"Did you see an ad for what looks like a great computer for only $499?"

(Did you read the fine print?)


When pricing computers it is necessary to compare “apples to apples” to arrive at the TRUE cost for a system. The newspaper and flyer ads are designed to catch your eye but you often have to read the fine print in order to get all the extra fees that add to the price. We all know that the computer business is very competitive and the prices are cut-throat to say the least. There are all sorts of hidden costs, add-ons and omissions. Price alone is NOT the way to buy computer hardware…

Here are some tips to help you make the best choice:

New or Refurbished? – Watch closely! Is that great deal for new or refurbished / reconditioned hardware? Often the ad won’t say… Buyer beware! Some vendors sell combinations of both to cut costs.

CPU Speed – When comparing processor speeds, make sure you verify that the CPU advertised is the one you will get at that price. Celeron CPUs are much cheaper than Pentium 4’s but the ads don’t always specify which “2.0GHz CPU” you are getting. The speed rating of CPU can also be confusing. For example, an AMD XP2600+ CPU runs at 1.917GHz but is often incorrectly advertised as 2.6GHz.

RAM Memory – The lowest cost PC’s still use older slower SDRAM rather than DDR RAM. Also, a lot of cheaper systems will use single channel DDR rather than much faster dual channel DDR. Apart from the RAM technology will be issues on the quality of RAM installed. Often generic RAM is used which is much cheaper in cost. Generic RAM can be problematic or unstable due to the questionable manufacturing, testing & labeling techniques used to cut corners on costs.

Integrated Video – For serious graphic workstations and gamers, integrated video is not always the best choice. Low cost systems may come or with no AGP port or with integrated video that cannot be disabled. That means you cannot upgrade or add a faster video card to customize your system.

Motherboards – Not all motherboards are created equal! There are several manufacturers that produce motherboards with similar specs but that vary wildly in quality and price. The availability of motherboard drivers, BIOS updates, technical support and advance warranty replacement for the heart of your computer is one of the most overlooked aspects of computer sales.

Hard Drives – There are several hard drive technologies available these days and there are cost differences and advantages of each. However, historically the hard drive has been the bottleneck in PC performance. Cheaper systems will come with older, slower HDD technologies such as 5400 RPM speed and smaller cache sizes. Higher performance systems will come with 7200 RPM drives with 8MB of cache and may even use the newer SATA interface for maximum performance. However, the cost will be higher but the benefits greater.

Mouse & Keyboard – The keyboard and mouse are very personal choices but be sure to watch if the system comes with an optical mouse or not. To supply a non-optical mouse in this day and age is nearly unthinkable unless the absolute lowest cost is the priority. Some systems don’t even include a keyboard or mouse in the price.

Proprietary Hardware – If system upgradeability is a concern, watch out for proprietary hardware such as cases, floppy drives, power supplies and motherboards. Most big name computers such as Dell, IBM, and HP use proprietary designs that cannot be easily interchanged. You will likely need to pay exorbitant prices for compatible upgrades and replacement parts.

Upgrade Prices – That new system $599 looks pretty cheap but if you want to add a monitor or CDRW drive you will likely pay well above the street price if you add one on. For example, one on-line vendor charges $140 for a 48X CDRW when faster 52X CDRW drives are normally sold for about $70. Sure you can buy one yourself and install it cheaper but there’s a catch! If you check the warranty details, you may be voiding your whole system warranty in the process… Usually the profit is in the “must have” upgrades you will need to order…

Software Loading – Watch out for crafty vendors who advertised that their systems come with Windows XP pre-installed. But wait! Read the fine print! They don’t always supply the CD media and CD activation key and will charge extra if you want them. The act is called “loading” and is most likely illegal. Legal pre-installations of Windows XP and Office XP ALWAYS come with CD media (or recovery media) and Certificate of Authenticity (COA) decals otherwise the software has to be deleted prior to delivery.

Warranty – Be sure to clarify the warranty details in advance when comparing prices. Generally, the cheaper the system price is, the shorter the warranty. These days it is not uncommon to see system warranties as short as 60 or 90 days. Some places only offer 30 days hardware warranty! Some RAM comes with a whopping 7 days of warranty! Many mail-order systems also come with very tricky warranty policies that end up costing the buyer more in the long run. It is not uncommon for big name systems to come with only 30 days of software support which is timed nearly to the second. After that, get out your credit card… Of course that is not always in the ad…

Support – Does the seller have a local warehouse or service center? Can you meet your rep? Is the support free or pay per incident? And for how long? The big mail order vendors make extensive use of 3rd party support companies who may or may not provide reasonable service. Since these support companies are only contracted by the vendor, they often do not have a vested interest in the quality of service and support that you will receive. Also, you may have to wait several days or weeks for a resolution to your problem – especially if you end up returning your system to the USA. Did you back up your data first?

Rebates - Sure the price looks good after the rebate but you may have to jump through a lot of hoops, wait a long time and act very quickly to qualify for all the rebates that net you that good price… Marketers count on the buyer’s laziness, forgetfulness or refusal to complete the rebate process. That $100 rebate might never be submitted to be honored and guess who lost out? Make sure you can clearly see the rebate rules & stipulations and calculate the true price accordingly.

Fixed Configurations – Beware of great deals that vanish as soon as you alter the configuration. Often the vendor will quote only the cheapest low performance parts that nobody will want just to lure the price shoppers. Sometimes altering the package ends up costing more than a comparable or better system from another source.

Shipping – With rising fuel costs, shipping can be a lofty hidden expense. It is not uncommon for vendors to add upwards of $130 freight for systems and $25 for each peripheral such as scanners, modems and monitors. Again, be sure to check the fine print!

You Get What You Pay For – Need we say more? If the price sounds too cheap to be true, it probably is.

Total Solution – Can you get all your computer needs from the same vendor? Why buy a printer here and some software there? A total solution will often come with the best overall cost of ownership and service capabilities.

Reproduced with permission - Patch Computers Ltd.