Guy wants to start his own custom computer company...

Hiya guys!

So here I am. I really want to build computers (custom) for people. I have an associate that would help, and I would plan on ordering parts from newegg. I'm pretty good at it, and I believe there could be some good money, as well as fun, in it. What I ask you, is what advice could you give me on places, and ways, to sell computers? How should I start up without spending (if possible) much money? How should I require payment? (aka upfront, or I front). THANK YOU very much for ANY help or suggestions.

Some suggestions:

Don't just go into PC building, in order to compete with other companies that can offer cheap and affordable computers (Dell, Gateway), and to stay alive, you need to do something else rather than just PC building. Look into PC repair, web page development, tech support, custom computer mods, etc.

Also, if you're going to set up a shop, look at what audience you're trying to target (gamers, overclockers, "joe average", etc) and build it around that, have some pretty good selection with good brands also.

AN IMPORTANT ONE!!! My friend did the same as you, opened up a shop in his garage, and he started quite a bit of money. However, he never got a Tax ID or registered his bussiness, so he was fined and was about to be arrested for not paying taxes on his profits, so if you start seeing that you're making money, register as a bussines, better safe than sorry.

Also, I say if you really are confident on what you do, make them pay up front, and let them know your policies as far as Tech Support and warranties from you alone.

Hope this helps.

Could be tough getting money up front. Probably be limited to getting a deposit. Don't know how much of a market there is for custom computers. Most Joe Shmoes just order a dell or a gateway or go to best buy.

Thanks for the help. I wasn't planing on opening a shop, and my prices would be VERY competitive. The biggest problem for me would be paying for the parts myself, and getting customers... any thoughts?

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Originally posted by Khaleb
Thanks for the help. I wasn't planing on opening a shop, and my prices would be VERY competitive. The biggest problem for me would be paying for the parts myself, and getting customers... any thoughts?

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Get the word out there. Start with your friends, do some jobs for them, and let them spread the word. Or you could just advertise by simply printing bussiness cards or flyers, maybe even host a LAN party and get your name out there.

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Originally posted by mrspm2003
Some suggestions:

Don't just go into PC building, in order to compete with other companies that can offer cheap and affordable computers (Dell, Gateway), and to stay alive, you need to do something else rather than just PC building. Look into PC repair, web page development, tech support, custom computer mods, etc.

Also, if you're going to set up a shop, look at what audience you're trying to target (gamers, overclockers, "joe average", etc) and build it around that, have some pretty good selection with good brands also.

AN IMPORTANT ONE!!! My friend did the same as you, opened up a shop in his garage, and he started quite a bit of money. However, he never got a Tax ID or registered his bussiness, so he was fined and was about to be arrested for not paying taxes on his profits, so if you start seeing that you're making money, register as a bussines, better safe than sorry.

Also, I say if you really are confident on what you do, make them pay up front, and let them know your policies as far as Tech Support and warranties from you alone.

Hope this helps.

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Incorporated? Being incorporated will stop a party from taking personal property if your company gets sued and allow some additional write offs. But if you are small time those savings will be eaten up by accountant fees. Also...Having a federal tax ID number will not stop the IRS from arresting you or freezing accounts for tax evasion. Just keep good books and pay your taxes.

Quote:

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Originally posted by mrspm2003


Get the word out there. Start with your friends, do some jobs for them, and let them spread the word. Or you could just advertise by simply printing bussiness cards or flyers, maybe even host a LAN party and get your name out there.

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Yep friends and friends of friends would be a good start. They would be a lot more willing to pay for parts up front.

Thats where the problems lie. My friends are all semi-experts at building so they won't buy :(. I'm thinking about ebay.

oh yea, thanks SOOOO much for what you've given me so far :)

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Originally posted by clh61

Incorporated? Being incorporated will stop a party from taking personal property if your company gets sued and allow some additional write offs. But if you are small time those savings will be eaten up by accountant fees. Also...Having a federal tax ID number will not stop the IRS from arresting you or freezing accounts for tax evasion. Just keep good books and pay your taxes.

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lol that's what I meant, file for a tax id and pay your taxes.

I've sold a number of computers to people I do tech support for.

Some of their computers are very old, and windows would crash constantly. So I tell them, you can either pay me $100 to format and reinstall, or put that $100 towards a new computer at $500-$600. Most chose to get a new computer.

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Originally posted by mrspm2003


lol that's what I meant, file for a tax id and pay your taxes.

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You don't really have to be incorporated or have the tax id until you start getting outside and a large client base especially if you don't have a lot of assets. Then its time to get an accountant and make sure you get a good one. Accountants love to talk small time business into incorporating...they tell you all about the tax benefits and then after being incorporated you figure out the fees paid for quarterly's etc. far outweighs the tax benefits. In Ohio the CCA(central collection agency -local taxes)is by far a bigger pain in the arse than the IRS. They are the mirror of small town cops creating something to do. :mad: You get an issue resolved with them and they conveniantly forget to mark the file as resolved. So six months later you get another audit. I've come real close to showing up at the CCA with a ball bat...Idiots. I retired from my flooring business 2 years ago and it is still a continuing battle.

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Originally posted by jubjub
I've sold a number of computers to people I do tech support for.

Some of their computers are very old, and windows would crash constantly. So I tell them, you can either pay me $100 to format and reinstall, or put that $100 towards a new computer at $500-$600. Most chose to get a new computer.

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Thats good business;)

if you are going to order from newegg...you'll be working off of retail prices...which is hard...so i would suggest working on a smaller margin of buisness...lets say friends of friends and family. You'll also make the most off of oem average "joe" computers. Cause most of the time..anybody who knows about an OCing computer...can build one. Good luck btw.

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Originally posted by Mo
if you are going to order from newegg...you'll be working off of retail prices...which is hard...

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That's a good point. Many "average" consumers are looking for something in the $500 to $1000 range. Although you could build a better computer for the same price (or less) as a Dell (Gateway, HP, etc.), it's hard to explain why your computer will be a better buy. Your prospective consumer won't know they should choose your computer becasue it will come with non-integrated audio and video, branded memory with faster timings, etc. Those people who do understand this difference tend to build their own computers.
Also, you must consider how much extra time you will spend in the position of tech support. I have made a few rigs for non-family members, and they are the first to call when they can't connect to AOL, even though the problem is not due to a hardware issue.

1) decide your client base priority
2) decide what styles of pc your going into
3) attend lan festivals and give up one pc..( i have given 7 away so far..) with extreme results, this a promotional thing, also throw lan events... with hardware and software as prizes.. nothing like sponsored by ...
4) decide on incentives.. a percantage of of the next upgrade.. free software (preferably a game. what is 65-85$..
5) assist your customer in buying dont do pressure bs.. most people are turn off by this... or get po'ed when the tank you sold em should been a ferrari
6) be honest..explain the parts if they dont know what they do..
7) ads that suck (ours are pathetic yet oddily people remember them)
8) understand the tax brackets and how to use em...
9) alot money for bleak days
10) diversify.. not on pc but software and web based.. software as in small busniess software.. you wont believe how many local small business's will pay for company software that is unique to there business
11) get a name that stands out ...
12) develop a signature series... ie; alien has the area 51, voodoo has the class f series, falcon nw has the Mach V...

You can't order the parts retail and expect to make money.

Let me set a few things straight :)

-I'm not opening up a shop, and I'm not planning on doing this full time

-2nd about making money from newegg, let me pose this to you:

A computer under 500 dollars that is a little better than the one in my sig... wouldn't you think that I could sell that? I see dell selling comprable computers for 1k+.

Once again, thanks for the help

-Khaleb

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Originally posted by Khaleb

A computer under 500 dollars that is a little better than the one in my sig... wouldn't you think that I could sell that? I see dell selling comprable computers for 1k+.

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I agree with you that building customs rigs is (can be) a good second income. When comparing your builds to Dells, though, you must realize their rigs usually come with monitors and also with the OS on disc (XP, etc). Those two items alone can add a quick $300 or more to the cost of your build.
The easiest sell in this category is to bring an older computer up to speed for someone. Sometimes just a new mobo/CPU/memory is worthwhile upgrade for your customer and a few extra dollars in your pocket.
Based on your sig, I'm sure you'll provide solid rigs for your customers. Good luck.

If you build a computer a little better than the one in your sig, you would have to sell it for about $800.00 - $900.00 just to make a pay from it. There is to much compition in that price range. If you want to use win xp for a decent rig, that will cost you. How about the case? Dell has the name and they thro in software for free. Strangers will not believe your rig is better even if it was. Are you going to be around 24x7 for tech support? Short story, my friend was building and selling rigs until someone squealed that he was using pirated OS's. Microsoft sent their lawyers here to my little town and buried him. House and all! Not that your going to do that. Its just a story i wanted to pass along.

My advice is to start a business legaly and sell locally and then ebay. Best of luck!

i want to build computers for a living and do repais and stuff like that 2 but 1 prob im only 14 hers a thig u may use if u want. get like an old computer thats some1 is throwing out or pay 50 0r 60 bucks for it get pics of it tear it all apart get some pics f it and spice it up for only 100 bucks put some ram in it get a better video card ect. and then use that as a display for people that want to buy.Do stuff like that start out small like do a pc for a famly member that has an older pc and give them that spiced up 1 or make them a new 1 and ask them if thats any beter then that slow turtle . like i have a 4 year old pc that my parents bought for us 1 cristmas and bopy did i spice it up and when my uncle came down that fixes his own pcs he notcied how much faster it was then it useto be i put only 125 bucks in it and its better then the brand new compaq i have. so tell me wich is better a spiced up 1 or a custom built or a brand name?

tech support sucks!

i mean its cool to lounge around on sharkyforums and help out the random guy every once in a while but when you have your own busness and a client base.... and have to start spending hours on the phone helping people install AOL and connect to a network... you will want alot more incentive to continue doing so

Computer shops seem to be popping up everywhere, if you want to make some money at it, you need to focus on a specific group of people. People with 400-500 bucks to spend aren't worth the time. If you want to make some money at it, get into some real high end custom computer. I worked for Voodoo computers back when they were starting up, it was hard but look at them now, a computer from them is easily 6000-10000 bucks. I personally wouldn't deal with newegg if you are building computers. You need to get hooked up with a local supplier who will cut you some good deals so you dont need to keep everything in stock. Also dealing with rma and warrantys is a little easier.

Thats just my 2 cents.

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Originally posted by Ra\/eN
1) decide your client base priority

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Solid advice. I have built computers for friends and family for quite a while now, and this is the most important factor you must decide beforehand. Your target customer will dictate the rest of your operation.

Before starting a project with one of my 'customers', I go through a checklist based (generally) on two principles:
1. What are you going to do with this computer? (i.e. games, taxes, word processing, net surfing)
2. What is your budget?

Once these questions are answered, and the uses prioritized, you can put together a machine that suits them and their budget.

There are also times that you will see that your 'custom' machines aren't what the person needs. A cookie-cutter Dell may be the answer. But if you help them through the process, they will remember. I walked my cousin through a Dell purchase and his in-laws came to me for a machine through his word-of-mouth.

Do some machines with no (or very little) profit. This a great word-of-mouth way of getting your skill recognized.

As for tech support, suck it up. You gotta help 'em out, even with all the annoying software issues that have nothing to do with the hardware. I always tell the folks I help to call me BEFORE they install that shareware program or bargain basement game.

Also, whoever said flyers is a good idea is right. Putting out a bunch of flyers in your own neighborhood is a great idea. There is an entire section of the market that remains untapped due to the embarassment of ignorance. Joe Shmoe down the street wants to get a computer, but knows nothing about them and the guy at the retail electronics superstore dazzled him with a bunch of terminology that he did not understand. So he goes home embarassed and still ignorant.....with the wrong machine or no machine at all. You offer to come to his house and give him a free 'consultation'. You take the info I described at the top and go put together a couple of different optioned machines for him to mull over. Anyways, you get the idea.

Best of luck to you.