If ordered part is dead who pays?

I am quite lucky living just four miles away from a major UK supplier, so I tend to pick everything up unless I am very busy then it is next day delivery from another company.
 
I don't meant this to be rude, I'm just asking..... You don't want to pay $79 for unlimited free 2 day shipping or unlimited next day shipping for $3.99? Find me another supplier in the the US that can match Amazon's prices and that will deliver my items with 2nd day shipping for free or next day shipping for $3.99 and no membership fees and I'll buy from them.

It really depends on where you are. With me, ordering from Newegg or D&H I can usually get the item the next day anyway and usualy for free or for barely anything. So it doesn't make sense for me to subscribe to something like that. The only reason I don't get things the next day from Amazon is because they like to "pack" my order for 4 days before mailing it because I am using the free shipping. Then again, I don't use Amazon for computer parts.

My most recent order was yesterday at 1pm. Purchased all the parts for a PC from Newegg, had to pay $7 shipping for the case, everything else was free shipping, and I am going to get it today by 4pm.

I live near the PA and DE border in Maryland. Newegg normally ships from NJ, D&H ships from PA and Amazon is based in DE. This doesn't always work out for me, sometimes Newegg ships from CA and D&H from Atlanta, but even then the wait isn't too bad most of the time. D&H is amazing and buy from them whenever I can, but for this custom build it would have cost $50 or more for the same parts (I am not a large purchaser) but the shipping would have been free.
 
I think that you have to rethink how you account for your business financial transactions.

I buy a product for resale? It goes into inventory (even if it is an order for a specific job) with its price and any other associated costs (packing and shipping charged by the manufacturer). This item also has a sales price attached to it. (what I will charge the customer). This price is the list price of the item and not what he can get it for on sale at BestBuy.

I then use that item in a customers computer. It is accounted for as a sale of the part.

Although we often think of profit on a single item, we should instead be thinking of parts as being a smaller part of the big picture. That picture is overall profit. Of course using accounting software (quickbooks for example) we can analyze this picture in many ways. COGS vs. Parts Inventory expense etc.

Don't leave money on the table. Don't forget your time has value ... in dollars and cents. Profit on parts is a nice addition to the picture but our business is repair (for most of us).

To the OP. Cost of replacement of a defective part is COMPLETELY on the business and is accounted for under other business expenses such as pens and pencils and utilities. The customer need never know.
 
And they're paying for the convenience. I got a call yesterday at 5pm from a man whose business computer went 'pop'. He said about the smell as well. I got there at 7pm and by 7.45 he was up and running. Psu cost me £30 and I sold it for £40 + 1 hour call out. He was over the moon at the service.
 
If you order a part for a customer and the part happens to be bad, then do you bill the customer for the extra shipping that you have to pay to ship it back?

I only charge customers the exact cost of parts, billed as "reimbursement". Maybe I should consider tacking on 5%.

I agree with the poster who said you must make enough profit to be able to absorb the mistakes.......

If you bought it on ebay maybe they will swap it free including shipping to get a great reply to their service. You should get a trade account with one or more real import/export wholesalers.

I make at least 100% markup on all products so if I have to pay an extra $15 shipping on a bad power supply or case so be it, its on me.

NO way can you bill it to your client if you want to keep them. Actually you need to kiss their arst to get them to understand why you cannot deliver their computer as promised.

As soon as possible you should begin to build your own inventory so that you have most parts that you might need to fix most computers....spare cases, power supplies atx and matx, mobos, ram, hard drives and formats sata, ide, 2.5" or 3.5", flopies, CDRW's, DVDrw's, keyboards, mouse..... The only exception is very specific items such as on some laptops or very strange sized workstations.

I would rather go pay full retail price for that part, out of my own pocket for a part from CompUSA or Bestbuy than not deliver on a promise to one of my clients.

Yes your client might understand but wouldn't it be better if you never had to ask? Just do what you said you would do.

when I worked from my garage, I built a box in my van which carried 2 of each AMD/Intel Processors (most commonly bought at the time), 2 AMD and 2 Intel Mobos, four cases and appropriate other parts to build on site four computers - two amd and two intel.

If you have all the parts to completely build and setup four computers 2 intel/2 amd then you can easily draw from that inventory to handle nearly any repair and then order weekly to replemish your van/inventory box. In todays prices anyone can afford to carry about $1200 of parts and a couple of MS operating systems. You will save on shipping and your turn around will be much faster and your call backs will be higher if you do this. Your selling prices can include more profit and still be very reasonable as you are passing on better prices. Spend time shopping for good vendors, don't hang up on those annoying salesmen calling you....they might be your next best friend.

The only thing I would add to above about inventory for a mobile tech is maybe I would buy power supplies by the case lots of 10 ea. I get 10 $9.88 power supplies which I sell for $89. I also buy some $13 power supplies with sata and Pci-e and sell them for 129. Then I get a box of 17 power supplies I sell for $179 ea. Power supplies and cables are areas where you can make a lot m ore money than just 100% markup. All accessories should be marked up factors of 8X or 10x.

Warning- using a family window van- get tint windows or cover your inventory box so that you dont' invite break ins.

Once I got my first store I increased my inventory to be able to build a small network of 5 amd computers and 5 more intel computers.

Once you been doing this awhile you will quickly figure out which parts to inventory beyond building computers...some cables, converters and such.

Eventhough, I had a wholesaler in my city, he was always 20% higher than what I could get it for from the 'City of Industry' including shipping costs. So I would avoid buying local.
 
Who do you all order from? TigerDirect? ZipZoomFly? NewEgg?


Was this on a repair or a new computer that you built and sold?
For repairs my warranty on parts is the same as the part vendor's warranty. My labor however is covered for 90 days.

anyone can buy from these guys but they are a little risky in that 1-2% are bogus

www.pricewatch.com only when searching for a new vendor slightly risky

You will need a salestax permit number to buy from the following

www.evertek.com business only- my primary vendor
www.maxgroup.com business only - my primary vendor

youget better prices from these following with a business acct and with a salestax permit.
www.newegg.com business acct
www.tigerdirect.com business acct
 
word of warning for newegg business.

Compare their regular site and the business one before purchase. When I was using it, I would find somewhat often it would be cheaper to buy from the regular site due to a lower cost or Free Shipping that the business site didn't have.
 
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