Computer Business?

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PurePwnage

New Member
Hello. I would like to know if there is a way for us to make money off of our hobby. Simply buying parts off of Newegg and posting it up on eBay, or just charging on eBay for the labor, we'll make the computer, show them how much it is, they will send us the money, and then send it to them.

I don't really know, but how could we make money just building computers?

Thanks.

*We are 15 years old, so no business licenses or anything*
 
Geoff

Geoff

VIP Member
I've thought about and done a few of those things before. Part wise, you generally don't make any money, and anything you do make is offset by eBay and PayPal fees. The only real way to make money on computer parts is to pre-order parts that will be in high demand, such as when the 8800GT first came out, or when the Core 2 Duo's just game out.

As for buying the parts and selling the computers on eBay, I did that once and it was a major catastrophe. The major problem was the actual shipping and packaging of the computer so it wouldn't break. Not to mention it's against eBay's policy and you will get your account suspended.
 
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paratwa

New Member
Think of it this way, you are about the 10th person I have seen on this forum with the same idea. And none of them have made a buck from what I have heard.

Is it impossible? Probably not. Is it very likely you can make enough to make it worth while? Probably not.

Like the other posters said, you have to figure in the prices of ebay and shipping. Ebay does not do what they do for nothing, they charge a percentage of what ever the final sales price is. And all of that can seriously cut into any profit.

Look at how many online company's have folded in the last few years, there is just not a big profit from small mom and pop boutiques to make a living. You usually make your money from a large volume turnover. If you can build and sell a 100 systems a month with no tech problems or returns, you might make 20% on your investment. And if you plan on selling that many systems, then you need a business license.

The people on ebay are looking for a name brand that they trust. No one knows who you are or how trustworthy you are. So getting people to put out that kind of cash for an unknown is not going to happen every day.

The reason Newegg can sell so cheap is because of their small overhead and fantastic turn around on parts. If they only make $5 on every transaction, they are still making $100,000 a month because of how many items they sell every month.
 
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SirKenin

banned
If you can buy it at newegg, so can they. The Ebay and Paypal fees are a ripoff. Ebay is not worth it unless you're looking to offload a bunch of junk that noone local wants, or if you have a rare collectible or Wii at Christmas. I sold a Wii with some games just before Christmas. I got $520 plus shipping for it. The fees for the privlege were almost $80. Just not worth it at all.

People buying computer stuff on the internet are cheap. I don't even want their business. As it is, you're lucky to make 5 points on computer products. After the time spent to list it, answer questions, sell it, ship it, pay the fees... I can't be bothered unless it's dead stock.

The first rule of success in a computer business is that you don't make money on hardware, so don't expect to... Unless you move huge volume. However, as a 15 year old kid I doubt very much money.. Also, you have to have it in stock or be able to have it drop shipped. You can't make them wait while you go buy it with their money, build it and then send it. It doesn't work that way.

The only way you make money in computers is as a VAR. Service is where the money is. You sell the hardware as part of that service.

Parts and systems? You can walk down the block and find 14 kids that think they know something about computers offering to sell parts out of their bedrooms or do service for peanuts. Fortunately, the majority of the public is smarter than that, and the little weasels do a fast fade. For the few that fall for it, again, I don't want their business because those are the type of people that are nothing but problems.
 
Geoff

Geoff

VIP Member
windowsvista said:
what so buy things of newegg and sell it for more on ebay!!
Click to expand...
Thats what some people do, and because you are selling it for more then what Newegg is offering, it will take a while to sell it (if you ever do). Think about it, people go to eBay because they want items cheaper then they can get in stores or on other websites.

Now if you owned your own business, you may be able to make some money since if you look at the price of computer components at Best Buy vs Newegg, theres a huge difference.
 
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SirKenin

banned
Not really. You buying it at Newegg means everyone else can too. If you have nothing else to offer, there's no reason to buy it from you. And, once they figure out they're buying it from some young punk, it wouldn't matter how cheap you were selling it, they still wouldn't buy it. There's something about credibility, and concern about after sale support and warranty, that a teenager just can't project no matter how hard they try.

You can get away selling it more than on Newegg, but not by putting an ad in the paper or on Ebay. You have to give them incentive. A valid, credible business is a good start. Second is bringing it to their door. You have to add service to the sale, or there's no incentive to deal with you.

This isn't limited to teenagers either. Check out certain adult posters on this board. When they consistently give you wrong answers, prove that they have no idea what they're talking about, go off on a rant about what they did 20 years ago, etc... That doesn't exactly establish credibility. You do that in the business world and most people will pick up on the fact that you're full of crap and it wouldn't matter if you were selling it for peanuts they still wouldn't buy it because the trust factor wouldn't be there. People aren't in the habit of just throwing away money, and if they have ANY reason to doubt you, you'll never get a dime out of them.
 
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porterjw

porterjw

Spaminator
Staff member
That credibility speech you just gave, then this:
And, once they figure out they're buying it from some young punk,
Click to expand...

And the pot turned to the kettle and shrieked at the top of it's lungs 'BLACK!'

Is that supposed to raise your credibility? I don't get it... :confused:

To the OP, I have to agree with what others have said here, though I'll do it more respectfully than some. If you had a few more years of experience (not knowledge, actual RL experience) and references, did this full-time, and were a bit older (sorry to say your age will hinder you a bit) then it's possible.

Probably 85% of all my clients have zero computer knowledge other than turning it on. Thus, they don't have the ability to go to a place like newegg and order what they want. Furthermore, I ask that they stay away from BB and CC and other big retailers - even with me upping the part price a bit and charging to install it, it's still cheaper and more nerve-easing for them than going to one of those and having someone who half-knows what they're doing mucking around in their system.

I'd wait a few years. if you have friends or family who want new systems and you can convince them that, after parts and labor, you can build them a better system for cheaper, AND give extended support if they need it, then build to your heart's content:) I'd limit it to friends and family though, for the time-being, again, just because of the age. After you do a few of them, you'll be able to see how much profit you're making and decide in a few years if it's worth it for you. The real money in this business isn't building computers, it's maintaining systems and software.
 
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SirKenin

banned
Heh.. Yeah, sometimes I have an interesting way with words.. Probably because we're having that problem up here. There's a few of them that have come onto the scene, made their "mark" and then faded again. Unfortunately we often end up having to deal with the fallout.
 
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StrangleHold

StrangleHold

Moderator
Staff member
Its a work in progress, its what you can build up over time, reputation and word of mouth. Been building/repairing computers for over 12 years and the first few I didnt make crap. Most of the people I build for cant build computers or install anything unless it says click (here). If I told them to go to newegg and order this or put your windows cd in and boot to it, they would look at me like I had lost my mind. But like I said it more of a work in progress. You build and Custom computer for a Doctor/Lawyer, he tells his friend his friend tells his friends and so on.
 
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oscaryu1

VIP Member
PurePwnage said:
Hello. I would like to know if there is a way for us to make money off of our hobby. Simply buying parts off of Newegg and posting it up on eBay, or just charging on eBay for the labor, we'll make the computer, show them how much it is, they will send us the money, and then send it to them.

I don't really know, but how could we make money just building computers?

Thanks.

*We are 15 years old, so no business licenses or anything*
Click to expand...

Start a custom computer shop. What's what I'd do. Build up reputation as years go by, and don't charge as much as Dell to put together a computer. And always look for lowest prices.
 
royalmarine

royalmarine

New Member
or buy computer parts in america, rent a boat, sail to europe and flog them.

you'll make a killing and then when you get out of prison after say 3 years, you might have some money :p
 
brinky2006

brinky2006

New Member
I believe the only way to do this (in the UK enyway, not sure about US) is to register as a company, eg sole trader or limited company.

You would then have to register to pay VAT (value added tax) and with the VAT number you could open a trade account with a company such as Computer 2000 - http://www.computer2000.co.uk/AboutUs/index.asp

I reckon this is the only way to make money of this kind of thing and this is how the big guys do it such as Dell etc.

Adam
 
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