Friday, March 21, 2008

Are "Boutique" Computer Builders Just Exploitive Con-Artists?


The question was posed in a post over at DVice. I got very interested when the author basically stated that there is no way a person should spend $8K on a gaming computer, no matter what. In fact, he says that if someone is going to be buying that type of hardware, then "doing it themselves saves all sorts of money and lets them get exactly what they want. Lazier, richer people just pay other people to do it for them." Needless to say, I think that's completely off-base and a bit presumptuous, but I doubt he's the only person that feels that way. Maybe the issue needs some discussion.

First, let me say that I have no problems with DIY'ers. I'm a DIY'er. I wouldn't pay money for someone to build me a system when I know how to do it, can do it as fast as greased lightning (if I don't say so myself), and have fun doing it. In fact, the large portion of the enthusiast industry, which is near and dear to my heart, are DIY'ers and they feel the same way. Obviously, the author of the article is that type of person. Maybe you are too.

But not everyone is like that. Isn't that allowed? Just because someone who isn't a DIY'er wants a high-end, expensive machine, they shouldn't need to feel like there's a technical prerequisite to do so. It's entirely reasonable for someone to want the performance, the bragging rights, or just the luxury product experience without needing to be especially knowledgeable. Nor is laziness most likely a trait of these buyers, because if they're paying top dollar from a boutique shop for a cutting edge system, they're probably very successful in their own field. Maybe you don't build your own furniture - does it make you lazy if you buy it? If so, then you'd better be fixing your own car, building your own house, doing your own taxes, and doing all of your own landscaping too. Sounds like the definition of an unmarried indentured servant with no social life to me.

It's pretty simple to establish that it's reasonable that not everyone who wants a high-end computer is going to build it themself. So, then are they really wasting their money because they're paying more for their machine than the sum of its parts in retail? What about if they are even obviously paying a significant premium? This issue is really based around what a high-end system builder really does (or should do) and if whatever that is is worth it. The author of that DVice post insinuates that the boutique builder is just performing a rediculously expensive assembly service and/or jacking up the margin on the parts and ripping everyone off. If it were truly that simple, I'm sure I'd be at the front of the mob with my pitchfork in hand. But, there's obviously more to it, and maybe someone needs to actually lay that out because painting the picture that the service isn't valuable isn't a good message for our industry.


  • Research and Development: You might take for granted the day that nVidia or Intel announces a new product it's available for sale with their SI partners. There is actually quite a bit of work that happens in the background, validating that new technology and making sure it's playing nice with everything else that customers are going to want to put in the system. There's a lot of very specialized work and coordination that gets done there.


  • Pre-Sale Consultation: High-end system builds can take many hours of communication between salespeople and customers to finally get nailed down. If the customer is non-technical or even just very interested in the technology, it's going to be an even more complicated process. Unfortunately, knowledgeable computer nerds with people skills aren't a dime a dozen. They have to get paid too.


  • Assembly and Troubleshooting: Honestly, anyone can be taught to do basic assembly in a relatively short time - it's really not that hard. But what about when you start getting into advanced builds, like packing the machine full of add-on's, custom watercooling, case modding, or overclocking ... or all of them at the same time? Furthermore, DOA components are a fact of life in this industry, and that just makes a complicated build that much more complicated.


  • Support: This is probably the most important point. You spend a small fortune on a high-end computer, you want to be sure it's warrantied by capable, knowledgeable professionals, right? The best support you will ever get is from the very people who build that high-end rig, and that is one of the key strengths of the boutique SI industry. They will typically have direct links to engineering at the main technology companies, allowing them to support cutting edge technology direct with the creators. They key is that you're paying for the full experience, pre and post sale which ultimately is going to span several years. That's an important investment. What's that worth?


  • Running a Business: It's expensive. That fancy website, the nice design and photography, the online configurators, advertising and SEO, insurance, employee benefits, toilet paper for the bathroom, taxes, a roof over our head, shipping materials, RMA'ing bad parts. You live in this country too, right? Stuff ain't free.

There's obviously a lot behind the trimmed, neat delivery of an enthusiast-level, high-end computer. The work that goes into providing that luxury experience is extremely labor-intensive and anyone that's been in the business knows that the profit margins in this industry are not anything to get excited about (unless you're Microsoft). The fact of the matter, though, is there is a demand for this type of service. Understand that. The challenge is really to figure out which companies are actually providing the services that deserve the "boutique" label -- but, when you find that company, it's definitely worth it.

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2 Comments:

At 3/23/08 8:53 PM , Blogger Charlie said...

Well put. I was once one of those people in the mob with a pitchfork. It's easy to have that perspective from the outside looking in because all we see are the high prices but don't necessarily see all the benefits. The truth is that there are people who are genuinely thankful for good, reliable systems and good, reliable support--and rightly so.

Keep on PWNING Ed.

 
At 3/24/08 10:08 PM , Blogger Michael said...

Count me among the gamers who once built their own systems, but now prefer a reasonably priced but powerful system with a nice warranty. I don't have the time to put together systems like I used to, and I've noticed that the industry is passing me by in terms of specs and standards. I just don't know what a lot of this stuff means anymore. I'm happy to pay a bit more to have my system put together by a good company willing to stand behind its product.

 

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Ed Borden is the Director of Business Development at Puget Systems, a high-end custom systems builder.  More About Me




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