Forum Home
PC World Chat
Thread ID: 124681	2012-05-12 11:08:00	Assistance starting PC build/supply/repair business	Tukapa (62)	PC World Chat

Post ID	Timestamp	Content	User
1274964	2012-05-12 11:08:00	Hi all Basically looking at formalising what began as a hobby in the 90's and now has surpassed that hobby level. I already work full time in a non-IT area so this is strictly a secondary employment, part-time enterprise and limited to my knowledge area of PC builds, upgrades and repairs. I have to do this above board because of my main occupation, I can't risk the taxman or other areas of concern. What has been work of the described nature for family, then friends, then workmates has now grown to include friends of all of the above. While initially happy to do these jobs and be paid in boxes of beer :thumbs: the demand has now grown to the point where I feel I should do things properly. I do not want this to become bigger than Ben Hur because I enjoy my down time, but it would be nice to make a little bit of spending money on the side. I don't know what my projected turnover would be for the first year but I have registered for GST anyway - I think it looks more professional. Any pointers from those in business now or previously would be appreciated. Some questions; what is the going hourly rate for charging? what are the must have diagnostic tools? any good supplier suggestions (atm I just use the cheapest reputable supplier)? any pointers over the accountancy side of things? plus plenty of others I can't think of right now As I said I pretty much have people coming to me enough to keep me ticking over, it's just the organisation of stuff that I could do with some pointers on. And for those of you already in business, I am located in New Plymouth so hopefully won't be trading on the toes of the regulars! Cheers muchly.	Tukapa (62)
1274965	2012-05-12 20:53:00	I already work full time in a non-IT area so this is strictly a secondary employment, part-time enterprise I don't know what my projected turnover would be for the first year but I have registered for GST anyway - I think it looks more professional. More professional? I only register for GST when I have to. When I had the shop I did, but the work from home, no. Why collect money for the govt if you don't have to? There are no advantages to it and it's a pain. People think you get to claim everything, sure but it only works that you get a refund if you make a hell of a loss. Otherwise there's a whole pile of money you have to sit on so you can give it to them every 2 months. Customers don't actually care you know. what is the going hourly rate for charging? I charged $75 an hour inc GST. Wainui charges more, but then he does do more businesses than what I used to, too. remember this is TURNOVER, a massive difference from your actual net income you end up with from that. I did have flat rate pricing in situations like PC came back to workshop. I counted actual time spent doing something, not sitting there watching scans or updates install or whatever that didn't involve anything other than waiting. Only if they insisted I do this at their house would I charge hourly regardless. At the workshop - while this sort of thing is happening, you can be going on with the next PC you see. what are the must have diagnostic tools? Software. The usual malware checkers, O/Ss and so on. There are no hardware diagnostic tools except screwdrivers that are reliable. any good supplier suggestions (atm I just use the cheapest reputable supplier)? Hell no, unless you want to install crap parts in peoples machines and then have endless warranty (or non-warranty) claims coming back all the time. You become a retailer and are then subject to the CGA. You must replace the parts but your supplier does not have to replace them to you. Think about that. Stick to quality and reliable. Also crap suppliers are very good at avoiding warranty replacements in the firt place as well. Want to spend time arguing and chasing it up all the time when there is an issue? Altech do Corsair, Antec, ASUS. My other main supplier was Synnex. Had a few others once.....Ingram too but I really tried to avoid them if possible. Their service was crap. any pointers over the accountancy side of things? Just keep a spreadsheet, you don't need an expensive accountant for a part time business and it's not hard. Do it as you go, fill in everything on a daily basis, or whenever transactions occur. That way you haven't got piles of paperwork to go through monthly. Being GST registered now - and I'd change that - means you will need to keep 15%. Get another account to put this and tax and ACC into on a weekly basis. Don't estimate it monthly or whatever, estimate it as you go. Then you're not left trying to find large lumps of money for this when it comes due. plus plenty of others I can't think of right now Like the fact that you will end up with no time? Full time work and this as well? If it's staying as is, leave it alone, if it's going to get busier, you'll have to make up your mind which to do. 2 jobs means you'll get pissed off with one of them when you have no time for anything else. Also, markup on hardware is pathetic, forget trying to make money from that. You can do it from the repairs side of things, but I can tell you - and Wainuitech could, you don't make it from the little home user customers needing a virus cleanout or whatever. They don't like the bills, they want it done for nothing and expect you to perform miracles on old clapped out hardware. Most successful companies do it with small business support. Even Wainui does a bit of this sort of thing. Client - server setups and so on. Not just home user repairs. I couldn't make enough to live on doing it. And I sure wouldn't do it as I did plus do my normal job - I'd never get to do anything else. Now I just do a few family and friend fixes. It sure isn't a business anymore.	pctek (84)
1274966	2012-05-12 22:40:00	It's something I have considered from time to time, but that's when I realize that if I start charging real money some of the friends/acquaintances would drop out, thinking they may as well go to a 'real' professional if it's going to cost as much. Also, casual jobs can be done on 'best efforts' but when you're charging the customers will want 'perfect results' (every time). If you are good then you will generate even more work - your friends won't be pleased when they refer their friends and you tell them you're booked out this week. Some jobs take hours but if you charge all those hours you'll lose customers. It's not like carpentry where customer can visualize the amount of work required. They're more likely to think or say: "It's only a little box of transistors and batteries - surely it didn't need three hours work!" But don't let me talk you out of it. If you are determined, go for it!	coldot (6847)
1274967	2012-05-12 23:20:00	I'm not in the business, but I can relate to what has already been said. Was in a local PC repair shop not so long ago, and could overhear the conversation going on. A somewhat reluctant 'customer' was trying to lever enough clues from the guy watching over the shop about how he could repair his own PC without bringing it in. In other words. "Kind sir, please let me waste your time getting you to donate your expertise so that I can go away and pay you nothing for your assistance." Must happen all the time. People may be willing to pay for hardware, but when it comes to the intangibles of software and system configuration, then suddenly paying can become a different story. "Why am I paying you? You just sat there and clicked a few buttons. I could have done that myself" From my own experiences with trying to 'improve' peoples systems, it usually comes down to the awkward issue of telling them they have been suckered into installing too much crapware. A recent example, virus scan at every startup, defrag at startup, and a bogus 'system tuner' screwing with the prefetch at startup, and heaps of unneeded aps in the tray. But they've grown attached to this garbage that they think is helping their system, and resent being told to do away with the rubbish that in some cases they've paid for. It's the PC equivalent of a venereal disease, and I imagine about as awkward to tell to people... how to turn customers into enemies.	Paul.Cov (425)
1274968	2012-05-13 00:20:00	First piece of advise ... make up a business plan and take it to a decent small business accountant ... they know all the tricks and if you find a good one, they'll also put you right on whether you've got a VIABLE proposition or not. When I started my own business (nothing to do with computers) my accountant told me straight-up ... you'll be down the gurgler within 12 months if you don't increase your charge out rate. And pctek is on the right track ... there are a lot of "hidden costs" associated with small business ... again, a good accountant or small business advisor can advise on what the REALITY is going to be. Only make an informed decision based on people with expertise in small business ... in the long run, it can save you a sh!tload of hurt. While initially happy to do these jobs and be paid in boxes of beer :thumbs: the demand has now grown to the point where I feel I should do things properly. As to the above ... I now work for IRD ... I will be around tomorrow to take my 15% of all beer received ... make sure they're cold one's please ... :rolleyes:	SP8's (9836)
1274969	2012-05-13 01:00:00	A lot of people who call will expect instant access, like you're sitting around with nothing else to do. Shock, horror, you can't get here today? OMG, but I need to get on Facebook!!	Renegade (16270)
1274970	2012-05-13 04:33:00	One thing you might consider is a sheet that you get every customer to fill out when they bring in their PC for repair. The place we use for work whenever we have anything that needs repairing, has a sheet that you have to fill out. You fill out your contact details, and a description of what's wrong / what you want done. They then have a small disclaimer that basically says "If your PC catches fire and everything is lost. Tough luck." They also have two tick boxes; one that you tick if you want them to back up your data - which says that there is a $50 charge for that, and one that says you want the work done urgently and there is a $100 charge for that (they start work on it 'next'). I thought that was a pretty good idea.	pine-o-cleen (2955)
1274971	2012-05-13 04:35:00	A lot of people who call will expect instant access, like you're sitting around with nothing else to do. Shock, horror, you can't get here today? OMG, but I need to get on Facebook!! $100 charge for urgent service. ....."Oh you don't really need it done today. Ok..." Works wonders when I'm on call for work. People call all the time wanting instant service on the weekend, but when you explain to them that there is a $90 call out fee and labour is charged at time and a half, their urgent problem suddenly becomes less urgent.	pine-o-cleen (2955)
1274972	2012-05-13 05:12:00	And none of this customer pays on the 20th of the month rubbish. (Or worse, 20th of the following month). They pay on the spot or it's not done at all. Remind them of petrol stations, you fill up and say you'll pay on the 20th? Not. Here's a couple of recent examples in my IT life: 1)Customer (of my works cheapest budget service) emails saying she can't add an A record cause the help doc doesn't work. Screen shot attached. Shows her browser is not allowing images to be displayed. I helpfully screenshot the help doc and send it back along with suggestions images are enabled for browser. She says: "Oh for gods sake, it's a simple one click, why don't you just do it?, Your service is so crap, at XXX domain co where I was, it was so much easier, your interface/menu/support/docs are so incomprehensible and unusable" (Actually slightly more than one click, she didn't read my doc, but whatever, I added it and shut up) 2)Home help. Call to say Thunderbird not showing inbox etc at left. I suggest clicking View- Folders - All. Second person put on phone because first doesn't understand all that. Second person doesn't listen and randomly reads menu items that are not under View. Eventually I stress the need for looking under view at which point I am told there is no view cause there is no menu. Suggest right clicking and enabling menu. Second person says there is no Folders listed under view. Ask which version it is. They say no idea. Suggest looking under Help - About. And so on....of course, I have to remain on the phone while all the researching and clicking occurs, with running commentary on how none of these items I suggest exist. But of course it's just a simple thing......	pctek (84)
1274973	2012-05-13 05:20:00	$100 charge for urgent service . . . . . . "Oh you don't really need it done today . Ok . . . " Works wonders when I'm on call for work . People call all the time wanting instant service on the weekend, but when you explain to them that there is a $90 call out fee and labour is charged at time and a half, their urgent problem suddenly becomes less urgent . Thatsvwhat service contracts are for .	plod (107)
1 2 3 4 5