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Question

What percent would you charge for profit on a computer?

Aug 21, 2014 12:00PM PDT

Hey, I'm starting a small one-person business making custom-built computers for people in my local area. The business is for profit, as I need the money for college. But my question is, how much would you charge for the markup on the price for the profit margin? I've got people telling me 10%, and people telling me 30%. (When I'm talking percent, I mean the price of the parts multiplied by said percent.)

Discussion is locked

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Clarification Request
Operating a business while in college
Aug 23, 2014 7:38PM PDT

You'd better decide how much time you can devote to each activity first. You also need to look into whether or not you can get supplier discounts. I've worked with a VAR for a school and they've supplied computers at or for less than I could purchase the individual parts at local retail stores. Their margin seems to be based on the ability to acquire parts at less cost than I can rather than on labor. They also offer warranty services which mostly cover replacing parts that have a warranty period. They handle the parts return for credit. Can you do that? They do repair as well. Labor charges are fairly high. Do you want to offer repair services? Again, with one person and that person needing to focus on studies, how much time do you think you can put into a business like that?

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Answer
more than 15%
Aug 21, 2014 6:44PM PDT

At least 20%. Depends on the computers being new, used, . Consider restocking fees at many places alone are $15% Consider the operating system you have to add onto it. Go with Linux and offer retail copy of Windows as available.

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Answer
It all depends...
Aug 21, 2014 9:45PM PDT

Your clients will tell you what you can or can't be charged. I realize you want a profit, but if you're not a well-stocked and really a shop front, then you expect buyers to pay top $ then you deliver top $ as well. I suggest you quote the outlay of costs and then add a flat fee on top of that for your services. The more expenses are on your side, then that will dictate your the amount you should charge even in % terms. If you have any warranty work to cover that too will eat into profits, yada, yada. if this is product delivered or service can make a difference in how you charge, so take that into consideration. Of course, your talent level can also suggest pricing.

tada -----Willy Happy

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Answer
Not a great endeavor
Aug 28, 2014 3:51AM PDT

In my mind as the need for desktop computers are declining . Most folks are moving to portable devices, from cell phones and tablets to laptops .

A neighbor has been doing what you want to do for years and his business is close to nil, an occasional gamer wants a build once in awhile but very rarely.

Digger