How to get quality customers and rid the cheap ones?

Op, raise your prices. Seriously. If you are attracting the same traffic that Craigslist people attract, you are targeting the wrong people.

Me for example, I charge 40 just to look at something. If I am going onsite to work, I charge 40 to go out, 75 an hour, which is actually on the lower end. If I'm doing something like a reinstall or a cleanup and it's something they brought in, I charge 135. So they would have paid 40 up front, then 95 when they pick up. Even if half your clients flew the coop, if you are making say 60 bucks a job now, you would make the same money and half the work.

The key is people look at prices, sometimes especially middle age/older people have realized that you get what you pay for. In other words, if they think you are just another cheap tech, that's how they look at you and treat you. What you really are needing to do is to brand yourself as a professional.

Buy the better drives, offer them a year at least warranty and tell them if they have trouble, come back and you'll get it taken care of, which shows confidence in your work. However, make it clear that it covers issues with the drive, not if they download viruses etc onto their machines(extra cash for you).

In my opinion, don't even put your prices on your website. People may ask why, but if your prices aren't there, then people will call to ask prices and then you can give them your sales pitch. Getting them on the phone is half the battle.

If when you get people on the phone, if they say well X on craigslist is half your price, plant a seed of doubt about the craigslist person, and say "They may very well be able to fix your computer, but they may also make things worse. I have 2 successful stores and do a large volume of business, and that for their rates, they have to be barely making a profit. We know what it costs to do the job right."

Something to that effect. But you are basically saying the guy on craigslist may be able to fix your computer, but if they were that good, they'd have a shop, or make the customer realize the craigslist guys are most likely cutting corners, and do they want their machine fixed cheap, or do they want it fixed right? You aren't selling pricing, you are selling quality. If you get a client that is ready to walk, let them. Show you are the owner, if they gripe about the price, tell them look, I charge the same price for everyone across the board, I can't give you a price break and be fair to the other people. Raise prices, stick to your guns, and you'll start weeding out the cheap clients as they'll go to the guys on craigslist.

When you raise prices though, do it in increments. In other words, if your cleanup rate is 60, make it 70 or 75. When people are used to that, in 4 or 6 months, go to 85, and so on until you are where you want to be. But don't be the guy willing to work for peanuts, if you come across like that, you'll attract cheap clients. In my experience, my cheap clients are the biggest pain in the rear to deal with, because if one thing is off in the least, they are on the horn and want it fixed then and there. My normal clients, I fix their computer and don't hear from them for a year or so, but they are happy, and many of them when they have a problem, give me a ring.

As far as advertising I agree. In our town, there's a paper that people read almost religiously. Take out 3-4 classified ads. Even if they say the same thing. Let them end up the classifieds so it's there a few times, that way people are more likely to see it. The more they see your name, the more they think of you when they have problems.
 
I have to jump in on the hard drive thing. I feel it is imperative that any hard drive replacement is done with a brand new retail drive. I buy WDs and they have an awesome website where you can register them and have easy access to warranty information.

I make it clear in all my invoices that the hard drive is new, the warranty, the serial number, and that it is registered with the manufacturer.

The last thing I want is to be buying some cheapo drive that fails on a client after a few months. That's bad for the customer and it would look bad for me.

As a P.S. the client covers the cost of the drive anyway, right?
 
Bonus question:
My prices are around the same (some better, some worse) than other small stores in my area, and way better than the big box like UbreakIfix and GeekSquad. So I'm not charging ridiculous prices.

Set your prices to the quality of clients you want to attract. I did the game of discounts and deals years ago, now I fend off those people many years later..."what deal do you have running" and I'm like "none, I'm $169 an hour now, so yea...."

The big problem is there are a lot of craigslist people willing to install a new hard drive + win7 + office2016 for $60. I talked to a couple and they were willing to meet me anywhere at my convenience... I blew them off and never met as nothing good would come from it, but the fact that they are at least advertising that is killing me...

I built on a no compete business model, my support was rockstar, my clients knew that and that is what did me well in the beginning. I was so freaking responsive it was sick. Even with employees I taught them how to respond fast. These other companies will lack on what you can excel on, so focus on your benefits. If you charge more, it's for a reason. People will pay for happiness.
 
Good Morning All...



OK..."ITis Me" so you opened a computer repair shop and promoted below market prices in order to draw in some business....which is what most new shops do in the beginning......and it drives the existing shop crazy as you have pulled in business from them by offering below market prices.....and now you are worried about the guys on Craigslist getting your business because they are cheaper......did I get that right????

WELCOME to IT business ownership!

How that you have been their and done that with the pricing it's time you learn your next big lesson in business.....how to promote your business in order to reach out to better quality customers and build long term business relationships.......just like the rest of us have had to learn.

Your Lesson Plan should include a copy of the "Little Red Book of Sales by Jeffrey Gitomer." ( a must read for anyone in business). Join your local Chamber of commerce, and Clubs like the Lions and Rotary etc.... and start going to the meetings. Networking local business and people who support the community will help spread the word about who you are and what you're about. Networking through these organization is extremely valuable and well worth the time and membership fees in addition to doing some great things for your community.

The reality of drawing in the right customers is.....where you live and work is where you will draw in your customers. If you want bigger and better deals...you need to be available where the bigger and better deal customers are.

Next, look at how you're marketing yourself as well as where you are putting your marketing dollars. General rule is 20% of your time and revenue should be devoted to marketing. Also check out your social media options and start promoting yourself using these tools. It takes time and dollars to build up a good client base and yes there will be days when nothing walks in the door....so use this time to reach out to people and ask for there business instead of sitting their waiting form someone to walk in the door.

Being successful is all about where your perception about what business is. If you think getting new business is all about pricing....you will be constantly battling pricing and worried about what the competition is charging. You really need to decide who you are and what your business is about in order to know what to do next about marketing yourself. If you think you're business is about Break-Fix... you'll do nothing but repair broken computers and phones....and that's OK to do too......just learn about what it takes to do this well and at a price that will keep you in business.
 
Not to kick a dead horse, but definitely stop buying questionable hardware. Would you be happy if you found out your mechanic bought cheap, possibly used equipment because he saved a few dollars on it? Or your doctor used equipment he bought from a no-name generic vendor? Most normal people are happy to pay a slight premium for guaranteed quality parts. If you want to keep using Amazon, that's fine but buy from a reputable vendor selling reputable parts. You can also become a reseller on most vendor websites and save 5-10% when you order.

Your current marketing plan has you competing against Craiglist and Geek Squad. If that's your level of competency and quality, then that's the clientele you will get. Let the cheapskates nickel and dime on CL and get ripped off at GS. Build your niche as "better service at a higher price" and you'll find that you get better clients with deeper pockets. Focus on excellent service and fast-turnaround. Be honest and create a great reputation and you will eventually be one of the "go to" guys that people will recommend.

Also, business clients will always pay more and be less demanding than residential. I'd try to focus more on that side of the aisle. I agree with the ideas of joining the Chamber of Commerce or other business networking groups. And be active - go to meetings, attend breakfasts, volunteer to be a speaker, if needed. Just joining a group only gets you so far. Being active and becoming a recognized expert in your field is what will get you referrals.

Being the cheapest is how a lot of people start out but it just isn't sustainable and it's the leading cause of most of your headaches. A better client roster is the surest way to more money and more satisfaction.
 
This. Residential customers are a dying breed. I know plenty of people that have ditched their PCs for iPads. Many people only have a phone. The PC market started in business and only expanded into homes because of AOL and later the direct internet. Now I can get on the internet with my watch. So PC use is retreating back to being a work only device for the most part. There is still plenty of money there AND you have BYODs to deal with as well.

"Residential customers are a dying breed" I disagree! Residential customers are still using PC's because they can't (yet) fully replace them.
95% of my customers are "residential."
Also, trying to get business customers is not as easy as people make it out to be. Most businesses that I have approached are not interested in my services because they have a "Service Agreement" with DEll, HP or Lenovo etc, that blows me out of the pool!
I simply am not able to compete with the price on hardware, software or service charge.
 
"Residential customers are a dying breed" I disagree! Residential customers are still using PC's because they can't (yet) fully replace them.
95% of my customers are "residential."
Also, trying to get business customers is not as easy as people make it out to be. Most businesses that I have approached are not interested in my services because they have a "Service Agreement" with DEll, HP or Lenovo etc, that blows me out of the pool!
I simply am not able to compete with the price on hardware, software or service charge.
Service agreement or warranty? There is a big difference and maybe they don't know that.
 
"Residential customers are a dying breed" I disagree! Residential customers are still using PC's because they can't (yet) fully replace them.
95% of my customers are "residential."
Also, trying to get business customers is not as easy as people make it out to be. Most businesses that I have approached are not interested in my services because they have a "Service Agreement" with DEll, HP or Lenovo etc, that blows me out of the pool!
I simply am not able to compete with the price on hardware, software or service charge.

I am looking into trying a small mom 'n' pops business plan, where for a flat rate they will 'rent' nicer computers that'll fit their needs, and I'd do monthly visits for updating, scanning, ect.

'rent' nicer computers = like a fast i3 cpu, DDR4 RAM, SSD, simply so it runs FAST.
So they'd pay $100 a month and I'd loose for the first few months, but I'd be building a business customer base, that'll start paying off FAST.

Of course, if they cancel the agreement, I take back my computer and software.
 
I can only see problems with this "business model!" $100 a month! Good luck with that, lol.
The way people treat 'rentals' would send a small shop broke! I tried this some time ago and had nothing but problems. Customers outright stealing equipment and saying they were broken into, downloading malware, spilling food/liquid on laptops, dropping laptops, redistributing license keys and so on and blaming me or the equipment! Trying to get equipment back when customers refused to pay, was an (expensive) legal process and most often an exercise in futility! I even had people that rented gear then immediately moved interstate never to be heard from again!
And that old chestnut..."my brother took it and sold it to someone!"
I was always fixing a problem that the customer insisted was "the computer."
The overall cost well and truly outweighed the income from the rentals!
We have "rent" places here such as Radio Rentals, Rent The Roo etc. It seems to work ok for them, maybe because they are big enough to absorb the costs/losses.
 
Service agreement or warranty? There is a big difference and maybe they don't know that.
Usually both! And yes, they do know that.
The "service agreement" covers repairs, remote service, travel, guarantees same day (or next business day) service etc and the "warranty" covers hardware replacement, loss of business/production.
 
You can buy cheapo desktop HDDs on amazon
I buy these Toshiba P300 1TB 7,200 RPM SATA III 6Gb/s 3.5".

I have a business account with them so no tax and I usually get $3-5 off their price because I do so much volume with them. They are my #1 distributor - if you want to call them that. :)

As far as getting rid of cheap paying customers, I just tell them I will deduct the diagnostic fee and that makes them happy, I am still getting $90+ per job so its all good. Money is money and I dont turn it away.

As far as getting Windows OS, I know where they get them from - here. And I will tell you how they do it. If you have a retail license, all you do is install the OS and be disconnected from the internet. Activate using phone but send activation link to a smart phone, insert the numbers and bingo, it spits out a legit number and activates the OS. It is totally wrong to do this, but that's what they do. And thats why the other computer shop here in town was shut down by the authorities. They got busted for this. I buy a physical copy of Windows, install it and give it to the customer, granted its OEM license, but still, I am all about being legit.
 
I agree, quality over quantity. In the end, those are the ones you want. They are the ones who will give you referrals, they are the ones who have the business connections. Explain to them your rates are high because you do things legit and by the books. When windows won't activate and they get identity theft because they couldn't install any of the updates, it's ok...they will have you to fix it for top $$
 
Just thought I'd add for the hardware thing...

Get a partnership with a reseller and you can get a good rate on quality, retail parts. For HDs, I use either WD or Seagate. Over the years, I've had little to no issues with either of them. When the raptors were big I favored WD, but now, I go with whatever is a better price. I use Seagate drives in my home systems, and have never *knock on wood* had a major issue with them. For custom builds, I usually go WD Black, but that's more because of their performance.
 
With no disrespect to the OP, I'm a bit baffled by the post.

You've asked for advice - but when you've been given that advice, you've been dismissive of it.

Everyone recommended ditching those generic hard drives - but you still seemed reluctant to change them.

Cheap short term = expensive long term. They're "generic" for a reason - no brand wants to put their name to them because they're inferior - they're either made from poor quality components, refurbished faulty drives / manufacturing rejects, a drive made from two donor drives or part used. Those drives WILL fail prematurely - and when they do, your customer will expect you to put it right. Not only that, but if your negligence results in data loss, they could potentially have a legal case against you.

Charge more by offering a quality product with a 5 year warranty. A five year warranty shows confidence. The manufacturer wouldn't offer a 5 year guarantee unless they knew they offered a quality product that could last that amount of time. Giving a customer a five year warranty shows that you are also confident that you offer quality - which will also make them confident in you. It's the snowball effect.

Secondly, someone suggested raising prices - and you asked why. Well, if you want a better quality customer, you need to price out the cheapskates. You don't need to be expensive - but you don't need to be cheap either.

The same applies to most things in life - money brings quality. BMWs are expensive - they attract businessmen and people with money. Nissan Micras are cheap - they attract new, young drivers with little money.

You're better off with 6 good customers paying $100 dollars each than 12 bad customers paying $50 each. You're still making the same money - but you'll be able to provide a more 1-2-1 service, have twice the amount of time to work on a job (ensuring a better quality, less rushed job), less hassle, less overheads (6 customers = 6 phone calls and invoices instead of 12) - more money saved, less administration time = more productivity for your business.

The cheapo customers won't be loyal. next time they need a job doing, they'll just Google the cheapest repair guy again. Better customers will be loyal - they'll remember that quality hard drive that lasted 6 years, the 1-2-1 service you provided and the quicker turnaround time you provided because you've got less customers paying more, rather than more customers paying less.

More customers = more work = more time needed. Why bother when you can do half the work for the same money with better quality, loyal customers?

As someone else said, don't hike your prices up drastically overnight. step them up gradually over 6 months until you get to the rate you're happy with going forward - a rate that gets rid of the cheapos, but not too expensive to scare everyone away.
 
veryone recommended ditching those generic hard drives - but you still seemed reluctant to change them.
I have changed them, I now buy from a local wholeseller. WD Blues.

Secondly, someone suggested raising prices - and you asked why. Well, if you want a better quality customer, you need to price out the cheapskates. You don't need to be expensive - but you don't need to be cheap either.
I have raised my prices, I have also "begged" for reviews as people call it. When a customer picks up, and it was a good experience, I ask if they would be willing to leave a review for me on google or facebook to help others find me and keep me around for the next time they need any help at all.

I get to raise prices, I get great reviews, and everyone is happy!
 
Google and facebook reviews, always help, I have a handout that i created that shows step by step simple instructions on how to leave a google review, with pictures, i also attach the sheet when i am emailing out an invoice for remote support. So when a customer comes and picks up their computer, or tablet. I attached the sheet to the back of the invoice. I always state "you by no means have to do this, but if you have time it helps me out a great deal"
Be careful of them WD blues, they aren't really meant to be main OS drives, They have a high failure rate. They are great for secondary data drives but not so much as a OS drive. I only use WD Blacks and Samsung SSD 850 Evos for drives. I done a few Sandisk SSD's and they seem to be working out pretty good.
 
I read a quote one time, I believe on here that said something to the effect of "if you think I am expensive, wait til you see what an amateur costs you" Meaning they will only have problems with the crappy service and will in the end have to have you fix everything and charge them appropriately to fix it correctly.

That is one of the smartest and most true things that I've read. That $20 "fix" just cost a person $150 in the end kind of thing.
 
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