View Full Version : Need some advice, I'm starting my own small business.
I'm calling it TD Computers and I will be building computers for the public and businesses, I understand a great deal about custom PCs, and I know companies like Dell and Alienware rip the people off by installing certain components that are cheaper but also slow the system down, such as RAM running at 800Mgz while everything else runs at 1066MGz etc. This slows down the PC, I'm not doing that I make true PCs that run true. But I need some help, I need to know the best way to advertise and sell etc. So if anyone here has their own business could give me a hand I would greatly appreciate it.
I'm trying to keep my prices low too, I get minum profit, the very lowest I could at the moment till I find better suppliers.
Thanks in advance
Tony Doman
Hmm Welcome to quite a competitive business, I think it's very hard for small shops trying to make quality pcs and supply decent goods at fair prices. Especially with the temptations of rock bottom deals from computer giants and other websites. I think your main customers will be enthusiasts/people looking for high spec machines and locals (unless your doing it from home and not having a shop). I think thats why Gemsoft shut down. :(
Good luck to you though and let us know where you are based :)
Best of luck but the margins are really small in this game.
IMO, the main thing to remember is that people aren't particularly buying a custom computer - they're buying a solution to a problem they have, or a scratch for an itch, so to say.
They're paying you for that solution.
jl-heating 08-02-2008, 19:36 as in any business with all the dodgy software around and cheap parts from abroad it will be very hard to turn a profit,
you will be competing against people who dont work and build pc`s at home in there spare time for beer money.
make sure you resource your business plan as there are many pit falls
real tough i wish you loads of luck .
It's not easy starting any buisness, It takes alot of hard work and dedication to succeed.
Good luck with this and let us know where ur based.
awinchurch 10-02-2008, 00:03 A nice place to start advertising for free(ish) would be Ebay.
You could always put adverts on there and maybe sell through there or just get potential buyers to contact you direct to cut the fees
Just a thought :D
Hallamton 10-02-2008, 11:48 Places like the Sheffield Forums are good too if you're basing your business in Sheffield.
Why don't you tell us a bit about your shop, deals, what you build, and prices etc...maybe in a different thread.
It's a free way to gain a lot of support. I'm currently looking at buying a new computer although I'm leaning towards a laptop more. Do you do custom built laptops and if so what sort of spec/price can I expect?
-Michael
You need an angle....
This can work. Dell and others control the market.
I would target OAPs / older people. Grand children are off travelling the world, they may have other family in other places. They want to communicate via e-mail, view pictures that people have uploaded online.
If Dell sent them a PC they would not know how to get going.
You would offer to build them a basic PC to keep up with the times today and then give them a lesson on how to use e-mail, upload photos etc.
This personal service is what will get you repeat business.
Good luck with it!
STDESIGN 10-02-2008, 23:09 Hi,
I don't know you're sorted with your corporate identity yet. But I have over seven years industry experience in logo design and design for print. You can visit my website by searching google for sarahtaffedesign. Let me know if I can be of any assistance. I offer free advice and quotes on design for print projects. Stationery, advertising, leaflets, mailers, brochures etc..
Good luck with your new venture.
Sarah.
I'm calling it TD Computers and I will be building computers for the public and businesses, I understand a great deal about custom PCs, and I know companies like Dell and Alienware rip the people off by installing certain components that are cheaper but also slow the system down, such as RAM running at 800Mgz while everything else runs at 1066MGz etc. This slows down the PC, I'm not doing that I make true PCs that run true. But I need some help, I need to know the best way to advertise and sell etc. So if anyone here has their own business could give me a hand I would greatly appreciate it.
I'm trying to keep my prices low too, I get minum profit, the very lowest I could at the moment till I find better suppliers.
Thanks in advance
Tony Doman
I'd be honest mate, you're quite a few years late. I don't think you're going to make much profit and it's going to be difficult. Especially how the big companies deal with this side of things. It's cheaper for people to go to them.
Yes, business isn't easy but, when you know the market has been milked for years, and now, it's hard nut competitive due to how big companies cornered it, then it's time to be smart and think of an idea within computers..
Be on safe side, market it, and see. You never know. persistence sometimes pays off even more and if you can provide a better, friendly service, and reliable one, then who knows.
Anyway, good luck.
Weathergirl 28-02-2008, 16:52 I'd be honest mate, you're quite a few years late. I don't think you're going to make much profit and it's going to be difficult. Especially how the big companies deal with this side of things. It's cheaper for people to go to them.
Yes, business isn't easy but, when you know the market has been milked for years, and now, it's hard nut competitive due to how big companies cornered it, then it's time to be smart and think of an idea within computers..
Be on safe side, market it, and see. You never know. persistence sometimes pays off even more and if you can provide a better, friendly service, and reliable one, then who knows.
Anyway, good luck.
A bloke who i know in worksop, built PC's from home etc for people. He only just opened up a shop (not very big at all) and is doing really well! Its hit and miss with these things.
A.C.Builders 28-02-2008, 20:36 A bloke who i know in worksop, built PC's from home etc for people. He only just opened up a shop (not very big at all) and is doing really well! Its hit and miss with these things.
I agree totally.
If Tony can find a niche and offer an 'added value' service then he could still make a success of it.
Thehook - While what you say is entirely true, a positive attitude and a 'can do' mentality can still create a successful business.
ChrisTodd 02-03-2008, 12:57 As others have said it could be difficult as there is so much competition.
I don't think the home market would work as most people go for price over performance.
Businesses however do go for custom built PC's so this area has potential, but it would still be difficult.
Do you have any friends in business who could use your sevice and then recommend you?
If so you could have some brochures of flyers printed for your friends to have in their businesses. Then their customers and contacts will see your name.
If you can't afford that then maybe design some brochures and e-mail them as PDF's.
Good luck.
Hi Tony,
Yes it will be hard, but dont be put off before you've started. There is some good advice on this thread.
First off - what makes your business special, what is your main selling point? Figure that out then get a website, think about it a bit and target some specific groups, maybe use it to offer custom machines for them such as the older generation, gamers, business users etc - if this is to be a home business then your website will be your shop - you dont need to spend thousands, but do it on the cheap and it will cost you in the end.
Post links to you website everywhere! List your business anywhere you can, yell, free listings, business directories etc. Ebay is a good start to get some sales in and guage customer reaction. There is no substitute for getting out there and talking to people - talk to local businesses, advertise on supermarket classified boards, in local papers. 'Donate' a pc or technical support to your local cash strapped charity or group in exchange for an ad in their newsletter or something.
You can do all of this for minimal outlay, essentially dipping your toe in the market to see what its like, before deciding if the self employed route is for you, or whether you do this as a sideline?
I'd be happy to give you a quote for a website, or any other help (see link in sig). In the spirit of fairness, other web design and consultancy companies are available!:hihi:
I'm not answering purely to plug my own business - if you have any more questions I'll be happy to help for free if I can!
ChrisTPS 05-03-2008, 16:43 Good luck.
If you are determined to succeed you have a good chance, but don't underestimate just how hard you will have to work. Keep alternative options open to help cash flow whilst the business develops. As far as promotion is concerned, people normally buy from recognised outlets or recommendation. Try to build up contacts through friends and family, and the forum. If you are good, the word will get around.
Bear in mind also that Microsoft et al have made their money from systems and software development not building machines. Consider other options for using your talents.
I hope all goes well
Forgot to mention Senta (http://www.senta.co.uk/) (Sheffield Enterprise agency) who offer free advice to people wanting to start their own business.
I'm calling it TD Computers and I will be building computers for the public and businesses, I understand a great deal about custom PCs, and I know companies like Dell and Alienware rip the people off by installing certain components that are cheaper but also slow the system down, such as RAM running at 800Mgz while everything else runs at 1066MGz etc. This slows down the PC, I'm not doing that I make true PCs that run true. But I need some help, I need to know the best way to advertise and sell etc. So if anyone here has their own business could give me a hand I would greatly appreciate it.
I'm trying to keep my prices low too, I get minum profit, the very lowest I could at the moment till I find better suppliers.
Thanks in advance
Tony Doman
Do you know why Dell and Alienware is doing so well, despite that the components are not reaching their maximum potential?
I agree with JoeP. It isn't about a great maximised machine. If I am in a business, I want to know every single piece of my electronic equipment works. It can't be a bottleneck in doing my daily activities. Time is money blah blah. You have to think about desktop supports too. Which is an entirely different ballgame.
I've worked in a couple of different companies now, and I think despite Dell's downfalls, or occasional problems with their supplychain, we still use them. Why? Because their customer service is excellent. Over the years they have managed to build up this great service, and that is why many people use them. If you can offer something like this and keep the reliability on the ball, then I am sure you can build a successful nice little business.
Also, once you get going, you definitely need someone to keep up the good customer services, and keep the billing on time, and meet the customer's needs all the time. It's keeping that trust going.
Sheffield never had a very good set of PC shops. I just remember the better names, like MD or Rams Computer in Manchester. The PC fairs in Sheffield doesn't offer the greatest of products, and neither do they stock the latest items either. I just remember when I started out in computing, I used to talk ages and ages with these shop owners, and we both benefit from knowing what is the latest products and we also brainstorm on the best combo of kit, and what works, and what doesn't.
I've been to Gemsoft, and I've been to that little PC shop on Ecclesall Rd, plus the ones on London Road. It really is hard to survive, but they were late on in the game.
You may want to think about your market too. Whether you want to target enthusiasts, or if you want to target businesses. For enthusiasts, stocking the latest gaming component cheaper than online will win you customers! Esp so if they can actually buy locally. Your name will indeed spread. So think about your image, and how you want to sell your business.
Find a niche. Get known for doing something different.
Maybe it is focusing on the elderly, though they will be price concious. Maybe you could do laptops with linux pre-loaded. Maybe something else.
But what ever you choose, be good at it.
mightymouse 12-06-2008, 17:21 be best to do it out of your home first to get a grip of things. i do know of one niche that you can go into and i dont mind sharing. just pm so that we can talk it out further. remember that you will make next to no profit when it comes to parts unless you can get parts directly from suppliers, not traders. also you will have to be competitive. the last time i built someone a pc for £400 which has better quality parts compared to an equal spec of dell's within 2 weeks the same computer was £350 with a monitor. i was lucky that the person understood how fast the prices drop. yes dell is quite bad for enthusiast but for the every person they do the job. so you need to be careful there. i am sure what i have said has been said by others on the same thread.
Also, think of cash flow too. Don't overbuy on stocks which you cannot get rid of. There's no point in buying something which then you can't sell onto enthusiasts or businesses.
You may also end up in a situation whereby you need the part, but then you can't get the part to build it into the machine. Then what will you do? Will you use an available but cheaper part just so that you can deliver on the PC, or do you wait, and mess the customer around, extending their waiting time?
You have to run a very tight ship and do a lot of testing. I can't remember if the parts are now more easy to put together or not. Plus, you may need to figure out potential problems in your mind already to predict downfalls. i.e. are you selling basic PCs only, or will you provide typical desktop support? What will you do if the client installed something onto their machine, and thought that it's the hardware or OS's problem that you sold to them? How will you deal with this without dampening the relationship? Will you accept their lack of hardware knowhow and not argue with them, fix the problem, but waste time and money on it?
Most company don't care for the components, but as long as it will retain value in terms of CPU, RAMs, HD, and was sold to them at a decent value that doesn't let their kit depreciate that much. In doing that, it will be a slower depreciating asset to them. Consider this selling point too.
There was an article in Computing about some vendor selling to the local government for extortionate money, when in reality, they were overpriced. This could've been a local company that offers them a better deal, if such companies can get their supply-chain spot on.
There's always a lot of competition in this market, and I remember I used to get thousands of calls from companies that want to win our contract from Dell. We have a policy of one strike and you're out deal. Even when account managers ring back offering cheaper costs, we don't. We rather pay that little bit more for the customer service and replacement service. So you have to think that it is not really about costs. Or the most expensive kit inside the PC. It's what is the maximum worth of kit, which is reliable, will do as it says, and is worthy of that bit more. Also, future-proofing is what companies like.
I think Insight is a very big player locally too. If you can undermine their deal, then I think you will win local businesses fairly quickly. Consider your business model too, how many PCs you can deliver which is decent, reliable, and cost effective. Btw, there is also a life time for any PCs. I just remember we used to buy at a time when we know it's the cheapest and most cost effective to us and from Dell. Squeezing 5 year out of a piece of kit is fairly reasonable I think.
Hi,
I work within a Sheffield Council-led programme called 'BiG - Make it Your Business'. This new business development initiative aims to provide tailored support specifically to people from Sheffield's regeneration (or 'Closing the Gap') areas who have an interest in setting up a business.
My role (as a Neighbourhood Enterprise Champion) is as a first point of contact and continued support for those with an interest in self employment to work through/overcome socio-economic barriers, enabling them to develop their ideas into successful, sustainable enterprises. A large part of what I do is connecting people's ideas with the right opportunities - from specialist business advice to the right training and information as well as advice on accessing finance.
For more information, call the 'BiG' team on 0800 043 5522 or see the website thebigwebsite.org.uk
Hope you found this info useful - Rob.
Best of luck Tony, these little finger tappers will not be going away for a long time so you should do fine.
As most people say, stay within your means and grow steadily which allows you to keep control of things more easily and develop your handling as you progress.
system-tek 23-06-2008, 01:05 Hi Tony.
Try using trade suppliers locally like Targetcomponents in wakefield, they have a £100 minimum spend and it`s easy to set up a trade account with them.
Also try Spire.co.uk, another trade Supplier.
I hope things are going well for you, i personally have worked in the IT sector for many years and ill be honest it`s very hard at the mo, I do computer Fairs and there dying very quickly, also best way to try and sell Computers is just place 1 say in the Free ads as a private sale and see what kind of a responce you get if any.
Hope this has helped.
walkertelecoms 05-07-2008, 01:47 Hi Tony
What you will also have to take on board, if you’re going to try to supply to corporate buyers you need to be prepared for a 30-60 day account. A lot of big companies aren’t going to pay you on the cuf for hardware. So you will need a good buffer to work against. I’ve worked for a few companies installing hardware and software into GP surgeries nation wide, it seemed we were always on the back-foot around £50,000 at any one time. May seem a lot of money but it depends how deep you want to get into the game. If you’re approached by a company wanting 20 Workstations, Server Solution and Cat6 networking + Fibre FDDI can you take this on? Are you MCSE? MCA? Or just an enthusiast?
I’ve been building and maintaining PC’s for near on 20 years and IMHO I think I’ve cut lose in the nick. After being an accredited DELL, COMPAQ & EPSON field engineer previously I feel just waddling down to Currys and picking up there latest deal so much more convenient.
What put me off supplying PC’s to the private sector home user is they always have a problem, and your are seen in their eyes as THEIR engineer, sometimes expecting call out after call out because they keep messing up configurations etc.
Good luck though :P
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