Startup a Computer Business? 93
RapDes asks: "I've been a long time Slashdot reader and I've had years of experience working as a computer admin (secondary to my main job title) at a few different companies. I'm constantly being asked by my friends to take a look at their PC's to fix problems or to setup home networks (like I'm sure most of you fellow Slashdot readers are, as well). Anyway, I've decided that I'd like to make a little extra beer money on the side by starting up my own computer service/upgrade/repair business. I'm looking for any input from the readers who've already been down this road. How much do I charge? What should I be focusing on, hardware upgrades? Virus and spyware removal? Home networking? Any advice would be greatly appreciated."
Malware removal (Score:4, Informative)
Malware removal accounts for about 70% of my business's revenue...that and data recovery are very big. In today's economy of throwaway computers, you can't make a living with hardware, but protecting and recovering people's data will always be worth something.
Pricing (Score:4, Informative)
My rule of thumb is this:
Charge an hourly rate for time spent, and log your hours. Charge what you think your time is worth - I've seen 15 bucks, to 50 bucks for PC troubleshooting.
As far as what services you should offer, don't limit yourself if you want to make a regular steady stream of cash. Offer troubleshooting, repair, and upgrading. AV services is a must.
Networking services can net you 100-200 bucks an hour, depending on the area. This is assuming you know what you are doing and work relatively quick. If it is just basic home networking, I'd lean towards 25-50 bucks an hour or less (just because it is stupid easy to set up a home network :P)
Don't give them a personal phone number. (Score:4, Informative)
Stick with service and stay away from hardware (Score:3, Informative)
PC's are becoming like TV's. It's almost cheaper to get a new one than it is to fix a broken one. The local repair shop charges $60/hr for repair. Spyware takes from 1 to 3 hours to remove depending on how big the drive is, how many files there are, and how bad it's infected. 3 hours is $180. How many trips until you just paid for a new pc?
Considering they go obsolete in 3 years anyway the market for pc repair is going to dry up quickly.
There is a market in service though. Helping people *use* computers will always have a demand.
Consulting (Score:5, Informative)
Hardware upgrades are a valid path. Because of my location, I look at what the client wants and then put together an order on Newegg. I let the client use their own creditcard and shipping address. When the boxes arrive, I come over, check everything out, and assemble it.
When things go wrong, you need to have a testbed. Have at least one PC with PCI-E and another with AGP. Have one for socket 939 and another for Intel. If you suspect that a part is bad, test it to verify. Then contact Newegg and request a RMA with a cross-shipment of the new part.
I usually charge $100 flat rate for assembly.
For OS installs, I charge $30 an hour. Mainly because most of that time is sitting and waiting for something to finish. After a while, you'll get a CD with drivers for virtually every product you support to make things easier.
I also install AVG Avtivirus, Spybot, and Firefox with the "View in IE" extention as standard.
If you do hardware, get a standard install base. I install AMD 99% of the time. Usually on the MSI Neo2 or Neo4 Platinum mobo. I always install Nvidia cards. 6600 for home users, 6800 for casual gamers, and 6800GT for mainline gamers.
I usually try and keep the client from bothering me while I install stuff. I make it clear before I start that installing has one price; teaching has a completely different price.
I *do not* remove spyware. I do, however, charge $50 to back up the user's stuff using Knoppix and a removable hard drive and then to a reinstall of WinXP. Removing spyware/virii is too time consuming.
Home networking is fairly easy. I keep the Linksys firmware and a general config file on the disc with drivers for most Linksys NICs. Takes maybe 30 minutes to set up. I include a one hour training session to show users how to share a folder and copy files from one computer to another. $50 to $100 depending on the client.
I do just about all of my work in the evenings after work. I let the clients now that they can get discounts in exchange for dinner. Plus, it gives me a chance to sit with the customer and talk about general computer stuff.
Get to know a lot about different subjects. Learn to fake interest in the client's hobbies. "Oh, you play Tyco drums! That's cool. Do you do any festivals nearby?" Shit like that can keep clients coming back for more.
You'll always have to deal with the client that wants "free" Office or doesn't want to buy WinXP "because my neghbor has a copy." My clients know that I won't install anything without the original disc. That being said, I never ask for proof of purchace or a recipt. When buying hardware, I let them know WinXP would be a good purchace.
I've never had to deal with any contracts. I don't buy anything for the customer. I always wear a grounding strap and treat all the parts like they are the baby jesus. If a part fails to work, I RMA it before I leave. Sometimes I provide a replacement while waiting for the RMA. If shit breaks within a month, I provide a free analasys and arrange for RMA or provide a discounted reinstall.
Never point out that the customer broke something. If they claim you broke something, calmly fix it and then never visit that client agian. Remember, most stuff is RMAable and it isn't worth the stress of a "he said, she said" encounter.
You'll know within about 5 minutes if you *want* to help a client. If you don't, just excuse yourself and reccommend they go to BestBuy.
If they client needs a new part like a CDROM or NIC, I charge nothing for the inital troubleshooting as long as it takes less than 30 minutes. I charge $30 to install new hardware. $20 to update drivers.
Agian, hardware will have a thin margin, but the services will help you make some extra cash. In a bad week, I can make $200 just by doing reinstalls. In a good week, $500+ by doing system builds.
What I've learned (Score:3, Informative)
Along with that thick skin, you need to decide on pricing and enforce it without exception. You will have no less than one customer per week call you with a "dead" printer. You'll ask them whether or not it's plugged in, and they will scream at you for thinking they're an idiot. Then, when you finally agree to make a trip out to look at their problem, you will arrive, plug the printer into the wall, and everything will be fixed. The customer will proceed to raise holy hell when you hand them a bill for the full price of the visit, because "all you did was plug it in." But, if you don't charge full price for every case of this that happens, you will be out of business before you know it.
Along with pricing, there is something else to keep in mind: None of your time can afford to go for free. Every hour you spend helping someone over the phone is an hour you didn't spend fixing a machine in the shop. You absolutely must charge that phone customer. Every hour you spend in the car driving to a customer's house is another hour you could have spent in the shop. Long trips for any sort of troubleshooting are almost always a losing venture. Consider charging extra for any trip over a certain, small distance.
These suggestions come from my experience at a beige-box and repair shop in a small town. They went under because they'd sit on the phone for hours trying to get people to push the power button on their monitor. They also offered free support to anyone who bought one of their machines. But, when they were only making $200 at most - often much less - on a machine, that profit would vanish after a trip to their farm for troubleshooting.
Good luck with your venture, should you choose to go forward with it.