Looking to do PC work on the side

[PhilTA]

I'm an IT Professional and I want to start doing some PC side work to supplement my income. I'm not looking to start a full blown business or leave my job. I'm just looking to make a few extra bucks.

I intend on doing home PC work like troubleshooting, wireless/network setups, virus/spyware removal, system rebuilds, etc.

I have no idea what kind of money to charge for this stuff. Would I be better off charging a fixed fee or is hourly the only way to go?

If anyone who does this type of work could share their pricing structure, it would be incredibly helpful.

Also, as far as obtaining hardware and software when needed, am I best off using someone like Newegg (where I currently buy all my personal stuff)?

The last question is how do you markup the price on hardware to your customers?

 

[wdoellefeld]

I had the same questions when I started. What I did was find out what geek squad and some other people doing the same thing were charging. Then I chose my rate. In some cases almost undercutting them by half. They get a great rate, great personal service, and everyone leaves happy.

All in all its been a good experience. The one thing I was not prepared for was the unforseen issues I would face in going to someone's house and fixing their PC. Everytime. Not once, not sometimes, but everytime the problem is much worse than described and usually it is a huge headache. I learned very quickly why most of the people who do this have a rule as to how long they will troubleshoot before calling it quits and just rebuilding the system. My rule of thumb is one hour. Lots of circumstances apply but if I cant figure out the problem in the space of an hour I just rebuild it.

I don't hardly do as much residential as I used to since the reality is if its a real nasty job it can cost a person as much as just buying a new e-machine. My 2 cents.

(yay! shameless advertising. my side business)

http://www.frcp.net

 

[pansophic]

Rates are always an interesting thing. They are influenced by so many factors (experience, availability, specialization, geographic region, etc.) that it is difficult to throw out a number. However, doing as wdoellefeld suggests and checking the competition's pricing in your area will definitely get you off to a good start. Most people charge hourly because you have no idea what you are getting yourself into before you get there. I know of only a couple people who charge travel time, but it is not completely unheard of. Especially if you will be traveling an hour or more to get to a customer site.

If you are not well off, it is frequently better to have your customer buy whatever it is that they need and contact you when they have it, rather than ordering it yourself. If you order yourself then you need to get something for your trouble, and you will often encounter people who don't want to pay you to have done that part for them, when they could have bought it at <fill in your favorite e-store here> for half that price.

Plus, you still have to get the money out of them. I've only ever been stiffed by a company one time (company went bankrupt), but have been stiffed by residential customers at least 3 times (you get a check, but it isn't any good). And I do 98%+ of my work in commercial space. That's not saying very much for the end-user community.

Other than that, when you do end up purchasing equipment for people, use the vendors that have supported you the best. Most of the time I find that a local brick and mortar store is required for getting things done in anything approaching an expedient manner. Online is great if you know for certain what the problem is before you get there, but nothing beats the local Best Buy for an impromptu repair. As far as markup is concerned, I usually mark up 10%, but that may be high for your purposes. I'd rather not have the exposure, so it is intended as encouragement for them to buy what is needed themselves. I can and will do it for them, but not at my expense.


pansophic

 

[ecobb]

...If you order yourself then you need to get something for your trouble...As far as markup is concerned, I usually mark up 10%...

One thing to note about this. As my Accountant pointed out to me yesterday on this subject, if you purchase a piece of equipment (actually, it's ANY tangible item) and mark up the price then turn around and sell it to your customer, you are required to charge sales tax on that item, and report and pay sales tax to the state. This only applies to tangible items, not services. You have to make a clear record of your cost, markup, and sales tax in your financial records, and also file it with the state each month. If you don't, and you get audited, the dept of revenue can automatically assume the entire sale (not just the equipment, but labor to) is subject to sales tax and force you to pay sales tax on the full amount. What's worse is, this can go for every invoice you've ever sent out that has an equipment sale on it, and they can track it back for as many years as they want!

Naturally, this is going to vary from state to state, but you should definitely check with an accountant when setting this stuff up. It may wind up keeping you out of trouble later on.

Hope This Helps!

ECAR
ECAR Technologies

http://www.ecartech.com

"My work is a game, a very serious game." - M.C. Escher