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FrostMyFlakes

Does LTT build PCs yet?

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Posted · Original PosterOP

So I tried to get a PC built from iBuyPower for almost $4k. It goes delayed for 2 months and when they sent it to me the cable management could have started a fire and the motherboard was damaged. Asking if the One The ONLY LTT peeps build PCs yet? after looking at how well they build PCs on vids Im more confident in them than companies atm lol.

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Just now, FrostMyFlakes said:

So I tried to get a PC built from iBuyPower for almost $4k. It goes delayed for 2 months and when they sent it to me the cable management could have started a fire and the motherboard was damaged. Asking if the One The ONLY LTT peeps build PCs yet? after looking at how well they build PCs on vids Im more confident in them than companies atm lol.

They don't have the man power to be in the PC building business. Their delays would probably be upwards to a year. 


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Linus Media Group is just that, a media group. They don't have the resources to also be a boutique PC shop, or the interest. Imagine, fielding customer support and also product orders and also dealing with this pandemic all at once out of nowhere. 

 

Their PC building guides are pretty suitable to replace any boutique PC shops though, perhaps DIY will be your next avenue?


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Posted · Original PosterOP

Yeah, The iBuyPower delay is a month or higher :( this is the cable management I got given with the PC. Sorry shitty phone pic quality lol

2020-08-24.png

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Also Linus himself said there isn't much in terms of margins to be made as a system integrator. And he worked as a product manager at NCIX, a local computer retailer here in Metro Vancouver so he would know the amount of money they were generating from NCIX PCs. Or lack thereof.

 

Plus it's not just about the cost of components and labor to build it, you have the time spent validating systems for stability because they have to warranty these systems. If you have two components that don't work 100% well together, they have to catch that before they get RMA requests for every unit sold. All that money, time, and effort spent means there isn't much left over in terms of profit.


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It’s all about the money. 
I would exspect them to build my PC if I would like something like a quad xeon platinum with 6TB Ram or something other mindblowing

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3 minutes ago, FrostMyFlakes said:

Yeah, The iBuyPower delay is a month or higher :( this is the cable management I got given with the PC. Sorry shitty phone pic quality lol

2020-08-24.png

Looks pretty crappy 😔

Maybe it was built by a trainee 

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Is that picture through a case window?

If it's the inside and there's no case window, I can see it passing an inspection like that, given they're behind. More a matter of it works, passes whatever tests they have, and having no obvious issues.

If that picture is through a case window, then that's pretty sad. With their backlog of orders, I imagine they're trying to get through as much as they can get the revenue in and avoid refunds/cancellations. Not a great look though.

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Posted · Original PosterOP

Its with the windows on. Tho the wires actually come out of the case cause there is no management for it. And through the front. Also something I didnt put was that there was a broken clip on the motherboard Im going to guess they broke it when assembling it so quickly. Which should have been addressed instead of sending it like that. And they stuffed it around the PSU which can be dangerously hot for both the PSU and wires. Quality over Quantity.

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3 minutes ago, FrostMyFlakes said:

Its with the windows on. Tho the wires actually come out of the case cause there is no management for it. And through the front. Also something I didnt put was that there was a broken clip on the motherboard Im going to guess they broke it when assembling it so quickly. Which should have been addressed instead of sending it like that. And they stuffed it around the PSU which can be dangerously hot for both the PSU and wires. Quality over Quantity.

The good ol' tuck and stuff method. Definitely not advisable, especially if they're shipping systems like that, since most of that will be dislodged in transport. Properly routing and zip tying obviously takes more time, so they skipped it, but that's a bad end result for a customer.

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7 minutes ago, LinusTech said:

We have no interest in the PC building business at this time. For the reason, see: https://netcapital.com/files/79756669-2bc2-454d-b4a5-c11022f14b6f/otherfinancial.pdf

Makes sense. Steep profit loss in that one year.

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7 minutes ago, LinusTech said:

We have no interest in the PC building business at this time. For the reason, see: https://netcapital.com/files/79756669-2bc2-454d-b4a5-c11022f14b6f/otherfinancial.pdf

Looks like A LOT of raw materials build up right before AMD and Intel launched A BUNCH of new stuff that made the old stuff functionally obsolete. 


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1 minute ago, SansVarnic said:

Makes sense. Steep profit loss in that one year.

:beard_rubbing_ensues:

Even in 2016... $300k net profit on $8M of revenue???

 

That's less than 4% net profit

 

Like, what?

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6 minutes ago, LinusTech said:

Even in 2016... $300k net profit on $8M of revenue???

 

That's less than 4% net profit

 

Like, what?

That's 300k on 8M revenue with a 300K increase in inventory that RAPIDLY depreciates (total of 600K). 


I'm going to forecast that they had ~200-400k of capital depreciation in 2017 (probably hard to sell Z170 and X99 systems with the 8700k and x299 CPUs being a good deal better and more cost effective) which basically means... the last 2 years (2015, 2016) were roughly break even... possibly worse if there's deferred depreciation that isn't really hitting the books. 

I could be reading this wrong. While I minored in accounting during undergrad, those skills ended up NOT getting used after I went into tech/data-science instead of trying to work on Wall Street (the Bay Street of the US)


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4 hours ago, George Vella said:

Yeah but recently, haven't you build a PC for a customer (https://www.youtube.com/watch?v=TCMKqA3lCJg&t=769s)? Was that for a youtuber or a one off? Would be quite interesting to know since the 'Customer' wasn't disclosed in the video

It will be disclosed later :)

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2 hours ago, LinusTech said:

It will be disclosed later :)

:turnip:

xD


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I think they would have to build up to it. Like how artists take commissions, just start with "We are going to build X PC's this month, but only if you're going to buy them." And when it gets to a point where the pre-orders are regularly filled as fast as they are made available, then you move on to making them in advance.

 

Though if I were doing it, I'd probably only build edge-case systems that use the current/best parts on a "manufacturer warranty only" basis, because if you're just looking for a cheap PC, you are better off buying one from Dell or HP, at least you have their warranty system. 

 

Though, IMO, getting brand labeling for LTT parts might be an easier first step. Parts like cable management straps.

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he got linus to reply. jeez


My (SOON TO BE) pc. Will build hopefully around christmas of 2020. 👉👌 pcpartpicker.com/list/rsF3x6

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2 hours ago, Kisai said:

I think they would have to build up to it. Like how artists take commissions, just start with "We are going to build X PC's this month, but only if you're going to buy them." And when it gets to a point where the pre-orders are regularly filled as fast as they are made available, then you move on to making them in advance.

 

Though if I were doing it, I'd probably only build edge-case systems that use the current/best parts on a "manufacturer warranty only" basis, because if you're just looking for a cheap PC, you are better off buying one from Dell or HP, at least you have their warranty system. 

 

Though, IMO, getting brand labeling for LTT parts might be an easier first step. Parts like cable management straps.

they have cable management straps, dont they?


My (SOON TO BE) pc. Will build hopefully around christmas of 2020. 👉👌 pcpartpicker.com/list/rsF3x6

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okay, so I felt the need to pitch in on this thread regarding building PCs to make money. Over the past 5+ years i've been selling computers and parts between college, so I think I have some experience to throw in. 

 

The profits above explain why PC building for money, for the masses, is not worth it, at least at scale. Building PCs is just too easy and there are too many competitors meaning it's basically a commodity service, like an oil change or dry cleaning. iBuypower makes very little specifically because they are trying to target the masses, except the masses want something reliable, fast enough, and most importantly, cheap.The only way to make money as a custom PC builder is to do something a little unusual, something not strictly "off the shelf". In other words, something that almost anyone with half a brain cell couldn't learn after a week of watching youtube videos.

 

Then there's the problem of computer parts depreciating rapidly, especially around launches of new products. You could spend 10 thousand dollars on some DDR4, only for intel to come out with a platform a month later that only uses DDR5. I've had this happen to myself personally when I bought some DDR3 only for DDR4 to be released 2 months later and cut my sell price by 10% overnight. 

 

So when is PC building worth it? If you are doing something very unique that probably requires specialized tooling. Think hardline water cooling, custom PC cases, custom paint jobs and hardware designed for very specific tasks (such as protien simulation or AI research). Some PC companies that do this stuff really well are Pudget Systems, BSmods, or protocase (Protocase only makes cases but you get the point). These guys all do something that a cyberpower or an ibuypower could never offer - a PC specicially tailored to the user and not just for anyone, but for them, and them only.

 

Now I have gotten around both these problems by selling PC parts I find at scrap metal yards. I pay commodity prices for old computer hardware, then sell it for 10x the price I bought it for. Even if the parts depreciates, I still made a profit. Some items are tighter than others (like RAM, RAM is quite expensive because it has so much gold in it), but for everything else I generally win out. Sometimes I even resell vintage PC hardware like Slot 1 and Socket 7 motherboards. The great thing about vintage hardware is it doesn't depreciate at all, in fact it appreciates in value the longer I hold onto it. Right now I have an Abit VP6 Dual socket 7 motherboard I bought for $15, and it's worth about $250 with the included pentium iii 1GHz CPUs. But I know that because this board is both uncommon and vintage, I can store it in an attic and come back whenever I want, and it will still be worth money. 

 

I don't see linus getting into Pc building "for the masses" anyime soon unless it's something like a collab with another SI for branding, like the Noctua CPU coolers. However I wouldn't put past LMG getting into small scale highly customized PCs like they are doing with that one pyramid thing from a few weeks ago. They already have an entire shop full of tools and two engineers on staff. Might as well put them to use.

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