[loan4younow]

I sometimes see companies like dell, insight newegg etc etc selling computers way cheaper than anybody could possibly build them for, how is this possible? it might be economies of scale but i doubt it as all anybody else would have to do is buy enough parts and sell them on.

I mean the basic parts of a pc cost a certain amount that nobody seems to be able to get at a lower cost.

[WumibBesowe]

I sometimes see companies like dell, insight newegg etc etc selling computers way cheaper than anybody could possibly build them for, how is this possible? it might be economies of scale but i doubt it as all anybody else would have to do is buy enough parts and sell them on.

I mean the basic parts of a pc cost a certain amount that nobody seems to be able to get at a lower cost.

because they buy shitloads of everything.

bulk buys are inherently cheeper than single purchases.

[gennickO]

Basically just buying parts in large volumes or in the case of Dell, having parts such as motherboards made specifically for you (not sure if they actually make their own) and buying them in bulk. They don't make very much per machine sold, but sell 1,000 machines at a little bit of profit, and it starts to add up. Also, people usually buy extras with a PC, printers, cables, etc. Selling extended warranties is also another extra companies try to stick you with and those are pure profit (Staples, BB).

[WumibBesowe]

Basically just buying parts in large volumes or in the case of Dell, having parts such as motherboards made specifically for you (not sure if they actually make their own) and buying them in bulk. They don't make very much per machine sold, but sell 1,000 machines at a little bit of profit, and it starts to add up. Also, people usually buy extras with a PC, printers, cables, etc. Selling extended warranties is also another extra companies try to stick you with and those are pure profit (Staples, BB).

yeah accessories are used to make up the margins.


same sorta trick pc world uses to intise its imployees to sell loads of addons to Increase the margin expedentially but fail to tell the poor sod selling these Items with electrical goods its that get a pittance for what they make for the company on a sale.

and if the shop hits target the management get a bonus you never see poor DSG retail managers thats why they push employees to make money and hit daily targets

[gennickO]

I worked for Staples for about 6 months when I was in college. They had USB printer cables that they sold for 27 dollars with the fancy gold connectors. Staples paid about $2.75 a piece for these cables (It said this in the inventory system they used). They would give us bonuses and such if we sold so many cables with so many printers. I never met my bonus because I always told people to go across the street and buy the same cable at Wal-Mart for $9.00. It was an extra job at the time so I didn't need the money, I was just bored and had a lot of friends who worked there.

[Queueftof]

People buying from online retailers don't know how cheap they're actually getting things for. I know that Overclockers.co.uk, Komplett.co.uk and others are operating on a 3-5% profit margin. I know cause we buy our stuff from the same place they buy a lot of theirs from.

People like Dell tho will sell some PC's at a loss if they're end of line, just to clear old stock.

Also they buy their own brand of motherboard etc, so a board that might cost £50 for joe public may only cost them £15 from the original manufacturer.

[loan4younow]

People buying from online retailers don't know how cheap they're actually getting things for. I know that Overclockers.co.uk, Komplett.co.uk and others are operating on a 3-5% profit margin. I know cause we buy our stuff from the same place they buy a lot of theirs from.

People like Dell tho will sell some PC's at a loss if they're end of line, just to clear old stock.

Also they buy their own brand of motherboard etc, so a board that might cost £50 for joe public may only cost them £15 from the original manufacturer.

Wow 3-5% profit i don't know how any business could operate with those kind of margin's, suppose its best just to sell cables and perhiperals then

[gennick]

I sometimes see companies like dell, insight newegg etc etc selling computers way cheaper than anybody could possibly build them for, how is this possible? it might be economies of scale but i doubt it as all anybody else would have to do is buy enough parts and sell them on.

I mean the basic parts of a pc cost a certain amount that nobody seems to be able to get at a lower cost.

Yes of course it has nothing to do with economies of scale and is in fact simply a front for the global drugs trade that's were they really make their money smuggling drugs inside your desktop PC.

You had answered your own question there but then decided for some reason to doubt yourself. Low prices of components, efficient production facilities, and a largely direct to consumer sales model.

[Queueftof]

Wow 3-5% profit i don't know how any business could operate with those kind of margin's, suppose its best just to sell cables and perhiperals then

Well, an example is here:

http://www.eurowide-pc.co.uk/xpertvi...l-p-14341.html

That's a 512mb X1950Pro PCI-Express card at £102 inc VAT. It's bought from our supplier (as Xvision is their own brand).

It's costs £84 for 1, or £81 for 20 of. That's ex VAT. Meaning it costs them £95 inc VAT to buy. They're making £7 per card they sell. So about 6%.

[dittygari]

Well, an example is here:

http://www.eurowide-pc.co.uk/xpertvi...l-p-14341.html

That's a 512mb X1950Pro PCI-Express card at £102 inc VAT. It's bought from our supplier (as Xvision is their own brand).

It's costs £84 for 1, or £81 for 20 of. That's ex VAT. Meaning it costs them £95 inc VAT to buy. They're making £7 per card they sell. So about 6%.

that's unbelievable [surrender]