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Well this is a bit excessive.... Your Opinions?

Last response: in Systems
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December 30, 2011 6:58:56 PM

Well, I'm in the process of updating my Cyberpower, Velocity Micro/iBuypower parts list, and while redoing the Velocity Micro Raptor Signature edition, I found the most marked up computer in my excel document!
Here's a link to that computer on their site: http://www.velocitymicro.com/wizard.php?iid=75

I've declined the New years $400 off offer as this list will be used until its updated in May, but I tried to keep as humanly close to what they say the specs are.
Here's my list of parts.
Raptor Signature edition Normal Price Velocity Price Savings
$2,595.86 $4,999.00 $2,403.14
Case Lian Li Case, simple/elegant, basically black version of VM. To be used on all VM PC's $89.99

MoBo ASUS P9X79 DELUXE LGA 2011 Intel X79 SATA 6Gb/s USB 3.0 ATX Intel Motherboard with UEFI BIOS $379.99

Processor Intel Core i7-3960X Extreme Edition Sandy Bridge-E 3.3GHz (3.9GHz Turbo) LGA 2011 130W $1,049.99

RAM Patriot Signature 8GB (2 x 4GB) 240-Pin DDR3 SDRAM DDR3 1600 $35.99

Graphics Card EVGA SuperClocked 012-P3-1573-AR GeForce GTX 570 HD w/Display-Port (Fermi) 1280MB 320-bit GDDR5 $329.99

Heatsink Antec Kuhler H2O 620 Liquid Cooling System $59.99

Mouse N/A

KeyBoard N/A

Thermal Paste N/A

Hard drive HITACHI Deskstar 7K1000.C 0F10383 1TB 7200 RPM 32MB Cache SATA 3.0Gb/s *2 $199.98

Screen N/A

PSU CORSAIR Professional Series HX1050 1050W $219.99

Sound Card N/A

Speakers N/A

OS Windows 7 HP 64bit $99.99

Media Reader Rosewill RCR-IC001 40-in-1 USB 2.0 3.5" Internal Card Reader w/ USB Port / Extra Silver Face Plate $14.99

Lighting N/A

Headphones N/A

Extra Fans N/A

Disk Drive HP 24X Multiformat DVD Burner $23.99

Network Card N/A

Blue Ray LITE-ON Black 12X BD-ROM 16X DVD-ROM 48X CD-ROM SATA Internal Internal 12x BD Combo $77.99

Bluetooth ASUS USB-BT211 Mini Bluetooth Dongle USB 2.0 $12.99


I would link all of these, but as I've included the prices, and I just copied this out of my excel doc. it was rather much work. As you can see, there is a 92% markup of the consumer cost of the parts. I'm willing to bet most of what I have to say that VM has a business account with at least one manufacturer so the markup is technically much higher, I just can't determine it.
I'll be finished updating the VM section of my list by tomorrow, I'm a bit buzzed and the screen's making my eyes hurt haha :D 

If you're interested in the end product of my list I'll post it here with full links and a download of the doc. if you want it. I'm doing this for fun when I'm stuck in my house waiting on things.
Also, if you think a part in my list could be replaced with a more suitable match, tell me, I want this list to be a close as possible.
-Allix-

More about : bit excessive opinions

December 30, 2011 7:59:41 PM

Not too much markup, imho.

There are a lot of things with much higher markups in the world.

Have you ever seen something with an Apple logo on it?
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December 30, 2011 8:07:24 PM

What I'm saying is that this is a rather large change from when I last did this. The average markup last year was 20% for this industry, with nothing going over 40%.
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December 30, 2011 8:14:28 PM

I wouldn't know, I don't do such things.

I do have a business degree, though, and I know quite well that 100% markup over cost isn't uncommon in the world.
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December 30, 2011 8:15:35 PM

Companies are always willing to charge you more for dumb,
and enough people would rather pay it than learn how to do something themselves,
that there creates a market, and as immoral and sucky as it is, it won't go away anytime soon :( 
Moto
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December 30, 2011 8:17:52 PM

And I'm not disagreeing with you. I'm talking specifically for the industry of Custom "Design Your Own" Computer companies such as iBuypower, Cyberpower, Velocity Micro, etc.
I realize that 100% markup isn't uncommon, take a look at a bottle of Coke and try to guess how much that cost to produce.
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January 3, 2012 4:12:07 AM

You also have to realize that a) companies have to pay themselves and their employees (because no one works for free) b) employers have to pay taxes and pay for benefits for said employees c) companies pay taxes on their profits d) they have to provide support for their computers, such as warranties and tech support e) that crap ain't cheap f) there are thieves who thrive on ripping people off, companies like these still get ripped off you know g) they have offices, utilities, warehouses. Again, all that crap is not cheap.

So such a heavy mark-up is to be expected. If I tried running a large computer company like that then yeah, you bet your sweet tail that there would be enough mark-up to cover all those costs, plus make enough of a profit to keep the company in the green for when times hit hard (such as, hey what do you know, an economic recession).
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January 3, 2012 4:22:05 AM

Value is in the eye of the beholder. If you feel as though these prices are higher than you'd like to pay then don't. If you feel like it represents a small enough expenditure to save you time, frustration, and headache then by all means.

Not everyone that chooses to purchase a pre-built machine is "dumb", some people just have more money than time or inclination. There's nothing wrong with that. Nobody can tell you if this is a good value for you. My suggestion would be to research the seller based on their customer support, service, return policies and then compare them to other sites that offer a similar service.

Good luck with it.
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