Help! How to start a custom-machine building business

[iPwntUrMum]

Hi guys.

So I'm 16, and I'm looking for jobs for this coming year and the following. I'm working on getting my A+ Certification, I've been locating a test center and casually studying (most of it is pretty general, or things I know [I can point out all the parts of a mobo, work with Win, OSX, and Linux, and can install hard/software easily, I grew up on this stuff haha], it seems.)

As such, it seemed like a very profitable thing to do, especially for a full-time high school student.

So now I'm looking into how I can do this. I'm thinking about have three different set ups for each main component, ie low medium high end for gpu, cpu, ram, etc. Some could be standardized, things I know that are necessary for a good computer to run.

I figure I could just use Newegg to order, and ship to my home. I figure I can still make a couple hundred bucks from a profit margin, and still keep it lower than a comparable DELL, HP, Acer etc.

TL;DR: full time student trying to start custom machine building business, any tips?

Cheers!
/Pwnt

 

[reflex99]

from my observation, it is RIDICULOUSLY difficult to maintain a profit margin.

Your business strategy will have to rely on undercutting the major players (alienware, DigitalStorm Cyberpower, Ibuypower, etc.). In the consumer's eyes, why would they go with you, when they could go with one of these big established brands. The only way people will buy your product is if you offer the same or better specs at least 10-20% cheaper.

Back on that topic, the above vendors also can purchase their hardware at rediculous discounts, thus they can keep their profits up. In the case of IBP, and CP, this allows them to undercut AW, DS, etc, and sometimes even newegg.

Once you get big enough, you may be able to get parts wholesale directly from manufacturers, but you are going to need more than just yourself building to have that kind of volume.

One of the most difficult aspects is to get people to trust your brand. A professionally designed website can go a long way towards this. Word of mouth is also something that is VERY helpful. Its one thing for consumers to hear it from you, but if they hear how great you are from their friends, you just got 9001% more reputability. You will probably spend a lot of time kissing customers feet. The second you get one bad review on the internet, your whole business could be ruined.

maybe get your site on google adwords

Another thing to consider is warranty and services. You are going to NEED to include overhead for returns and repairs. Considering you are 16, you should probably start thinking about saving monies now so that you can have some reserve funds to cover this kind of stuff.

A good logistical system is also very essential. What most people like you do is use the manufacture warranty of the parts in their builds to cover repairs. With this, you will need to be able to keep track of many invoices, and serial numbers, and which goes with what part. MS Excel is a god.

I would suggest trying to possibly target a niche, maybe specialize in killer gaming machines at under $600 or something like that. Then maybe branch out, or offer custom builds.

wow that is a wall of text

TL;DR: profit is hard to maintain, service and brand rep is everything

 

[fixitquick79]

I have A+ cert among others. If you go into it looking to undercut the big guys on price you will fail. You need to get out there and network with people. The biggest value add is the custom tailoring and most importantly availability of help when they need it. I ran my own tech support and sales business for about 4 years. The biggest thing you need to know is to provide impeccable service. Stress that your computers have better components and no bloatware. You will be basically on call all the time. That is what they are paying extra for. If you are just dabbling and don't have the experience to build a computer that works every time you should get some under your belt at no profit. Put up fliers at your church if go to one or at especially senior centers and community areas of affordable one on one computer lessons. Those people, if you are personable and live up to your word every time will become the most dependable customers and referrers. Good Luck.

 

[Snipeye]

Once you figure out the stuff reflex and fixitquick are talking about, I'll casually point out the accounting and tax regulation stuff that you will need to know, or be aware of, when running a business from home. Accounting to make sure that you're making a profit, and the tax to make sure you're complying by government law.

That is assuming you do wish to create a formal business, such as an LLC. Partnerships and sole proprietors are more hazardous than an LLC (i.e. If you were ever sued, you would be responsible to pay fines and such, whereas an LLC, its the business that's liable).

Lots of stuff to keep in mind. =D

 

[mad pistol]

AMD's recently released llano is probably a good place to start, especially if you're trying to reach out to guys building a minor gaming rig on the cheap. Just something to think about.
,

 

[iPwntUrMum]

Thanks guys, I'll take it all into account.

A few things, there are no big guys where I live. So that's a plus. Most people around here order direct from department stores or online, ie dell.com

I like what snipeye said.

Honestly, I'm looking for a casual thing to make cash every now and then. Nothing major, nothing like continued tech support. Much more of I will get the computer put together, load an OS for you, and perhaps install software on the side, otherwise any viruses etc that you get on it aren't my fault. Run multiple virus scans before sending it out, as my "seal of approval" and lack of liability to myself.

 

[Sn1PeR]

When I was in highschool I made a killing doing tech support (primarily old people wanting to upgrade, remove a virus, etc.). I would strongly consider doing that. Just by word of mouth and helping friends of family's friends you will gradually start to find lots of work. The pay is great and the work really isn't that hard.

 

[iPwntUrMum]

When I was in highschool I made a killing doing tech support (primarily old people wanting to upgrade, remove a virus, etc.). I would strongly consider doing that. Just by word of mouth and helping friends of family's friends you will gradually start to find lots of work. The pay is great and the work really isn't that hard.

Will definitely look into that. What type of prices did you charge?

 

[Tiomat]

When I was in highschool I made a killing doing tech support (primarily old people wanting to upgrade, remove a virus, etc.). I would strongly consider doing that. Just by word of mouth and helping friends of family's friends you will gradually start to find lots of work. The pay is great and the work really isn't that hard.

A friend of mine has a business setup. While he builds and sells machines, most of what he does now is tech support (OS loads, virus, HW/SW upgrades, etc). In addition, this is where most of the money is made anyway. The costs are all passed on to the customer (for HW/SW), and you get to bill for your time.

The other part that keeps everyone coming back to him, is that he warranties all his still. I'm not sure what that involves. He used to say that if it wasn't physically damaged, he'd cover it. But I never really needed to use it, as the equipment was so old (and had been passed on a few times) that I would never dream of trying to warranty it.

In something like this, it's almost all going to be word of mouth. Those that know ANYTHING about computers will go to a place like NCIX and build their own. Or they'll go to Dell or Staples and just order/buy a generic machine. In either case, the buyer will usually either over or under build the machine. So there's a SMALL amount of room to assist a customer, and make some profit. But in all honesty, it likely won't be much unless someone is asking you to troubleshoot a very old computer, and you able to advise them (honestly) to get a new one. As for the rates, go find whomever is currently doing computer work in your town (or a nearby town), and find out what they charge (pretend to be a customer). Then charge less than them.

But if you do attempt this, good luck!

 

[reflex99]

Thanks guys, I'll take it all into account.

A few things, there are no big guys where I live. So that's a plus. Most people around here order direct from department stores or online, ie dell.com

I like what snipeye said.

Honestly, I'm looking for a casual thing to make cash every now and then. Nothing major, nothing like continued tech support. Much more of I will get the computer put together, load an OS for you, and perhaps install software on the side, otherwise any viruses etc that you get on it aren't my fault. Run multiple virus scans before sending it out, as my "seal of approval" and lack of liability to myself.

good luck with that...lol

If someone isn't competent enough to build their own machine, i HIGHLY doubt they are confident enough in their abilities to purchase a computer without any sort of warranty or support.

 

[Silent_Predator]

I agree with Reflex...

I also think the community at large will not let a 16 year old work on their machines.

my 2 cents.

 

[reflex99]

^your sig is a logical fallacy

 

[Snipeye]

I think we're looking at this the wrong way for you, Pwn. You can try and do the LLC idea, be a formal business and all. But it would also be equally possible and easier to try and run it as a referral business. By that, I mean that your initial customers will be those you know, who trust you can do the job and such. Write up a business plan, and how you plan to charge for services (building a PC, warranty support, OS installation, antivirus, etc.) From there, using your initial group of customers, encourage word of mouth to help find new customers. I know for a fact a 16 yr old can run a business like that, and make it work. You just have to lower your expectations on how much money you hope to make (say a couple hundred or so a month to start off with, assuming $50 for 6 or so customers each).

 

[cluster.roadkill]

I agree with Reflex...

I also think the community at large will not let a 16 year old work on their machines.

my 2 cents.

true but the A+ cert will help him with some/most customers


also -
you won't really make a profit much unless you're a power buyer (like 100s of cpus) for your own clients, otherwise a dell.com system will be cheaper to almost everyone. I would suggest you look into tech support for the town since you say it's not that big. you'd be better off (in my opinion) earning money from tech support than building systems. and most issues are generally getting viruses off systems

 

[Johnny]

If I were you I'd goto work at a grocery store and not worry about starting your own business until you're out of college. You're only 16, no one is going to entrust their hard earned money to a minor.

 

[UnderLord]

Most people he will be dealing with won't know what a A+ cert is, if he were looking to get hired by a small business or a big business it would look nice on a resume.

true but the A+ cert will help him with some/most customers


also -
you won't really make a profit much unless you're a power buyer (like 100s of cpus) for your own clients, otherwise a dell.com system will be cheaper to almost everyone. I would suggest you look into tech support for the town since you say it's not that big. you'd be better off (in my opinion) earning money from tech support than building systems. and most issues are generally getting viruses off systems