Can I make money by selling PC's I build?

Aodhan5000

Hi all,
I just wanted to know,is it possible to make money by selling PC's online or is it a risky business? Personally I do think it's possible t make money from it and the profit margins wouldn't be tiny for me as my dad is a director of a company so I can buy the parts tax free. The main thing I need to know is, what could happen if something messed up in the computer. Could I get sued or is there a way around that? What would I do with stuff like the warrenty? That kind of thing.

ED E

If you're a minor, stop there. Its too much to take on.

If you purchase parts as a company you will have to offer warranty/repairs up to 2-6yrs depending on legal interpretation. Also remember profits would be taxed.

Users on here do it but its mainly niche stuff, mainstream builds you cannot compete with OEMs and system integrators.

Aodhan5000

So would it be worth it and is there any downside to offering warrantys?

Aodhan5000

Could that be ilegal somehow or is it ok to do?

Iveee

Aodhan5000 wrote: »

Could that be ilegal somehow or is it ok to do?

Some bed-time reading for you

http://www.irishstatutebook.ie/

http://www.citizensinformation.ie/en/money_and_tax/tax/duties_and_vat/value_added_tax.html

satguy

It can be hard to make money just building PC's and selling them. You need to carry extra stock just in case some buyer comes back with a broken PC. Maybe you swap out a Graphics Card and send him back on his way, maybe he wants his €900 back.

You need to figure out where you might sell these PC's, if you go to somewhere like Adverts, you really need to Keep your Feedback Green < like that.

Some system builders on Adverts have green Feedback into the hundreds and work hard to stay green.

Then there are guys that just do it for a hobby Like Sam, while he is not always looking to turn a profit on every PC he might build, you would still have to compete with these hobby builders.

Aodhan5000

Is being a minor a big disadvantage?

Aodhan5000

Also, how long does a warranty have to last?

ED E

Aodhan5000 wrote: »

Also, how long does a warranty have to last?

"Reasonable lifespan" so probably 6yrs for desktops that often hit 10yrs (excluding HDD).

I tried it a few years ago but the profit margins are so narrow its not worth it. PC World will have a sale of stock and be selling PCs for 300/400 quid and eat into your customer base. One dodgy graphics card could wipe out your profit for a week when you factor in time, replacement costs etc. Add in people who now think you are their personal tech support person for free, just because they bought the PC from you.

X200

Aodhan5000 wrote: »

Hi all,
I just wanted to know,is it possible to make money by selling PC's online or is it a risky business? Personally I do think it's possible t make money from it and the profit margins wouldn't be tiny for me as my dad is a director of a company so I can buy the parts tax free. The main thing I need to know is, what could happen if something messed up in the computer. Could I get sued or is there a way around that? What would I do with stuff like the warrenty? That kind of thing.

If you claim VAT on purchases through your father's company for your own use this is effectively small scale tax fraud. If his company was ever audited by Revenue he'd have to pay this all back plus interest plus surcharges. Another issue is technically he'd be gifting you the VAT element you'd be saving so depending on your circumstances there could be capital acquisitions tax implications.

You can set up your own company to do this but you'd have to have annual sales of at least €75k per year to register for VAT, so you can claim it on your purchases, but at that point you'd also have to charge 23% VAT on your sales.

So yeah don't do that.

TitianGerm

X200 wrote: »

If you claim VAT on purchases through your father's company for your own use this is effectively small scale tax fraud. If his company was ever audited by Revenue he'd have to pay this all back plus interest plus surcharges. Another issue is technically he'd be gifting you the VAT element you'd be saving so depending on your circumstances there could be capital acquisitions tax implications.

You can set up your own company to do this but you'd have to have annual sales of at least €75k per year to register for VAT, so you can claim it on your purchases, but at that point you'd also have to charge 23% VAT on your sales.

So yeah don't do that.

You can register for Vat no mater what your turnover. You have to register if you exceed €75k for goods.

X200

emmetkenny wrote: »

You can register for Vat no mater what your turnover. You have to register if you exceed €75k for goods.

Why would you do that?

TitianGerm

X200 wrote: »

Why would you do that?

Loads of reasons. You could be purchasing items in Ireland, manufacturing a product and exporting. You could be buying machinery and selling zero rated goods. You could be a start up buying vehicles/tools etc and only have small sales.

K.O.Kiki

X200 wrote: »

Why would you do that?

To avoid court/jail, probably.

donegal.

emmetkenny wrote: »

Loads of reasons. You could be purchasing items in Ireland, manufacturing a product and exporting. You could be buying machinery and selling zero rated goods. You could be a start up buying vehicles/tools etc and only have small sales.

but this kids not talking of doing any of this.

TitianGerm

donegal. wrote: »

but this kids not talking of doing any of this.

I never said he was. I was responding to the other poster.

Aodhan5000

So is it a bad idea to get involved in this kinda thing?

Aodhan5000

Or would it be better if I just sold some PC's on adverts?

Imallrightjack

Aodhan5000 wrote: »

So is it a bad idea to get involved in this kinda thing?

If your able I think you would make more money fixing pcs and laptops.if you can do it right and don't rip people off.
Theres a lot of cowboys in that game so it would be nice to meet a genuine guy.ie you

Aodhan5000

The only problem with that is that I haven't tried fixing a lot of pc's. I fixed mine before but that's it.

Graham

Aodhan5000 wrote: »

Or would it be better if I just sold some PC's on adverts?

Good idea, you wouldn't lose as much money until you realised it was a non-runner.

1) how are you going to assemble PCs competitively compared to manufacturers who buy components in hundreds of thousands.
2) why would people buy off you rather than a known brand
3) how will you offer warranty repairs/replacements

Sorry to be blunt but nothing you've said so for would suggest you have any chance of doing this with any sort of profit.

Lu Tze

Get a job in tesco. You will make more money.

Buying equipment through your dads company to avoid vat would in essence be fraudulent.

Have a look at what PCs are actually selling for, but checking adverts ebay etc. for sold listings, not asking price, and price up the parts (including VAT and delivery) and see how much (if any) profit you would make, before you even factor in your own time.

I used to work for a company that did this very thing, but closed down in 2012.

The big issues we had were that the likes of Komplett, Dabs or HWVS were selling components cheaper than the prices the wholesalers were charging us! So it was very difficult to stay competitive. Normal home users don't really buy PCs anymore either, so you'd be focussing on a market that are probably able to build the PCs themselves anyway.

You have to be very careful selecting components too, to be sure that there are no nasty compatibility issues.

Aodhan5000

My solution to question 1 is customize the computer to the person's needs and/or make my PC's different such as redesigning cases, spray painting certain parts of components and offering PC's at lower prices then manufacturors.
My answer to question 2 is also the above.
My answer to question 3 is, what would be likely to break? I will be selling PC's with reliable components so the chances of something breaking are tiny.

Graham

Karsini wrote: »

it was very difficult to stay competitive.

+1

I'd say starting competitive would be a big enough challenge never mind staying competitive.

Graham

Graham wrote: »

+1

I'd say starting competitive would be a big enough challenge never mind staying competitive.

I should have probably said "difficult to be competitive."

Aodhan5000

Getting a job in places like Tesco's isn't an option as they won't take in kids my age. They rarely take in leaving certs.

Graham

Aodhan5000 wrote: »

My solution to question 1 is customize the computer to the person's needs and/or make my PC's different such as redesigning cases, spray painting certain parts of components and offering PC's at lower prices then manufacturors.
My answer to question 2 is also the above.
My answer to question 3 is, what would be likely to break? I will be selling PC's with reliable components so the chances of something breaking are tiny.

1) Most people aren't interested in custom jobs, those that are tend to do their homework around vendors.
2) see 1
3) Chances of something breaking in the period over which you'd be obligated to fix are far from tiny when you've a few units out there.

Aodhan5000

How many is a "few" units?

Imallrightjack

Aodhan5000 wrote: »

The only problem with that is that I haven't tried fixing a lot of pc's. I fixed mine before but that's it.

Well if you know how to build one the names of all the parts and where they go and what they do.after that its software issues that's where google comes in.most desktop pc s won't have anything major wrong and if they do its usually a common problem.totally fixable with a bit of research.
Anyway just an idea.good luck with it all.