Tech Support Businesses on the Rise 375
prostoalex writes "People are relying on more technology that ever before, and tech support geek squads are on the rise, media reports. The USA Today article says Best Buy has hired 1,500 more technicians for its Geek Squad and CompUSA currently keeps its tech support ranks at 12,000. The article from Digital Connect magazine talks about Geeks On Call, a nationwide tech support franchise, which has more than 300 shops in 20 states. The USA Today article states the profit margins for the tech support teams generally run within 30%, while the Digital Connect magazine gives an estimate on prices charged to achieve the margins: "An initial diagnostics call, for example, could run $99. Cleanup jobs usually run one to two hours, and some franchisees say they charge between $149 and $165 for one hour and $265 to $275 for two hours.""
3 hours of tech support = new computer (Score:4, Insightful)
Re:3 hours of tech support = new computer (Score:4, Insightful)
Re:3 hours of tech support = new computer (Score:3, Insightful)
-Jesse
Re:3 hours of tech support = new computer (Score:2, Informative)
I'm the first one to understand this, but $149/hr means that they're considering the "highly trained technician" salary (who's services are what you're paying that much money for) to be only 6.7% of the gross profits. Also consider that gasoline is usually a charge on top of base hourly costs if the distance is substantial. (Which only works out to about $7.50 for a 60 mile round trip, 30 each way, w/ 20mpg and $2.50/gallon.) The car is also considered a tax deductable expe
tax deductable expense (Score:3, Informative)
Re:3 hours of tech support = new computer (Score:3, Informative)
My boyfriend has been a tech with Geek Squad here in Ohio for a year now and to my knowledge still only makes around $10 an hour. He started at around $9.
Also, there are only 2 slots for full-time tech staff in his store, and neither of them are salaried. All the rest of the staff are part-timers with insufficient hours + pay to even live indepentdently. Most of his fellow techs work another part-time job just to afford the basics.
Not that it is unusual in companies for the people who actually perform
Re:3 hours of tech support = new computer (Score:3, Informative)
The problem is that the Geek Squad are a bunch of people and they are there for quick responce. So inorder to insure quick responce you will need enough Geek Sqaders to ready to respond at a drop of a hat. So that means that you will need to employ more then ones that are actually doing work (or chargable work) A smaller company with less employees can be paid twice as much and chage half the price. But the customer may have to wait 6-24 hours before they can get a responce. Because al
Re:3 hours of tech support = new computer (Score:3, Insightful)
An employee who gets $10 per hour costs the company another $10 in behind the scenes employment taxes.
Look on the up side: It's hard to outsource come-to-your-house tech support to India.
Re:3 hours of tech support = new computer (Score:5, Insightful)
DATA stored on the computer is generally far more precious then the PC itself, and buying a new PC isn`t going to get you back that thesis/invoice/email.
Re:3 hours of tech support = new computer (Score:3, Insightful)
You just proved my point. On most home machines, even Linux ones, there really only *is* one important user. Any other users are usually pretty secondary. Shrugging it off as only "one user's home directory" is exactly why this is a problem. Destruction of my home directory (assuming I don't do backups, which I do*) would result in the destruction of probably close to 10,000 hours of work. Now, much of that work rea
Re:3 hours of tech support = new computer (Score:5, Insightful)
...and then call tech support (Score:3, Funny)
I hear tech support can help with all that. What a vicious cycle!
Re:3 hours of tech support = new computer (Score:3, Insightful)
When it comes to business, though, time is money and so is information. To pay one of your employees a day or two labor to reinstall everything on a new system not only takes them away from revenue-generating work, but also makes potentially important data unavailable for the durat
Re:3 hours of tech support = new computer (Score:3, Insightful)
I saw an ad for the "Geek Squad" (I hate that name, and all it insinuates), and the cost was so high that for an additional 150 dollars, you could buy a damn Mac Mini and never have to worry about that shit again.
This says two things to me. Firstly, that if you are buying a new computer,you are going to need all that stuff with a Windows machine anyway, so just bu
Re:3 hours of tech support = new computer (Score:5, Insightful)
Re:3 hours of tech support = new computer (Score:2)
Re:3 hours of tech support = new computer (Score:2)
Oh, wait, that's what I do everyday. Nevermind.
On a related note, though, I'm also developing this strange urge to mispell the word consume.
Re:3 hours of tech support = new computer (Score:3, Funny)
Re:3 hours of tech support = new computer (Score:2)
3 hours of tech support = backwards thinking (Score:4, Insightful)
The real issue is support costs versus training costs. Businesses that pay $250/hour for someone to "fix their computers" (which is to say, clean up Windows errors) should be paying $100/hour for someone to train their people on how to avoid these problems.
It's not hard to avoid viruses and malware. You switch to a non-IE browser and don't run programs whose originator you don't know. That doesn't take too much training time, but it saves a timeclock full of support time if people practice those things.
Combined with some AV tool (and in my experience it doesn't matter which one), you're generally on target for hassle-free computer use.
Big fallacy! (Score:3, Interesting)
There's an element of truth to it, but generally, it's not nearly as good a solution as it appears.
For starters, most service calls end up being at least partially due to virii and spyware. If the customer buys a new machine, how long do you think it will take him/her to get it just as infected as the previous system was - if he/
Re:Big fallacy! (Score:2)
re: advice (Score:3, Informative)
Re:Big fallacy! (Score:5, Interesting)
1. My rates happen to be lower than anyone else I've called in the entire Yellow Pages under "on-site PC service". I do think many places charge too much for too little, so I'm trying to make a living while still being reasonable.
2. I do both PC and Mac service, and countless times, have suggested the Macintosh alternative to people when they seem to repeatly be struggling with spyware and virus issues. Nonetheless, it's no big secret that ALL on-site PC service businesses handle more virus and spyware calls than any other single type of call today. Even Dell estimates that about 40% of their incoming support calls are about these problems. If I had my way, I'd much rather spend my time solving an interesting system problem or performing an upgrade which leaves a customer with a system that works better than it ever did before. But reality is, they usually call about the virus and spyware problems.
3. Having over 12 years of experience in the computer field, I wouldn't label myself a "high tech janitor", any more than I'd call a software developer wih 10+ years of experience a "digital assembly line worker, shoving bits around all day". But you can create whatever types of labels you wish for a person's line of work. Oversimplify enough, and you can make anyone look bad.
Re:Big fallacy! (Score:3, Insightful)
- were expensive (you don't even want to know)
- rely on human disease to get business
- are mainly lowly technicians, swapping parts around in a machine that happens to have obnoxiously complicated service procedures (due to its literally ancient design). Whether that is worth what they charge is up to you I suppose, but I for one am satisfied.
Let me introduce you to the word "idiot", Mr. Coward.
It's the value of the data, not the hw (Score:2)
Those prices seem high (Score:2)
Most jobs take 1-2 hours (min 1 billable hr anyway).
It is quite possible to hire decent technicians and pay them enough that you can made a decent profit on a $40/hr service call here. Maybe the rate is different where office space is expensive, etc.
Good! (Score:3, Funny)
Re:Good! (Score:2)
Re:Good! (Score:3, Funny)
Re:Good! (Score:2)
pricing (Score:2)
Which is what leads to people spend 300 or 400 bucks on an entirely new machine...
Re:pricing (Score:3, Insightful)
Half the
Add in the cost of re-installing all your programs, the cost of lost data, and the trouble of buying a new PC, and you're looking at over $1000 average. Add in the higher-value PCs or laptops, and you've got a significant inves
Re:pricing (Score:2)
On Slashdot? Probably quite a few of us. We realize just what sort of crap you get for $400 (not to mention, we can make $400 go quite a lot further by rolling our own). But among Mom & Pop and Joe Sixpack? When people can't tell the technological difference, they decide with their wallet. I'd wager that the majority of home PCs sold since early 2004 have cost under $500, and a steadily increasing percent for
Good God (Score:3, Funny)
Re:Good God (Score:4, Funny)
Geek Squad (Score:3, Insightful)
$29.00 to install RAM? Whats that take 5 mins? 60/5= 12, 12 x $29 = $348 an hour. Where do I sign up?
Re:Geek Squad (Score:2)
MONEY! NUM! *chomp*
Re:Geek Squad (Score:2)
So I guess the place to sign up is Wall Street, under the sign BBY.
Re:Geek Squad (Score:2)
Interesting that it's becoming SO big. Writing spyware for the right clients could make a lot of people a lot of money...
Re:Geek Squad (Score:2, Insightful)
If you can continuously have a line of computers with a new stick of ram beside them waiting to be put in and installed all day long, then your $348 an hour would make sense, but in reality, you will never have 12 machines which need ram per hour.
Re:Geek Squad (Score:3, Insightful)
What about idle time?
Sure, maybe it only takes 5 minutes. But it might be 25 minutes before the next 5 minute job comes along. You still have to pay the tech for the 25 minutes they are standing around. You might only be grossing $60/hour, you're paying your tech $20, plus about $10 for benefits, leaving you with $30 to cover the overhead for the store: electricity, water, lease, furnishings, property tax, cashier, b
Re:Geek Squad (Score:2)
The front lines (Score:5, Insightful)
having to deal with people on the phone is tough. but when you have to go into their homes, that's scary. You lose the safe seperation from people's weirdness.
Although, I always told the joke that people would be a whole lot nicer if they saw me in person. it's easy to be an asshoel to a voice on the phone. But in person, it's a little harder.
Re:The front lines (Score:2)
Re:The front lines (Score:3, Informative)
While in college, I spent a couple years running the studentweb server, providing personal webspace for students. Sometimes they had to use the space to make websites for classes (business school students mostly), so I'd get a lot of tech support questions.
If I had the time, I always prefered to meet with these people in person to
Not for the bluehairs (Score:2)
But then you go to some old gal's house and she's
(That's a compilation, thankfully, not a description of a sing
Re:Not for the bluehairs (Score:2)
My step mom made the mistake of asking me what I'd normally charge someone for my time, so she could start paying me.
You should have seenher face.
Re:Not for the bluehairs (Score:2)
I don't do after-hours jobs anymore, except for a very few select friends and relatives. And I only charge them a meal and a good visit.
Mixing friendship and professionalism doesn't work.
Re:The front lines (Score:5, Informative)
As an onsite support tech, I can tell you that in a lot of ways, I'd much rather be going to people's businesses (and maybe homes) than talking to them in the store or on the phone.
When on the phone, there's a certain level of anonymity that customers feel they have, and you're much more likely to get screamed at on the phone than while onsite. When you're onsite, most customers are aware that 1.) they need you more than you need them, as they've called you out to their business, and 2.) you're getting paid hourly, so screaming wastes their time and money. Also, 3.) it's kind of unspoken that the people you talk to on the phone aren't as good as the people in the field, or they'd be in the field.
So your assessment about being nicer in person is completely, 100% correct, in my experience. The worst part about going out on site is dealing with customers who don't have a store account. I hate dealing with money, and I'm bad at it. I fix computers, that's it. My wife pays the bills, and our understanding is that if I need it to sustain life, I purchase it, and if not, I ask first. Asking customers for $85 or $135 for an hour of work almost wierds me out. And having to sit down at the computer you just fixed, break out calc, and add up ((parts*1.05)+labor), and show them the total still feels odd. Especially since I see about $15/hr of that.
Every once-in-a-while, though, you do get an interesting customer. Last week, I had a customer who invited me into his townhouse, made a comment about getting his "fat ass out of this chair" (his words), and then stood up, grabbed his crotch, and exclaimed, "Holy Shit, the bag's full!". Just as I was beginning to work that one over in my mind, and coming to the conclusion that he had, indeed, grown a third testis since he sat down, he explained that he had had a good bit of his colon removed, and excused himself to the bathroom to empty his colostomy bag. I began cleaning his spyware in earnest at this point.
You don't gt experiences like that from working in store.
~Will
Re:The front lines (Score:2)
Also they ge to deal with you in their own space. Going into a Best Buy for help can be very intimidating for some people.
Re:The front lines (Score:2)
Well quite, going to Best Buy, CompUSA, Fry's or any such places, I can't spend 30 seconds by myself perusing at the shelf without having a "sales rep" (read: an overzealous pimple-faced teenager in a silly store outfit) come up to me saying "hello Sir My name is Steve. May I annoy the living shit out of you today?"
They jump at you like starved flees on a old lady's poodle as soon as
Re:The front lines (Score:2)
I'm 6'5", 280lbs and don't really look like a friendly person.
So, they walk up, start saying whatever, and I tell them to bugger off and I'll come get them if I need them.
Alternatly, it's hard to get peopel to help me some times.
Re:The front lines (Score:3)
In other news... (Score:3, Funny)
Re:In other news... (Score:3, Informative)
Right: "should have"
Righter: "should've"
Re:In other news... (Score:2)
Re:In other news... (Score:2)
The ominous parallels (Score:2, Insightful)
"How come my internet doesn't work!" (Score:3, Insightful)
Prices are too high (Score:2)
Re:Prices are too high (Score:2)
Just by looking at your Slashdot nick, I'm pretty sure you can manage by yourself just fine, that backing things up is a natural reflex to you, and that reinstalling something doesn't scare you off all that much.
The reason why overpaid techies exist is because of all the people *not* like you, that is, the majority of computer users: they barely know where how to double-click on My Documents, and a backup ref
data backup and xp reinstall? (Score:2)
But it is a stiff fee nonetheless.
Er, not quite. (Score:5, Informative)
30% is about right (Score:2, Interesting)
Who would you rather compete against: Dell & eBay or Best Buy's repair desk?
This is no dofferent than with any other industry in the US. Skilled labor is expensive!
-MrLogic
"Service industries" (Score:5, Interesting)
Re:"Service industries" (Score:3, Insightful)
It's not the computer, its the DATA (Score:5, Insightful)
So before we jump on the "just buy a new computer" bandwagon, think about the time and hassle of moving that which makes your computer your computer, your DATA, to that new computer and transferring all of your settings, preferences, bookmarks, etc. Incorporate that time into the overall expense and you'll see that it's not such a great deal to just buy up that new emachines or dell or whatever...
Then factor in the SPOUSE HASSLE FACTOR...God forbid you move some file of your spouses from the old computer to the new one and she can't find it, or things look different on the new computer, etc...
How much does that cost vs. just fixing the problems with your current computer, let alone the environmental cost of recycling or disposing of the old computer. I know that nobody has ever thrown one of those into the dumpster...
Re:It's not the computer, its the DATA (Score:2)
Just a thought.
Re:It's not the computer, its the DATA (Score:2)
The obvious answer is to leave the spouse's data where it is on the old machine and let them have it - that way you don't need to be bothered with the "how do I do that" and "where is it at now" questions while you're playing Doom3.
Is this about support, or just money? (Score:2)
I'm not sure I'd be too happy, especially if this is something that was "liked" by higher-ups. It seems to put the emphasis in the wrong place. How ironic...he starts by indicating how vulnerable he is when it comes to something like plumbing, and then us
Through a non-geeks eyes... (Score:2, Redundant)
That new computer won't have the pictures of their child's first birthday, or their honeymoon, which were moved onto the old computer from their digital camera. It won't have the files for Quicken, last year's TurboTax data, or the large MP3 collection. The new computer won't have their email, their resume, or anything else they may have worked on
Quite true (Score:2)
It would be nice to think people will take appropriate precautions with their data but, much like it would be nice to think people will take care of their body and not eat junk food all the time, it just isn't going to happ
Re:Through a non-geeks eyes... (Score:2)
CompUSA (Score:2)
It's got nothing to do with more tech (Score:2)
$165 per hour? (Score:5, Funny)
Re:$165 per hour? (Score:5, Funny)
Re:$165 per hour? (Score:2)
Re:$165 per hour? (Score:3, Funny)
Geeks on Call (Score:2)
I'm trying to find their UFOC (Uniform Franchise Offering Circular) online, but unfortunately, the FTC doesn't seem to have these online - as far I can see.
Any FTC IT guys out there? Can you convince them to put the filings online a la "EDGAR"?
A live body is better than a phone call (Score:5, Insightful)
People want someone who can look at the computer, know what's wrong, and fix it. They don't want to click on X, Y and Z then get Q and try to explain to the person on the other end of the line what they are seeing.
Simply put, to speak to tech support on the phone, you need to be somewhat tech savvy yourself. Then if you're a tech like me, it's frustrating to be led thru all the things you've already tried. ("I've already cleared the printer queue. I've reinstalled the driver. I've replaced the cable. For the fifteenth time, the printer's internal test page doesn't print when I use the front panel buttons!!!")
In business especially, it's not worth the time to spend hours on a tech support call when a phone call to the local computer geek results in same-day service with minimal loss of productivity. Instead of tying up an employee on the phone, that employee can be doing non-computer productive work, which just may pay for the tech's time.
low end machine users aren't the target for this. (Score:2)
Sure, a $500 Dell might be the same specs as that machine now, but if they were going to just buy a new computer they'd be buying a top of the line machine again and spend $2000+ dollars. So $300 for repair is a small price to pay.
Anyone with any sense (Score:3, Interesting)
Also, going into people's houses all the time weirds me out. We quit doing that about 4 years ago.
I read an article about Geeks on Call and, while it's an interesting idea, I don't see that they are going to have much success in the corporate market. According to the article, the techs are not supposed to talk to any of their customers on the phone - every problem results in a service call. That might work with joe homeowner but a business that spends several $k a month on your service will expect phone support....
Computers Will Soon Become Vastly Simpler to Use (Score:2, Interesting)
As our applications inevitably migrate from our computers to the network, the network literally becomes the computer.
This new supercomputer gets faster as bandwidth increases. A completely optical network means bandwidth would approach the speed of light. My computer
Re:Computers Will Soon Become Vastly Simpler to Us (Score:2)
Re:Computers Will Soon Become Vastly Simpler to Us (Score:2)
Inside of a company on a local area net, sure.
I think it is a great idea
Technicians... (Score:4, Insightful)
Technicians -- especially the good ones -- are not going to do well at this
It's the fault of the companies who prohibit their engineers and support people from giving out good, useable, technical information anymore.
It's the fault of the manufacturers, who often don't know what's in their products because it's sub-contracted through 90 different companies.
It's the fault of the marketers, who claim that everything works 100%, perfectly, without-a-doubt, with one hand behind your back.
It's the fault of the customers who look at a $299.99 PC and think that all of their problems will go away and no new ones will appear with the signing of a check.
It's the fault of the hiring agents who pay a person with 30 years of technical experience the same as someone who read an A+ manual.
It's the fault of the big box stores who would desperately prefer to move merchandise rather than repair something.
And it's the fault of the buying public who believe you can have all three: high-quality, free quality technicians, and low-cost.
I just know it ain't Barry White's fault.
But, please, please, more spyware, more shoddy workmanship! Everyone at the trough! Dig in. Face first, please.
Geek Squad is a joke (Score:4, Interesting)
I do tech support professionally on a college campus and freelance for anyone recommended to me by friends. I hate freelancing because tech support crap is almost always boring and I already do it all day long, but it's hard to turn down extra income. I started out charging $20 an hour, now I'm up to $50 (for on-site calls). I always feel really guilty charging that much though (unless it's a nasty spyware infection). This one time I worked on this guys computer that had had the wireless card disabled - I literally just had to click "enable" and I was done. It took 5 minutes to drive to his house, 5 minutes to get situated with the computer booted up and all that, and then I was done. I told him because it took such a short amount of time I would only charge him $10, he was cool and joked that he pays the kid down the street more to mow his lawn and ended up paying me $30. I still felt bad - clearly I'm not cut out for this kind of work.
Right now I'm working on a PC in exchange for free food, mostly because it's a new customer and I know she is a good cook, but also because all I have to do is swap a CD-ROM drive and troubleshoot a Wacom tablet. I feel like an ass charging for simple things like that.
I felt bad too, at first... (Score:3, Insightful)
Nowawadays my guilt is gone. I can't vouch for other people, but _I_ know _I'm_ a good tech. I don't need to know much about your software or hardware to be of use. 15 years of experience with PCs and good critical thinking skills give me everything I need to solve my customers' problems in less time than t
Is This a Joke? (Score:3, Insightful)
You have to be fucking kidding me. No, really. Think again: replaced software engineers who have tons of experience are forced to find themselves in basically level 1 tech suppor role. Travelling to customers' sites in a funny car is not what I consider to be a career. A marketing equivalent of Geek Squad is telling a VP of marketing department to work a a local Gap.
I agree that technical support is on the rise, but I would highly argue against making a career through an at-home service. What the fuck are you? A maid?. If you really want to make a good buck on support, try getting into B2B environments and work with integrators, high level support of enterprise software, etc. Help desk support is "help desk" no matter where it is located and how it is done.
If you have people skills and like technology, why not switch to pre-sales engineering? Pays better and you don't have to have "Geek" in the name of your company.
Re:My rates. . . (Score:2)
Re:My rates. . . (Score:2)
Re:The Spyware racket is lucrative (Score:2)
Re:The Spyware racket is lucrative (Score:3, Interesting)
Re:The Spyware racket is lucrative (Score:2)
No. It's the Communists. No, wait, wrong decade, I mean it's the terrorists. It's all scam to fund terrorism.
Re:In Communist Canada... (Score:3, Funny)
Sounded a little too good to be true, so I looked it up, and found, unsurprisingly, that while people actually DO make wireless static straps, they are, in fact, completely useless. (they rely on the Corona effect, which would maybe be useful if you got, I
Absolutely!! (Score:2)
That's why I have my own business (www.wyrickconsulting.net) today. The big problem with GeekSquad and the other large "chains" of computer on-site service is not the rates they charge, but the fact that consumers expect an expert on their doorstep for those prices. Instead, they're getting teenagers through 20-30-somethings who are doing it as their "first real conputer job", or people who simply don't care as long as they get their weekly paycheck.
They just make it harder for the
Re:As a consultant.... (Score:2)
You're a consultant, and you're miffed that these folks are making more work for you?
Wait, don't you charge by the hour?
They key is branding (Score:2)
You hit the nail on the head with the whole branding thing. When Joe Average's computer breaks, what does he do? Aside from calling his geek brother-in-law first trying to get some free help, h