 - 500 a year, I've done internet searchs and the lowest I've come to is in the 1100 - 1200 dollar range for a year. I use Auto Owners for home and auto and they tell me they havent heard of tech insurance.