[gemini_bwoy]

Well, hello again guys and Karen


I have recently began to pursit a career in Computer Retail, Repair, and Building Biz. Similar to newegg.com (In the sales department) and similar to geeksoncall.com in the repairs department. This was after some long and hard brainstorming (yeah sure). I have always loved PC's so finally I plan to do something about. Technically my biZ has not started yet but looking to info and taking advice where ever I can find it.
Anyways, one of my cousins said that this other cousin wanted a PC and was going around looking to but on and some other company was charging him around JA$ 80,000 = US$ 1,300. For it, so I jump in and ask if I could assist him, and first he seemed sort of , but then he saw that I was serious. He listened to what I had to say. Eventually he agreed, and asked for me to set-up and "official invoice" so he could show the bank inorder for him to get loan (According to him, he dont wanna use his own money)

I did what I had to do, and got back to him. And sent him the Invoice. The parts with shipping cost around $800, so im charging him $850 for the parts. And JA$1500= US $25 for assembly and updating and stuff.

But the funny part is that, I have never assemblied a PC from scratch before, but today at work, I had to do it and most stuff went well so right now I cant wait to do his and then move on and on. And then start a Company bigger than DELL.

Even thought everything sounds good, I dont know it im doing what I do best (UNDERCHARGING).
What you guys think? How much should I make on everything?

Thankz

[troyswitch]

Congratulations Gemini!

It's always great to get that first customer. That's probably the hardest part for most businesses. I don't think you're doing anything wrong by undercharging, for right now. If that helps you break through that first door, I would definitely recommend it. Until you can build up your business, and get a stream of continuous customers, then you probably later on you could re-work your strategies. Right now though, everything looks promising for you!

One of my goals is to build something like what you're trying to achieve (not now, but maybe later in the future), and I know how hard it is in this type of business. I'm sure you're working hard. Keep up the good work, and keep those customers coming!

All the best.

[gemini_bwoy]

Originally posted by troyswitch
Congratulations Gemini!

One of my goals is to build something like what you're trying to achieve (not now, but maybe later in the future),
All the best.

Thankz, i really appreciate your feedback. So what do you do now? IT related. At Switchvillie, maybe you could give me couple pointers.

[troyswitch]

Hey Rory,

I think the biggest drawback for why these type of businesses don't succeed is because people don't have time for their tech support. A lot of times computers break down, and it's hard for the tech guy who built the computer to service it 24/7. The good thing is you can get help here - by outsourcing. How this works is you partner with a company that is dedicated to tech support, and you tell them that you will give them customers if they can help you out in this arena - i.e. tech help for your customers. It's a win/win situation for both. There's a company called pcpinpoint.com that offers this for businesses that manufacture computers. I heard it's a great company, although I have never used it myself.

To increase customers, you could widen your marketing area to the rest of the world by bringing your business online. I'm not sure if your business is ready for this, because it does costs quite a few to maintain this type of ecommerce website. In due time, you'll get there though. Patience is key in any business.

Hopefully I helped somewhat

[Karen]

Way to go! Congratulations Rory.

troyswitch has given you some great advice and suggestions.

Just plow onwards like you have been doing this for years, the customers will follow.

Karen

[BetterEdit.com]

When it comes to figuring out how much to charge you have a few variables you should consider. Obviously you want to make some profit and this profit needs to be above costs - not just the hardware costs, but also the service costs - e.g. are you using petrol to drive your car around to pick up the parts?

Then you need to consider what the customer is willing to pay. This part is tightly linked to how good your service is and how much competition there is. Without going into too much detail (it's all economics hey ) your customer should feel satisfied at the end of the transaction, if you can achieve that at a profit, job well done!

There is a lot more to it, but really if you can make clients happy then you can usually charge what you want. As soon as pricing starts to impact that happiness then you know you are charging too much.

Yaro

[Aletheides]

Ultimately with any business: time is money. Give yourself an hourly wage and charge accordingly.

800 for parts.
20 an hour labor.
5 hours assembly time.
900 total cost + any other expenses you deem necessary.