Starting a repair business ?
I have been studying for the A+ exam for a month or so and I
plan on taking the exam early next year. After that I have been
toying with the idea of starting a computer repair business. I am
certain that there is a demand for my talents, my only question is
what should I charge? I know that 2 places in town charge $70/hour
one hour minimum. Seems pretty steep to me. I was thinking more
along the lines of $30 to 40/hour with a $15 minimum (if I fix the
problem!)
Any thoughts or feedback on rates or the entire idea?
-I think $30 to $40 is a good start since you will be new in the business,
and that will bring people to you .
-Yep. You'll be out of business in a few months. If you last that
long.
A repair business is viable. The concept is valid. You may even be
qualified. You haven't got the business sense to pull it off though.
Neither do the other responders.
You can't run a business based on guesses, or what the competition
does. They may have to pay employees while you work for yourself, so
your cost is lower. But that doesn't mean your fee should be.
You're just starting out. The worst thing to do is run a cut-rate
service because you're inexperienced. After you've been doing it for
a year you'll figure "Hey, I know what I'm doing now, I can raise my
rates." You're wrong. Your customers are there because you're cheap,
and when you raise your rates they'll leave you for the next guy just
starting out.
I assume you know all about business licenses, accounting procedures,
witholding and sales tax, unemployment insurance, liability insurance,
self-employment and FICA taxes, credit lines at suppliers, credit and
debit card acceptance, professional licensing, depreciation and the
like since you say you only had the pricing question. So I'll pass on
providing that information, and only suggest that the recommended six
months of operating expenses on hand won't cut it, you'll ned a year's
worth, including your projected salary.
Been there, done that, know where I'm coming form here...