Would you pay????

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Would you pay for, or think it would be a good deal to have someone build your computer for you for only parts plus $25.00 labor. Keep in mind, for all of this you get the option for a 3 year warranty, parts and labor. The warranty is available for 10% of the build price. $800 build would cost $80 for 3 year warranty. What do you think? Good deal or no?

I want to start a site like this if I can get some people interested.

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I wouldn't, but that's because I'd rather build my own. But someone else might. Be advised though, anytime a build would be done for money, implied warrenties exist just in case something goes wrong. You need to check out the laws in your particular state before doing such a thing.

One other thing, by the way. A charge of $25 is rediculously cheap considering all the time and potential hastles that can be involved in building a computer. There are good reasons that shops get more money than that for assembling computers.

------------------------------ Evil lurks in the databanks as it lurked in the streets of yesteryear. But it was never the streets that were evil.

Over 50. Seen it, done it, can't remember it, but I miss it.
Reply to Sailer

If you're building low-end systems, it's a difficult way to make money. Dell/HP/etc have the low-end cornered because of their bulk pricing. You just can't compete with the big guns. On the high-end, however, you stand a good chance of making some dough. You can charge a lot more for the labor/knowledge that goes into a high-end rig. Also, people are willing to pay more because the system is so powerful. They probably will have difficulty seeing the labor and parts as two separate fees. If it's low end, they expect to pay very little (hence, difficult to make a large profit). If it's high end, they expect to pay a lot (hence, opportunity to make a larger profit). Additionally, if you can find ways to cut costs without sacrificing performance (price/performance ratio), some of that savings can be passed on to you.

 

Careful with that warranty thing. Are you going to be the first level tech support for all of your customers? Believe me, they will have questions and problems and it's many times not related to the build itself, but something they did or are trying to do. Also, with parts, are you going to eat the cost if the part actually only has a 1 year manufacturer warranty but it dies after 2 years?

 

It's a good idea, but again, low-end isn't profitable and the tech support can be killer. One thing to remember, however, is to ALWAYS test parts thoroughly before handing the build over. Burn-in, Memtest, disc scan (recommend Spinrite to find and disable bad sectors before installing the OS), CPU/RAM stress test, monitor temps, etc. Keep the results of these tests in a file for each customer.

 

Edit: I agree, $25/build is short-changing yourself. The problem is with low-end builds because by the time you buy all the parts, you've already matched HP/Dell and you haven't yet taken a slice for your labor. With high-end builds, depending on how complicated it is, tack on like $150-200. Mid-to-High, maybe like $100. Mid: $75, Low: $50


Message edited by qwertycopter on 03-31-2008 at 06:17:52 PM
Reply to qwertycopter

not if the prices were MSRP retail. You'll likely spend a lot more money than the system is worth. I build systems for a living. Every part will cost you at least 10 percent, parts include price of shipping, plus i add $50 for myself. See if you can buy the parts yourself, and have it built for $25. Just buy parts that have that extended warranty.

------------------------------ If you don't know what OS/2 is, you don't understand.
Reply to rockbyter
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Yes, if your prices for parts are competitive. Visit a few shops in your area (online or in person) and see what their policies and prices are. Just pretend you are a semi-clueless person and want them to build you a PC :)
BTW, that will also give you an idea how to treat potential customers. See who treats you best and try to behave like them.

Last time I got a computer I bought everything from the local shop and added C$35 to have them assemble and test it for 48 hours. They even installed XP and got the latest drivers from nVidia, Gigabyte, Creative, etc. $3000 PC, $35 markup to save me a day's work and minimize the risk of RMAs. Well worth it IMO. I can build a PC myself, but my time is worth more than $35 a day.

I wouldn't have paid $350. Think about capping that 10% at $100 or something, or you will only build very cheap PCs.

Be very careful about the warranties. What do you mean "parts and labor"? You can't offer warranties on parts, IMO. What if you get a bad batch of 9800GX2s or whatever other expensive thing and then end up paying for replacements yourself? I don't really know how this works, but that's OK, you're the one who needs to know this. I think the warranties on parts should be provided by the manufacturers, not you. Word your contracts carefully or you can get in big trouble.

Reply to aevm

Purchaser should pay the shipping, not you. If they don't like it, you can go to the local dealers.

Reply to qwertycopter

I want to make systems of 4 different levels.
1. Low end compete with Dell in price but offer better quality.
2. Midrange.
3. Average gamer.
4. extreme gamer.

Profits:
1. $25
2. $50
3. $100
4. $200

Warranty is outsource at no extra cost to me. I actually get a % for selling warranty.

I got one on eBay for a trial run. Just a low end build. I know to everyone on here it look like junk but to someone on eBay looking for a deal will se it a a steal. Later today I plan to put other systems of various quality on as well.

I plan to offer 4 tiers of Intel and 4 tiers of AMD when I get it all done.

Building computers is my pasion. The main reason I want to do this is because I am a single father of a special needs child, and it would be better for me to stay home with him to make my living. I dont need to get rich by any means but if I could make $100 profit a week we can make it. For $100 I would have 2 sell 4 cheap systems or one good one every week. You think its possible?

Here is the one I got up now. http://cgi.ebay.com/ws/eBayISAPI.d [...] RK:MESE:IT Keep in mind this is to compete with the big oems. Nothing to right home to mom about, but a very reasonable computer for everyday tasks. And $39.00 for a 3 year warrany cant be beat. Most el cheapo oems only offer a 1 year warranty these days and charge way about four times as much for the 2 more years.


Message edited by roadrunner197069 on 03-31-2008 at 06:38:40 PM
Reply to roadrunner197069

I was thinking of offering a service where someone could email me their Newegg cart, and I could built their dream computer, and list the auction on Ebay for them to buy. Parts + Shipping + My profit per tier. What do you think.

Thank you everyone for all of the feedback.

Reply to roadrunner197069

Could you explain the whole warranty out-source thing?

I think you'd be better off sticking to a set of standard parts. If you let them wheel and deal off of newegg, they may be picking incompatible part, parts with known issues or low quality, or parts that plain don't work.

Reply to qwertycopter

qwertycopter wrote :

Could you explain the whole warranty out-source thing?

I think you'd be better off sticking to a set of standard parts. If you let them wheel and deal off of newegg, they may be picking incompatible part, parts with known issues or low quality, or parts that plain don't work.






Thanks for the input. I had those thoughts in the back of my mind. I do think that building 4 consistent model numbers of both intel and amd will provide a wide variety for customers and if I limit myself to those my problems should be minimal.

For the most part the 1 and 2 tier systems should be a walk in the park since they will be using integrated sound and video.

In the future I am going to have atleast 10 different cases for people to choose as an upgrade option so they can get one that fits there personality. I'm gonna add monitors and such as upgrade options as well. I hope and pray it all works out so I can take care of my son. $100 a week seems like it should be with in my grasps. If I make more the WOOOT! But I need that $100 a week or I will have to get a job and trust someone else to make sure my son doesnt choke to death. Babysitters havent gone well in the past.

Reply to roadrunner197069
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Replace the Newegg watermarked picture from your eBay auction. Take a picture of the actual case at your house.

I own a small business and I know how it is trying to find the right price and make enough profit without trying to look greedy.

Figure out how much time it takes you to build each one and decide how much you want to make in profit per hour of work. If you can find a part supplier that will give you price breaks for buying 20 mb's at a time, then you can figure your price based on the regular price for an unseen mark up. I bargain shop. I would notice that I could buy that MB for X amount myself. So if you can get it for less than joe public that is money already made.

The best thing you can do is research suppliers. You will need to start off with maybe 2 build options, then when you have enough profit money buy more parts and offer more.

I just had a new OSC site built and had a lot of code work done by a guy in AU. He does really good work and the exchange rate helped with cost. If you sell right off your own site it will cut some overhead but will take some up front investment.

Hope this helps.

Reply to cah027

It depends on how valuable your time is to you and if you want the experience of doing it yourself. Even though I've built perhaps 300 (seriously) systems, if I were given that option today I'd probably take it (not the warranty, but the $25 part) That's ESPECIALLY true if whoever building it had decent cable management skills.

Reply to rodney_ws

Thanks. I will use original pictures after someone buys one and I make it LoL. I stated on auction allow 3-4 days after reciving cleared payment for it to be shipped. This allows me to buy it on there money and build/test before I send it. I got $30 in my bank account.

As money rolls in there will be alot of changes that look alot more professional. Once I save enough I'm gonna pay for a custom eBay site that has drop down menus for add ons.

Reply to roadrunner197069
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Get a couple of those guys that won the PC building contest. Saw a video on youtube.. They were fast !

Reply to cah027

It takes me about 30 minutes to put one together and start copying the OS to the HDD. And running tests takes hitting a button and checking on it every once in a while.

For $25 dollars you get zip tie cableing. Highend machines will be hid in good cases and shrunk wrapped.

Reply to roadrunner197069
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I understand where you are coming from trust me. I started my business almost entirely on credit. No start up money to speak of. Thats why focusing on ways to widen your profit margin are key. So save the first 1K or so of profit and use it to buy in bulk. Then you can charge the same for your product but make $35 instead of $25. Now do that 10 time and you've made an extra $100 !

Reply to cah027

I keep a copy of Windows Vista with SP1 on a seperate HDD and leave it in admin mode so once I copy it to the target machine I can run system prep and then when the end user turns it on it will register itself to the motherboard. This makes the install go alot faster. I'll keep one image for each motherboard that I use. I'll probably use a total of 6-8 different motherboards.

Reply to roadrunner197069

cah027 wrote :

I understand where you are coming from trust me. I started my business almost entirely on credit. No start up money to speak of. Thats why focusing on ways to widen your profit margin are key. So save the first 1K or so of profit and use it to buy in bulk. Then you can charge the same for your product but make $35 instead of $25. Now do that 10 time and you've made an extra $100 !





Ya! Thats the plan. Right now on egg you can get a motherboard and Vista OEM for the price of the mobo and the vista oems are on sale 10-20 plus you get an additional $20 off for the combo. If you buy the combo Vista home is only $70 and If you buyer dont need it you can sell it on Ebay for $109 and free shipping and come out hella good.

I wish someone would loan me $183,000.00. Then I could buy a tray of e8400 CPUS direct from Intel. Mark em up to $219 and make $36.00x 1000 = $36,000. I bet if you advertised it on all the popular forums where to but it you could sell out in one day. That would be sweet.

But ya I got big ideas and such, I took buisness classes in college. I just need to get that first $100 a week comming in so my bills are paid and then gradually set my goals higher and higher.

Reply to roadrunner197069
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I figured you did something like that. So all you really have to do is put it together ?

Reply to cah027

Put it together and copy the OS from one HD to another. Double check that all drivers are in. Run tests and ship.

Reply to roadrunner197069
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Nice!!! Sounds like a plan.

Reply to cah027

Did you look at my auction, and do you think that is a decent price for the average ebayer looking for a deal?

Reply to roadrunner197069
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Yes that looks reasonable. People will think.. "Wow dual core for under $500 shipped.. Plus I don't have to deal with the Geek Squad to get it. (no offense if anybody is on the squad just talking about the few bad apples :) )

 

Or you might try putting the total all together $448 with FREE SHIPPING! People like the word "FREE"

 

Did you read some of the threads talking about the stuff best buy employees tell you when you buy a pc ?


Message edited by cah027 on 03-31-2008 at 07:43:27 PM
Reply to cah027

I like to go to best buy for fun to listen to them try to answer questions they know nothing about.

There is a few systems from $311- $388 that might apeal better if I raise the price. $389 is the sweet spot after looking at completed listings. I tried a e2180 OC to 3.3 with 8500GT before and didnt get any bites at $489.00
It went to $427 but I had a reserve on it for $478. Reserve auctions cost alot if the item doesnt sell.

Some people are concerned about shipping but others compare it to sales tax.

Walmarts $350- $400 computers have half the ram or less and half the HDD or less. Walmarts are all single core in that price bracket also. They charge 2X as much for the warranty as well.

Reply to roadrunner197069

If you are a college student or doing this as a hobby, it might be fun. If you intend on supporting yourself, I know many who have tried. I used to buy from a system builder who rose to be the 7th largest shipper on whole systems in the US behind the Dell's Gateways, HP etc. For reasons of anonymity, I'd prefer not to name.

The head of R & D and the Head of TS went out and formed their own company. They lasted just under two years....they couldn't support their families....on margins of $200 per box.

Look at it this way:

-Time spent with customer asking your advice as to parts: 15 - 30 min
-Ordering, unpacking parts, paying bills, throwing out boxes etc.: 15 - 30 min
-Assembling parts: 45 - 90 min
-Installing Windows, drivers, updates, tweaking, burn in: 60-90 min
-Packing up and shipping: 15 - 30 min

So 2.5 - 4.5 hours is about $5-$10 an hour on your low range and that doesn't even begin to cover the tech support calls.

-I went to buy something on line but my credit card won't come out of the floppy drive when I hit the eject button.
-I can't see if the power plug is in cause we have a power outage and there's no lights on
-No fax just won't work, I hold a sheet of paper up against the monitor but when I hit ENTER nothing happens.

Yes, these are real calls my two old friends had to handle. Every time windows don't boot, you are obligated to take the call under the distributor service pack agreement. This is what kills everyone. That and returns, shipping etc for example when something pops loose on shipping.

The other thing on the low end, shipping adds 15% to the cost which makes peeps wanna just go to Office Max. BTW, many states are gonna frown on 3 days....I believe most states require 30.

I don't have a mortgage but medical insurance alone is $1,100 a month....other insurances, (home, auto etc) are over $400 a month. Utilities are over $500 a month. I am afraid to calculate the food bill with 3 teenagers :)

Most people with families need at least $3-4k a month to survive which generally means clearing about $20 / hour on a 40 hour work week. I think anyone would be hard pressed to do that building PC's. Then again, you say you can survive on $400 a month, so that should be enough for you and after building 1 -4 boxes if you lose time on extra TS stuff, it's not gonna be an issue.

Reply to JackNaylorPE

We get some state aid since my son is handicapped. With that and $400 we could make it work.

I could drop the OS or use Retail then they are responsible for the OS issues. That might be a consideration. Mosts systems on Ebay dont come with an OS installed. Maybe this is the reason. 3days is the money back, I offer 30 days exchange. No law requires you to offer money back for 30 days. What ever you advertise is what you honor. When you buy a car it drops $3000 the minute you drive off the lot. You cant bring a car back for a refund in 30 days unless it is in the contract.

Thanks for the information. I appreciate it.

Reply to roadrunner197069
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You could also offer OS/drivers installation as a separate service. They bring you the O/S DVD, you download the best drivers for their O/S and their hardware and do the installations. People would be interested, I believe. Of course, it's not an easy job, what with all the versions of XP and Vista and all the hardware choices out there.

Edit: how about RAID configuration. My local guys charge $5 for that separately.


Message edited by aevm on 03-31-2008 at 08:10:00 PM
Reply to aevm

roadrunner197069 wrote :

We get some state aid since my son is handicapped. With that and $400 we could make it work.



You are certainly in a tough spot and it would be great if you could be a stay at home dad. I was a VP in a ENR 100 company (that's the engineering equivalent of Fortune 500) and I gave it up to be a "work from home" dad. It allowed me to do things like little league, scouting, build PC's w/ my kids that I wouldn't have been able to do otherwise.

I have built 68 machines for friends, colleagues, clients, etc and can easily say the time I spent building / installing was less than 1/3 the time I wound up spending overall. Another thing you might want to do is sell laptops. Become a Clevo distributor and sell laptops. You can get 8% just by being the sales agent. They collect the money, they build, they sell, they service, they do TS.

I'd contact local non profits, churches and other organizations in your area and let them know why you are pursuing this. Many look to such sources as a means of supporting the people in their community.

Reply to JackNaylorPE

Thganks for the info. I've been researching different distributer avenues and most of them you have to have an excellent credit rating. Doh. Others are crap like dropshipping. I checked into several dropshipping places and you ahve to pay $50 up front or more to see what you can sell. They show samples are there home page and once you pay the real prices are no where near there samples. Pretty much Newegg prices that I can get without a monthly fee. But ya I really hope we can make it work.

Reply to roadrunner197069

I don't know how you could compete with computer manufacturers at the low end, and I don't know how it would be profitable at the high end. Another thing is you have to remember that when somebody buys a $5000 computer from you, they're trusting you with $5000. People don't just do that without some reason to trust you.

Just my $0.02, I started a computer building business not too long ago.

------------------------------ Intel qx9650 @3.81GHz (10x multi) + EVGA 780i SLI mobo @381MHz FSB
2x EVGA 8800GT 512mb OC'd, OCZ DDR2 1066MHz 4gb
OCZ 850W PSU, Seagate 750GB HDD SATA 32mb cache CM Stacker 830 SE
Sound setup: FireFace 800, JBL 4328 speakers
Reply to resonance451

How much do you charge to make it work? I personally dont see any need to go over a $3000 budget with todays hardware. I know it could be done but it would be money down the toilet IMO. After $2500 the price performance ratio sucks.

Reply to roadrunner197069

roadrunner197069 wrote :

. After $2500 the price performance ratio sucks.



That's true with anything really. RAID 0, SLI, SCSI HD's, Tier 1 PSU, Great case, all have very poor return compared with their increased cost. It don't fly in a business setting but if you wanna have the highest 3d mark on your block, it's gonna cost you :na:

Reply to JackNaylorPE

Ya I hear ya. I would rather have a good reliable fast computer that I could count on then one that had a 30,000 3dmark06 score that overheated and didnt work with all games and all the other hastles of it.

I'm lefthanded and I hate playing games on the computer. It just feels weird to me. I sold my WoW account for $100 and now I game solely on xbox 360. It feels alot better to me. I wish Crysis was on 360 but COD4 is cool.

I use my PC as a media center.
Asus P5K SE
E2180 oc 3.0 stock cooler.
2g Adata value Ram.
660G HDD space.
8500GT.
Vista Ultimate.
42" Vizio 1080P LCD. More then I really need atm. I want to get a 9450 when I can. Or maybe the q6700 when they slash them to $250ish APril 20th. I do some home videos and I have to transfer DvDs to .wmv to get them to stream to xbox so a quad would be nice.

I got my xbox 360 on the network so I can stream music and video to it. 360 is picky about video format. Vista Media center plays ripped DvDs no problem with a small registry tweak.

http://www.mediafire.com/imgbnc.php/6b59adbb771ffb558ae97e501c8f892a2g.jpg

old monitor with DvD Library running. http://www.mediafire.com/imgbnc.php/9075e2ab33a7c1a29b9ead020321105d2g.jpg


Message edited by roadrunner197069 on 04-01-2008 at 12:20:56 AM
Reply to roadrunner197069

You might actually need to charge a little more. You are saying compete on price. Push the quality of your system dude. You tell people yeah you pay a little more at my place, but look at what you are getting! IE, customer service, you're local. They can bring it in or you can go to them.

Also, if you don't charge enough, people will wonder what's wrong with it, why are other guys like you more expensive and is your work as good as theirs, see what I'm saying? Some people equate price with quality. Bear that in mind, and you can't afford to cut yourself short. Also, bundle some free software like you can use some antivirus software for free, make sure you read the license!!! Download open office, from openoffice.org, it's free, but not everyone knows that, and does everything MS office will. So that's a selling point for you.

Also do other services. I talked to one guy from dell(I'm a tech at the local school district here) and he does some work on the side I guess, he charges 200 bucks for full reinstall, data backup and all programs reinstalled. So that might be something. Also, sell parts, like keep a limited quantity on hand, so you can sell, and order as you sell, but do a markup. Example video cards. Best Buy is trying to sell say an 8400 gs for what like 90-100 bucks, buy it off newegg at say 45, mark it to 75. People don't know the difference, and as far as they are concerned you have the price, so they would probably buy. Gotta know how to play the game. I thought about starting my own shop, so if I were going to do it, that's what I'd do, but I'm happy where I'm at, gotta love the government:)

Reply to ohiou_grad_06

Oh last thing, if you ever get a shop, may consider a system or 2 with a couple games on it for people to play on so they can get an idea of your work.

Reply to ohiou_grad_06

Thers actually a shop here in town I would like to get and its $500 a month plus $150 a month for electric. It is huge. If I coulg get it I wold put up a wall in the middle and sell/repair on one side and run a internet cafe on the other side. You can run 10 users at a time real smooth of of a good quad core with 4-8 gigs of ram on general computing tasks.

I sell computers locally for $500 for the same thing I have on Ebay for $300. I live in a small town though; 4000 people. So if i sell alot on ebay regularly for a small profit its better then selling one a month for a larger profit.

I plan to sell some highend gamers soon but some jackazz seller left me - feedback because i left him nuetral for taking 18 days to ship when he claimed 2-3 days. I need 98.7% to have paypal offer $2000 buyer protection before anyone will take the plunge though.

Reply to roadrunner197069

Update. I sold my first one. Woot.

Reply to roadrunner197069
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Yay!!! Good luck, man!

Reply to aevm
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