BleepingComputer.com: Computer build designs

I'm thinking about attempting to start a computer build business. What do you think about these designs? And no I am not advertising.

Home computers:
low
medium-low
medium
medium-high
high
very high
ultra


HTPC designs:
low
medium
high


Portable computers (for LAN parties, etc.)
low
medium
high

This post has been edited by RainbowSix: 07 January 2010 - 10:04 PM

Hmm...because I've been looking at putting together an inexpensive system (circa $350), I looked at your Low.

I don't think that anyone will be willing to look for a system that does not offer at least dual-core in 2010 and beyond, so I would suggest at least moving up to at least some AMD dual-core option that is still readily available. The Athlon 64 X2's are still available, are pretty good processors, and don't cost much more than the Sempron you currently sport on your model. Maybe an addition $15.

I would also automatically bump the RAM to 4GB for users, since they won't be using XP and will probably be using Win 7 eventually, if not immediately. Maybe a $50 or so increase in price.

I like the fact that you did not go with a humongously large hard drive...but users probably won't appreciate it. They tend to look at advertisements and they will probably wonder why they have a smaller hard drive than even appears in today's laptops.

That would leave the bottom tier at $315-350 or so...which I think is reasonable.

While I was looking around earlier this week, I noted that I/users can put together an X2 or X3 system for about that amount, but that's a somewhat fudged number since I already have the PSU and hard drives.

And...don't forget sales tax as a consideration .

Louis

Also, don't forget shipping as a consideration and the need for reasonably low prices. Expect razor-thin margins on low-end PC's. You may be able to make a better profit with the boutique business which caters to ultra high performance users. Another "ultra high" tier should be added to the list which includes the i7 975 (An i7 920 is not a very high-end processor, the i7 950 replacing it in the very high category), a Radeon HD 5970, a SSD to install the OS on, and a Xonar D2/D2X sound card. Those changes would really make it an ultra high end setup.

I added an ultra design.

I have tried this, and it is impossible to make a buck on low end-medium systems. You really cannot compete with the OEMs on these. You end up using cheap components to make the pricepoint, then you warranty the build, pay full tilt for an OS, all the while trying to make a buck on it. Any schmuck can look around online and grab a bottom feeder $299 system so it doesn't leave any margin. Cheap people look for lowest price, period.

It helps to find mid level wholesellers that give volume discounts on component purchases. If you have the cash for parts outlay for 10 systems, you can save a few bucks, up to $15-20/unit.

You can make bucks on high end/boutique systems, but volume is very very low on stuff like that. When you can't make money on low end volume builds, and can't sell enough high end systems that you can make a profit on, you have problems.

The only real money I have found in this business is in repair/upgrades, POS/retail system service/upgrades, and component sales where B&M is the competition, and service contracts.

The good old days of the 90's are long gone. Back in '95 you could turn $200+ profit on a system and everybody was happy.

This post has been edited by dpunisher: 08 January 2010 - 10:23 AM

In that case, should I remove the low-end systems altogether?

I agree with Dpunisher about the low-end, based on the fact that I'm a lower-tier person .

You can look online and easily see that there is no way that you are going to make it worth your time to compete not only with the OEMs...there are a large number of other vendors (take a glance at www.pricewatch and sites like that) who fill the same niche of the market.

The volume may be there but that market is pretty well saturated and exploited by now and your costs could never hope to equal those who are buying in bulk...hence, no margin.

Louis

This post has been edited by hamluis: 08 January 2010 - 05:29 PM

I 2nd the opinions above. I build custom computers here in Texas, my best profits are in upgrades. I have a bottom price point of $450.00 for $300.00 worth of parts. Also in sales you must draft a service contract for 3 years to compete.