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August 3rd, 2000, 12:03 PM
#16
Registered User
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.
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August 3rd, 2000, 12:58 PM
#17
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.
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August 3rd, 2000, 02:25 PM
#18
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
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August 3rd, 2000, 03:22 PM
#19
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...
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August 3rd, 2000, 04:49 PM
#20
Texas Computer Dude
Guest
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
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August 3rd, 2000, 11:18 PM
#21
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
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 
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August 4th, 2000, 01:18 AM
#22
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.
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August 4th, 2000, 10:44 AM
#23
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
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