2007 Prole America, Inc. All rights reserved. www.proleamerica.

biz 1
Computer Service
and Repair
Industry Overview
Never before has there been a more exciting time for the
computer service and repair industry. This dynamic and
growing segment of the information technology industry
has practically reinvented itself over the last several
years. Where the primary revenue in this industry once
came from business-to-business services, a growing
number of independent technicians, one-location shops,
small chains, and franchise operations are stepping up
to address the tech-support needs in the small offce/
home offce (SOHO) market.
Troubleshooters are winning loyal customers by
providing service for PCs, peripherals, and networks
through home or offce visits, telephone contact, and
remote access. The following are typical services
offered by computer repair businesses:
PC troubleshooting or diagnostic. They determine
what the problem is and what it will cost.
PC selection, installation and setup. Advice
for what kind of computer would best suit the
customers needs, then the delivery, installation, and
loading of software on the machine.
Hardware installation and upgrades, such as
adding a scanner, more RAM, a video card, or a
bigger disk drive.
Software installation and upgrades, such as an
operating system upgrade.
Data backup, such as one-time backup to CD or
an external drive, automated data backup with
hardware and software setup, and online data
backup through a yearly subscription.
Data recovery, such as the recovery of accidentally
deleted data from a functioning hard drive, recovery
from a failing hard drive, and recovery from a
seriously damaged hard drive.
Data transfer from the old computer to the new one.
Spyware and virus removal and prevention. The
detection and removal of invasive programs on the
computer and frewall software loaded.
Home network installation. The connection of all
hardware in the home, including setting up wired or
wireless modems and routers.
Network troubleshooting and repair. Ensuring that
all devices are properly connected to the network
and other diagnostic measures, resulting in the
problem being resolved.
Internet service provider (ISP) troubleshooting.
Discovering the problem with the ISP connection, by
either working with the customer over the phone to
diagnose the problem or doing a service call.
Small home-based and one-shop computer repair
businesses have experienced growing competition
from large franchises that have brand-name recognition
through extensive advertising. Top franchises follow:
Top Computer Repair Franchises in the U.S.
Franchise / Headquarters
05 / 06
Locations
1800905Geek (formerly Geeks on Call) /
Norfolk, Virginia
271 / 305
Computer Troubleshooters / Decatur, Georgia 445 / 471
Rescuecom / Syracuse, New York 89 / 116
Friendly Computers / North Las Vegas, Nevada 67 / 75
Fast-teks On-site Computer Svc. / Tampa, Fla. 21 / 57
Concerto Networks / San Diego, California 37 / 52
Computer Renaissance / Lakeland, Florida 90 / 79
Source: Entrepreneur, 28th Annual Franchise 500, January 2007.
According to Consumer Reports (June 2007), the
repair services affliated with retail electronics chains
and independent third-parties performed better than
manufacturers tech reps when it came to solving
problems. Best Buys Geek Squad, Circuit Citys
Firedog, CompUSAs TechPro, and Staples EasyTech
outperformed manufacturers support teams (they rated
a 70 on a 100-point satisfaction scale, compared to
manufacturers, which received a 55), but not as well as
independent third parties (which received a rating of 84).
Industry Snapshot
Around 13,500 maintenance and repair
companies
62,600 employees
Average of $500,000 annual revenue per
establishment
Source: D&B Sales & Marketing Solutions, May 2007, www.zapdata.com.
2007 Prole America, Inc. All rights reserved. www.proleamerica.biz 2
Issues and Trends
Industry analysts estimate the size of the computer
service market to be between $45 and $50 billion
(Entrepreneur, November 2006; Smart Money, October
2006). Computer service professionals are in big demand
as they maintain, fx, install, and upgrade computer
technology for business and home use. The following
statistics illustrate the pervasiveness of computers and
technology infrastructure in U.S. households:
With so many households having computers (not to
mention businesses of all sizes), and with many people
not having much knowledge or inclination to learn
about computer maintenance, professionals have a
potentially large market for their services. The chart
below shows the three major computer-related problem
areas found in homes:
Internet security is a prime concern, since 9 out of 10
computers become infected with an invasive program,
often without the users knowledge. Spyware collects
data off computers, and is used for various purposes.
Malware (malicious software) drains a computers
processing power and takes over computer memory.
Removal of malware, as reported by computer repair
professionals, represents a growing percentage of their
business. There are 100,000 known viruses, and new
ones are continually released on the Internet.
Home visits by computer repair professionals are a
growing trend. A recent survey identifed the problems that
consumers would like in-home technical support to resolve:
Home networks are a growth area for computer service
professionals. In-Stats Residential Connectivity Survey
reveals that the North American home network support
service market is expected to double in 2007 (June 2007
press release). According to the Parks Associates survey,
about half of all home network owners have experienced a
problem with their networks. The following is a list of what
kinds of help consumers need with their home networks:
An Entrepreneur article (November 2006)
recommended that small computer repair providers
should market their services every day through
different avenues which can include telemarketing,
web marketing, direct mail, and pamphlet distribution.
The main point is to fnd the marketing mix that works
best. One provider says that he does promotion 5
to 10 hours a week: Youve got to get your face out
there, go door to door if you have to, to let people know
you exist. If youre bashful not comfortable putting
yourself out there or handling rejection you might fnd
this business isnt for you.
Having a website is an important marketing tool for
computer service and repair providers, given that
Source: Parks Associates, Business Models for Managing the Digital
Home, 2007.
Interest in Professional Technical Support
for Home Computer or Internet Problems
(By % of Respondents Who Experienced Problems )
26%
0 5 10 15 20 25 30 35 40
Home networking
problems
Internet performance
problems
36%
26%
18%
14%
12%
Home computer
problems
hardware/software
New PC configuration
problems
Internet security
problems
Peripheral problems
Source: Parks Associates, Business Models for Managing the Digital
Home, 2007.
Home
Networking
Top Home Technology Problems
in U.S. Households
(In Millions of Households - Estimated)
41.3M
0 10 20 30 40 50
PC Hardware/
Software
Internet Security
21.7M
10.8M
Home Technology Facts & Stats
69% of U.S. homes have a computer.
34% of U.S. households have more than one.
57% of U.S. homes have an Internet connection.
45.8% of U.S. homes have broadband.
Sources: Home Toys, February 2007; CEA, Digital America 2007;
Dealerscope, May 2007.
Top Benefts that Consumers Want
from Tech Support for Home Network
Ensure that home network devices are secured
against Internet threats.
Confgure new devices on home network.
Provide real-time survey of all devices connected to
the network and give troubleshooting tips
Recommend compatible products for enhancing and
expanding the networks usability.
Source: Parks Associates, Business Models for Managing the Digital
Home, 2007.
2007 Prole America, Inc. All rights reserved. www.proleamerica.biz 3
most of their customers use the Internet. An estimated
40% of all such businesses in the U.S. have websites,
according to True Local, a leading search engine and
Internet business directory, specializing in driving
online customers to offine businesses. Many computer
service business sites list contact and location
information as well as a list of the various services they
offer. Some sites also list a price for each service.
Among the factors that are mentioned in the advertising
that is placed by computer service and repair providers
are many that are intended to motivate people to
call or visit. Some characteristics can be considered
confdence factors and some can be considered
convenience factors. Examples of each follow:
Confdence Factors Mentioned in Ads
We Dont Speak Geek /
Flat Rates
All Work by Certifed
Technicians
Years of Experience References (Business)
Certifed Field Service
Engineers
Certifed Microsoft (MCSE),
Novell, A+, etc.
Hard Drive / Password / Data
Recovery
Specialists, Networks, IBM, HP,
Laptops, Laser Printers, etc.
Brand Name Emphasis 24/7/265 Off-Site Help Desk
School Contract / Flat Rates
(Stated)
24/7/365 Emergency / Fast
Service
Source: 2007 Comparative Ad Analysis Survey, Norbert J. Kuk & Associates.
Convenience Factors Mentioned in Ads
Monthly Specials Online Website / Email Address
30 Minute Response
Available
Fast Response / Fast
Turnaround
Complete Details at Website While-U-Wait Upgrade
Overnight & Weekend Svc. One-Day Carry-In
Invitation to Visit, Schedule,
and/or Shop at Website
Location Data / Parking /
Discount Prices
Credits Cards Areas Served / House Calls
Source: 2007 Comparative Ad Analysis Survey, Norbert J. Kuk & Associates.
Value of Products and
Services in the Industry
Computer repair and service is priced by the hour or by
the project. House calls from Circuit Citys Firedog, for
example, cost $160 per hour. Best Buys Geek Squad
charges $29 to create a system-restore CD and $299 for
performing in-store advanced diagnostics and repairs
($349 for in-home service). Independents and franchise
operations charge similar rates. Overall, the national
average for computer service and repair is $100 an hour
(Entrepreneur, November 2006).
Type of Service Typical Cost
In-home data migration $230
Remote access, wireless network repairs $99
Advanced diagnostic, repair, prevention $119 per hour
Wireless network installation $80
Virus removal $100
PC setup $50
Source: Consumer Reports, June 2007.
Average household spending of $446.42 is calculated
by dividing $50 billion in spending by 112 million
households.* Average spending is helpful in determining
market potential and market share. For example, in an
area of 40,000 households, it is safe to assume that
around $17.8 million is spent annually on computer
repair and service. If a computer dealer generates
$500,000 in revenue, his or her market share would be
2.8%, a baseline against which future performance can
be measured.
* Entrepreneur, November 2006; Smart Money, October 2006.
Critical Success Factors
Computer Service and Repair CSFs
Screen job candidates for the business on both
technical expertise and interpersonal skills. Obtain
three work-related references, to ensure tech reps
reliability and trustworthiness.
Ensure that everyone in the business earns
certifcations for the types of work they are doing,
such as Multimedia Systems Technician (MST) for
doing fat screen and home theater installations,
Certifed Service Manager (CSM) for managing
a modern service business, Certifed Electronics
Technician (CET), and Certifed Service Center
(CSC), for offering outstanding customer service.
Use company vehicles as an opportunity to advertise
the business: have them custom painted with the
company logo and an effective message on the sides,
with the phone number and website in bold lettering.
Segment the market by type of user residential,
small business, and corporate and create different
advertising and marketing messages and media to
reach each segment.
Sources: Entrepreneur, November 2006; NESDA website; CEPro,
April 2007; www.ezine.com, April 2007.
Industry Resources
National Electronic Service Dealers Association,
www.nesda.com
Computer Reseller News, www.crn.com
CE Pro, www.cepro.com
2007 Prole America, Inc. All rights reserved. www.proleamerica.biz 4
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