And therein lies the rub. I think it's prudent for all of us who are running computer repair businesses to look seriously at our exit strategy. There are many macro forces that are coming together in the next 5-10 years that will destroy many of our businesses if we are not planning now for them.
1. The younger, more technically adept generation coming into the workforce - less overhead and can undercut our prices.
2. The move toward Auto/Self repair - a la
http://www.youtube.com/watch?v=198okcxeF74 will marginalize your value and undercut your prices.
3. The move to cloud/saas will also marginalize your value as apps, services move off the pc, off the premise and into the browser. Microsoft is moving hard in this direction with hosted exchange/sharepoint. Expect hosted Word, Excel, PPT as part of the next release.
4. The move to more and more disposable computing. Why spend $100 to fix a computer when you can buy a new one for $100 (not today but in 5-10 years for sure).
5. The rise of the Mac - as the Mac becomes more mainstream, so much of the work that we are called on for today becomes moot. Virus cleanup? Spyware removal? Application install? It's literally drag and drop. OS reinstall or upgrade? No.
6. The more technically adept generation in the workforce as potential customers will have less and less need for a technical "specialist" since they've been tweaking with computers their whole lives to get better performance in WOW or BioShock, etc.
Maybe it's longer than 5-10 years, but I'd not give it too much more than that. The generation who thinks computers are somehow magic is moving out of the workforce and into retirement. As long as email works for them or they can iChat with their grandkids, they are fine. They have more disposable income and are using Macs or they have little disposable income and don't want to spend it on you.
The thing we have to focus on to remain viable as businesses is to move up the value chain - away from break/fix, away from install and maintenance and into the more consultative realm of technology planning, strategic use, etc. If you are not operating as your (business) clients CIO and directing the course of technology to either impact the top line or the bottom line, you will be a commodity and the key differentiator of a commodity is price.
In the home market, you should be switching your focus to home automation, home theatre, security integration.
Overall, I'm planning to sell my business out in 5 years and focus on another industry as this one will be totally commoditized shortly after that time frame.
Just a couple more of my $.02