The simple answer to this question about computer repair and national service organizations is, “Absolutely not.”

Why?  Basically, you’ll spend a great deal of money and more importantly TIME getting certified and learning cutting-edge technologies.  But, when it comes down to it, computer repair – hardware repair – is a commodity and can be an incredibly low-margin situation.  As hardware becomes more disposable and replaceable, less people even engage in real computer repair.  And, computer repair contracts and IT consulting contracts in general with national service organizations just don’t work.

Disposable Hardware

As an example, think about a $600 consumer-grade PC.  Who will spend money on computer repair for this type of hardware when it has passed its warranty point?  And who will spend money to fix an out-of-warranty $400 laser printer?  Not many small businesses would do this, and neither would national service organizations.  

Low Labor Allowances

National service organizations usually will be dealing with warranty repairs on pretty inexpensive hardware … so how much labor allowance will be available for computer repair on a $1,200 laptop?  A lot of big hardware vendors are usually close to going out of business.  Unless you’re Dell, HP and IBM and are a vendor, you probably will be depending heavily on these low-end repairs to stay in business.

What is the Profit Margin on Computer Repair Contracts?

Think about it – you will probably not make much more than $50-$200 (at the absolute MOST) on a computer repair.  So what is a better choice?  Finding small businesses in your area that need high-level, sophisticated IT planning and services very regularly.  

You Won’t Make a Profit with National Service Providers

When you are a subcontractor for a national service organization, you won’t be able to efficiently run your business.  You will be in eight different offices each day instead of one or two.  You will be told that you only get $65 for even a complicated, lengthy computer repair instead of billing out at $100 or even $150 per hour.  It’s just not practical, and your computer repair business can’t last that way!

Added By:  Computer Consulting Kit