Starting a business, good idea?

NewbieGeek

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So some friends and I are planning to start a business as a school project. One product idea we had was a do it yourself desktop computer kit. Basically, if we did this we'd sell a custom desktop pc, complete with extensive instructions on how to build it yourself and explanations on the significance of various parts and which in particular are good. What do you guys think? If you were a new pc buyer today with no experience but had interest in a custom pc would you buy something like this?
 
Solution
When I go to Burger King for a burger, I go there specifically so that I do not have to assemble the burger.
If I had to go behind the counter and cook it myself...well...I'd stay home and cook it myself on my own grill.

It's not that we are not interested, it's that your business plan makes no sense.
it wud be more profitable if u assemble the hardwares on customer request and complete it yourself and then sell it at the cost price with additional labour cost for assembly...most new pc buyers are not so diligent, and are most often scared to mess with the components in order to avoid any permanent damage due to lack of experience...hence the reason why a large chunk of them opt for pre-built systems from renowned brands who actually charges them a whole lot of premium for shitty parts...
 

USAFRet

Titan
Moderator


So what service do you provide? A parts list?
They can get that here and elsewhere for free.
 

USAFRet

Titan
Moderator


If I'm putting it together, why do I need to go through you?
What service do you provide?

If all that arrives at my door is a pile of boxes, why don't I just order them myself?
 
keep in mind that todays customer are well informed...most ppl tend to research extensively before zeroing in on any product...do if u gonna offer the build idea and hardware only, u have to give them a better deal than the retail or online channels...
lets take a scenario...
i am a first time pc buyer and i have no clue how to go about it...so i come here and get a build suggestion and subsequently go on to order the parts online...now heres the catch...if i have never built a pc before, i ll have to go to a shop to assemble it or diy with a lot of sceptism...
heres where u can earn the profit by assembling that pc at a reasonable charge...
 

USAFRet

Titan
Moderator
When I go to Burger King for a burger, I go there specifically so that I do not have to assemble the burger.
If I had to go behind the counter and cook it myself...well...I'd stay home and cook it myself on my own grill.

It's not that we are not interested, it's that your business plan makes no sense.
 
Solution

NewbieGeek

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Oct 11, 2015
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We would be selling the pc and sending instructions on how to assemble with the pc. Sure, you could find instructions online, but it would be simpler for them to just come with the pc. That way you have everything you need in one place.
 

orlbuckeye

Distinguished


Well there is alot of competition in the from Newegg, Tiger Direct and Micro Center. Those stores offer you to pick out parts and they will build or will send you the parts for you to build. Plus you don't mention anything about support of the system. Are you going to require the buyer to contact the maker of every component if they fail? Plus are you going to offer OS support?



 

RealBeast

Titan
Moderator
I went to a salad bar once. It was so confusing, they didn't even give me instructions on assembly. So I ended up with lots of separate piles. :lol:

 
On a more practical point

No its a business plan with no essence at all.

I don't see where you'd actually make any money.
To get discounted prices on components you need vast buying power , think 50+ units at a time.
Why would anyone pay more for the components than they're listed for on the internet etailors.
You'd then want what?? $40-50 for a printed sheet of generic instructions which actually come with the components.
Then you have warranty issues , most companies won't transfer warranties nowadays .
If someone had a parts list from you & something went wrong with it they'd be chasing you up as youd have to RMA & return/replace it.

Its a reason I don't build PC's as an actual business model anymore.
I made thousands back in the day , its impossible to compete with amazon/eBay sellers who can sell a prebuild system (albeit with lower quality or end of line components) nowadays for less than I can buy the components for.
This isn't any kind of dig at you , but with anything regarding PC building/supplying you have missed the boat by a good 2 years +.
 
as i had mentioned earlier...lots of ppl register on this website to get build ideas...and they eventually go to the stores to build similar configurations...and there is where the store profits...try to implement something similar...
well, i am not saying i am totally right...but it is something that i have felt during my meager experience on this site...
 

CTurbo

Pizza Monster
Moderator
We would be selling the pc and sending instructions on how to assemble with the pc. Sure, you could find instructions online, but it would be simpler for them to just come with the pc. That way you have everything you need in one place.

Ok but who orders the parts? The customer, or you? Who picks out the parts? It sounds to me like the parts get delivered to you at which time you include the "how to build" instructions and then deliver to the customer???



OR... you're already sitting on a warehouse stocked full of PC parts, the customer orders parts from you, at which time you mail the parts along with your instructions?
 

NewbieGeek

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Oct 11, 2015
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We would order the parts, we would have something in stock before we actually tried to sell; next add our bit, then ship it. It would arrive either non assembled or pre - assembled to the end buyer. We would also provide tech support.
 

USAFRet

Titan
Moderator


OK...run the entire chain for me.

I have $1500. I want a new PC.
Then what?
When does the money change hands?
How long until I get either the functional PC where I can just hit the ON button, or a bunch of boxes?

Also, show us a full parts list of what I might get for my $1,500 (incl shipping and everything. $1,500 is my absolute max)
 
Yeah, I kind of agree with most people so far. I feel like if you did want to start a business with this idea, it would most likely have to be a local business. Like everyone is saying, if all you are offering is parts and instructions, your clients would just as easily be able to do the slightest bit of research, and pick one of the Tom's best builds for a set price.

If they need instructions for assembly, not only will the parts they order come with extensive instructions contained in the owners manual, but they can also go to a detailed checklist, and get direct feedback from people on this forum.

The only successful way I see of running a business such as this would be to run this locally, and only charge people for assembly. You could offer advice on parts to buy, and offer to handle the entire assembly process, along with any returns necessary to wind up with a working pc. If you did this over the internet, as USAFRet said, there would have to be a point where money changes hands, and it would be very hard to find a happy place for both you and the client in this regard. For example, if they order their pc parts through your business, and you choose to keep the ordered parts, then they're out a bunch of money, and Cyber theft goes unchecked more often than physical theft. OR, if they decide once they get the PC that they aren't going to pay you, you're not getting your money.

A local business would work much better, in the fact that if the person ordered the parts and brought them into the store, if you decide to keep their parts, they can prove that you stole the parts much easier than they could online. Additionally, you could give a demonstration of the clients working PC in person so you can prove you gave them a functioning PC. If this was done online, you may send the client what you decided is a working pc and say it gets damaged in transit, then you have to deal with the customer not having a working pc.

However, I don't believe you would have a large enough client base if you did this locally, at least, not unless you expanded your business beyond exclusively gaming PC's. Not everyone is a PC gamer, and most that are just build their own computers, or buy a pre-built. There's not a huge number of people that are floating in-between these two areas.

Overall, a good idea in theory, but I think it would turn out to be bad in practice. If you wanted to run a business like this, my recommendation would be to look into starting a local PC repair company, and on the side, offer to build people gaming computers. I think jumping into what you're thinking of right off the bat would end up being way over your head, but if the business does well, it could potentially evolve into something closer to that.
 

g-unit1111

Titan
Moderator


So why would you tell your customers that the parts they're buying aren't good after they've already bought them? :??: