Selling custom-built computers - Can I install windows on them?

[Blue Banana]

Okay first of all, I know the title is a bit confusing so let's clear that up. I've recently expanded to doing sales. Now I've thought about advertising a few different custom systems and then build them up when a customer wants to buy. Now what do I do about the operating system? Putting a brand new copy of Win 7 with the PC is going to shoot up the price a lot. I have a legal XP Pro disc which doesn't need activation...can I use discs like that for every PC?

I have honestly never thought about how this is suppose to work so that's why I sound a bit like a noob in that regard.

 

[iisjman07]

I have a legal XP Pro disc which doesn't need activation...can I use discs like that for every PC?

By this, do you means a corporate XP disk with an integrated VLK license key off the 'net? You should never use this; it's illegal, it'll cause issues with your customers later down the road and you can very well be fined by Microsoft (I know someone who they came and fined).

You basically have a few of options:

1. Buy Windows (OEM)
   I can buy a copy of Windows 7 Home Premium 64bit OEM for £69.68 (you can get it slightly cheaper in the US). It's not free, but it's fairly priced for what it does. If you buy one of these you install it from the DVD and peel of the product key sticker, then apply it to the PC, and everything is legal and happy
2. Install Linux
   Linux is free, and many distros are very easy to use. You could have this installed on the machine as a 'starter' level, and offer an upgrade to Windows 7 as an 'upgrade' (that's inverted commas because I wouldn't consider it an upgrade )
3. Go OS-less
   You can sell the computers without an operating system, there's no reason why you can't. But, remember to state that they don't have one otherwise customers may be back complaining the PC doesn't work

 

[Blue Banana]

Cool, I'll check around and see where I can find a bunch of OEM copies.

So basically there isn't a disc I can use for multiple installations across multiple systems?

 

[Robert]

Cool, I'll check around and see where I can find a bunch of OEM copies.

So basically there isn't a disc I can use for multiple installations across multiple systems?

Correct*. Microsoft want their money, and they'll get it one way or another!

*It's not actually the disc that's the issue, it's the license. You can use your own System Builder media to install or create an image, but each individual PC you build needs its own license sticker + key affixed, and the customer must be provided the original media that came with that key.

 

[ATTech]

On a related note, does anyone have any success with selling custom computers? I've had people interested and I've gone as far as pricing out the system for them, but nobody has ever actually gone through with it. I've always attributed it to the fact that the kind of people that will want a custom PC, will know how to do it themselves.

 

[pc-quebec]

On a related note, does anyone have any success with selling custom computers? I've had people interested and I've gone as far as pricing out the system for them, but nobody has ever actually gone through with it. I've always attributed it to the fact that the kind of people that will want a custom PC, will know how to do it themselves.

90% of the persons, who ask me a quote for a PC, purchase it from me. Because they know what kind of systems I build and the service I give too. And I don't give free support, by services I mean I customize their installation, go to their house or business, setup the internet and peripheral, and transfer their documents and pics from the old PC to the new one.

 

[James_S]

Where I work we build about 5-10 machines a month, and I've noticed that people are willing to pay a little more for our PCs knowing we put good quality parts in them and will support them compared to the junk over at Staples. I wouldn't recommend trying to build the cheapest computer possible, because you'll end up with junk and it still won't compete much with Staples or Best Buy on price once you include a legit Windows 7 license.

One thing you may want to look into is Office Starter 2010. The licenses are $5 each (but you have to buy at least 10 at a time) and the installation is fairly easy. You need to sign up for the Microsoft OEM Partner Center though, but its free.

 

[vdub12]

On a related note, does anyone have any success with selling custom computers? I've had people interested and I've gone as far as pricing out the system for them, but nobody has ever actually gone through with it. I've always attributed it to the fact that the kind of people that will want a custom PC, will know how to do it themselves.

I have great success. I sell 1 to 2 systems a month. My systems are not as cheap as the cookie cutters but I refuse to sacrifice quality. I also transfer data and set the systems up so the customer is not just getting a computer but also a service. For customers that would rather buy a 'name brand' I charge for setup and data transfer so in the long run the 'name brand' costs more. I use the 'quotes' on name brand because my 'generic' systems have better parts in them. In the long run you have to be a good salesman but you are in fact giving the customer a better deal. You just have to know the right way to express it to the customer without looking bias.

Okay first of all, I know the title is a bit confusing so let's clear that up. I've recently expanded to doing sales. Now I've thought about advertising a few different custom systems and then build them up when a customer wants to buy. Now what do I do about the operating system? Putting a brand new copy of Win 7 with the PC is going to shoot up the price a lot. I have a legal XP Pro disc which doesn't need activation...can I use discs like that for every PC?

I have honestly never thought about how this is suppose to work so that's why I sound a bit like a noob in that regard.

The copy of Windows that doesn't require activation can get you in to a world of trouble. Its far from legit. Don't get me wrong I am no saint, my test system that i am constantly infecting with viruses runs a non genuine copy of windows, in my defense its an old HP that has a valid license but it gets blown away every time I find a new virus sample and I got sick of entering the key and activating it multiple times a month. However, I would never use a non genuine copy of anything on a customers system. You can't do business that way if you want to survive. Eventually enough customers will get flagged for non genuine copy's of software and you will get a bad name because of it. Also Microsoft will give the customers a license for turning you in.

I agree the price isn't fair, Dell spends $12 each for Windows licenses and we have to pay $100, but we have to deal with it. The best way is don't build cheap systems. Right now many of my quad core systems are close to the price of Dell and I make a very decent profit on them. The best recommendation I can give you is build good high quality systems with a good markup and include the setup and data transfer service with them.

Where I work we build about 5-10 machines a month, and I've noticed that people are willing to pay a little more for our PCs knowing we put good quality parts in them and will support them compared to the junk over at Staples. I wouldn't recommend trying to build the cheapest computer possible, because you'll end up with junk and it still won't compete much with Staples or Best Buy on price once you include a legit Windows 7 license.

One thing you may want to look into is Office Starter 2010. The licenses are $5 each (but you have to buy at least 10 at a time) and the installation is fairly easy. You need to sign up for the Microsoft OEM Partner Center though, but its free.

I was going to include Office Starter on systems but instead I have gone with libreoffice. I believe its better then office 2010 and as long as the customer doesn't need outlook then they are fine.

My systems come with the following software
Firefox
libreoffice
CDBurnerXP
VLC
The Gimp
Foxit reader
MSE

I have found that this list is a perfect combination for people to be able to use there systems and by me providing that base software it stops the customer from installing other alternatives that can give them problems like Roxio, powerDVD, etc.

 

[glricht]

My systems come with the following software
Firefox
libreoffice
CDBurnerXP
VLC
The Gimp
Foxit reader
MSE

I have found that this list is a perfect combination for people to be able to use there systems and by me providing that base software it stops the customer from installing other alternatives that can give them problems like Roxio, powerDVD, etc.

I install a similar list of programs. I used to install Foxit Reader too, but the new Adobe Reader 10.0.1 is actually quite good, no bloatware, small footprint, etc. (can't believe I'm saying that about an Adobe Reader pgm)

 

[pc-quebec]

. .... my test system that i am constantly infecting with viruses runs a non genuine copy of windows, in my defense its an old HP that has a valid license but it gets blown away every time I find a new virus sample and I got sick of entering the key and activating it multiple times a month. However, I..

You means you reinstall Windows everytime ? ....... Why you don’t use something to clone your windows, and use that clone, or use windows 7 with a recovery disk or more fast a VM to do your testing..... None of the solution I’m using demands a reinstallation of windows or activation and I still use legal copy of MS.

 

[James_S]

I was going to include Office Starter on systems but instead I have gone with libreoffice. I believe its better then office 2010 and as long as the customer doesn't need outlook then they are fine.

My systems come with the following software
Firefox
libreoffice
CDBurnerXP
VLC
The Gimp
Foxit reader
MSE

I have found that this list is a perfect combination for people to be able to use there systems and by me providing that base software it stops the customer from installing other alternatives that can give them problems like Roxio, powerDVD, etc.

LibreOffice is a good alternative and most people don't really care as long as it works. The nice thing with Office Starter though is that it installs the full version as well and all you need to do is put in the key to use it.

You may look at Paint.NET as an alternative to GIMP. I've used GIMP before and I love how powerful it is for a free photo-editing program but it is not easy to use for the typical computer user. Paint.NET is nice if someone needs something more capable than MS Paint but is still easy to use.

On another note, how much do you guys markup builds? I've been trying to convince my boss to lower the margins a bit to compete better with the big box stores. I feel that people are willing to pay more for a custom PC to support a local computer shop that they trust but after a certain point the price difference becomes too much. Lately we've been selling machines with i3 2100 CPUs, 4GB RAM, 1TB HDD, Windows 7 Home Premium, Office Starter 2010, good PSU, and decent cases for $800 with keyboard and mouse but not monitor. We have a little over $500 in them in parts. Do you guys think that is too much or about right?

 

[vdub12]

You means you reinstall Windows everytime ? ....... Why you don’t use something to clone your windows, and use that clone, or use windows 7 with a recovery disk or more fast a VM to do your testing..... None of the solution I’m using demands a reinstallation of windows or activation and I still use legal copy of MS.

Most rouges can detect VM's so now I use a real system. Before I use to use VM's with snapshots and that made it easy. I have found it to be just as easy to install the base OS then it is to restore an image. I use DriveimageXML and to restore I have to first blast the old MBR and partition table then reboot and recreate a new partition. Then reboot again and restore the image and finally reboot again in to recovery console and run fixboot and fixmbr. Its easier to just blast the drive and reload from the CD. Most updates are slip-streamed and I infect the system in its virgin state most of the time with out an antivirus. I have timed it both ways and it takes about the same amount of time but restoring the image just takes more steps for me to have to do.

LibreOffice is a good alternative and most people don't really care as long as it works. The nice thing with Office Starter though is that it installs the full version as well and all you need to do is put in the key to use it.

You may look at Paint.NET as an alternative to GIMP. I've used GIMP before and I love how powerful it is for a free photo-editing program but it is not easy to use for the typical computer user. Paint.NET is nice if someone needs something more capable than MS Paint but is still easy to use.

On another note, how much do you guys markup builds? I've been trying to convince my boss to lower the margins a bit to compete better with the big box stores. I feel that people are willing to pay more for a custom PC to support a local computer shop that they trust but after a certain point the price difference becomes too much. Lately we've been selling machines with i3 2100 CPUs, 4GB RAM, 1TB HDD, Windows 7 Home Premium, Office Starter 2010, good PSU, and decent cases for $800 with keyboard and mouse but not monitor. We have a little over $500 in them in parts. Do you guys think that is too much or about right?

I have been happy with the gimp but I do see your point, its pretty advanced. Is paint.net cross platform?

Your system markups are a little high. I don't really want to post my markup but I am not making quite that much on systems.

I sell mostly AMD dual and quad cores with one Sempron system. They range from $600 to about $750. I make good money on them and they are all based on good parts. I use ASUS motherboards, gskill or crucial memory, WD drives, Liteon burners, and I put it all in to an Apex case. The cases are considered cheap but I have been using Supper Cases for years and have had great luck with the Apex power supplies and for an affordable case there pretty high quality. I built a system out of a Roswell case a while back and it was complete crap. I will never use one of those again, they are like tinfoil.

 

[James_S]

I have been happy with the gimp but I do see your point, its pretty advanced. Is paint.net cross platform?

Unfortunately Paint.NET is Windows only because it relies on the .NET framework (hence the name).

Your system markups are a little high. I don't really want to post my markup but I am not making quite that much on systems.

I sell mostly AMD dual and quad cores with one Sempron system. They range from $600 to about $750. I make good money on them and they are all based on good parts. I use ASUS motherboards, gskill or crucial memory, WD drives, Liteon burners, and I put it all in to an Apex case. The cases are considered cheap but I have been using Supper Cases for years and have had great luck with the Apex power supplies and for an affordable case there pretty high quality. I built a system out of a Roswell case a while back and it was complete crap. I will never use one of those again, they are like tinfoil.

I thought so, hopefully one of these days I'll convince him that less profit but higher volume is the way to go for the basic machines. Your build is about what I had in mind actually, both in parts and price. I'll have to give the Apex cases another look, we usually get the Rosewill cases and I hate them. Cheap metal, cheap fans, etc. I wish Antec would build a relatively cheap but sturdy microATX case. Say what you will about the component quality of HP or Dell desktops, the cases they come in are well built and feel sturdy.

 

[vdub12]

Unfortunately Paint.NET is Windows only because it relies on the .NET framework (hence the name).

That's what I figured.

I thought so, hopefully one of these days I'll convince him that less profit but higher volume is the way to go for the basic machines. Your build is about what I had in mind actually, both in parts and price. I'll have to give the Apex cases another look, we usually get the Rosewill cases and I hate them. Cheap metal, cheap fans, etc. I wish Antec would build a relatively cheap but sturdy microATX case. Say what you will about the component quality of HP or Dell desktops, the cases they come in are well built and feel sturdy.

Apex cases are nice. However, they do make some ones that I don't like. The one I use right now is the PC-375. Its a solid case.

Most of the cookie cutters do use reasonable parts but not in all there systems. Like Dells mid range systems use ASUS motherboards. However the junk you find at Wallmart is just all crap.

 

[numnutz]

James that seems like a fair price I am building similar machines for 899. with a monitor. where is everyone getting there oem software though. I saw a note on this thread saying winows 7 home premium for under $69.00? Is that from a legit wholesaler? Pricing i'm getting is $90+

 

[vdub12]

James that seems like a fair price I am building similar machines for 899. with a monitor. where is everyone getting there oem software though. I saw a note on this thread saying winows 7 home premium for under $69.00? Is that from a legit wholesaler? Pricing i'm getting is $90+

That was £ not $. £69 is about $99

I get mine from NewEgg.

 

[numnutz]

Yea I saw that then it said a little less in US so was not sure, thanks. $99 sounds about right

 

[vdub12]

Yea I saw that then it said a little less in US so was not sure, thanks. $99 sounds about right

$99 sounds like what it is but its not right.

I think Windows has always been way to expensive.

 

[James_S]

I think Windows has always been way to expensive.

Not only that, the licensing requirements are a nightmare. Technically, OEM copies are only supposed to be installed using the OEM Preinstallation Kit onto a custom-built machine that is for resale.

 

[vdub12]

Not only that, the licensing requirements are a nightmare. Technically, OEM copies are only supposed to be installed using the OEM Preinstallation Kit onto a custom-built machine that is for resale.

This is correct. If you want to install windows on a system you already own they want over $200 for it.

Honestly I truly believe that if it wasn't for piracy Microsoft would have lost the battle to Linux years ago.