Why are complete systems cheaper than building your own?

[Yeff]

I just started looking at processors so I could build my own computer. It
seems to me that I would save money by getting a brand new computer off Dell
or Circuit City.

When I looked at the prices of the 3.2 pentium processor I wanted, I could
not believe the price.

Why is this so?

Economies of Scale:
<http://www.investopedia.com/terms/e/economiesofscale.asp>

 

[Gordon Scott]

I just started looking at processors so I could build my own computer. It
seems to me that I would save money by getting a brand new computer off Dell
or Circuit City.

When I looked at the prices of the 3.2 pentium processor I wanted, I could
not believe the price.

Why is this so?

As others have mentioned, you may get 1 part that can be qualified ie:
the 3.2 gig pentium, but without knowing the actual part number you may
end up with a celeron (smaller cache) 3.2 for example. The video card
would be integrated (really bad) as would the sound card (no biggy). The
ram would be some noname brand, the power supply a generic piece of crap.
The HDD would be a 5400 rpm and not a 7200.

These companys have to make a profit, so they will scrimp on part quality
after wowing you with the "3.2mhz processor" number.

Your best bet is to do some research and get the EXACT components you
want in the box and have someone build it for you. This includes getting
a good case.

Whats your budget? what do you do, or plan to do with your pc?

BTW your already screwed if your looking at an intel processor.

Gordon

 

[kwthom]

I don't build computers for a living, and most people don't.

Very few build computers (or anything...) for a living.

And most people
don't have money to throw away.

By "throwing away" money means you don't educate yourself on the inner
workings of a computer, yeah, give it to Dell, Gateway or HP - they'll
love ya all the way to the bank!

It seems to me I am thinking with my mind.
In fact, I am using my mind to ascertain the cost-benefit ratio of either
building my own computer or buying one online that already has what I want
in it.

Up front cost, yes, it'd be a bit more.

The value you get out of it is immense, if not for the fact that
you've learned what to do vs. what not to do in building your next
one.

I've built five machines over the last six years for myself, friends &
family - and I'm about ready to build another.

Every machine I've built still runs to this day. Did I over-build?
Yeah, but they're still functioning.