How long have you been in business

Since opening my store about 2 years ago, I have seen many, many PC stores close. It seems that the average life span of many of the "PC Experts" is about 6 months. Now when I see a "new guy" opening, I simply mark my calender and see how long they last. What are you other entrepreneurs finding, assuming that you are still around of course. More so, of the ones that are still around, what have you seen change over the last couple of years...

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Don't take life too seriously -- It isn't permanent

www.protechpc.com

hehe - never have been in business.
i do favors, which they return the favor with a check...
(actually - i dont - but it would be funny)

We have the same thing going on around here. A store opens, struggles, and dies. Sometimes all within 6 months.

If you have ridiculous overhead, do poor work, and show no respect for your customers your gonna fail!!

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:)

WildTech

**I'd rather be lucky than smart!!**

Wildtech: Me thinks you are correct. My guess also is that many failures come from lack of understanding. This is probably the toughest business around. Low margins, and plenty of room for mistakes. Add to that all the red tape involved in licenses, city restrictions, advertising costs, taxes, record keeping for the IRS and DOR, and it really becomes a BIG headache. Many of these stores that open are headed by (basically) a tech that thinks he/she can make a go of it. When they find out all the details - oops - out the go. These days, it is not as simple as just fixing the machine and collecting the money.

I am a lead tech at a small computer shop in the MN area. We have been around for 6 years or so. The company started out as a in-home biz, and the main focus was to know each customer by first name basis. After growing that strong customer base, we grew to a 8,000+ Sq. Ft. Building. This biz area is definatly the toughest. Worse than the car industry.

I'm in the process of closing my business right now.
I've been in business for myself for 6 1/2 years.
My customers don't want me to go, but I'm 42 years old, and I need to look into the future for retirement.
I've accepted a Store Manager position with Penske Auto Service, with all the benefits and a great salary.

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An obstacle is something you see when you take your eyes off your goal.

Just over a year now. Ran a branch office for someone else for 6 years before that. Good way to learn the tricks of the trade. I think that is one of the biggest mistakes made is not doing enough research before you open. That and you have to know your stuff and do quality work!

Glenn H. Shelton III
CBS Computers http://www.gcni.net/cbs

I checked out your website Hurricane. I like it. Coincidently, I'm taking the family to Disney next week, so I'll be right in your neck of the woods..... https://forums.windrivers.com/images.../2000/02/1.gif)

By the way, I forgot to mention in my earlier post, that I've been in the computer racket for almost 4 years now. I just opened my own shop in January of this year and its doing extremely well. I also operate a grocery store and a wholesale food supply busniess.

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:)

WildTech

**I'd rather be lucky than smart!!**

I have been in business four years now. The service end has steadily grown. Sales of new systems has declined over the past year. I see many new shops come and go, usually lasting only six months on the average. The main reason is from too high an overhead as well as too many people fighting over the same buck.

I work for a small company (two employees - me and the boss) that has been in business for 14 years.

Our Yellow Pages are littered with lots of computer companies that have been run out of business.

The important thing is to be honest with your customers, with the companies you deal with and don't take the easy way out, even if it may cost you more. There are alot of cheapskates out there, don't become one of them. They don't last long.
Also be flexible, our company doesn't repair ATARIs any more and we no longer sell software. Even with our hardware emphasis, we have great business most of the year.

And beware of the summer slow down! Plan for it!

Shutdown in June
In business for 21+ Years
Making more money working for someone else, and I don’t have the pressure of paying bills ECT...

What summer slowdown ? ... can't see any sign of it here in England ! God ( or somebody else) bless Uncle Bill and his flaky software, if it worked reliably, I might have to get a proper job !

I have personally been in the industry for 10 years, started in the military sector and now the private. I currently am an employee / owner of a computer services company. The employees purchased the company from the owners as of June 1, 2000 for 2.2 million dollars. We have now 13 locations.

Woo Hoo

We've been in business for more that 14 years now. i myself have 5 year experience as a tech and im thinking of going solo now. City I'm from has a weird market. Summers are crazy and the beginning of the year is slow. I do great work and i work out of my house as i moonlight for extra cash. I don't plan to go solo until i have enough money to prepare for the worst. Anyone have any suggestions?

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You're out of your Element!!!!!!!

I have been in business a little over 3 years. I have to say that this is a tough business with low profit margins. It also frustrating that there is so much cheap, trash being put out. My RMA's have more than tripled in the last year and several of my suppliers have simply folded up. In the mad race for speed and cheaper prices, I wish things would slow down a bit and manufacturers would pay more attention to quality.

Mike Keith

I have successfully run a computer business from my home for over 2 1/2 years. Overhead is nil and working conditions are great. My satisfied customers are my best advertisement and the business keeps growing. Over 90% of the systems I sell go to first time users. They truly appreciate the home delivery and set-up, instruction and tech support that is a local phone call away. I have a full time job with great benefits and an excellent retirement down the road. I have the computer business because I love tinkering with the damn things. If I had work on computers 8+ hours a day, I would tire of this "hobby turned business venture". I believe in dealing honestly and fairly with my customers and they seem to really appreciate it. I'm fortunate to have the best of both worlds.

Blue Screen, Stay right where you are!!!!
hehehe
You've got it good and you didn't have to declare bankruptcy to find out. I ran a retail store front with a partner for 2.5 years. Overhead ate us alive. It got to the point where you couldn't make anything on a new sale. I also came to the conclusion that 90% of the new system buyers could care less about quality. Don't believe me? Take a look at E machine's numbers. They want it cheap and right now. Sorry, there's no profit there unless you sell your soul and build trash. Service and upgrades are the bread and butter. I now Tech for someone else and do some work on the side. I make twice what I did as the owner. Look before you leap.

bought out the former owners about 9 months ago. the store itself has bee open about 20 months. we're doing fairly well, actually. it takes computer knowledge with a background in retail and/or business. few people have that combination,

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obedience is better than apology

In response to summer slowdowns... We haven't seen that yet. I've been steadily pounding on computers for the past 2 weeks, with a 2-3 day turn around.
We've had the worst weather here. There have been about 2 or 3 lightning storms a week, and most of our customers are rural so I'm dealing with a heap of lightning hits!

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***the Beast
- Fate drove me here...then told me to get out of the car...

Been with this venture for 4 years now. MAnaged a ComputerLand Franchise for 10 years before that. I have seen the margins drop from 50% on new systems to a few percent now. I agree that the money is in upgrades and service. My best customers are Packard Bell owners, and beginning now E-machine owners. After getting burned on cheaply built preprietary systems (try to find a power supply for an E-machine sometime...many are unbelievable small both in size and wattage)they get major upgrades from me.
I think the emergence of clone systems have hurt in two ways. First they have helped shrink margins and second they have encouraged many garage entrepeneurs to build computers. What many don't realize is that 14 years ago when I started most problems were hardware related, where today you see a plethera of software problems
Its not the same business it was years ago

After years of unrelated sales and retail management, I pursued my computer hobby and went to work for a small start-up. If it wasn't for the owner's millions (literally) the company would have gone the way of the 6 month wonder. In fact, he still keeps the business afloat with his personal money and doesn't even draw a salary for himself. While there, I furthured my knowledge, honed my skills, picked up some certifications and learned alot about running a computer business. I left him 3 years ago and opened my own "shop". I incorporated the company from the start as an "S" corp and still work from my home. The largest customer class for me is small to medium businesses that are primarily concerned with staying up and running and less concerned with saving money by buying cheap stuff. My margins on gear are at least 40% and usually higher. I buy mostly from a local distributor and pay their higher prices in order to have immediate availability of parts. The resulting turn around of 1 day or even same day service is cheaper in the long run than what they would have saved if they bought a national brand and had to wait on parts and/or service. I offer different levels of service (in-shop, on-site, and a few combinations of priority service) and also sell monthly maintenance agreements. Quality work and quick service have helped forge a strong relationship with my customers. I'm not the lowest price repair/maintenance choice in the area but I've developed a reputation that has made me a desired commodity. The learning never ends and there are still many certifications that I'd like to obtain. This forum and the techs that contribute to it, have been an invaluable asset to me. Thank you for your part in helping me stay in business.

Ken

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The grace of God, thru the shed blood of His son Jesus, has brought me this far; and by His continued blessing, my business meets my needs and I continue to grow. Amen :)

I started working with a computer store in summer of 1998 as the system builder/inventory receiver/service tech and have stuck with them since. This store has been in business for 6 years and 3 times we have already moved to a bigger location within the same mall. We have established a good reputation through more word of mouth and occasional non-misleading advertisement.
I admit profit margins have shrunk in the last couple of years, so we focus more on service through in store mainly and upgrading customer's systems. We also have developed a strong market for selling used parts (monitors, laptops, hd's, ram,etc.) and used computers mainly pentiums and up.
Those things have helped to maintain present profit margins. I still build new computers as well with only 15% to 20% markup above cost. It's also important to stick with good known motherboards, hd's, etc. so stores also have a low RMA rate and less money loss. It's tough, but there are ways around obstacles.

Het Dude!

Where are you finding PS for the emachine. The only place that I have been able to locate is Trigem in CA. Expensive, but at least they have them.

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Don't take life too seriously -- It isn't permanent

www.protechpc.com