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Help! How the heck does ibp sell stuff so cheap?

 
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post #1 of 9 (permalink) Old 11-06-2017, 09:56 AM - Thread Starter
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First let me tell you where Im coming from. Ive sold hundreds of custom desktops on various online platforms over the past few years and turned a profit. I was always able to beat known prebuilders
because low overhead costs. For the most part this is true when we're talking about dell, Alienware, etc. However this year has shown a very alarming trend in the price of prebuilts just crashing down even as my costs go up (primarily memory).
Here is a prime example of something I simply cannot compete with once I add shipping costs, packaging, eCommerce fees and other crap. And believe me I can get stuff cheaper than 99% of the people here too. I dont get how they do this when they have to pay rent, insurance, employees etc. I get it, that its crap, but for the core components how do you beat this?

iBUYPOWER Ultra Gaming PC Desktop AM900Z
i7-7700k
gtx 1070
16gb ram (ddr4)
1tb hd
240gb ssd
Win 10
PSU 500w no rating (total crap - this is where they save a ton of cost but still)
cheap keyboard mouse
cheap usb wifi

$1299.99 (this price has not changed since they released this product earlier this year in april or so).

What are your guys takes on this?

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post #2 of 9 (permalink) Old 11-06-2017, 10:22 AM
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Bulk purchases.

Intel i9 9900K Coffee Lake @ X8 5309mhz (+47.5%)
AMD FX-8320 Vishera @ X4 5022mhz (+43.5%)
Intel i5 4690K Haswell @ X4 5013mhz (+43.2%)
AMD X4 960T Zosma @ X6 4870mhz (+62.3%)
Intel i7 6700 Skylake @ X4 4709mhz (+38.5%)
Intel i5 6400 Skylake @ X4 4588mhz (+69.9%)
2 OP pls nerf
(24 items)
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i9 9900K
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AsRock Z390 Taichi
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G.Skill 16GB DDR4 4133
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Mushkin Pilot NVMe 1TB
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Western Digital EZRZ 3TB
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Seasonic Focus Plus Gold 750w
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post #3 of 9 (permalink) Old 11-06-2017, 10:29 AM
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Even with just PCP you can beat them. And they buy stuff in bulk at much lower prices than what one can get in retail. That's how they make profit even at prices that seem ridiculous compared to retail buying individual parts. And if you have a decent shop around then you can actually ask them for a discount you know, make a list of what you want to buy worth a lot and they will give you something off. It's not always worth it but sometimes it can be.

They get the stuff by truck loads/containers, not boxes or single units.

PCPartPicker part list / Price breakdown by merchant

CPU: Intel - Core i7-7700K 4.2GHz Quad-Core Processor ($318.46 @ OutletPC)
CPU Cooler: Cooler Master - Hyper 212 EVO 82.9 CFM Sleeve Bearing CPU Cooler ($24.39 @ OutletPC)
Motherboard: Gigabyte - GA-Z270P-D3 ATX LGA1151 Motherboard ($64.98 @ Newegg)
Memory: Crucial - Ballistix Sport LT 16GB (2 x 8GB) DDR4-2666 Memory ($139.99 @ Amazon)
Storage: SanDisk - SSD PLUS 240GB 2.5" Solid State Drive ($74.99 @ Amazon)
Storage: Toshiba - 1TB 3.5" 7200RPM Internal Hard Drive ($42.39 @ OutletPC)
Video Card: NVIDIA - GeForce GTX 1070 8GB Video Card ($399.99 @ Best Buy)
Case: Rosewill - Galaxy-02 ATX Mid Tower Case ($24.99 @ Newegg)
Power Supply: Thermaltake - TR2 600W ATX Power Supply ($19.99 @ Newegg)
Operating System: Microsoft - Windows 10 Pro OEM 64-bit ($84.99 @ Amazon)
Wireless Network Adapter: Rosewill - RNX-N150NUB USB 2.0 802.11b/g/n Wi-Fi Adapter ($7.77 @ Amazon)
Keyboard: Verbatim - 99201 Wired Standard Keyboard ($5.99 @ Amazon)
Mouse: Kensington - Pro Fit Wired Laser Mouse ($3.99 @ Amazon)
Total: $1212.91
Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2017-11-06 13:28 EST-0500
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post #4 of 9 (permalink) Old 11-06-2017, 10:48 AM
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The prices don't seem to crazy to me. Your deals that are better than 99% of us must not be as good as you think they are.
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post #5 of 9 (permalink) Old 11-06-2017, 12:21 PM
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How much profit per machine are you looking to make?

The answer is simple - cheap labor with one standardized layout. The people assembling a pre built are usually lower skilled.

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post #6 of 9 (permalink) Old 11-09-2017, 07:53 PM
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Quote:
And believe me I can get stuff cheaper than 99% of the people here too
Warning: Spoiler! (Click to show)
Condescending hyperbole. No you can't. rolleyes.gif

The beginning of wisdom is this: Get wisdom. Though it cost all you have, get understanding. - Proverbs 4:7
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post #7 of 9 (permalink) Old 11-11-2017, 04:16 AM
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They save money by buying parts direct from the mfg. The parts they use only come with a 1 year warranty, unless you want spend $$$ to extended it.

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post #8 of 9 (permalink) Old 02-11-2018, 03:35 AM
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Quote: Originally Posted by bloomstomb View Post
First let me tell you where Im coming from. Ive sold hundreds of custom desktops on various online platforms over the past few years and turned a profit. I was always able to beat known prebuilders
because low overhead costs. For the most part this is true when we're talking about dell, Alienware, etc. However this year has shown a very alarming trend in the price of prebuilts just crashing down even as my costs go up (primarily memory).
Here is a prime example of something I simply cannot compete with once I add shipping costs, packaging, eCommerce fees and other crap. And believe me I can get stuff cheaper than 99% of the people here too. I dont get how they do this when they have to pay rent, insurance, employees etc. I get it, that its crap, but for the core components how do you beat this?

iBUYPOWER Ultra Gaming PC Desktop AM900Z
i7-7700k
gtx 1070
16gb ram (ddr4)
1tb hd
240gb ssd
Win 10
PSU 500w no rating (total crap - this is where they save a ton of cost but still)
cheap keyboard mouse
cheap usb wifi

$1299.99 (this price has not changed since they released this product earlier this year in april or so).

What are your guys takes on this?
I know another one you couldn't compete with 2. SnowBlind

i7 8700k
16gbs ripjaw 8x2
1tb hard
120gb ssd
1080ti gigbyte 3 fan white one with a white back plate
win 10
800 watt psu
A white case with a monitor on the side for a glass panel
I bought it for 1849.

I am unsure why you would think you could compete. It is like a small time department store, wondering why walmart can beat them at everything...

I am really unsure why anyone would buy a computer from some random person lol, i never did get that one. Putting a computer together is about the simplest thing anyone could do. I guess people like yourself though just play off their ignorance, and their make believe fears. I mean PC components are really strong compared to the average perception of them. You could literally take a CPU and whip it at the wall, and chances are its still gonna work.

I never could make money like that, i would just tell the person god just install it yourself it isnt hard. The hardest part would be sticking the cpu in, which could break it I suppose, which you legit would just have to drop it into the slot from like 5 feet backwards and try to push it against the motherboard.When clearly all over the MB, and CPU it has a arrow on which way it is suppose to go in. You didnt think your easy life of slapping pieces together that is easier than almost everything was gonna last forever did ya lol?

Putting a computer together, is easier than the easiest task of car maintenance, which would be changing the oil. There are people who 100 percent could not accomplish changing the oil. I mean I have seen suppose professionals mess it up multiple times. Putting a pc together ha, anyone could do it. It is less difficult than buying a shelf from walmart and trying to put that together.
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post #9 of 9 (permalink) Old 02-11-2018, 03:36 AM
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Quote: Originally Posted by SavantStrike View Post
How much profit per machine are you looking to make?

The answer is simple - cheap labor with one standardized layout. The people assembling a pre built are usually lower skilled.
HAHAHAH low skilled huh? Like you need high skill to put a computer together, get out of here with that nonsense. Putting a computer together is easier than making a mcdonalds hamburger. I can understand someone who just doesn't want to do it. I am sure though the majority of people paying someone like that to build a computer for them, would do it themselves if they knew how easy it was. Not to mention the fact that amazon, new egg, or the other places if you messed up 99 percent chance they would take it back. Not that you can mess up, unless you are just seriously impatient. I mean I have stuck a cpu in a huge vice meant for bending metal bars, and smacked it with a hammer and it flew on the ground, to get the lid off it still worked. The only weak part on a computer is in intels garbage design of the motherboard and cpu, with the pins on the motherboard that are flimsy.

So no I do not approve of people taking advantage of people's ignorance to make money. I am very happy people like him are going out of business.

Last edited by makasouleater69; 02-11-2018 at 03:48 AM.
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