Computer Biz

SunDancer · 02-12-2004, 11:59 PM

I have been doing a lot of research, and working away at putting together a business plan for a computer company. You might ask, what will make my product/service different, better? I can tell you that our computers will be different then the current ones out their, in terms of presentation and quality. I think that the service of the big companies has fallen, and that we can deliver better value. We'll follow the direct distribution (focusing on catalogs and internet), and the custom- computer package then Dell, with even more customization then they offer.

I always been curious, what would it take for those (besides those who can build their own computers, and do not buy market-computers) to purchase such a product?

Primal · 02-13-2004, 12:04 AM

Trust. It's difficult for someone to spend $2k on a computer thats coming out of someone’s garage. You'll have to have a very nice Website/catalog and build a good comfort level for the potential buyers.

SunDancer · 02-13-2004, 12:13 AM

Quote:

Originally Posted by Primal

Trust. It's difficult for someone to spend $2k on a computer thats coming out of someone’s garage. You'll have to have a very nice Website/catalog and build a good comfort level for the potential buyers.

Exactly, thats what I am trying to research. It's seem Alienware (well not being out a brand name like Dell, ect..they seem to be doing well)

Draft Dodger · 02-13-2004, 12:20 AM

two things I would look for in such a company...

stellar (and I mean STELLAR) technical support.
and good spelling.

SunDancer · 02-13-2004, 12:33 AM

Quote:

Originally Posted by Draft Dodger

two things I would look for in such a company...

stellar (and I mean STELLAR) technical support.
and good spelling.

I fixed all my spelling. That better now?

Draft Dodger · 02-13-2004, 12:36 AM

Quote:

Originally Posted by SunDancer

I fixed all my spelling. That better now?

ah...customer service with a smile

still some residual bad grammers, but I think it's good enough now.

SunDancer · 02-13-2004, 12:39 AM

Quote:

Originally Posted by Draft Dodger

ah...customer service with a smile

still some residual bad grammers, but I think it's good enough now.

I'm just was kidding. For some reason, my computer keeps acting up. It screws up sometimes when I am typing. My server at college is absolutely horrible. Tons of viruses (luckily I have a anti-virus protector) and just bad service.

Draft Dodger · 02-13-2004, 12:42 AM

Quote:

Originally Posted by SunDancer

I'm just was kidding. For some reason, my computer keeps acting up. It screws up sometimes when I am typing. My server at college is absolutely horrible. Tons of viruses (luckily I have a anti-virus protector) and just bad service.

I was kidding too

SunDancer · 02-13-2004, 12:45 AM

Quote:

Originally Posted by Draft Dodger

I was kidding too

I know. I just did not want you think that I was coming off an ass or something. Anyways, what would be your idea of "stellar technical service"?

DanGarion · 02-13-2004, 12:51 AM

*insert perverted obligatory sexist thing that will improve business here*

Draft Dodger · 02-13-2004, 12:53 AM

Quote:

Originally Posted by SunDancer

I know. I just did not want you think that I was coming off an ass or something. Anyways, what would be your idea of "stellar technical service"?

well, start with the obvious of no extended hold times.
but when I do get through, I don't want some kid reading a script of all the steps ("if customer says A have them try B then C"). I want someone who knows what they are doing - I have good computer knowledge and I don't want to be walked through all the steps like the grandmother with her first computer. And, frankly, I want someone who speaks really good English.

Primal · 02-13-2004, 12:57 AM

You have to make a sale 1st before you can start your support. Show how can he show he has that good support before a purchase?

sterlingice · 02-13-2004, 01:03 AM

Quote:

Originally Posted by Draft Dodger

well, start with the obvious of no extended hold times.
but when I do get through, I don't want some kid reading a script of all the steps ("if customer says A have them try B then C"). I want someone who knows what they are doing - I have good computer knowledge and I don't want to be walked through all the steps like the grandmother with her first computer. And, frankly, I want someone who speaks really good English.

Hm... you sound a lot like my parents. Lately, they aren't big fans of a company that rhymes with "OUTSOURCED ALL OF THEIR JOBS TO OTHER PLACES AND GETTING CUSTOMER SERVICE THESE DAYS IS HELL"

SI

SunDancer · 02-13-2004, 01:10 AM

Quote:

Originally Posted by Primal

You have to make a sale 1st before you can start your support. Show how can he show he has that good support before a purchase?

I wasn't really trying to sell anything. I was doing some research, getting some ideas. I will spend my summer putting my business plan into action, filing for the legal stuff, making deals with manufactures of parts, setting up a employement team, ect. One of my "keys" is to have 300 computers sold (prolly through an "agreement"-I deliver it, they will buy it. If not, the sale will be off).

SunDancer · 02-13-2004, 01:13 AM

Quote:

Originally Posted by sterlingice

Hm... you sound a lot like my parents. Lately, they aren't big fans of a company that rhymes with "OUTSOURCED ALL OF THEIR JOBS TO OTHER PLACES AND GETTING CUSTOMER SERVICE THESE DAYS IS HELL"

SI

That was a big part in my focus. It seems Gateway's service fell due to putting time restraints on the tech support so they can reach bonus money goals. Dell's moving to India is a big inspiration for my company idea to become reality.

johnnyshaka · 02-13-2004, 02:56 AM

Margins on hardware are getting smaller day by day...the money is made on service contracts. So, don't count on making money on the computer itself, you need to make your buck with extended warranties and gimmicks like that. Dell and HP don't make red cent on systems...they lose money most of the time...where they make their money is the extended warranty and things like.

Hardware is a tough place to make a living...so, make sure you do your research!!

AgustusM · 02-13-2004, 10:33 AM

I see someone put $2000 in here - not sure where that number came from but you aren't going to sell many computers at that price in 2004.

rkmsuf · 02-13-2004, 10:35 AM

forget computers...go with a robot butcher...

Shepp · 02-13-2004, 11:20 AM

Johnnyshaka hit the nail right on the head. I have kicked the idea around for years about starting a computer busisness but the profit margin is tiny. I was talking to some guys at a boot at a computer show down here in Atlanta. They sell PC's by going to shows every week and selling from their web site. They said that they made about one hundred dollars profit per PC and that even sounded a little high. Something else you want to think about are service calls. You may not have to actually fix a problem but I'm sure you'll get calls at all hours from some guy wondering why his PC isn't working during a blackout.

If its your dream I say run with it but make sure you got a solid plan because I'm sure it will be a challenge.

SunDancer · 02-13-2004, 01:56 PM

Thansks guy. I know what your saying, but any business is pretty "low-margin" these days. It will be a challenge (as any business would), but it's not an impossible one.

Desnudo · 02-13-2004, 02:05 PM

Quote:

Originally Posted by Draft Dodger

ah...customer service with a smile

still some residual bad grammers, but I think it's good enough now.

That is the worst sentence critizing grammar I have ever seen in my entire life. Grammar is not a plural noun to be abused and mispelled for your amusement! I pity the fool who uses grammar as a plural noun and spells it with er.

albionmoonlight · 02-13-2004, 02:05 PM

Do you know CPU's inside and out? Would you make and sell them for free if you got the chance? In a business like this, you need inordinate knowledge and passion about your product.

From previous posts you have made on this board, I know that you are passionate about starting your own business. Your ideas for a business, however, have been varied. Whatever business you start, you will be eating and breathing the business until you get off the ground (the two people I know who started their own business both worked 14 hour days 7 days a week for the first few months of it). You have to love what you are doing.

Good luck.

Balldog · 02-13-2004, 02:08 PM

I used to work for a guy that opened up his own computer shop. He is having quite a bit of success. Things were slow at first, we worked out of his garage/basement for about a year then word started getting out about our service and he was able to open up a store in town. I quit for a better opportunity about two months later, but I know now he has at least one other store in a different town.

His main focus was on service and having replacement parts available, then once he got a good reputation we started building PCs mainly for businesses. Though he never made any money on building PCs because he just couldn't compete with Dell or Gateway pricing and still make money. So basically we built custom PCs for cheap.

He is also advertising all the time on radio and television.

You have to have your shit together to do this though, it takes a strong drive to keep going at it because when you first start the times are tough and it is hard to keep going since you are not seeing any rewards.

SunDancer · 02-13-2004, 02:29 PM

Thanks guys. I understand the work. I am willing to work the long hours needed. I'm just been trying to find a business that I think lacks something, and that I can be better at. Also have a interest and knowledge in. It seems that it can be done, just have to be smart at it.

Fritz · 02-13-2004, 03:12 PM

what happened to the hospitality biz or the resturant biz or the tourism biz or whatever it was you were thinking of last week?

SunDancer · 02-13-2004, 03:56 PM

I was studying Alienware, it seems like they have a business model, catering to a certain niche.

02-13-2004, 12:20 AM	#4
Draft Dodger Coordinator Join Date: Jan 2001 Location: Keene, NH	two things I would look for in such a company... stellar (and I mean STELLAR) technical support. and good spelling. __________________ Mile High Hockey

02-13-2004, 12:51 AM	#10
DanGarion Coordinator Join Date: Nov 2003 Location: PNW	insert perverted obligatory sexist thing that will improve business here __________________ Los Angeles Dodgers Check out the FOFC Groups on Facebook! and Reddit! DON'T REPORT ME BRO!

02-13-2004, 10:35 AM	#18
rkmsuf Head Coach Join Date: Dec 2001	forget computers...go with a robot butcher... __________________ "Don't you have homes?" -- Judge Smales

02-13-2004, 03:12 PM	#25
Fritz Lethargic Hooligan Join Date: Oct 2000 Location: hello kitty found my wallet at a big tent revival and returned it with all the cash missing	what happened to the hospitality biz or the resturant biz or the tourism biz or whatever it was you were thinking of last week? __________________ donkey, donkey, walk a little faster

02-13-2004, 12:04 AM	#2
Primal High School JV Join Date: Jan 2002 Location: Huntington Beach, CA	Trust. It's difficult for someone to spend $2k on a computer thats coming out of someone’s garage. You'll have to have a very nice Website/catalog and build a good comfort level for the potential buyers.

02-13-2004, 12:57 AM	#12
Primal High School JV Join Date: Jan 2002 Location: Huntington Beach, CA	You have to make a sale 1st before you can start your support. Show how can he show he has that good support before a purchase?

02-13-2004, 02:56 AM	#16
johnnyshaka College Benchwarmer Join Date: Oct 2002 Location: Edmonton, AB	Margins on hardware are getting smaller day by day...the money is made on service contracts. So, don't count on making money on the computer itself, you need to make your buck with extended warranties and gimmicks like that. Dell and HP don't make red cent on systems...they lose money most of the time...where they make their money is the extended warranty and things like. Hardware is a tough place to make a living...so, make sure you do your research!!

02-13-2004, 10:33 AM	#17
AgustusM College Prospect Join Date: Dec 2003	I see someone put $2000 in here - not sure where that number came from but you aren't going to sell many computers at that price in 2004.

02-13-2004, 11:20 AM	#19
Shepp High School Varsity Join Date: Oct 2000 Location: Atlanta, GA	Johnnyshaka hit the nail right on the head. I have kicked the idea around for years about starting a computer busisness but the profit margin is tiny. I was talking to some guys at a boot at a computer show down here in Atlanta. They sell PC's by going to shows every week and selling from their web site. They said that they made about one hundred dollars profit per PC and that even sounded a little high. Something else you want to think about are service calls. You may not have to actually fix a problem but I'm sure you'll get calls at all hours from some guy wondering why his PC isn't working during a blackout. If its your dream I say run with it but make sure you got a solid plan because I'm sure it will be a challenge.

02-13-2004, 01:56 PM	#20
SunDancer College Benchwarmer Join Date: Sep 2002	Thansks guy. I know what your saying, but any business is pretty "low-margin" these days. It will be a challenge (as any business would), but it's not an impossible one.

02-13-2004, 02:05 PM	#22
albionmoonlight Head Coach Join Date: Oct 2000 Location: North Carolina	Do you know CPU's inside and out? Would you make and sell them for free if you got the chance? In a business like this, you need inordinate knowledge and passion about your product. From previous posts you have made on this board, I know that you are passionate about starting your own business. Your ideas for a business, however, have been varied. Whatever business you start, you will be eating and breathing the business until you get off the ground (the two people I know who started their own business both worked 14 hour days 7 days a week for the first few months of it). You have to love what you are doing. Good luck.

02-13-2004, 02:08 PM	#23
Balldog Pro Rookie Join Date: Jan 2002 Location: Macomb, MI	I used to work for a guy that opened up his own computer shop. He is having quite a bit of success. Things were slow at first, we worked out of his garage/basement for about a year then word started getting out about our service and he was able to open up a store in town. I quit for a better opportunity about two months later, but I know now he has at least one other store in a different town. His main focus was on service and having replacement parts available, then once he got a good reputation we started building PCs mainly for businesses. Though he never made any money on building PCs because he just couldn't compete with Dell or Gateway pricing and still make money. So basically we built custom PCs for cheap. He is also advertising all the time on radio and television. You have to have your shit together to do this though, it takes a strong drive to keep going at it because when you first start the times are tough and it is hard to keep going since you are not seeing any rewards.

02-13-2004, 02:29 PM	#24
SunDancer College Benchwarmer Join Date: Sep 2002	Thanks guys. I understand the work. I am willing to work the long hours needed. I'm just been trying to find a business that I think lacks something, and that I can be better at. Also have a interest and knowledge in. It seems that it can be done, just have to be smart at it.

02-13-2004, 03:56 PM	#26
SunDancer College Benchwarmer Join Date: Sep 2002	I was studying Alienware, it seems like they have a business model, catering to a certain niche.

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