ANSWERS: 4
  • You can make money building anything as long as people are willing to buy it :)
  • Off and on, I have worked in places that did such a thing. Simpleminded entrepreueurs look at the price of each component, add, find a cost, then come to the remarkable conclusion they can make 20% or so revenue over cost (e.g., build for $600 in materials and sell for $720). If you hire a part timer and build 5 a day, that's $3000 per M-F week, $156,000 net revenue a year. Looks good. Then comes the costliness of dealing with bad parts in an industry with 10 to 30 percent warranty defectives. Then comes the pain of dealing with impatient customers while they are without their equipment. Then come the support phone calls, which eat up expensive time. You and your part-timer get so bogged down in the liabilities of what you've made that there's not time to build more problems. You have to hire a couple more bodies just to make a dent in the no-revenue warranty service, plus the extras you have to do to keep the customer's ire under control. Meanwhile various costs of doing business - rents, utilities, taxes, worker's comp, FICA/FUTA, arbitrary IRS judgments, escalating health insurance, etc. - start to mount. Then comes the aggravation of late-warranty and after-warranty repairs where original parts are unavailable, and substitute parts may require re-installing Windows and all applications, then dealing with the customers' anger and angst at their own negligence in not backing up their data. Then the technology prices and margins keep falling. If you are lucky, your $156,000 plan may pan out to $80,000 in the first year and you barely cover your costs, or at least do not lose your shirt too badly. If you are looking for an efficient way to make money, that is not it. There are exceptions obviously, such as Michael Dell. Dell has a lot of disclaimers when it comes to their limits of liability; disclaimers that an also-ran neighborhood build-shop would have a hard time standing by when having to deal with customers face-to-face.
  • The liberals could always go look for jobs, if that could ever happen.
  • Dell seem to, and they make a lot of customisable systems :)

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