$20 flat rate for all repairs and including Virus Removals

For a $20 flat rate they definitely have to rush repairs. I'm fussy about my work. Not saying they're necessarily sloppy, but you can't throw in any "extras" at that rate. I do all the Windows updates to make sure that if there's a problem, it happens to me, not the customer. I do the manufacturer's updates if any, especially BIOS. I check for malware. Yeah, if a computer came in with a virus I could likely identify that virus and kill it within 5 minutes. Hell, back in the day when most viruses exhibited similar behavior I wrote a program which could find and kill almost any virus out at the time in under 30 seconds. Job done, pay me. I could make money at that. BUT, I wouldn't be able to check for OTHER issues as well. I wouldn't be able to track down HOW or WHEN they got the virus. I wouldn't be able to plug security holes and remove browser hijacks. One issue, one fix, one charge.

I would bet that the deal, while technically what is claimed, is not exactly "honest". Not illegally dishonest or anything, just that this deal gets you in the door and, yes, if it's what you really want, you can get it. BUT, wouldn't you be happier with this better computer? And while you're here, look at all the cool stuff you could buy!

And why do I think that? Because I know customers. They want it all for nothing. There is absolutely no way that they don't have customers who say, "Bad hard drive, you say? Here's a hard drive and here's $20. Thank you!" And they DEFINITELY have customers who say, "Here's a pile of junk and here's $20. Make something. I'll pick it up tomorrow. Than you!" There are some customers who will try to take advantage of anything and everything. I just give away used parts because my store is a drop off point for recycling. I get something cool now and then, one customer gets to get rid of junk they don't want and another customer gets a free part. I get stuff out of being in the middle of two happy customers, a business person's dream! But now I only give away parts IF you pay me to install them. And my answering machine no longer has my cell phone number on it. Those two policies changed the day a customer called my cell phone on a Sunday wanting me to open my store for him to see if I had some free memory to give him. So they MUST have some policy which says that this rate doesn't apply in certain circumstances. I would bet a large percentage of customers don't get out the door having spent only $20. Some absolutely do, obviously. I'm not saying it's dishonest in the sense that they are lying, just in the sense that the purpose for advertised price is a draw, not for the service they're advertising, but for some upsell or there are some "conditions" on getting that price, if nothing else then just to prevent abuse of the service.
 
In one of my service areas the average virus removal and computer repair service is $50. I only work with business clients in that area, and now they're starting to get just as cheap as the residential customers. They all buy the used $99 computers and use home routers in their business. Then they wonder why they have network issues. I'm not even going to renew my business license in that area come October.
 
If something like this were to show up in my area I would send a few people in to get some things repaired and report back to me. Yeah, it seems a little sleazy, but I would be out of business in a month if I did any repair for $20, so they obviously have some business model which is different from mine. I would feel a need to know what, exactly, their business model is just so that I could stay competitive. Then when customers come in asking me to price match I could intelligently explain the difference without speculating or bashing the competition. I would also be able to tell them all the ways in which my service was superior. Because obviously it is. There's no way they do the same amount of work as me for $20.
 
Maybe instead of meaning to say "$20 repair" it's actually "$20 per repair".

E.G. - "I removed 150 viruses from the computer and did three Windows updates. So, that'll be 153 x $20...... so.....$3,060 in total"
 
There are plenty of "$50" virus removals around here. I've had them come onto my bench.
They scan them with Malwarebytes free and give it back to the client.

I charge considerably more than this but I do the job the way I would want it done if it was my computer.
When the client gets their system back they may not know or understand exactly what I've done - but I know the system is as secure and as clean as physically possible bar doing an N & P.
 
So you install Linux on it, then?
Are you trying to goad me? :p
There was one shop in town that would do it for $65. Several of his customers then paid me $90 to do it right. He's out of business now, but he lasted in town for 20+ years. He was the first computer guy in town and it was more of a hobby for him. He was known among those not in the know for "cheap" and among those in the know for "shoddy". He did pirated software, old DOS systems sold as "Internet ready" in the heyday of XP even, and some serious cobbling. My nephew worked for a competing computer shop back in the day and found one computer with a tin can cut into a crown shape for a CPU heat sink. In another he found cardboard and carpet tape to make everything fit.
 
What I can say is that they are going something right if they keep expanding.


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What I can say is that they are going something right if they keep expanding.


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Sounds like you should start charging $20 per repair. Crazy it is working for him but my guess is it is a introduction sale then they close them for more.
 
What I can say is that they are going something right if they keep expanding.

Not necessarily. They could just be doubling down on a stupid business model. They could have a naive investor who has been convinced that they just need to expand to be viable, etc.

Or they have a very limited scope of what a repair is. Like replacing hard drive is $20, installing windows is $20, installing software is $20, etc.

Maybe it's worth just going in there to see what's up. It should give you an idea on how to deal with them (let them starve themselves out, report them for illegal practices, etc).
 
report them for illegal practices
Elaborate on the illegal practices...

As far as I know, there is nothing wrong nor illegal to have a valid business and charge what ever you want, be it $1 or $100. To me, reading over the scope of replies, it seems to me that this company is following the Spirit Airlines model of bare fare. Sell for as little as possible but tack on options.

I think a few hit the nail on the head at a per service. So $20 to remove virus', $20 for a "tune-up", and then $20 for each additional service in which case I am sure they will come up with some. Diagnostics? $20. Replace hard drive, $20 + the cost of hard drive (say $80) and another $20 to install Windows - provided they have a legit copy/COA. So right there its $140 with a $40 investment on a new HDD.
 
They now have 4 shops open in the area.
What I can say is that they are going something right if they keep expanding.
Not necessarily. I can open 4 shops right now. Does that mean any of them are profitable? Nope.
Some people go for the multi-store or franchise model day one without ever proving the viability of one location. You see it occasionally on "fix my business" type shows like "The Profit".

They either borrow or get a large windfall, go nuts with opening a bunch of stores, cant get even one to work right and eventually run out of money and fail.
I cant see how hes making a profit at $20 per repair.
 
I cant see how hes making a profit at $20 per repair.
I can see were they can make a profit at $20 per repair. Lets breakdown 1 hypothetical job.

Client comes in with a virus' they say. OK, no problem.
Code:
Diagnostics: $20
Remediation: $20
Tune-up?:    $20
-----------------
Total        $60

So an hour later would profit. And thats not including "anything" else they "may" find. Multiply that by any number per hour and they would be banking. However, the hitch is sustainability.
 
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