I was recently asked via email about how I handle stock as a self employed computer technician. You want be able to carry enough stock to be able to do your job, but you don’t want to be holding onto too much because their value can decline so quickly. Here’s what I do:
Buy one or two of the essentials. With the exception of motherboards which I only keep in my workshop, I carry each of the essentials when I go onsite and a copy in the workshop.
I consider the essentials to be:
Various RAMs
One of the current generation, one of the last generation and some laptop ram. I carry plenty of RAM because I don’t worry about it losing value. The lifetime value of RAM tends to be shaped like the letter “J”. The value falls until it hits rock bottom but once the manufacturers stop making it the value goes up and people put them into older computer that could use a little speed boost. In fact, sometimes its more of a “U” shape where the value of the RAM goes back up and equals or even beats the price of the item when you bought it new.
As for RAM brands, I tend to go for Kingston because of its build quality and lifetime warranty
Mid Range Harddrive
A mid range hard drive tends to hold its value relatively well. You pay a premium to get the larger ones on the market, then they fall to mid range rapidly and then slowly fall into low range. If I don’t sell them for a few months I usually put them into a generic office machine that doesn’t need a lot of space or use them to replace hard drives in old PCs.
For hard drive brands, I used to be a Western Digital man but now I have switched to Seagate for my clients because of their 5 year warranty. Avoid Maxtor like the plague, I see these dieing all the time.
Middle Range Video Card
Do NOT buy high end cards unless you already have a buyer, after a month or two a high end video card is no longer high end . Besides, most home and business users have low to mid range cards and the high end users usually already know to fix their computers. I carry a AGP, PCI Express and a handful of old second had ones. The brand I like for video cards is ASUS or Gigabyte with an nVidia chipset.
Motherboards
As mentioned before, I only keep motherboards in my workshop because I dont do motherboard replacements onsite. I carry a middle priced Intel socket 775 and sometimes an AMD AM2 (I rarely see AMD’s in Australia though). I also keep a handful of socket 478 motherboards because socket 478’s are old enough to be failing from age and they are getting harder to find now days. The motherboard brand I like the most is Gigabyte. While they arent the best for gaming and overclocking, you cant beat it in regards to build quality.
The price of anything below this point I usually don’t worry about de-valuation.
Wireless Broadband Router
I tend to sell alot of Wireless Broadband Routers. I usually buy them without inbuilt modems because in Australia the ISP supplies the modem 95% of the time so I just need the router itself. I usually buy higher end models because wireless routers can be troublesome with hanging, rebooting or having a spotty signal issues. If it has problems, It’ll annoy the client and look bad on you.
The router brand I usually go for is Netgear.
Power Supplies
I go for mid range power supplies as cheap power supplies can cause more problems than they are worth. The brand of my power supplies changes depending on the availability.
Network Cables
I carry various lengths of pre made cables (I’m too lazy to make my own), from 1m up to 50m. I seem to be selling these all the time and they dont lose value so I have no problems carrying plenty of them.
DVD Burner
I usually just buy something that’s a good price/speed at the time. Most of the time recent burners that are easily available to consumers are around $50. I sell a few of these a month to people with either bad burners or want to upgrade an old computer to be able to burn DVDs. I have found LiteOn to be a really good brand for burners. I used to like Pioneers but lately I have been encountering many of them failing so I am getting turned off Pioneer.
Spare Cables
A cable that I sell all the time are A-B USB cables to be used on new printers. I dont know why printer manufacturers don’t include this cable that is essential to its operation.
Other spare cables are sometimes needed are computer power cables, Molex to Sata power cable, a Molex power splitter, PATA and SATA data cables.
Network Cards
I don’t sell many network cards now days but occasionally the need pops up. Most of the time they go into older computers that don’t have onboard lan or I am installing a Gigabit card into a modern computer. I like Surecom for 10/100 network cards and TP-Link for Gigabit cards as both are cheap and reliable.
There are many more things that I stock such as sound cards, modems, spare fans but I rarely sell any of them so I haven’t classified them as essential stock; at least for someone just starting out anyway.
If you have a store and want to show what you have, dont buy heaps of hardware to fill the shelves, just keep the empty boxes when you do system builds. This also doubles as a way to prevent theft since all they would be taking is the box.
If you want to see what non-essential stock I carry onsite, check out my “Onsite Technician Gear” article.
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Would it be wise to stock processors? I sometimes get people coming to me asking to upgrade them. Or would they decline in value too quickly?
Did you know that Seagate now owns Maxtor?
Yes in the past Maxtor was junk, but maybe with the Seagate purchase of Maxtor they will get better.
Most of the time recent burners that are easily available to consumers are around $50.
$50? That is expensive – we sell them to customers for approx ~$20, been that way for a year at least. I don’t think that the $50 one will last significantly longer than the $20 :)
personally in this day and age of overnight delivery for almost every PC component and even whole PC’s
I do not carry any stock for sale only for testing of the broken PC’s
THIS WAY I PASS ALL THE SAVINGS ON TO THE CUSTOMER with none of the overhead to me
most non business customers can wait 1 to 2 days to get there computer up and running
as for business customers I just go out and buy the broken part that hour and then fix the broken computer charging them full rate (I do stop the clock while I am out getting the part)
Prices drop so fast I wouldn’t want to be keeping any stock! I’ve used many brands of motherboard over the years and have to say I’ve been lucky enough not to have nay failures, but machines built with Gigabyte boards to seem to be more stable.
I operate more along the lines of the last two posts. Why stock it when I can get it quickly and usually at a lesser cost when I need it.
Sometimes if I find a smoking deal on something I use a lot of, I will buy several and resell them at the average market price. The only time I stock anything is I can make a buck on it, otherwise, I operate in a more hand-to-mouth fashion.
I carry all combinations of DDR, DDR2, SODIMMs and DIMMs at any given time. I usually have a power supply or two, lots of cables terminated and unterminated cables, from USB, HDMI, and RCA to coax and Ethernet. I also stock a couple 800VA-ish battery backups that I restock when they go on sale.
If I have a new appointment with a pre-existing client and I have an idea for some things I could sell them, like a bigger monitor or a replacement printer, I don’t hesitate to bring one with, since I’ll sometimes have that stuff on hand for future jobs. If I sell it, I can always buy a new one before the upcoming job.
I used to buy-while-on-the-job in my earlier years since I didnt sell a whole alot (since I didnt have the numbers). I didnt like doing it though because I go all over the place and Im often far away from my suppliers so Id have to hunt around for a local computer store. 90% of the time I could buy it way cheaper than what they were selling it.
I also felt that I looked like I was unprepared. I think it also encourages me to put my sales cap on since I have stock I want to move.
As for stock spoilage, I charge them 20% on top of my original price, no matter how much time has passed. Its often more expensive than what is currently available in the store but its the convenience factor for the clients. They have the option to buy it cheaper themselves and install it themselves, or have a technician do it then and there for a little more. They always pay the higher price.
The only thing I don’t stock is motherboards since 99% of computers I work on are major OEM brands and regular non-branded motherboards won’t work, well they do but you can’t use a Dell XP cd for example.
Great post!!! I wish I had seen this post about 2 years ago.
My stock these days consists of various sticks of RAM, a couple video cards, a few Hard Drives (IDE and Sata), a ton of Ethernet Cables, routers (1 wired and 1 wireless), about 5 Ethernet Switches (5 and 8 port), a DVD Burner, Spare Cables, Wireless Network Cards… I think you get the picture.
I don’t carry any CPUs or Motherboards as its just too expensive to sit on for the jobs that I get.
You know what else I carry, a USB wifi adapter
Nice list and I do agree with all of your decisions. Video Cards is probably the most important one as if you have too good cards, they will lose value quickly if you do not have any buyers.
As a rule I don’t stock parts. If i happen to have the parts on hand , great. Parts get outdated way too quickly. These days I buy parts as I need them.
Things like Video cards and CPUs are outdated a few months after you get them.
id say avoid seagate and maxtor like the plauge. 1 maxtor, and 3 seagates failing right now in my own computers, and the one i will possibly never get RMAd. they want the error code from the diagnostic tool, but the POS caught on FIRE! personally i stock a ton of power supplies, and at least half a dozen 80mm fans, a couple of 40mm and 90mm fans. in the area im in brown outs are common and they are hell on the power supply if you dont have a battery system. cpus, motherboards, and ram are expensive and tend to lose value, plus i can get them in 3 days or less, so i dont stock them.
on a side not why dont they make hard drives like they used to? the oldest of my newer drives is 4 years old, and is dying (getting bad clusters) and i have tom from the 486 era that still run flawlessly. thier huge in seize, slow, loud, and only hold about a gig, but i have 4 of them in raid in my server. and that thing just runs