2 Repair Businesses - 1 Workshop

[PCRB]

I am newly self employed running a computer repair service, based inside another computer repair service workshop. Allthough this situation is not idea it has kind of worked well over the past few months. I am now getting into a situation where I am concerned that I am losing customers to the other company running in the same workshop, and have tried many things ensure the customers go to the right company. ie, I advertise alot with promotion where customers bring in vouchers etc.

But what about reccomendation etc.

Unfortunately I have been put into this situation as I was made redundant, had no funds to get my own premises and unable to work from home - but had interest in my services from where I previously worked.

SET UP: One Shop Front, One Counter, 2 Companies

Any ideas on how to ensure my customers (new/old) continue to use my services????. Instead of the other.

Any feedback is appreciated

 

[Elemdee]

Ian, I'm confused. You were let go from your previous repair shop, but then they allowed you space to come back as your own 'one man shop' within their shop, is that right?

 

[Xander]

Isn't this a bit like sharing a brothel and wondering if someone else is getting screwed?

This sounds too far fetched to even be true. So call me sceptical.
If it is true, sharing a workbench with a competitor is one of the worst business decisions I have ever heard of. Congratulations.

"Any ideas on how to ensure my customers (new/old) continue to use my services????."

Be better than the other guy.

 

[PCRB]

Update

Update

1. was made redundant from a computer company due to closing down.
2. Had no funds to start own business, unable to work from home.
3, Had a chat with my local repair shop, who offered me use of work space for free.

I decided to take his offer on a temp basis - which did work well to start off with. I was also used as a subcontractor doing work for his business for 50% of the labour charge.

I am trying to build a business, and working hard to raise funds to get my own workshop. But in the meantime this is what I have, which is causing me stress and concern. This is not the best business decision I have made - but one which has help me pay the bills & live.

My main issue in finding the best way for customers to reconise the 2 different companies and booking their system in with the correct one.

Thank You

 

[iptech]

From what I see you have two choices:

1. Renegotiate your terms with the guy you now work for. Forget about running your own business from within his workshop - it'll never work unless the services you provide are complimentary to theirs, not in direct competition;

2. Do what ever you need to to make the break and step out fully on your own. Draw up a business plan and have a word with you local small business enterprise agencies to see if they can help you with finding low-cost premises to get your business started.

 

[Jacob Anthony]

This sounds like a chair rental system I've seen in my local barbers. The barber rents a chair and any customer he works on remains as his customer. When the customer returns they are asked whether they want the same person again.

Another thing you could do is place a label on the back of all computers you service with a message like:

Serviced by xyz computer repairs.
For service or technical advice call xxx - xxxx

Also, with the customer's permission, call them back every few months to arrange a backup/checkup.

You'll soon find it's alot cheaper to retain customers than to find new ones.

Hope this helps


Jacob

 

[ljtechservices]

This sounds like a chair rental system I've seen in my local barbers. The barber rents a chair and any customer he works on remains as his customer. When the customer returns they are asked whether they want the same person again.

I've often thought of this concept and wondered if it would work. I know quite a few good techs don't have a storefront.

having a place locally where someone could drop off would be a boon to them.
we could even negotiate working on each other's stuff with certain guidelines or restrictions.

Ever since I saw one of those shared offices i've tried to thing how this would work for computer techs.

 

[Elemdee]

From what I see you have two choices:

1. Renegotiate your terms with the guy you now work for. Forget about running your own business from within his workshop - it'll never work unless the services you provide are complimentary to theirs, not in direct competition;

2. Do what ever you need to to make the break and step out fully on your own. Draw up a business plan and have a word with you local small business enterprise agencies to see if they can help you with finding low-cost premises to get your business started.

I agree with this. Not sure what obstacles you have from not being able to work from home and just do call outs but I'd try that if you could work it out in the meantime.

 

[ATTech]

Brilliant on the other person's part if you think about it:

How about we let this guy use some extra space, meaning all his clients will start coming into our location? They'll probably assume he and us are the same entity and won't bother to call him first, and just bring it into us.

 

[NeutronTech]

I'm not sure I'd even try to promote a business within that business. Although, like the barber arrangement, car dealerships do this too in the service department. Car comes in, job is given to a tech and he makes money on it. The company takes a commission for providing the job to the tech.

So, if you had a shop with some techs, each tech could do a computer when it came in and make that money for themselves. The company advertises their repair service and whatnot, but provides no tech services themselves. The company simply has some techs who get paid on each job they do. The company takes a cut to cover the advertising and other expenses. Of course, if business is slow it will suck because when a job comes in you will have 5 techs wanting to do it, but only one will get it.

If you are trying to compete with this other company......... well that is just crazy.

 

[Cambridge PC Support]

Brilliant on the other person's part if you think about it:

How about we let this guy use some extra space, meaning all his clients will start coming into our location? They'll probably assume he and us are the same entity and won't bother to call him first, and just bring it into us.

yup, I bet he's rubbing his hands - and maybe thinking of expanding the premises to "accomodate" other tech businesses

 

[14049752]

I really have to wonder if all options were considered before doing something like this. I waited about an hour to respond, just to consider how this would work and I can't for the life of me think of any positive aspect of it. Why not just see if the other guy will hire you and buy your business...it sounds like he basically already benefits from you anyway and you can't possibly be getting any great benefit from using his shop.

 

[JD1248]

It's not an impossible situation to make work, but I think you need to change the way you do business. If you did mostly onsite work or pick/del service, it would be a rare occasion that a customer would even be aware of your situation. I run my business out of my home and don't feel comfortable having customers bring there computers to me. I will either pick it up and deliver, or I will meet them somewhere. Gas stations, supermarket parking lot etc. People don't think much of it. It saves them time, and can save me some angst. All of my customers are referrals, so people feel they can trust me, they hardly ever even ask for a receipt.
Use this situation to your advantage, you should be able to have lower rates due to less overhead, when you are slow you can still do work for him. This allows you to still be learning, perhaps he might have some more efficient methods etc. Then when the time is right for you, you can transition to a new locale, and your customers will be none the wiser. Good luck.

 

[Itech]

Focus more on call outs, pick up customers systems from there home and take them to the shop. That way the customer will never know about the other company.

Maybe offer free pickup and delivery service?

 

[154Tech]

If you only use the shop to bring wrk to, it might work out for a while. But if you ever want to have any level of drop off business I can't see where this would possibly work long term.

Someone mentioned the barber shop model but I don't think that fits here. The barber shop is a widget situation. A handful of people all cranking out the same $15 widget. You keep $10 and give the shop owner $5 for the chair rental for every haircut. But we're dealing with a much wider spectrum of products. What if 2 customers come in at the same time? In a barber shop it makes no difference. Each customer is worth $15. But in a Tech shop, one customer may be a $50 invoice while the other is $200. And if they man the desk and always route the more expensive job to themselves, you'll never get anywhere. And you'll be giving them a cut of whatever business they do let you have.

As was said, it can work if it's a complementary situation, but not if it's competitive.

My recommendation would be to find some other type of shop that has some spare space and rent from them. If the guy still wants to sub out some of his overflow to you that's great, but waiting on his leftovers and trying to make a living off of them seems to be too great of a risk.