Considering a 'Build me a pc' service

Danger781

First off, I'd like to note that this will be entirely done in my spare time as some extra income other than my real job.

Essentially I'm thinking something similar to custompc.ie - but I have some ideas that will make my site different. I'm also hoping to do it cheaper but haven't done near enough research to confirm that yet, but from what I've worked out so far I think I can. This is why I'm here, so I can figure out costs etc.

1. Tax - If I end up going ahead with this, whats the story regarding tax? Will I need to register as a sole trader? Will I need to pay tax on the profit I make?

2. Returns & Repairs - What kind of warranty / repair service would I need to offer? Is there any legal minimum? Or is it completely up to me?

3. Legal Protection - On that note, how would I protect myself against disgruntled customers threatening legal action or if a piece of hardware broke and they blame me. (Not sure why this kind of situation this would occur but from working in retail previously I know how some people are..)

4. Packaging - How would go about getting boxes or packaging for the finished product? I wouldn't be too happy if my computer arrived wrapped in bubble wrap with no box.

5. Domain - I've read somewhere that you need to register with a specific organisation if you plan on using a .ie domain

6. Payment method - What kind of payment methods should I be looking into? I'm assuming it wouldn't be enough to just accept paypal and google wallet.

smash

I think there's 2 types of PC users.

Those who know what they want: Will look around and order to spec or build themselves.

Those who want a computer: Will go to pc world or the dell website and buy one for €300.

I'm not sure how popular or value for money the 'build me a pc' industry is.

Danger781

smash wrote: »

I think there's 2 types of PC users.

Those who know what they want: Will look around and order to spec or build themselves.

Those who want a computer: Will go to pc world or the dell website and buy one for €300.

I'm not sure how popular or value for money the 'build me a pc' industry is.

Yeah that occurred to me alright. Like I said, this would be completely part time for a bit of extra money. Just wondering if it's feasible, or even worth the couple of hours a week.

galwayjohn89

1. Tax - If I end up going ahead with this, whats the story regarding tax? Will I need to register as a sole trader? Will I need to pay tax on the profit I make?
If you are trading under any name other than your own name you would need to register as a sole trader which costs €20 and is done on cro. You could also go down the Limited Company route to get limited liability but it is more expensive to set up and maintain.

Either way, you will have to pay tax. I recommend you visit an accountant. Most will give a free introductionary meeting

2. Returns & Repairs - What kind of warranty / repair service would I need to offer? Is there any legal minimum? Or is it completely up to me?
Warranty is completely up to you. However warrantys are in addition to customers rights given by the Sale of Goods and Supply of Services act.

3. Legal Protection - On that note, how would I protect myself against disgruntled customers threatening legal action or if a piece of hardware broke and they blame me. (Not sure why this kind of situation this would occur but from working in retail previously I know how some people are..)
You could get product liability insurance but will be quite expensive. This is why a limited company might be a good idea.

4. Packaging - How would go about getting boxes or packaging for the finished product? I wouldn't be too happy if my computer arrived wrapped in bubble wrap with no box.

Google Packaging boxes Ireland. There are plenty of suppliers who can make made to order boxes so they fit better

5. Domain - I've read somewhere that you need to register with a specific organisation if you plan on using a .ie domain
If you have a trading name registered with the CRO you are entitled to the ie domain name You can view IEDR.ie for all the requirements

6. Payment method - What kind of payment methods should I be looking into? I'm assuming it wouldn't be enough to just accept paypal and google wallet
Paypal to begin with really. Then when you expand you can looking into a merchant account with payment processor. Google wallet is UK&US only as far as I know. I could well be wrong though.

who_me

First of all, best of luck!

You may have some challenges - I think most people who go the build-your-own-PC route do so to cut costs, so going to a 3rd party to do it might be counter-productive. Having said that, a lot of people might want to 'graduate' up from consoles to gaming PCs with little experience of building one. If you can offer good advice; a quick, reliable repair programme (not several weeks like consoles) and are cheap enough, maybe.

On tax- it's probably a good idea to have an accountant set up the sole tradership for you. You can submit your accounts online I think, but probably best to have them set it up initially.

I imagine you're subject to the same legal requirements as everyone else, if a device fails because of a flaw present at purchase you may be required to replace/repair even if outside a normal warranty period.

If it's a small/casual business I don't know if you'll need (or be able to afford) insurance/coverage for lawsuits. I think if you're upfront and honest in your dealings, people are generally understanding. You may get your arm twisted into free repairs, which might be worthwhile over being taken to small claims court.

You could make yourself stand out by coming up with some novel packaging idea (bad idea for self-builders who just want the cheapest price, maybe a good idea for someone wanting to buy a present for a gamer).

For payment methods, I'm not sure. If you're expecting call-in business, you could accept cash and I've seen credit card readers that can be used with a smartphone - I'd imagine they're fairly cheap. For online business, I'm not sure.

Hope it works out!

magic_murph

I would focus on the Fix a PC rather than build.

If you build a PC from scratch who will pay for the software / licencing of Windows etc.

Much easier life if you fix, update, clean up machines for people that simply don't know how.

On the back of that you could offer a tutorial service - how best to use emails, surf, stay safe onlilne etc

Danger781

magic_murph wrote: »

I would focus on the Fix a PC rather than build.

If you build a PC from scratch who will pay for the software / licencing of Windows etc.

Much easier life if you fix, update, clean up machines for people that simply don't know how.

On the back of that you could offer a tutorial service - how best to use emails, surf, stay safe onlilne etc

I was actually on the verge of doing that last summer. Can't remember why I decided against it.

ToxicPaddy

I considered this myself a number of times and it never really worked out when I did the numbers.

You're up against companies who have bulk discounts in place, backing of large parent companies look at Alienware and Dell and warranties that you woud struggle to match.

If we had a bigger market then its definitely a great idea, unfortunately Ireland is just too small for it

VECTRON

Also consider Realex

Think their still based in Blackrock, Co Dublin for credit /debit card payments

They were doing various packages depending on how many transactions you planned on processing

DubPerryman

Danger781 wrote: »

6. Payment method - What kind of payment methods should I be looking into? I'm assuming it wouldn't be enough to just accept paypal and google wallet.

I'd consider using WorldNet here. It's the best around for a truly multi-channel solution.

ironclaw

I know a guy who did this as a student. He said it was way more hassle than it was worth. People started messing or adding bits and pieces, if anything went wrong, they were straight back even if the issue had nothing to do with them. Speaking as an Elec. Engineer myself with a huge background in computers, I'd suggest the Fix / Tutorial route. Anyone looking for a custom PC will approach Dell etc or build themselves. You could never match the price Dell can wager on the open market.

The Corinthian

I believe the most important thing in this business is to continually source cheap components in the far east, so as to keep your costs down and increase your margins.

As such, you'd really need to offer something other than low price - such as the option to design your custom build online, before ordering, or instead offering something other than PC's; laptops, tablets or just concentrating on repairs.

Given this, the PC/Laptop market is presently depressed, thanks to the present fashion for tablets and Windows 8 putting off buyers, on top of margins having long been cut to the bone by manufacturers such as Dell - as such, it'll be very difficult to compete on price.

I'm not sure you can really do this as a sideline, principally because the amount of time you'll need to put into it will, as a previous poster suggested, be more trouble than it's worth. As such, I'd suggest instead taking on a partner who deals with the sales platform (e.g. an ecommerce site that allows you to design custom builds and order them).

Fr_Dougal

VECTRON wrote: »

Also consider Realex

Think their still based in Blackrock, Co Dublin for credit /debit card payments

They were doing various packages depending on how many transactions you planned on processing

If I was just starting off a business I wouldn't choose Realex, AFAIK you're tied into a contract so if things don't go well you'll still be left with monthly bills.

Go for something simple like the PayPal invoicing tool, you'll be able to take credit/debit card payments with that and if you move into the online sales space you can integrate PP onto your site. Your other option is the Sumup card reader system that people are talking about, but that's pretty much only for face to face transactions as far as I can see.