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Thread ID: 98823	2009-04-08 23:59:00	Do you guys make money on new systems?	Ferg (2559)	PC World Chat

Post ID	Timestamp	Content	User
763432	2009-04-08 23:59:00	As an exercise recently I compared a couple of systems from retailers, and then priced them up to buy the parts myself retail. There was hardly any difference in price, making me think I might as well just get the system already assembled to avoid issues, like my shaky hands breaking things (although I find a quick Heineken before working on sensitive parts works well) or compatibility issues. I appreciate of course assemblers pay wholesale for the parts, I pay retail. Anyhoo, out of curiosity, and maybe no one will answer due to commercial sensitivity, how much money do you assemblers expect to make from a system? Is it enough to cover the subsequent hassles associated with warranty issues? Or is it the add-ons (do you want fries with that..) that make it worthwhile? Interested to hear your opinions, from those in the know. Thanks	Ferg (2559)
763433	2009-04-09 00:08:00	very very little indeed. But there is a little bit more to be made on software and in particular accounting programs or specialist programs.	Bantu (52)
763434	2009-04-09 01:44:00	Actually building systems - not much, almost not worth the hassle - thats why when people start saying "its cheaper to get parts off of price spy" I usually say - Go for it. What you are getting when you purchase a new PC from system builders - is usually better backup, easier to have fixed if anything does go wrong, and the knowledge that you can Usually talk to the person/company that makes the PC, not some help line in india.	wainuitech (129)
763435	2009-04-09 01:53:00	Anyhoo, out of curiosity, and maybe no one will answer due to commercial sensitivity, how much money do you assemblers expect to make from a system? Is it enough to cover the subsequent hassles associated with warranty issues? Or is it the add-ons (do you want fries with that . . ) that make it worthwhile? Warranty doesn't come into it . Its under warranty regardless what my profit may be . You can buy the parts separate and the shop has a small markup on each . Or buy the lot assembled, in which case it probably comes out much the same or perhaps a bit less . I don't markup each part, just add a flat fee on a system . Makes no difference if that system is a basic internet box or a high end gaming system . Well no, its $25 more on a high end gaming system . The markup is not high at all, roughly the same price as a reasonable length of time repair job I may do . Sometimes I have quoted a system and then can't get exactly the items quoted so I'll have to to the next one up - and its my loss on the extra cost, not the customers . Like the last one I built - couldn't get a 650w Corsair so ordered the 750w Corsair instead . Could have changed brand but the Enermax was a lot more or I would have had to go down instead, which I don't do . Its happened with CPUs sometimes too, never had a customer complain yet that they had to settle for the next highest spec one . . . . . So profit can vary . . . . . . . . . Its not a lot, though, the profit on hardware, whereever you go, is small . Thats why so many online parts shops fail .	pctek (84)
763436	2009-04-09 01:55:00	when people start saying "its cheaper to get parts off of price spy" I usually say - Go for it. I don't. If they are looking at the same quality parts, and they are sticking with the more reputable shops, yes I'd agree. But Pricespy buyers usually only care about cheapest. They may win easily over me on that, but they sure won't get the same service. Most new PC buyers who buy off me, always get free training/help for a while. How long? Depends how fast they pick it up. I don't charge for that. Otherwise they might as well buy a Toaster SHop shitbox or a Pricespy bargain.	pctek (84)
763437	2009-04-09 02:05:00	I gave up quoting on systems. I tend to think quality over cost and anything I priced out was too expensive and the client would turn around and buy a Dell or an Acer or some crap from The Warehouse or similar. A few weeks later I would often get phone calls wanting HELP. Sorry dude use their Help Line.	Bantu (52)
763438	2009-04-09 02:10:00	I tend to think quality over cost and anything I priced out was too expensive and the client would turn around and buy a Dell or an Acer or some crap from The Warehouse or similar. A few weeks later I would often get phone calls wanting HELP. Yep. See this far too much. People just dont believe you when you say you'll regret buying from a toaster shop. Why did my PC fail just out of warranty? They want it for 6 weeks to fix it.. I lost all my data when it went away to be repaired. It came back with less ram than it had before... All those are very common things to hear. There is very little money to be made off new systems, but if only people realized what they were buying, it wouldn't be a problem. :( People who use pricespy are welcome to it - they normally are smart wenough to sort their own problems out. :p	wratterus (105)
763439	2009-04-09 02:14:00	Most people who compare prices in price Spy are capable of building their own PC any way - thats why I dont bother. BUT along saying that - I have had several people purchase the parts from various places, then call me back to say its to complicated and could I build it for then, and set it up - which I do - at a standard rate, as Pctek mentioned "roughly the same price as a reasonable length of time repair job " The fun begins when some component goes belly up - OK I can and sometimes do handle the RMA's if they have brought the parts else where - but they get charged labor for process - had they have brought the components from me in the first place - theres no charge if its within warranty. Many places try to undercut every one else - to get good discounts you need to either bring the components in yourself from overseas in bulk, or buy in bulk from local wholesalers in NZ - and Bulk I mean 100's.+ Once I looked at bringing in some cases - to get a whole $6 discount on each case than I could get from the wholesaler in NZ I would have to have brought in a container load min :groan: They may win easily over me on that, but they sure won't get the same service :thumbs::thumbs: THATS the key to it all - Good service from the local person/Builder - not some toaster shop.	wainuitech (129)
763440	2009-04-09 02:15:00	I charge 25% at least on top of my cost, not worth it otherwise. People who want me to lower my price will get a lower spec computer, I will not use crap components so I will never be able to build very cheap computers. Probally at a minimum I would aim for $300 profit, any less and it's not worth it. You have to factor in everything; Finding out what they want, and want it to do - 15 minutes Ordering the parts - 15 minutes The build - 1 hour Operating system install and update - 1 hour Drivers / Software / Nod32 - 1/2 hour Delivery and setup, chatting with the client - 1 hour There is 4 hours right there. My charge out rate is $90 per hour. People who think they can build their own via price spy are welcome to do so.	Rob99 (151)
763441	2009-04-09 02:20:00	There used to be a popular company in Auckland called "Ten PC" They charged 10% above cost on everything. 10% does not sound like a lot but others under cut them and they went bust. Many others have followed Ten PC out the door over the years and many will follow. Most recent is C1 shopping mall.	Bantu (52)
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