Build vs Buy Computers

sethay

Member
Reaction score
1
We have always built our own computers and servers. We have been happy with the quality and fine with the margins. However, as we grow we are realizing how hard it is to properly quote, order, build, and deliver these systems to the customer when we have a couple custom builds per day.

We have concerns about selling from one of the major brands, such as Dell, HP, Lenovo, etc for a few reasons. The customers preconceived opinions about the hardware. The loss of the brand awareness/advertising that currently accompanies each system we sell that is branded as our company. Even slimmer margins.

Optimally we would love to find a company that sells primarily to vars that would allow us to brand the systems as our own.

Are there any companies out there that allow branding? Also, I would be open to suggestions on which 'big name' to use for custom built desktops along with the perks of using that particular company.

Thank you!
 
We still focus on Dell, HP, Lenovo, ....only their business grade products.
Dell Optiplex workstations, Precision workstations, Latitude and Precision laptops, and PowerEdge servers.
HP Elite Business Desktops, and HP Proliant servers.
Lenovo
Clients perception of quality...it's easy, Tier-1...stick with the better products. Don't do the "100 series" entry level stuff, and don't do the "residential grade" stuff.

Main reason...compatibility, good 3 years warranty, and support.
Easy peasy support....anyone can call, troubleshoot, get a part overnighted to them...or even get a tech the next day...onsite...to replace the part.

Servers for clients with needed uptime...4x our warranty response from Tier-1.

Not many IT places enjoy supporting motherboard of the month club cloaners. I know I do...part of my agreement...any existing home growns...gotta get planned replacements in the near future.

Any IT company can support a Tier-1 brand. Home growns...suppose you get hit by a bus, and your poor client now has to go find an IT company to take care of them...most will not...or ...justifiably so..they're have higher rates for supporting cloners.

Ease of support for yourself is key too. Client has an issue, I know it's a bad power supply or HDD...while I'm at my office doing other work I can pull up my Dell chat support..and quickly get a part overnighted.

Or if it's a long distance client...I'll use an example...client a few states away, while at my office, I did Dells chat support...fairly quickly had Dell dispatch at tech to go onsite at my client and replace the system board in the laptop, the power jack was on the fritz. Took me what..10 maybe 15 minutes..of my time? I didn't have to get up out of my seat...nor drive anywhere. For an MSP client..that is more money in my pocket.

I enjoy building systems...I used to have a side biz building higher end gaming rigs, and game servers. Too much time, too little profit.
 
What's going to be best for your customers? Are they looking to get the cheapest piece of crap they can get? If so, sell them a new or refurb Dell and call it a day. However if they're looking for quality (and ESPECIALLY if you're going to put YOUR name on it), then go with either a custom build or a business class Dell/HP. I personally refuse to sell anything else. Even rebuilt units are always custom or business class. The home class garbage just isn't worth the headaches nowadays. With people coming in with 8 month old machines on a regular basis, I would be insane to try to sell that kind of stuff.

Can you please introduce yourself in the intro forum, before posting in the forums proper.

Full introductions are required as per forum rules.
 
I can completely agree with YOSC, save yourself some headaches and go with a good business grade product that has good business grade support.

You "might" not make quite as much on the hardware (in time you might actually make more money, as your reseller discount grows). However, you'll make MORE money in ease of support. YOU can resell dell's service.

Seems like a win to me.
 
I look at selling hardware as the opportunity to get margin-rich labor. As a solopreneur I can either price out all the components of a system to generate a quote, spend time putting it all together, and hoping nothing breaks during the warranty or I can buy a pre-built machine with the same specs for a similar price and not have to spend the time assembling it and having the manufacturer deal with any warranty problems. With business-class equipment I can get longer warranty options too.
 
I see computer systems as a complete commodity these days but as an opportunity if you add value to it. Whenever a client asks me for a quote I include (I don't quote it separately) setup and any data transfer labor from an old system. This way they aren't purchasing a commodity they are purchasing a solution that will let the user hit the ground running.
 
Thank you for the thoughtful replies!

A question about going with one of the major brands. Are you able to sell for a similar price that the client can find them online? One problem we have run into is if we quote a specific model to a client, they can Google the model and find it for significantly less on Amazon or something similar.

How do you deal with this?
 
Thank you for the thoughtful replies!

A question about going with one of the major brands. Are you able to sell for a similar price that the client can find them online? One problem we have run into is if we quote a specific model to a client, they can Google the model and find it for significantly less on Amazon or something similar.

How do you deal with this?

Not always.
My approach depends on the client.

First and foremost....is that you, the IT person, are selecting the proper business grade models that your client should have in their network. (I'm assuming we're talking about business clients, and not residential).

I'll pick the models of computer I want, and look at the price I get. For HP and Lenovo..it's hard for a client to find the pricing. For Dell...it's easy...when I submit the quote for my pricing, I see what pricing I get back. If it's good pricing, I'll resell it. If I don't get such a good deal..and if it's a penny pinching client that I know will try to shop me online, I'll just forward the Dell cart to them and let them purchase it. I'm not going to waste my time arguing or haggling over price. They can bam their credit card for a month. And much to their surprise...they don't realize they're paying shipping on top of it. Often I don't. ;) (I get to LOL at their "so much for saving 15 dollars" attempt)

If I get a good price...I resell if it I choose.

With servers...typically you get a good discount anyways...so it's generally always worth it for them.

You get to submit for special pricing for things like *Competitive bids, and *Non-profit or *Educational clients also...which tend to give you much much deeper discounts. Doubt you see that with cloners.

Dont' forget...if someone wants to shop your prices...they can do that with cloners too. Easy to find cases, mobo's, HDDs, CPU prices at Newegg 'n stuff.

Our big money is made through our labor/consulting fees anyways.
 
While we're not able to white label, we do offer a range of products through the major manufacturers (HP, Dell, IBM, among others). In addition, if you are looking for authorized product, our authorizations make us one of the few companies with the ability to offer hardware to authorized VARs.

We're also sensitive to profit considerations. We can mix new and renewed products in a way that can help you maintain profit margins.

We also offer quick turnarounds, overnight shipping and configure to order on servers and workstations.

PM if you would like to discuss privately.
 
I am getting to where I like selling Microcenter's powerspec systems. Reason being I get all my parts at Microcenter, powerspec is their house brand, so something goes wrong, I unhook, take it to them, and they typically take care of it in-store or replace. Last couple have come with Windows 7 pre installed and an upgrade cd for Windows 8. Not bad. Good pricing too.
 
Just gonna rebump this. Its been on my mind recently as there is little to no profit in custom builds especially when it comes to dealing with warranty and part failures.

What do people use in the uk? White label is a plus but not necessary.

Thanks
Sam
 
Try these guys:

partner-program

They are recommended frequently on this forum. I usually stick with Dell systems but am getting a little bit annoyed by their reduced customize options on the website.

I have not ordered from equus but they've come highly recommended as a white box solution.

Just an update from us. At this point we are pretty sure we will be going with these guys.
 
Back
Top