Building and selling custom PCs as a small business

[CleanChucks]

I'm still new to custom builds, but I was thinking about the possibility of building PCs and selling them small-time.

I would of course have to do a lot more research into the workings of pcs and components, pricing and the planning of all this, and of course business in general. The thing that got me thinking was comparing the price of my build to the price of PCs with similar specs sold by big companies like Dell where people would normally buy PCs.

What do you guys think? Basically my thoughts are that I would 1) sell cheaper PCs, 2) make them fully customizable and 3) build them fairly quickly.

Do you guys think there is enough markup to be able to do this profitably for someone who is trying to get into this small-time, and possibly make a small business out of it long-term?

[BeepBeep2]

there might be...i was thinking the same thing...

[Cricket]

You don't make much money building and selling computers...the real money is made in the service, maintenance and repair of the computers you sell. So if you only intend to build and sell custom computers you really won't be too successful.

Cricket

[EzyStvy]

Have you gone to Dell.com and seen what you can get for $500.00 with on-site warranty service? Dell's markup is maybe 20 bucks provided the user doesn't need service...20 bucks times 1 million pc's is good money....

If it were easy to make money off of building pc's, everyone would be doing it.

There are several threads like this in the General section that you might want to search for.

[CleanChucks]

Selling really wouldn't make you much?

Take my pc for example...I payed ~$1400 for it, and it took me only a few man-hours to really put it together and install all the software + drivers etc.

If I could sell that for like 2K (as opposed to the $2500+ that a company like Dell would chop it for), that would make a nice markup and make it worth my while, no?

[CleanChucks]

Originally Posted by EzyStvy There are several threads like this in the General section that you might want to search for.

Just did a search and found some good stuff. Sorry; should have done so before-hand.

[Cricket]

Originally Posted by ChuckTs Selling really wouldn't make you much? Take my pc for example...I payed ~$1400 for it, and it took me only a few man-hours to really put it together and install all the software + drivers etc. If I could sell that for like 2K (as opposed to the $2500+ that a company like Dell would chop it for), that would make a nice markup and make it worth my while, no?

It really depends on the type of computer you're building...not everyone wants a high end computer that costs a lot, the common user wants something cheap and you can't compete with DELL or Gateway on the low end. High end computers only make up a very small portion of the computer market and you'd have to compete against others who have been at it for much longer than you. Plus you have to establish a name for yourself before the customers start to flock to you for custom rigs.

Cricket

[XenaWP]

Most people who *want* custom computers, are willing to build it themselves ... or have a buddy do it for them.

Plan to live lean ....

[CleanChucks]

Originally Posted by XenaWP Most people who *want* custom computers, are willing to build it themselves ... or have a buddy do it for them.

Very true. I was thinking about that.

@ cricket: also very true; dell's low-end models would slaughter me.

Originally Posted by XenaWP Plan to live lean ....

Already am :/

So it looks like selling PCs isn't worth the gamble...or just isn't profitable period without a big customer base.

[Cricket]

You could do it as a side business to make extra money...I just wouldn't make it my primary source of income.

Cricket

[EzyStvy]

The first pc I built n sold I made 75 dollars....I was pretty happy with that cosidernig it was Many years ago....After the first two trips back to their house I figured I broke even. The next two trips I was in the red.......That was spread out over a few months....

Imagine selling 10 pc's to people that call you four times a day every day....

[Cricket]

Originally Posted by EzyStvy The first pc I built n sold I made 75 dollars....I was pretty happy with that cosidernig it was Many years ago....After the first two trips back to their house I figured I broke even. The next two trips I was in the red.......That was spread out over a few months.... Imagine selling 10 pc's to people that call you four times a day every day....

That's why I don't do this as a side business or as my primary source of income...I can do without the headaches. I only build for friends, family and co-workers and I do it for free, they just pay for the parts...this seems to make them feel I don't owe them free service calls.

Cricket

[BIG jay]

looks like there could be a bit of cash in custom pc's
http://www.mnpctech.com/

[mykcruz]

If you're just talking about doing pc builds as are the rest of the members here then the previous posters are correct - there's not much business on selling those at small scale because you probably won't be able to generate much of a profit margin to go on at that level. Like you yourself said, you will need a larger clientèle.

But if you are referring to customizing pcs ala "pimp-my-cpu" doing all sorts of modifications with all the bells and whistles that can go into a desktop machine - chances are there's a niche market there somewhere. However, most business models based on customization for clients cannot be cheap.

The next question then would be - will there be people who would pay a premium to "customize" their computers knowing that the technology tend to go obsolete in only 6 to 12 months time?

[Petef56]

Originally Posted by Cricket It really depends on the type of computer you're building...not everyone wants a high end computer that costs a lot, the common user wants something cheap and you can't compete with DELL or Gateway on the low end.

I agree with Cricket. A custom PC builder is competing with companies like DELL & HP
who mass produce computers. They can buy components in large quantities and get
cheaper prices than the small custom PC builder.

I encourage people to buy a custom Pc from a local shop under certain conditions.
Most times you will have to pay *more* money for a custom built PC than a comparable
PC made by DELL or HP but the advantage is the personalized service you get with
a PC built by a local shop. So I tell people if they are willing to pay a litte more for a
computer than a DELL or HP PC, buy a custom PC from a local computer shop becasue
of the service you get.

---pete---

[alanebro82]

I just made $20 setting up a wireless network for my girlfriend's father. The real money is fixing computers for computer illiterate people. (no offense intended to said people)

Edit: It took me all of 5 minutes.

[piasabird]

Big OEM's do not pay no $100.00 for the OEM Software either. They might be paying $30.00 for the OS. They make their money by buying all the parts in large quantities and then building the same thing over and over. You can not compete with this kind of a large OEM building the cheap low-end computers. As a local reseller/Builder you would be better off reselling the cheap low-end computers and tell the customers to contact the large OEM that built them. Then you can maybe build a few high-end computers and actually make some money.

Service is probably more lucrative. Remember even a plumber or a handyman charges about $30.00 or more just to show up at a person's house. You have to have a minimum charge for any house call. There will be people who want you to fix their 15 year old computer, so be prepared for the older OS that no one uses anymore. There is someone out there still using Windows 3.1 or Windows 95.