Well there is a little thing called "value added". Dell assembles the system for you, tests it, and provides support for the whole system (even though the componants come from different sources). I think we should also assume that Dell is trying to make a profit, not just break even. And let's also asume that they have to pay emplyees, facility fees, insurance, etc... So adding $300-$400 seems fairly reasonable to me.
Let me ask you, if you build a nice system for around $850, including Windows... how much would YOU sell it for?
I belive I said BUSINESS as usual - and as well all know, businesses try to make money. But what I can make for $850 is not what they can make for $850. They have a bit more buying power than I do so comparing me to a multi-billion dollar corporation seems a bit of a stretch
Based on experience I would put their price at around $500 (If that). Now given their markup size and that fact that you can get a non-barebones PC from HP with a D940, 1GBRAM, DVDburner, 160GB HD w/ MCE OS for $1109.99 - or a similar from Gateway for $50 less - is why I wonder why so many people buy Dell
You don't provide 24/7 Tech support, onsite service for 3 years (standard on business systems) either. Newegg is always going to be cheaper, but if your system breaks after 2 weeks, you won't be calling Newegg for troubleshooting, if it were a Dell you can call them for help.
Besides, this is a free market economy, price is based on what people are willing to pay. Dell is not ripping off anyone, they are simply doing what they are REQUIRED to do (to their best ability) by law, increase shareholder value.
I don't belive I mentioned giving customer support. In fact I mentioned that comparing me to Dell was not a good idea. I am not a corporation of thousands of people. I also didn't say anything about buying from newegg. I compared dell's barebones PC to a full PC from HP and Gateway. I understand that Dell is trying to make money, hence the 'business as usual' remark - my comment is simply that I don't understand why people overpay for their Dells. I will say that Dell does sometimes give good discounts - but often, even with their 40% coupons, fall short of an HP or Gateway computer price (Which is why I speculate that they are the only computer company (besides Lenovo-mobile only) that lost market % last quarter. HP, Acer, Sony and Gateway all posted % gains