In order to maximize profits with your computer business, you need to make providing services to businesses, rather than consumers a priority. Providing services to businesses produces a greater profit than providing service to computer business consumers because customers focused on retail only need service once or twice a year, and not on a long-term basis. Businesses provide unique opportunities for any computer business.
If your goal is $200,000 annually in pure services revenue for your computer business, you have two options: business to consumer service (B2C) and business customers (B2B).
With B2C services, you might find a person spending $250 annually in services from your computer business. That money will go towards hard drive upgrades, repairs, installation of Wi-Fi or other items. You will need to serve a great number of customers in this category to reach $200,000 – 800 customers. If you are selling only products and don’t deal with a lot of sale post-support, this volume of customers might seem initially to be possible even with a small computer business staff. However, these types of customers will need a lot of guidance from you, and you will spend a lot of money advertising, promoting and marketing your services. Similarly, labor costs will probably be very high if you have to hire a lot of technicians and system engineers in order to meet the demands of 800 plus customers.
The second choice, B2B customers will spend a minimum of $1,000 monthly in order to keep their systems up and running. That means you are making $12,000 every year per customer and setting up long-term clients for your computer business. You will only need 16-17 clients of this type to meet your goals, which is much more manageable than alternatives. These customers will not be looking for emergency service or one-shot deals, rather on-going support that will help them better conduct business. You will also find you have a lot more non-billable time. B2B customers are definitely the ideal clients for anyone in the computer business.
Added By: Computer Consulting 101