Building boxes/Toe in the water exercise

[LiamC]

Hi all, this is what I'm thinking of doing, but I'm not sure if it is a good idea.

People are always asking me advice on what to buy and or to build them a box.

What I'm proposing to do is come up with a limited box config, and go to the local markets and grab some stuff, put it all together and sell to those interested.

Why go to the markets? I'm testing the waters. I don't want to have to go to the expense of setting up a company to deal with resellers. The trouble of course comes from GST--but if this is classified as a hobby (and for the volumes I'm talking about it is) by the Tax office, I don't have to charge GST, but customers get no GST credit either. But as none (well possibly one) are in business, this is a moot point.

I figure that I can get the stuff cheaply enough that I can add some margin and if return rates aren't too shabby, I can cover the cost of any failures, replace the item straight away, and deal with the warranty return from the manufacturers rep--saving my customer the hassle.

You're right, I don't know (the) business. This is just a toe in the water exercise.

I will basically only choose/offer a couple of motherboards, one each of HDD, CD/DVD and a couple of video cards etc. If people want more, then I'll deal with it on a case by case basis.

Am I totally delusional? Problems? Things to think about? Forget it?

 

[Tannin]

That's more-or-less what I did ~15 years ago. You won't make a great deal of money doing it, but it's as pleasant a way to pass the time as any other. And the systems you build wil be about 350% better than the average crap you see around the traps. If I run across anyone in your part of the world that wants a system I'll send 'em along.

 

[Tannin]

PS: don't bother trying to be cheap. Aim to be good. People don't mind paying for demonstrated expertise and real quality. If they do mind, tell them to f- off and waste someone else's time.

 

[mangyDOG]

Another think you can try is ask around at any of the established computer dealers in your area if they will offer a discount for the direct purchase of parts without being assembled in the shop. I have several clients who build PCs for family and friends, they e-mail me the parts they want, I order them in and charge freight and a small markup. I make a bit of money, they get the parts they want quick and easy with out the risk of dodgy swap meet dealers and several hundred dollars cheaper than buying a fully configured system.

Everyone is happy.


cheers,
mangyDOG

 

[Buck]

What? You don't send them to Redhill?

 

[Mercutio]

I'm about a step up from where you are talking about, Liam. I have parts on hand to cover building four to five computers on-hand at any one time. I stock more standard parts than anything - floppy drives, optical drives, PSUs, fans etc. Fewer CPUs or RAM, since prices on those items fluxuate a little too much.

What I can tell you is that it is impossible to make money on PC hardware unless you value your time at 0 or you automate your build/install time to nearly nothing (I can go from parts in retail boxes to assembled and operational PC with OS in 40 minutes... but only because I prep everything and don't bother to screw anything in until I start running ghost).

I make only the most minimal amount of money - usually $10 or less, on a PC. I also provide only the most minimal of service under most circumstances. Someone who wants service can either pay me an annual fee that I base on how annoying I think they will be or pay a flat, per-call basis. If I tried to make actual month on the equipment, I'd be priced out of the market by whatever Dell's special of the week is, and by the loss leader from my local Electronics Mega-Store. It's my personal goal to keep people from buying those things, hence the zero-profit motive.

Tannin will tell you that it's dumb to compete on price, and he's right. But I'm not a salesman, either, so the appeal to the pocketbook is pretty much the best weapon in my arsenal.

 

[LiamC]

Thanks for the feedback guys. At least I'm not totally off base

The idea isn't a money making exercise (of itself). It's more to learn about customers and expectations and then make some decisions at a later date about where I might want to take this.

I used to look after a few small business networks--virus disinfects, new hardware/software installs, printers etc. I always referred the people to others to purchase stuff. Then the kids came along.

One of the people I used to look after asked me why I didn't do the "whole of" experience. The got sold some lemons when they didn't seek my advice--paid cheaply up front and more dearly in my services later to keep the sh!tboxes running.

Since the kids, I've had time to think about things and I thought if (and that is a moderately sized if) that I wanted to do this again, I'd rather have full control over all the bits rather than trying to learn the in-and-outs of every combination of hardware out there.

If I can help a few people avoid Celerons on ECS mobo's with grade D RAM, good. If the customer free service demanded (by selling them the box) isn't too onerous (and the customers aren't too obnoxious) then I sit back and think of where to take things.

There seems to be a lot of people here who do one or the other, but no one stop shop so to speak. My previous dealings make me think that small business may prefer that kind of service. Just an idea anyhoo. This is the first step in testing the market.