Bulk purchasing of Windows XP/Vista

[Simmy]

Hi all,

I was thinking about selling computers on ebay as a way to make more profit, but I'm amazed at how cheap some of these companies can sell computers for and still make a profit!

Take this ebay auction for example ( link (http://cgi.ebay.co.uk/Intel-Pentium-DualCore-320gb-1gb-Ram-XP-Professional_W0QQitemZ120211190513QQihZ002QQcatego ryZ179QQssPageNameZWDVWQQrdZ1QQcmdZViewItem) ) the whole PC sold for £230 and somehow they still, presumably, made profit!

I've tried to build a similar spec myself and I just can't fathom it;

PC Parts: £180 delivered
Pentium D 925 (No idea why they're still using those. the E21XX series are just as cheap)
MSI Motherboard
Case and 400w PSU
1gb kingston ram
320gb hard drive
lite-on 20x sata dvd-rw

Software: £92 delivered
Windows XP Professional

Ebay ad cost and fees: Around £15

Credit card fee: £7

Deliver to the customer: £6

Total cost to build and sell: £300
Profit: -£70!

Now whilst buying bulk will obvisously help, just how much bulk do they have to buy to make this saving? Is it possible to make a decent saving by bulk buying Windows XP licenses?

[gunslinger]

I'm thinking the only way I could build that cheap is to use refurb parts, thats most likely what they are doing. I just built a system for a customer that said she had a $350 price limit. I ended up using her HDD and CD burner from the old system, a 350 watt PSU, AMD 3500+ , ASUS MOBO, and a gig of DDR-800 RAM. There was not a lot of profit in it for me but she is a good customer that brings me lots of business and I'll have her on the maintenance contract so more money will come later.

[Holzster]

Have you tried to be a M$ partner & get the Windows OEM licences?

Will be cheeper

Holzster

[Simmy]

I was wondering just how much cheaper it is? Does anyone have any figures they can share?

[NWPhotog]

I was wondering just how much cheaper it is? Does anyone have any figures they can share?

Not any cheaper than Fry's specials or Newegg type retailer.