Should You Engage in Consulting Contracts with National Service Organizations?
The simple answer is, “NO.”
You will end up spending a great deal of money if you get involved in consulting contracts with national service organizations and a lot of time getting certified and learning necessary platforms and technologies.
The truth is, hardware repair is a commodity and a very low-margin business. And as hardware and software pieces are becoming more “disposable,” replaceable and repairable, it is getting to be more of a commodity and not a unique service. That is just one of the big reasons consulting contracts with national service organizations are a bad idea.
Replaceable Computers
An example is a $600 consumer-grade PC. Who will spend money to repair a $600 PC not under warranty? Or, similarly, who will spend money to repair an old $400 laser printer? Small businesses will probably not be willing to spend the money you are worth or the money for consulting contracts on these types of services.
There Are Low Labor Allowances for National Service Organizations Looking for Consulting Contracts
Because many national service organizations will be dealing with warranty repairs of pretty inexpensive hardware, they will probably not give up much money for the repair of a $1200 notebook. Big hardware vendors are also fairly cash strapped and on the verge of going out of business (unless they are Dell, HP or IBM).
Profit Margins and Repairs Under Consulting Contracts
What can you expect to make on a repair? The answer is probably not more than about $200 and possibly closer to $50. You’d do better finding small businesses in your area that need high-level professional services on an on-going basis.
Consulting Contracts with National Service Organizations Are Not Money Makers
When you act as a subcontractor for a national service provider, you can never run a profitable business. You can’t be in eight different offices each day or do what you want and just be in one or two rewarding places per day. You want to be able to bill out at $100 or $150 per hour and not just making $65 total to replace an entire system board, even if it takes hours.
Repairing and troubleshooting and providing consulting contracts for national service organizations is not rewarding work and will reduce you to a commodity. You can’t confuse this type of repair work with high-end consulting contracts.
Added By: Computer Consulting 101 Professional Kit