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| Buy | 56% | 455 votes | Total: 819 votes | |
| Build | 44% | 364 votes |
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I have been in business since Computer Unlimited was delivering boxes from the dorm of a college in Texas. Gateway was operating out of a barn in Iowa, and the star of the day was Northgate a company founded by a guy with a Jewish Romanian background. After a while Computer Unlimited moved out of the dorm, the owner dropped out of college and turned his company into a multi billion enterprise which is one of the few remaining original companies in the hardware business. The college drop-out is Michael Dell. Gateway moved out of the barn and these days is located in California. The original owner wore all the hats in the company, and I don't know if at this time he is still involved at all. However, since then the company went through a lot of metamorphoses, and today only the name and the logo is the same. In spite of the promising beginning, Northgate ended up like many other companies of that era in the history books...
When I started in the business, my intention was to buy the hardware and to make turnkey system for vertical markets. At that time, the private individuals buying computers were very rare and far apart. However there was a fever in the small business world for computers. I have always been a small operation interested in services more than in hardware. I was delivering the hardware only as a convenience to the customers. Those days it was a real adventure to buy and to set the hardware. Being small, I could not afford to spend a lot of time with it. My mark up was minimal, and my strength in the growing jungle was the knowledge which was very well paid.
Unfortunately at that time the boxes coming from the manufacturers were not too reliable. In all honesty, the problem was not with the quality of the hardware. The headaches were caused by the way the boxes were finished. The cables were not connected properly, the parts were not matched and it was not unusual to receive the box with parts moving in side because they were not screwed. The hardware itself was not really such a big problem compared with the way the system was configured with the software from the factory. Those were the glorious times of the King DOS, which by the way, once you understood what it was doing, it was easy to handle. One of the difficulties was caused by the fact that DOS came in different flavors, and it was compatible with the software in different degrees. As usual, the worst DOS I had to put up with was the one from Microsoft...
So after a lot of frustration, dealing with the configurations, and the technical support which was sparse and not always well trained, I had decided to buy the parts and put them together myself. Actually at that time, I discovered that the parts were cheaper than buying the whole box. I was making sure to connect all the cables right, to tighten the screws, and to load the proper operating system that I could tune myself. I was not only saving money on the hardware, but I was saving a lot of time in configuring the operating system and the software from the beginning.
I never kept track of how many people were on the market, but it was quite a challenge to know all the vendors. They were coming out faster than mushrooms after a rain. After a few years the weeds got out of the way, and the market for parts was thriving. It was a classical example of a developing market in the Econ class. And like in theory, after a while the market started to lose participants due to consolidations, mergers, and simply inability to compete. However the ugly term gray market was fading due to the acceptance of generic products and big distribution houses made it very convenient for small guys like me to make a decent profit.
Unfortunately the bonanza did not last too long. The once premium parts turned into commodities, and the big computer manufacturers went through a big shake up themselves. It was a time when Dell himself was hooked up to a life support to survive. Gateway was flirting with bankruptcy and the promising Northgate faded away.... When everything settled only a few of the market players survived and the computer themselves turned into commodities. One can obtain a very strong machine today for less than the price of a 100 meg drive of fifteen years ago.
So, the era of building computers by small guys like me has been over for quite a while. Especially today with the existence of 64 bit processors, which are coming down in price, it is still cheaper to buy an entry system rather than building up from parts. The instances when the parts are mismatched, or lose in the box, or the software is not loaded properly are only statistics, they are not a real concern any longer.
However, when dealing with more configurations for special applications it is still room for a profit in the hardware build up. If configuring a powerful system with a lot of memory, a lot of storage or a particular SCSI drive for instance, one can still make a buck.
But because most of the people need entry level or lower lever system, it is not wise to get in competition with the big names. I, and most of the people like me, are making money from consulting, and fixing or maintaining the boxes bought off the shelf.
It is amazing how the small businesses after so many years with computers are not yet disciplined enough to protect the software. On the other hand, it would be a real sad period when everyone would back up the software and there would not be a need for reloading the system or to salvage the data.
Usually when there is a crash, the first request is to reload the operating system (yes, Windows is still famous for crashes with data destruction). The first thing I ask is for the back-up. The answer most of the time is "what back-up?" Of course nobody has data that has to be saved at first. But after I ask questions they remember that they have some pictures that were erased from the camera, some spreadsheets that could be redone, but after a long time, and so on. So before I know it, I have to try to salvage what I can, because no matter how much the bill would be, it would not be more expensive than losing some of the items on the disk... In the end, the cost of the hardware itself turns into the most insignificant component of the equation.
So, to make the story shorter, these days, most of the times, it is cheaper to buy rather than built the computer.
Learn more about this author, Harrison Forbes.
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Build
The attractive prices of pre-built computer systems seen in retail outlets such as Best Buy and Future Shop prompt many to gravitate towards such systems, rather than build a computer themselves. PCs carrying the Dell, Gateway or Hewlett Packard logos suggest affordable price for a great new computer system, but that isn't always the case.
In fact, there are several definite disadvantages to buying store-built computers, depending on what each potential buyer wishes to use their computer for. Hardcore gamers already know that a store-built computer is a last resort for a family or individual on a cash-strapped budget. Given the choice, they would quickly opt to order custom parts, then break out their screwdriver set and put the whole thing together themselves. So, which users benefit from store built systems, and which users should build their own insane dream machines?
Store-built systems are generally reserved for the individual who wishes to own a simplistic, all purpose PC for their daily needs. This includes online shopping or banking, Internet surfing, E-mailing, MP3 storage and playback, and perhaps the occasional DVD movie or video file. This particular user doesn't frequently venture into the realm of high intensity applications such as HD movies, graphically rich video gaming, or video/animation work. For a fraction of the cost, these individuals can possess an all around capable machine that will keep up with generic tasks and get the job done efficiently. Senior citizens, inexperienced 40-somethings and jittery technophobes will definitely appreciate a computer that is already predesigned and ready to go, out of the box. Even the PC's XP or Vista operating system will come preloaded and configured with multiple applications already installed, such as iTunes, Nero Burning Rom, and a generic assortment of drivers to handle the system's hardware. Similarly, the student who is entering his/her first year of college may opt for a store-built computer to keep education expenses low, whilst giving them a machine to assist in their schoolwork.
However, in every industry, there is an enthusiast market who simply cannot be satisfied with the status quo. Just like individuals who customize their cars with frenzied aftermarket parts, today's enthusiasts want the bells and whistles. They want the best processors money can buy. They want a 30" LCD monitor with a 2-7 millisecond response time. They won't settle for anything less than a $700 video card that comes with an HDMI port, and is capable of outputting true 1080p high definition video. And yes, they will not tolerate anything less than 60 frames per second when playing Far Cry 2.
If that bit of technical jargon went completely over your head, then you should immediately stop reading this article, head down to your local Best Buy and take advantage of the great prices on new computer systems. The next part is definitely not for you.
Building your own PC gives you limitless options. Since PCs are, by definition, a vast collection of third-party hardware that works together under the leadership of a Windows-based operating system, the enthusiast is able to pick and choose their hardware of choice. Video cards, processors, motherboards, and even RAM all fall under various categories of power and excellence. Choosing the right hardware for a system is merely a matter of deciding how truly top of the line one wants their PC to be. As a small example, a hardcore gaming system consisting of an Intel Quad-Core processor, DDR3 RAM, two dual-linked HD gaming video cards and a killer 7.1 sound card can run in excess of $7,000-$10,000 if purchased from a major retailer. If a tech-savvy computer user can build the exact same system by ordering each individual part and assembling the machine from scratch, the price can drop to a much more realistic and accessible $4,000-$5,000. This isn't possible with store-built PCs, or MACS for that matter. The downside to building one's own PC is that the user MUST possess a great deal of experience when dealing with computer hardware. Putting an expensive machine together requires a great degree of electronics expertise. Inexperienced computer builders have meddled with things that should have been left alone, resulting in blown motherboards and smoke filled rooms. Even something as simple as standing on a carpet while building a PC can generate a static electric charge in the builder's body which can be transferred to the motherboard, killing it before the builder even has a chance to flip on the power switch. However, inexperienced builders need to start somewhere, so it is encouraged that they take on the challenge, but with caution and the help of a more experienced helper. Having a friend who knows a thing or two about swapping out hard drives or RAM would definitely be a wise move. Similarly, the inexperienced can Google any number of computer forums and post questions that more experienced users can help with. Posting a question such as "My budget is $3,000 for a new PC, so what parts should I buy?" is a fantastic way to get great advice from PC enthusiasts who can recommend great parts to create their custom dream machine.
Store-built PCs from such companies as Dell and Gateway do offer great value, but few users truly realize that this value can turn into a deficit in a relatively short amount of time. These machines are constructed as "dead end PCs," meaning that they simply cannot outlast their own limited hardware. Be warned that most of the parts inside these PCs are relatively generic and low grade. For instance, most companies like Dell and Gateway build their PCs utilizing motherboards that have video and sound cards built right in. Motherboard-based sound cards have come a long way, but MB-based video cards are another matter entirely. They can potentially run at a fraction of the power of high-end video cards, sometimes as little as 40%. Such a machine would be able to handle most of today's high-end games and HD applications, but technology evolves quite rapidly. Within 1 or 2 years, the store-built machine will show its age, and be unable to handle the newest generation of games and technology. Couple this with the fact that most big name computer brands assemble their machines in modest mid-tower cases with very little room for expansion, and the result is the same: a dead end PC with an incredibly premature lifespan.
The key to buying any computer is to pit price vs. lifespan. Computer technology outdoes itself every 3-6 months, if one follows the trends. Buying a low cost, store-built computer might seem like a great idea right now, but it will be obsolete much quicker than a high-end machine. On the opposite end of the spectrum, a high-end PC can run a user an average of $3,000 to $4,500 initially, but the hardware purchased to build that machine will give the PC a lifespan of 4-5 years. Though the initial cost will scare off most of the less tech-savvy buyers, it will prevent needless future upgrading in an attempt to squeeze more blood from a stone.
Again, to the average user who doesn't frollick in the gaming or media-rich world, a standard store-built PC will suffice. In fact, if one uses the computer to chat online, send E-mail, surf the Web, or download music, these $600-$800 systems will more than likely last for a very, very long time. In fact, it would be safe to say that the actual software would become obsolete before system's hardware. But for those who demand that their video games and HD applications look the absolute best they possibly can, it is much more advantageous and cost-effective to save up a good deal of money and build their own system by themselves, or with the help of a more seasoned computer expert. The payoff is well worth it.
Learn more about this author, Derek Draven.
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