Going from building to selling, should I?
Hello, I have looking to get some extra cash, still at school etc. and have been thinking what's the profit margin on pc building? I am going to do my first build soon and looks easy! What I have been thinking is, is it possible to make a good some of money. I know the retail profit margin is good, Dell make sh*t loads. So what do you think?
Here in lies the problem.
Computers by their nature have a TON of problems. Most of these problems have nothing to do with the build or hardware. These range from viruses to general user stupidity.
You as the system builder will be expected to solve each and every nagging issue that a user has regardless of where it stems from. You'll spend every waking hour, night and day either telling people to diaf and leave you alone, or solving their mundane issues that you had nothing to do with.
1. Dell makes money cause they pay a fraction of the price you pay for components.
2. The big builders like cyberpower will often beat the price you can build for cost.
3. What's your time worth.....If you make $50 on a box, how much time on the phone does it take before saying "You want fries w/ that ?" makes more sense ?
So using this build for instance (http://www1.euro.dell.com/content/products/productdetails.aspx/studio-xps-8100?c=uk&l=en&s=dhs&cs=ukdhs1&ref=dthp)
Mobo - £60 (bottom line)
CPU - £90
RAM - £70
OS - £70
Case & PSU - £60
HD5450 - £35
DVD - £15
HDD - £50
Total - £450
eBay fees - £40
£580 - £490 = £90 - Profit not bad, could make much more on other builds. (Higher the selling price = bigger profit)
First of all your a noob and have 0 experience. You will probably need help getting your first computers running. You can never sell as cheap as Dell ect....., why on earth would anyone buy a PC from you with no warranty, and no support, when they can buy from Dell ect..., and get a 3year warranty with support.
2nd the competition is steep on Ebay, I been trying to profit selling computers on Ebay for 2 years, I sell a few here and there, but it sure dont pay the bills.
Look at Ebays advanced auctions and see whats selling, and see if you can do it that cheap with free shippipng, and after fees. Also if you have no warranty support, you just shot yourself in the foot.
Your better of working at McDonalds.
Your fees are off, you forgot to add Paypal Fees, and shipping fees. Bye Bye profit. Also just so you know, no one will buy from you without a high feedback rating, and Ebay considers computers high risk items, and will put your funds on hold until you get positive feedback, or 27 days, or you can prove it has been delivered. So if your planning on selling and using the money to buy parts, forget it. The money will be tied up.
And when you get bad feedback from shipping a DOA PC, "it happens" or for bad support, you will get no sales once the feedback dips under 98% +