Saturday, April 26, 2008

More background...

The philosophy of my company PC-fix-IT was when I started, to offer friendly, experienced, yet affordable services to the local community in an increasingly technology advanced market (broadband, security, Windows, etc.) taking advantages of good quality free software and well priced hardware products. This has been successful, as in the four years I've been trading I have over 800 customers in the Basingstoke area and revenues that force me to be VAT registered.

I quickly realised that building cheap PCs from components was not part of the business model. You have to investigate and source the components, assemble them in two hours (something always goes wrong), load software (including a bootleg copy of Windows) and then essentially offer a lifetime warranty on the computer. I quickly switched to selling DELL computers which offer brand recognition, easy configuration, legal Windows, and a backup warranty from DELL. The profits were better and it was a lot less hassle. I make my money on the resultant services. In fact I offer the first hour free in the price.

The majority (90%) of my customers just want a simple, modern computer to surf the Internet, email, manage digital photos, create the occasional letter and spreadsheet. For the rest they are games players, video editors and run specialist applications. All require help in configuring a suitable computer, ordering and installing it, connecting printers, broadband, networking etc. Then transferring data, files and settings from their old systems, reinstalling applications. i offer these services at a reasonable rate that most people whether individuals or running a small business can afford. Plus after business hours in the evening and weekends to make it convenient to them.

I rely on information from Microsoft, evaluation software, free software from reliable vendors, DELL computers, broadband suppliers (and their poor offshore support call centres) and the Internet to tie it all together. Plus my wife to run the accounts, answer the phone, wait in for deliveries and remind me often.

I've frequently been asked why I don't have premises but the extra overheads of lease, insurance, security, stock and salary costs over a potentially slight increase in passing trade and carry in business do not seem to be worth the risk. In fact a number of such local establishments have closed recently, so my views seem to be correct.

In the next post I'll be more specific on experiences, products, etc...

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