Business Idea - Cheepe's Need advice

[OnTheWayUp]

I'm going to start a business called Cheepe's that does computer repair and services.

The idea of this business is to charge people a monthly charge of $30-40 dollars. For this amount they would recieve:

Monthly Computer Optimization
Spyware and Virus Removal (Value $50.00)
1 Free Computer repair every 2 months (Value $40-80)
40% off other computer repairs that occur (Savings of $20-40 dollars)
30% off computer services (Wireless Network installation, printer and cpu setup, etc.) (Savings of $50-80)
15% of off hardware (Savings of $20-40)

I am also designing software that emails me when a problem occurs on a clien't computer (hardware, software, virus, pop-ups, etc)

The idea is to gain clients and keep them. I would have them sign 6 month to 2 year contracts, payable upfront. Around my area, computer repair businesses charge an arm and a leg for normal computer repair. I will be servicing 4 major areas (Roanoke, Bedford, Salem, Christiansburg). My goal would be 100 clients in two years. At $40 dollars a client, That would be $4000 in revenues with very little expenses. I know this won't come easy, but with the prices of computer repair around here, if I market right it shouldn't be a problem. I would run this business by myself until I have 50 clients signed up, then I would bring trusted computer minded friends into the business.

My question is what types of problems do you think I would incur in this businness?

Is $40.00 a month too much (or too little) for what they are getting?

Is there any hidden costs that I can't see?

I will be working on this in the months to come, hopefully everything will be rolling around the end of feburary.

Thanks in advance for your advice.

OnTheWayUp

[MASapparel]

It seems like a good idea as long as you are in the area for it.
I do not think you would have a problem getting that amount of members. I think it is a good business and the service should work out good. Your going about it the right way and starting small is best.

[OnTheWayUp]

Thanks for the comments, I do see this business being successful and starting small is always best.

[BusinessAdviser]

I think you might run into problems with charging a monthly fee. Many people might just want you to work on it whenever it slows down or is having problems rather than paying even when everything seems fine.

[OnTheWayUp]

They would have a choice in paying the monthly fee or paying a one time fee for computer repair. The monthly service just saves them money in the long run AND gives them a free repair and virus removal with discounts. My computer repair prices (one time fee) will still be cheaper than the rest.

[OnTheWayUp]

They would recieve monthly computer optimization just in case their computer does begin to slow down.

I forgot to mention that the free computer repairs rollover (they don't dissapear if they don't use them)

[MASapparel]

yeah assumed the monthly was just a second option they had so I think with that you will do good.

[exstatic]

I was thinking of a similar concept, a bit like AA for your car, the customer buys a yearly subscription for their computer, and it basically cover them for the duration of the year.

For example, you could have bronze, silver, gold memberships, and each has different benefits, i.e emergency response, free upgrades/servicing, prevention, discounts on new computers etc..

I think it has potential, the only this is, do you plan on this being a full time or part time business, because I'm not sure how a business can survive on a turnover of $4000 over 2 years?

I think when setting a cost, you need to work what it is going to cost you.. what is someone gets a spyware or virus infection every day that you need to fix? that will surely cost you more than $40.

Good idea, but test out a few different business models first.

[OnTheWayUp]

Exactly what I am looking for Ex! I like the membership plans, would have to think it out a little more.

As far as the virus protection goes and any other computer repair, I have worked on computers for years so I have it down to a science and only takes me an hour at the most to repair most common problems.

With a contract, they would recieve 1 free computer repair every two months and a free virus and spyware removal each month...anything after that they would have to use their free computer repair and if they dont have any freebies, they would have to purchase a computer repair but with a 40% discount. This way, I still make money on repairs as well as monthly payment.

Its not about making money off the computer repairs, its about establishing a big enough client base for it to pay for itself.

Goal: 100 clients with 6 month contracts

100 clients x $40 monthly = $4000 monthly
Estimated expenses per month = $200 (Gas, cell phone)

I have all the programs needed to fix any type of computer, I need around 3 cds with all the apps I need.

[Wjordan87]

Since you are going into business for yourself at the moment, what happens if you have clients that want their computers attended to at the same time?

[OnTheWayUp]

There is a big difference with clients who have contracts and the people who I do computer work for. The people I do computer work for have been asking me when I would go into business....I'm guessing they would sign up for the membership as they would also be saving money in the long run and would love the discounts.

[BusinessAdviser]

I was thinking of a similar concept, a bit like AA for your car, the customer buys a yearly subscription for their computer, and it basically cover them for the duration of the year.

In essence, you are talking about computer "insurance." Not a bad idea, you just would be best off conducting a market survey and finding out what potential is out there, for what services, and at what prices.

[exstatic]

In essence, you are talking about computer "insurance." Not a bad idea, you just would be best off conducting a market survey and finding out what potential is out there, for what services, and at what prices.

Yea, I think the idea has some merit, I'm currently developing a business plan for this to hopefully launch in about 12-18months.. This should include the market research, and hopefully it all looks good

Onthewayup,

I think you need to invest a bit more in your running costs, include things like your internet bill, advertising, electricity, costs for your own computer etc..

Good luck, would be good to hear how you progress.

[sleighter]

Computer repair is a tough business.They are popping up everywhere.Very competetive market.Make sure you research as your pricing seems low.

[BusinessAdviser]

Here's my thought about some kind of subscription or monthly fee:

If someone offered such service, I would be interested. However, the difference between me subscribing and not would be whether I was responsible for bringing my computer in every month.

As a suggestion, have either of you thought about home service? I would likely opt to pay a monthly fee to have someone come out to the house once a month and take care of the computers here. You can make it work if you have customers keeping regular schedules, so that, for example, each do you could be in a different neighborhood. That may not be do-able, but if you could, I think you'd have a lot more success.