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."
Saturated Market... (Score:3, Insightful)
I feel that this sector of side business is pretty much saturated. You will likely have to have to rely on friends, as everyone else has their own friends doing the same thing. Good luck, but I don't think you'll make much beer money...
well... (Score:3, Insightful)
Word gets around, especially in smaller towns, if someone is going around fixing stuff well, and doing it for a good price then the phone will always ring. My mechanic and I have been trading favors back and forth for awhile now, it started with me fixing his comp, and he fixing my car, and now a few years later we're advertising each for each to our respective customers.
been down that road (Score:1, Insightful)
"Computer Services" not "Hardware Upgrades" (Score:2, Insightful)
I don't think it really benefits you to try to focus on one of these individual things. Just call it "Computer Services". If you are skilled in any of these areas, offer it. Usually (and this is true with nearly every business), the customer will have a need for one of your services (install some additional RAM, for example) and while you are working on that issue, three other issues will become apparent.
How much to charge is totally dependant on your market (home users, small business, etc.). I'm in Chicago and my customers are small businesses and the home networks of some doctors/lawyers/etc. I never charge less than $50/hour for on site services (that is a "friends and family" rate) and usually it is $75 or $100. Try not to under value your services too much, but also, you have to recognize your value in your individual marked.
I *never* charge flat rate for services, though I will "not count" some of my time occasionally. The only exceptions for this, in my business, is when I do photography and web site design. All other services are strictly hourly.
Re:Pricing (Score:3, Insightful)
Re:Pricing (Score:3, Insightful)
I hear that...we've had more than our share of cheap bastards that essentially want us to work for free. After a certain amount of hassle, they simply aren't worth keeping as customers any longer. It's difficult to perform this sort of customer base weeding when you have precious few clients, but it's absoutely essential...those parasites will suck the lifeblood right out of your business.
Re:Saturated Market... (Score:3, Insightful)
Re:Pricing (Score:3, Insightful)
As an undergraduate, I took a marketing class and the professor once told us an interesting story. He had, for a while, operated a successful mail-order catalouge. One product that sold well was a small plastic contraption that quickly cored and sliced an apple into smaller pieces. He sold it for $4.
One month he sent the catalouge off to the printer and, due to the printer's mistake, a 1 was added to the price. When the customers received the catalouge, the price was therefore $14.
He, of course, expected to sell very few of them that quarter. To his surprise, sales of that product tripled.
At $4, customers percieved it as cheap and not worthwhile. At $14, they thought it was a very different product, though in reality it was the same piece of plastic.
As a general rule, if you charge too little, people won't percieve your services as worthwhile. You should, however, think of offering promotions: charge $40 per hour, but tell people that's discounted from the normal $60 (due to a special one month promotion for new customers). Or make something else up. Be creative.
This is why manufacturers often like rebates so much: they trick people into thinking they're purchasing a $400 product for $200, even if the device itself is really only worth $200. Some people see through this and realize what BS it is ... but most, however, do not.
Re:Malware removal (Score:3, Insightful)
Remember... (Score:3, Insightful)
My experience is that you can always lower your price, but never ask more the next time for the same(ish) job with the same customer. Also people take exception if they hear that you give lower rates to someone else, no matter what the circumstances. Take that to heart. State your price and keep to it. People are generally inclined to pay surprisingly well if you make a difference to their business. Fixed price agreements also work very well if you have some more experience.
Remember also that you will not always have work. The network you have now may seem big to you now, but it will grow less willing to call you once they have to pay for your services. Then again, if you dont have work, you have at least 40-60 hours a week to find it. That is a LOT. If you play your cards well you can easily make a living of virtually anything. This was my biggest eye opener so far since I started for myself!
I'd say: go for it. I did almost 2 years ago and I am never going back
Cheers!