OEMs beat white box on low end, but not the high end
A while back (summer of 2003), I spent my days off working at a small computer shop in the middle of nowhere. We were deep in rural South Carolina. As in, “can’t get cell phone reception” and “literally a one stop light town.” The shop itself was so small that it occupied a spare bedroom and the living room of the owner’s house, and I was the only employee. Before I started working there, I had always assumed that the “big companies” like Dell, Compaq, and so on were rip-offs. I had always assumed (and I may note, it had always been true until sometime early this decade) that building your own PC was cheaper than buying a true OEM machine. Well, by the end of that summer (believe me, our customers were not “high end” or even “mid-range”), I realized that the white box market was dead for the most part on the low end. The OEMs were selling a full machine (including a copy of Windows and shipping/handling) for less money than the parts would cost us. Ever since then, when someone has asked me if they should custom build a PC or buy an OEM PC, I tell them to go with the OEM model unless they have very specific needs that can’t be met.
Well, I have always considered my own needs very specific, so I never looked at OEM stuff before. For example, when I built my current PC almost three years ago, very few people ran dual monitors and that was a “must have” for me. In addition, I knew I wanted two RAID 1′s, and most OEMs were using motherboards without built-in RAID support. So I did it myself. Now, I am getting ready to replace this machine (technically, I will be turning the current machine into a server, and building a new desktop PC). After all was said and done, my parts list came in at just under $1,500. I could trim the price a bit, by dropping the thumb drive for ReadyBoost (I personally like ReadyBoost, I think it is an excellent idea), getting rid of the extra drive for backup purposes (not a good idea to drop it), halfing the RAM to 6 GB (do I really need 12?), reusing an existing case/PSU (instead of getting the Lian-Li/Seasonic combo I wanted), and so on. But I really don’t want to do that. I spec’ed it a certain way for a reason.
Remembering my PC shop experiences, I decided to see if the “big boys” could spank white box on the high end and well as the low end. I was stunned with what I saw. I looked at the “workstation” class PCs, since that is what I am building. First of all, what the OEMs had to offer was a lot of last year’s tech. On top of that, things that I thought would be common, were either not possible or extremely expensive (like RAIDs). And upgrades were unbelievably pricey. Basically, there is no way that the OEMs can beat a self-built system on this score.
Now, I do understand part of it. IT departments value consistency in the supply chain more than the best value; being able to swap a user’s drive into a replacement box and troubleshoot the hardware later will get a high-salaried engineer back to work a lot quicker than trying to solve the problem on their live box. Ditto for being able to just blast an image onto a machine. At the same time, I am baffled as to how the OEMs can think that they can charge what they charge for, say, a RAM increase, when every customer has a CDW or Newegg account. And of course, they may be willing to concede a lot of the market with the belief that most people looking on the high end are enthusiasts who always want a cutting edge, custom system that no OEM could profitably make. All the same, I was quite shocked to see just how bad the prices were on their high end kit.
J.Ja