Hearing "I might as well buy a new PC" more and more?

[Stu]

I was just wondering how you guys/gals respond when after telling the
the customer how much the repair will cost they say, "Well, I might as
well go out and buy a new computer seeing as they are so cheap these
days"?

Personally I think I'm hearing it more and more, and I find it
worrying. I don't blame the customers for wanting what's best for
themselves, but I do wonder where this is leading to.

Here in the UK a decent spec system (including monitor etc) can be
had for around £400 these days. I find it worrying when a customer
turns down a £100 repair bill in favour of a brand new PC. Back in
the day when a new PC cost in excess of £1000 the £100 repair would
have been the automatic choice.

So where do we go from here? Will we all end up lowering our
prices? Move into different things eventually? Would love to hear
your thoughts and opinions on this matter.

Thanks

Stu

[dipper]

Yes they can buy a PC for not much more but:
- what about software (Office, antivirus virus etc). How much extra is that? Who is going to install that?
- what about all the documents. Who's going to transfer that?
- what about email? Who is going to transfer that and set it up?
- what about contacts etc

Also the cheap computers are just that cheap. You will need extra RAM, better graphics (if they play games) etc.

So try and get the user thinking about the big picture which is that the "cheap" computer isn't that cheap when you factor in extra hardware, software and data transfer costs.

[Simmy]

I've come across exactly the same problem Stu. This is the main reason why I've setup an online shop selling computers. If they want to buy a new PC instead of repairing, I simply direct them to the shop

Also, if you've been out and spent some time diagnosing a problem, you should at least charge them for your time. After all, it's the customer who has backed out.

[swany971]

If i hear a customer is thinking about buying a new computer, rather than have their current one repaired, I'll try to offer them my services for when they bring their new baby home. Programs & setting transfer, recovery discs, and just plugging everything in are a few things I try to sell.

[gunslinger]

I'm probably guilty of undercharging. But this approach has brought me a lot of business via word-of-mouth. I honestly believed the day of the $100-$125 per hour technician fee is about to come to an end. With computers, going for $4-$500 at the local Wal-Mart nowadays. I think within the next three to five years. Most people would rather junk their old computer and buy I new one than pay the jacked up rates to get it fixed. Let's say you take your old system to your local computer shop. You paid around $1000 for this machine new about two years ago, this system is not really out of date, but it's not state-of-the-art either and would probably bring about $500 If sold. Would it make sense for you to pay a computer shop $125 per hour for say 2 1/2 hours of labor To fix this computer ? I think most people would rather just buy new Computer.
I do the same thing as swany971, in that I offer to set it all up and I offer to take the old system off their hands.

[gunslinger]

I kind of think of it this way. If I take my car to the mechanic he charges me $50 an hour to fix a $30,000 car. If the mechanic charged like the tech he would be out of work in short order because he would be charging over $1,000 an hour for labor, in ratio and proportion to the cost of the car. Remember the days of the TV repair man? How about fixing VCR's?

[dipper]

Originally Posted by gunslinger

Remember the days of the TV repair man? How about fixing VCR's?

I agree to a point but computers and tv's are 2 separate things. ie you don't have data and various other software installed on your tv that you need to reinstall.

With a tv it is very easy to buy a new one and connect it up and you're up and running in a few minutes. With computers you have to connect it, reinstall any software, copy across data, change all the setting to your preference etc. This can take hours if not days to get back to the setup you originally had.

Plus most new computers today come with Vista (especially brand names) and some people don't like Vista or sw / hw won't run on Vista.

[gunslinger]

True. The thing is people around here seem to be getting smarter about things like data backup. Funny how they don't seem to be getting any smarter when it comes to avoiding viruses and malware. I still think some people price themselves out of a job. Of course it depends on where you are.

[nonchalant]

Originally Posted by Stu

I was just wondering how you guys/gals respond when after telling the the customer how much the repair will cost they say, "Well, I might as well go out and buy a new computer seeing as they are so cheap these days"?

I respond with "well I build new PC's too". "However I custom build them to suit your needs, so your not paying for additional software that you wont use that the stores claim is free when its actually incorporated in to the price". I also tell them that often a store couldnt care less what PC they sell them and are more interested in shifting a PC thats been sitting on the shelf for 6 mths rather than selling them one that is custom designed for their use and is upgradeable, etc. I also tell them that my prices are comparable, that the PC comes with quality parts (I never use cheap quality parts unlike some stores) that the PC comes with a warranty, etc.

This sort of response (from the customer) should be seen as a sales opportunity and can be quite lucrative when you calculate the markup on parts and labour to assemble and setup on-site. In this game you need to be a good salesman as well as a repairman, and I see this trend toward new PC's rather than a repair as a positive one, in fact I suggest it myself sometimes when its clear the cost to repair may exceed the value of the PC. And I'd rather be assigned the task of assembling a new PC than spend hours on an old clunker that refuses to boot etc. So in summary, I see this trend as a positive one and a boon for PC techies.

[MrMille]

Most people can't tell the difference between quality parts or not.

If Dell are selling a desktop box for 450 euro, including 19" screen. How can you possibly build something out of 'quality' parts for less?

Are you saying your clients accept paying a premium for your services?

interesting topic!