How to Profit from the Unprofitable
Here we learn to deal with what would normally be an unprofitable job. Suppose you're speaking with a prospect who you can tell is going to be very demanding, or who is requesting your services for the type of work that you are uninterested in doing. The best ways to handle these situations include:
- raising the quote
- referring the lead to someone else
- saying no
Raise the quote high enough to reflect your concerns and bad hunches, but not so high as to send the client away. Raising the quote means raising your first quote, with respect to your normal rate. Otherwise, you'll be making someone angry. Are you "too busy to take work right now"? Don't turn them away; raise the quote.
Consider referring the lead to someone else. The goal is not to give someone a bad referral, but rather something they can handle better than you could. By having connected with some of your competitors ahead of time - ideally, who serve a slightly different market - you can send them the jobs that you can't handle (for example, you might not do laptop hardware repair). While it may seem counterintuitive to stay close to a few of your competitors in this manner, it will give you an advantage because you will now have a local lead generation network for computer repair. Here's how it works. First, make them aware of your area of expertise, and learn theirs (essentially by interviewing them as a customer might, asking them what their specialties are). If they might be a good "partner", let them know about your idea. When the time comes, you will probably have to take the first risk or two by sending them a lead for nothing except the expectation that they will send a customer your way in the future. If they reciprocate, then you've found someone who you can share a lead with again. It's good to have a number of referrals ready for when you are on vacation (but still answering your phone), or don't want to handle the work for any reason. After referring the customer, follow up by emailing your contact at that business, letting them know you just sent someone their way and that they should be expecting a call soon from them (give out their first name and the computer problem, so your friend will recognize the lead when it comes to them).
Finally, sometimes it's best to say no. Some jobs will cost you!
Computer Hardware Inventory
Stocking computer hardware is expensive. How many different graphics cards, motherboards, and memory types do you need to keep on hand? If you are starting out by running your business from home, your best bet is going to be to stock a very minimal set of parts. Maybe you'll have a few different spare memory chips, a couple old spare hard drives, perhaps an old monitor, and other generic supplies. However, stocking other components like motherboards, CPUs, and special proprietary components is just plain unprofitable. Order those components from an online retailer on demand. When just getting started, you would likely be wiser to invest $500 in advertising over $500 in parts if you could only choose one. Then, you would focus on the hardware-free services you can offer, ordering parts on demand.
Some computer repair businesses choose not to sell parts, and just perform service. Thanks, rick, for the idea for this post.
Dealing With All Types of Customers
If you're thinking of starting or are just starting a computer repair or other tech related business, you need to be able to deal with customers of all types. Each day is a new adventure, and just when you think you've seen it all, something new comes along. There are many types of customers you need to watch out for. Before I decided to go full time with my repair business, I spent a few years in customer service dealing with all kinds of people everyday. If you're typically known as the “nice guy” you may have to change your train of thought to keep from getting run over by your customers. If you have not had the benefit of gaining any type customer service experience, you should ask yourself, Can I deal with:
- The customer who “knows” what the problem is and wants to talk about it.
These aren't that bad, just annoying. - The customer who wants to look over your shoulder while you work.
Personally I hate this. I don't get nervous, but I can't stand to have anyone looking over my shoulder in any situation. - Same as above but wants an explanation of every single thing you do.
Grrrr - The customer who wants to negotiate the price.
These guys are bad especially if you're working out of your home. - The customer doesn't give you the whole story or “forgets” to tell you something relevant, like the fact he spilled coffee all over his laptop.
This can determine whether you work 10 minutes or two hours. - The older customer who wants explanations but doesn't have a clue what you're saying even when you break it down into elementary English.
Not that bad really, just another annoyance. On the plus side, if you can make a “connection” with this customer, they'll come back every time. - The customer who “since you're already working on it” wants you to fix something else for the same price.
Be firm, don't do anything for free. Let them know that it will be $x.xx more for you to do that. - The customer who wants to blame you for something that was wrong with the computer before they dropped it off.
Most of these are premeditated. They come in knowing they're going to try and get one over on you.
These are the types I run into the most but there are other types and variations.
You have to remember that this is your business. You no longer have to clock in and answer to anyone else. You're the boss and you can run your business as you see fit. If you're the type to get nervous when someone looks over your shoulder, post on a sign that if a job is estimated to take more than 30 minutes (your discretion) then it is recommended that they drop off and come back.
Be firm with your prices, you're not running a stand at a flea market. You're prices are set. Don't cave no matter how persistent that are. If they want cheap service they can look elsewhere. You can stand strong with these types of people and they will usually cave themselves. If you give in, they will be back every week wanting you to do something cheap.
Be sure to inspect whatever the customer drops off in front of them. Make a note of any defects you find, and have them sign off on it.
You can stand by your convictions without coming across as a jerk. It's all in the way that you do it.
Good luck!
Author: B-TECH Computer Repair
Will You Need Sales Skills?
Do you want to be really successful? Then yes. You're going to need a range of soft skills.
Most computer technicians aren't salesman; they are from from it, and that is the last thing they'd want to get involved with. However, that is precisely why Geek Squad has been successful - they've bridged the gap between sales and computers. If you are lacking in salesmanship skill and plan on starting up alone, then you're likely going to have a difficult time. Get a mentor, learn the art, or get a partner. Your business depends on someone having this talent.
On that note, dealing with customers eventually includes angry clients, rejection, and other emotionally challenging situations. Entrepreneurship is for the strong-minded and emotionally resilient.
How would you handle the following situations?
- You have just fixed the customer's computer, but he is unwilling to pay.
- The customer is blaming you for losing data that you know you didn't lose
- The customer is blaming you for data that was lost while repairing his computer.
- You are getting more work than you can handle, and your customers want their computer back asap.
- You are getting less work than you expected.
Bottom line: expect all of the above challenges, and work with someone who can complement your skill set if necessary.
Build a Brand, Charge More.
When starting a computer repair business, technicians often sound pretty much the same: "I'm going to give them the best value around." Given their lack of experience, they are unaware of the true cost of running a real business, and won't be able to profit enough to live off of it. Unless you are just looking for part-time work, create a brand to back yourself up, and then charge like the professional that you are supposed to be. The Geek Squad can charge $300 for on-site virus removal because of their brand. You must do whatever it takes to get your name out in a concentrated region around your service area. With a strong brand, you can charge a bit less than the Geek Squad does and do pretty well.
Here are some brand-building tips for your computer business:
- Start with a good name, logo, and website. Don't create these all yourself unless your are truly an anomaly of a technician.
- Earn some good reviews. Help facilitate the tedious review process by emailing your customers a link to your online business presence at the Yellow Pages, Yahoo Local or Google. (You should have already collected their email address on your agreement form.) You might even make an account for them to use ahead of time. Here's how you go about this: after they've praised you for saving them, say, "I'm glad to have helped! Would you mind writing two sentences as an anonymous testimonial?" When they say "yes", you respond, "Wow, thank you! I will email you." Create an account and email them a link with the username and password to sign in and review you. You have time to create an account. They don't.
- Frequency, frequency, frequency. Make sure your name appears in as many local public stores as possible. Negotiate discounted computer service with the store manager or owner in exchange for placing your fliers in prime store real-estate. This is going to be tough, since you might not be much of a salesman; if it is tough, I suggest focusing on your salesmanship. Geek Squad gets by on mostly salesmanship with a sprinkling of technical skill. At least learn the basics, and then practice them; combined with strong technical skills, you should dominate. Multiple mediums especially help. Show up on local websites and Internet banner ads. The easiest way is through PPC ad brokers like Google, Yahoo and Microsoft. Join the local Chamber of Commerce and appear in networking events. Consider whether you might offer a deal on one of your services through a coupon publication.
- Get a car magnet and proudly display your professional logo. Unless you have a beater, that is
Additional Tools
In addition to the recommended virus removal tools, bring the following to on-site jobs:
- a Linux Live CD
- an external hard drive
- your laptop
Your Live CD and external hard drive can help you to recover files from crashed computers on site.
Repair: On-Site vs Workbench
When working on your customer's computer, should you perform on-site repair, or take it back to your workbench to perform the work?
Some considerations:
- Estimated Repair Time
- Trust and Your Customer's Concern for Privacy
- Parallel Jobs
- The Customer Likes to Look Over Your Shoulder
- Slow Backups
Estimated Repair Time - How far away is your customer? If they live half an hour away from your office, is it worth the trip back to your own workbench for an hour repair? If you feel you might be able to quickly solve the customer's issue on-site, then make it clear to him that you will be glad to take a look, but there are no guarantees. You can provide a quote over the phone for repair regardless of whether the work is done on or off-site. Yes, the burden is now yours if you need to take the computer off-site, but by reducing uncertainty you move the customer toward the sale.
Trust and Your Customer's Concern for Privacy - Does your customer trust you with her computer? She might expect to see some identification, like a driver's license, before leaving you with her PC. Don't let her copy it though - have a prepared statement, e.g., "it is my policy not to let customers copy my driver's license." It helps to hand her a professional looking business card with contact information at that point. If your customer insists that repair is done on-site, you might explain that you'd be happy to do so for X dollars, but that she can save money by letting you take the computer back to your workbench since some of the diagnostics will take a long time.
Parallel Jobs - If you're able to get a few computers on the workbench, all running scans and diagnostics at the same time, then you increase your work throughput and profit, while maintaining availability in case another customer calls in the meantime.
The Customer Likes to Look Over Your Shoulder - Do you feel uncomfortable working while the customer looks over your shoulder? You might have to accept this to some degree, but you can avoid it by explaining that the customer will save money if he permits you to take your computer back to the workbench. Some customers will test you, trying to get extra free work by making various "small requests" as you repair their computer.
Slow Backups - If you are going to back up the entire computer using imaging software before working on it (typically a 5-hour process), then it almost always makes sense to go back to your workbench.
Free Links = Free Advertising
Get your PC Virus Removal business some Google Juice! Once you've created your webpage to advertise your computer repair business, start creating links utilizing the free account on these sites:
- Yellow Pages (Warning: expect them to call you frequently, trying to upgrade your account - but the free business is worth dealing with this small annoyance.)
- Google Local
- Yahoo Local
- HotFrog
- Merchant Circle
- Search for Free Online Business Listings
You'll have a much greater return on your time investment by listing with these sites than with online classifieds like Craigslist. Remember to ask a customer to review your business after they express their gratitude. Ask them for permission to email a link to your profile to them, so that they can review you. It's important to ask because their "yes" significantly increases the chances that they will follow through. Build up your links and testimonials this way.