Slashdot Mirror
Startup a Computer Business?
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."
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...
"Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
start with what you're good with. if you can't do hardware upgrades, don't do them (obviously). I've been making about $30 an hour since I was about 15 doing stuff like that for family members, just being offered money, not asking for it or running a buisness. The biggest thing is be honest, especially for a small company, don't try to sell people crap they don't need, and rule number one should always be don't break it worse than it is.
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.
The Answer
That sort of business worked ok for me in high school... but by the time college rolled around... I realized that my regular clients began to BLAME me when things went wrong. Like, I was supposed to immunize them from being stupid I guess. Not only that, but new clients were increasingly harder to find as more and more people were getting into the business or doing it for friends and family for free. Now, if I had been a data recovery expert (for example, able to extract a few files off of a fire-dammaged hard disk) or if I'd invested in some expensive media equipment and offered a more diverse service... I might have done better. If you want to start earning money in this way I would advise getting yourself together a respectable team, and targetting businesses that depend on a lot of technology. Not only repairing/managing their systems, networks, and solutions... but coming up with new systems, networks, and solutions. Again, diversify.
How much do I charge? What should I be focusing on, hardware upgrades? Virus and spyware removal? Home networking?
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.
Bang Logic - Serious Small Business Services
Low prices also attract cheap customers. The kind that will try to talk their way out of even a small bill. Spending a half hour trying to convince someone to pay a $50 bill is a huge waste of time (money).
I used up all my sick days, so I'm calling in dead.
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.
____
~ |rip/\/\aster /\/\onkey
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.
An effective signature identifies a particular user amongst a base of thousands.
I don't know if I trust what you say. I mean, half the time I look at a topic I see "tripmaster monkey" has first post. Looks like 70% of your time is spent on Slashdot!
Nobodies Prefect
Tidbits for Techs Technology Blog
You can only go down with your hourly rate, never up! I started a business doing strictly Linux (or other OSS) installs and maintenance and I can get away with an hourly rate of around 100 euro's for normal jobs (higher when they need me quickly). Of course, I am always cheaper than any other business using proprietary software in the end, so my example may not be entirely representative.
:-)
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!