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System builders, do you think you're at a disadvantage when it comes to buying hardware at low prices? Think again. Sure, it's tough to compete against the Dells and HPs of the world. After all, they enjoy volume discounts as they buy hundreds of thousands of hardware components. But today even the smallest system builder can compete on price. How? By putting eBay to work for you.
In fact, it’s a lot easier to compete on price than you might think. If you take into account the huge expenses that a Dell or HP incurs—such as advertising, marketing, enormous global staffs, even the rent on all those offices, factories, and warehouses—it's pretty clear why their retail prices go so steep.
Most system builders don't have those kinds of lofty overheads, of course. And more importantly, system builders can offer much more than just a box. In fact, a custom system has more inherent value than any assembly-line machine. This is especially true when system builders offer custom packaged hardware/software solutions designed for specific markets.
The bottom line: There’s still room for the little guy. And eBay is a good source for getting discount hardware deals.
As background to this article, in my earlier TechBuilder Recipe, eBay for System Builders, I provided a basic overview on sourcing whitebox computer components though the eBay auction site. I also included tips on sourcing through overseas manufacturers. Plus, I covered niche marketing and product differentiation.
This Recipe will go deeper. Here I'll show you how to compete against first-tier manufacturers by sourcing hardware components. I'll look closely at the actual pricing realities on eBay and compar their available prices to those found at retail outlets. For example, I physically browsed the aisles of my local MicroCenter and Fry’s, then compared those prices to eBay listings, both the auction site's Buy It Now fixed prices and several of their completed auctions.
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