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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."
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.
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~ |rip/\/\aster /\/\onkey
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)
"Better to be vulgar than non-existent" -Bev Henson
Do yourself a favor and don't try and mix your personal life with your business. Keep seperate numbers for both, that way you don't get woken up at 3am by a customer who's computer just died.
I do a little of this on the side also.
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.
I'd rather you do it wrong, than for me to have to do it at all.
People are right when they say its hardly worth fixing things. Particularly, trying to 'tune up' a system by getting rid of malware, viruses, etc, which is going to be 90% of the time what people need..
You should be able to diagnose whether the computer has a hardware problem or a software problem real quick. Use a bootable CD or something to do this.
Replace the harddrive, add more ram, replace mouse and keyboard, replace fans, replace the PS, if necessary. If its not clearly one of those, tell them they need a new PC.
If they have a software problem, just tell them they need a new harddrive and reinstall windows on it. That's a whole lot faster than trying to remove all the crap they've installed on it.
If they just need more ram, do that.
Keep the drives you swap out, format them at your leisure, and sell them to the next customer who has a malware problem.
Seriously, get real quick at diagnosing things, and be able to do what you need to do in an hour or two.
I've had to do this with family members. If they think you can sit there for a few hours and tune things up, they'll get you to do it, and you will waste your time and not make money. If instead they know that probably you're going to charge them $50 for an hour and replace their harddrive for $100, they will understand AND be a little less likely to hit you up the next time. And maybe they will learn to keep their system clean.
-- Senior Software Engineer, Attorney appearance services, locallawyerapp.com.
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!