How Would a Small Business Gain Trust When Asking for Small Deposit?

LOMGJL on 04/07/2020 - 12:20
Last edited 04/07/2020 - 12:50 by 1 other user

I was starting to provide services as computer technician, with my level of tech knowledge and diagnostic skill I thought things should go well.

Every time when I hand out customised quotation(like a list of PC build) to customers they seems to be very satisfied, however it seems like they going to back-off when I asking for a small deposit like $50.

Obviously with a $1000~$2500 computer build, a small deposit is quite necessary, in case if customer end up not purchasing the PC and I have to risk to keeping all those parts in my own hand, especially consider the parts by then would be out of packaging and assembled.

OzBargain is one of the best community I've visited, and I would love to hear opinion from our OzBargainers.

On the side note my tech skill should be above all computer technicians I've met.

Proof: I can tell how many phase of VRM(voltage regulation module) a motherboard is using(with or without doubler), what and how many High/low side FET, I know which motherboard are 4 layer PCB and which are 6 layer and also if customer need to go with 6 layer or not, I know exactly which RAM are reliable for Intel/AMD platform and which RAM could overclock really high(RevE RevJ CJR DJR BDIE NanyaB) I know which PSU are single rail and which's not, I have tested and known which PC case have decent airflow and good construction. I know which HDD are SMR and which are CMR, I know which SSD are DRAM-less and which aren't. I know which CPU cooler does a CPU require at least, I know how to do soft/hard tube watercooling…. and more)

Education & Work

Comments

  • 87percent on 04/07/2020 - 12:23
    +2

    Couldn’t you get people to pay for the items themselves, and you just build it? So give them the list (include links to purchase), they pay and then you build it?

    • OMGJL on 04/07/2020 - 12:40
      +4

      I might be wrong, but I think my value comes from my knowledge…. with a bunch of compatible parts every technician can build them(with good or bad cable management), but very few of the technician could come up with a good list of parts, that's not over-spending on something, and short on something else, and doesn't use risky parts(like Ryzen with Dual Rank 4Gb IC RAM).

      when I given out quotations, I tend to hide the name of the product, and use something like "B450 motherboard with 4 phase VRM with 2high/2low side FET" instead, so they don't just went out and build one themselves, with a good list of parts I spend lots of effort to research and put together.

      • OMGJL on 04/07/2020 - 12:42
        +1

        especially consider I would only end up earning about $100 labour cost thereabout per order.

        • Seraphin7 on 04/07/2020 - 13:18
          +4

          So you need to consider the business that you're actually in. If you're a PC builder, then that's what you are. If you're a parts retailer, then that's what you are.

          It's subtle, but you need to think about it from the perspective of the customer. In the first instance, they want to pay for a finished product. In the second, they're paying for parts.

          Perhaps you need to consider how you can tilt the business to get people to pay for the parts and then "throw in" the assembly?

      • Okayy on 04/07/2020 - 12:47

        Most builds you buy off market shows you actual products even thou we can still buy them separately and build.

        • OMGJL on 04/07/2020 - 13:02

          yet most pre-build on the market have at least a few part sub-optimal.

          Also like alienware don't show you exactly what's inside.

      • AustriaBargain on 04/07/2020 - 13:10

        Give them a list for approval/payment and ask them to pay that upfront. Then when PC is built they pay you your fee for building it/post purchase support. Or if they refuse to pay, you refund them minus your fee for your time for services already rendered plus a restocking fee.

        • OMGJL on 04/07/2020 - 13:14
          +1

          issue is ultimately they don't even trust me enough to pay the deposit, they obviously won't trust me enough for full payment.

          As legitimate as I know myself are….. they don't have such trust.

          but I can't afford to have a shop front yet.

      • coin saver on 04/07/2020 - 16:47

        "I might be wrong, but I think my value comes from my knowledge" Do you have certificates,degrees or such to prove that?

        • OMGJL on 05/07/2020 - 00:36
          +1

          well I have a bachelor of IT and I have master of IT ongoing…. not that building customized computer and diagnostic require my degree anyway…

          Also doesn't those point in my post proof my point anyway?

          • peteru on 07/07/2020 - 16:18
            +1

            @OMGJL: Having a degree in mechanical engineering does not make someone a good car mechanic. Same way IT degrees do not make good PC builders.

            If OP is good at it, it's because he has the interest and aptitude, not because they put up with people like me for years on end to earn their degree. ;-)

            The challenge here is to somehow turn this interest and competence into a viable business. You'll need to take some risks. I suggest that you narrow down your target audience and understand what makes them tick, then give them what they want. Perhaps you will choose to cater to gamers that want top tier rig that looks cool and overclocks well, but they don't have the time or confidence to put it together themselves. Figure out what they value, then give them that. Perhaps you will want to build for video editors who require maximum reliability and high I/O throughput. Again, target them specifically, find out what they value, then give them that. Hang around various forums or other social networks and interact with the community and your potential customers.

            Keep pictures of finished builds and perhaps publish build timelapse videos to show to prospective customers what you can do for them and show off your expertise.

  • afoveht on 04/07/2020 - 12:52
    +4

    Charge the full amount up front. Guarantee delivery within a time - a couple of days seems fair to me. You might need to hold some stock yourself to meet those guarantees. Have a system or two ready to go immediately, or with minimal adjustment, so you can do an immediate sale if the customer can't wait.

    • OMGJL on 04/07/2020 - 13:05

      I have good relationship with my local retailer, as long as nothing went wrong (like getting Dead-On-Arrival parts), I could even do 2nd day delivery or 3rd day delivery.

      Also the ultimate issue is that they don't even like to pay small deposit, now you asking for full payment? I doubt they like that at all…

  • Ghost47 on 04/07/2020 - 13:18
    +1

    What do you expect a $50 deposit to do, if people are buying rigs for $1000+? Is it a deposit to cover you spending your time fulfilling the order?

    If you have a good relationship with your retailer, they should be understanding if the customer backs out (so maybe you can return parts if they are unopened or just on-sell them). Can you possibly not ask for a deposit starting out, and then after you start getting reviews and build it up, introduce it? You forgo covering your own ass whilst the business is getting set up, but you're a beggar not a chooser right now.

    • OMGJL on 04/07/2020 - 13:36

      fair point.

      I could do that… Hopefully I don't have too much bad customers quit on me.

      • Ghost47 on 04/07/2020 - 16:16

        It is risky to hope that a customer won't back out from a transaction, maybe even riskier right now (e.g. person loses job, doesn't want computer anymore). Good luck with that, maybe just confirm they are definitely not going to back out just because you're getting started, it's always helpful to be transparent to customers.

  • [Deactivated] on 04/07/2020 - 14:05

    Are you based in Sydney? How should one contact you if in need of such services?

    • OMGJL on 04/07/2020 - 14:20

      Hi man, I am Adelaide based.

      If you still want help from me you can PM me…. we can work something out maybe.

  • Zachary on 04/07/2020 - 14:13
    +1

    …you must charge $100 an hour to fix someones computer with your level of knowledge…

    • OMGJL on 04/07/2020 - 14:19

      I charge much less lol.

      I found it really hard to gain trust to customers.

      • Zachary on 04/07/2020 - 21:25

        I charge much less lol.

        Good, at least you're not like that one guy in our class who charges $150 an hour just to fix the school's computer….

        I found it really hard to gain trust to customers.

        Maybe because you don't have a piece of paper to prove your knowledge….? Show them your piece of paper and maybe they might trust you more since you're certified?

        • OMGJL on 05/07/2020 - 00:42
          +1

          There isn't such a paper to proof computer-fixing skills. Learning about computers and diagnostic is literately the experience of trying to break a computer and fix it back up. Overclocking is also a good part of it.

          (However I do have a Bachelor of IT degree though, but it has nothing to do with computer assembly/repair.

          • Zachary on 08/07/2020 - 00:04

            @OMGJL: Welll…..some people just dont trust someone else if they dont have the piece of paper to show for it…. I mean would you let someone fix your car if they aren't qualified or certified mechanic BUT have the experience and probably be able to diagnose your car issue? That's what some people think.

  • [Deactivated] on 04/07/2020 - 15:51
    +1

    You have zero business sense.

    The competition does it better, cheaper, easier, faster, safer

    🤷‍♂️

    • OMGJL on 04/07/2020 - 16:06
      +3

      I admit I don't have business sense.

      Teach me senpai.

  • Findo on 04/07/2020 - 15:52

    Perhaps your customers are worried about your technical competencies based on the wording of your price list. I noticed incorrect tense and inconsistent subject-verb agreement in your post, which would probably influence my decision to purchase a computer from you.

    • OMGJL on 04/07/2020 - 16:08
      +2

      I am trying my best as a English-as-second-language speaker.

      I believe technology itself has no language barrier.

      • SydBoy on 05/07/2020 - 07:47

        English has nothing to do with trust or your ability to succeed in life or business … don't worry.

    • pa33w0rd on 08/07/2020 - 15:03

      In my opinion it's a valid point. It's not necessarily "the reason" but maybe one of the reasons (albeit a small one) as to why there is a trust issue with your prospective customers. I did a bit of Google search and found couple of forum discussions:

      https://security.stackexchange.com/questions/96121/why-do-ph…

      or this one:

      https://josephsteinberg.com/why-scammers-make-spelling-and-g…

      The way I infer from the above is that if your target customer base pays attention to how you communicate, it may influence their decision, as pointed by @Findo > "I noticed incorrect tense and inconsistent subject-verb agreement in your post, which would probably influence my decision to purchase a computer from you.".

      Perhaps, you could get someone to proofread your responses until you get it right? In my opinion, it doesn't hurt to learn this skill. Just some food for thought?

      I also liked what @snooksy suggested below.

      All the best!

  • garetz on 04/07/2020 - 19:50

    Charge before you provide the quote for the creation of the customised list, then you wont have a problem. The fee will be upfront, and they can make an informed decision.

  • timthetoolman on 04/07/2020 - 20:52

    Nanyab

    I don't know computers but I feel like if I asked what this is, it's an inside joke and you'd say 'nanyabusiness'?

    • OMGJL on 05/07/2020 - 00:38

      DRAM chip from Nanya Technology, the revision B does OC very well, their Revision A OC sort of okay too, their revision C sucks.

  • SydBoy on 05/07/2020 - 07:50
    +3

    You should be asking for down payment in full or at least 10% deposit that is non refundable if customer decide to change their mind. Those who can't pay are not worth doing business with, so in business you need to learn when to let go customer.

  • andrek on 05/07/2020 - 07:56
    +2

    Find another customer. If he/she doesn't value your service and thinks $50 deposit is a big issue, the worst you can do is to waste your time on them.

  • MontyMacaw on 05/07/2020 - 08:00
    +2

    Get a mobile EFTPOS terminal and do a preauthorisation. This locks up their money for 5 business days and then hands it back to them automatically. Likewise if the get delivery sooner you can process it as a sale. Any bank can set this up for you.

    Explaining to the customer what a preauthorisation is may be difficult for those that don’t know what it is so you may need some help from your bank to get some documentation to show the customer that their money is still in their account but is on hold. That way they can’t spend the money before delivery. Hotels do it all the time so most people know how it works.

    If you don’t like the free for such an operation just add a little to each sale to cover your expenses.

  • snooksy on 05/07/2020 - 09:27
    +3

    Do you have a website? Do you have lists of testimonials from previous clients? It sounds like u might be dealing with new clients who don’t know you. Are you open and honest that you are charging an assembly fee? Provide an itemised quote with all of the parts and your labour charge separate. If this is really a business then Make sure you have an ABN. Send your client the quote first then get acceptance in writing. Do the work then send them a final invoice with notice that payment is due in X days. If they don’t pay, send reminder invoices and take them to small claims tribunal if they don’t pay in a few months. You say you are running a business but are you really? You can’t hide from people what you are really doing. Make sure you charge enough to cover the time spent preparing invoices and travel and assembly time. What kind of warranty are you offering? Why would I go to you instead of the computer shop and buys the parts myself from a list there? Do you have pictures online of your previous builds? Here’s another idea, once you have ABN and business bank account Set up in your business name then you could look at offering Buy now Pay later with a Zip, AfterPay, or one of the other providers available these days. Then you get the whole amount but your clients have time to pay off their purchases. Running a business is lots of work especially if you want it to grow. Be prepared to invest (time, money, relationships) building it.

    • azonki on 05/07/2020 - 10:31
      +1

      This is your answer.
      Trust is all about marketing.
      You can market your business through word of mouth or develop an online presence - Facebook, Instagram, YouTube and your own website.
      Join a relevant forum and offer advice FOC to other users.
      Consider every discount, free advice as part of your advertising budget until you have built your reputation and are able to charge for your knowledge.

  • popsiee on 05/07/2020 - 10:39
    +1

    Isn't it a simple solution of calculating your % of bad debts ?

    It seems the biggest cost is your labor and join the tons of subcontractors who are trying not to get screwed on completion of jobs with no payments .

    Second question is how do your competitors do quotes ?

  • brad1-8tsi on 06/07/2020 - 12:34

    It seems an odd situation.

    I've run a few small businesses and side hustles over the years and my first time clients have always been happy to place a deposit to reserve their allocation of my resources.

    If they don't want to leave a 10%-20% deposit then I walk away as they will probably be a hassle down the track.

    Are you being clear on your quote about how to move forward with an order?

  • DaveT217 on 16/07/2020 - 18:06

    Hi OP, do you have any other services to offer your customers? Like repair, software, virus, etc..? If yes, focus on those services first, build trust with customers and then eventually your business will get better. Because not everyone going to pay that big amount of money (at least for me) for the business they've never dealt before. I also understand it is quite a disadvantage for those of us who are English-as-second-language speaker. Good luck my man. :)

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