I'm planning on selling gaming PCs by re-purposing old Dell Optiplex machines with a dedicated GPU. I'm looking at pairing an i5-3470 and RX 570 for $550 and selling on used marketplaces. Do you think anyone would want to buy this?
Edit: Should probably include a crucial piece of information, power supply will be replaced with something that isn't a bomb.
Techslow's cheapest offering is $599, with an RX 570 4GB (same as mine) but an i5-2500 and a bomb power supply. This PC would be composed of used components, apart from the power supply and SSD which will be purchased brand new, so I will still make a $50 margin (as I said, side hustle and I don't care about low margins since it's something I enjoy). This would be the best option with a budget below $600, would your opinion still stand?
You're too late.
The attraction with the Optiplex systems (or their equivalents from HP and Lenovo), was that it was the cheapest way to get a Quadcore CPU (from Core i5-2400 upto Core i7-4790k). This was in the era when the best out there was an Intel i7-7700k.
…then Ryzen happened…
The industry has evolved from 8GB DDR3 RAM, and 4c/8t CPUs, later to 16GB DDR4 RAM and 6c/12t CPUs.
Pretty soon the new Standard is going to be 32GB DDR5 RAM and 8c/16t CPUs.
In the meanwhile, AMD's APUs has been competitive. From their low-power V1065B SoC, to the cheap 2200G, to the good value 3400G, and now they have competitive Laptop APUs like the 4400U to the 4700U and 4900HS. Each of those listed will give the Optiplex a run for performance, if you pair these Dell systems with a PCIe dGPU (GT 1030, GTX 750, GTX 750 Ti). But won't be completely obliterated by the likes of the (GTX 1050, GTX 1050 Ti, GTX 1650) options either.
As someone who has built these systems before and recommended them, I would suggest against this business.mI used to follow TechYesCity (actually bumped into him irl), and even he knows the limits of this market.
TechFast makes it simple and affordable for people who aren't technical to buy and play. Optiplex systems are for personal builders who want a sleek HTPC, or as a simple unit for their kids.
With that said, be on the look out in a couple years time for more Office PCs.
We should see some new "Optiplex" getting sold from the government/businesses, and these bad boys will have AM4 motherboards, Ryzen CPUs, with DDR4 support. And whilst the r7-1700 might not be the biggest upgrade for someone coming from a i7-4790, those extra threads will be useful on modern titles and modern emulators (RPCS3, Yuzu, Cemu).
You're too late.
I've confirmed an RX 570 4GB for $140. You'd be surprised on Gumtree people are buying systems with these old CPUs and motherboards.
I'm going against all odds, but that's how some of the biggest successes happened right? (lol this is going to be a disaster) Wish me luck!
@Void: Good luck.
Just beware, you are at the total mercy of the market in snagging a cheap GPU. I had trouble finding a decent GTX 1050 Ti just 12 months back. And if AMD makes any new APUs with better graphics, (eg 16CU RDNA2 versus 8CU Vega1), you're going to find them decently performing against the GTX 1650. Well, then you're SOoL as these $500 systems will flood the market. Not to mention some ripper TechFast deals we've had in the past.
I'm just saying, your only competitive edge is "price" and that means "low margins". As I alluded to, the competitive edge used to be "performance" at good price, but that is no longer the case. If you happen to buy a GPU and it works out to be a dud or a lemon, well now you're at a deficit because its not easy/possible to get a refund sometimes. And testing these GPUs beforehand doesn't happen. There's also hagglers. And there's PiTA buyers. So it's all risk.
Minimise your risk, and keep the business as a hobby. That's my advice.
@Kangal: Definitely a hobby. I honestly don't care if I don't make margins, I enjoy mucking around with PCs, more so than gaming. I'm definitely not gonna try and make a living off of this or gamble $2000 and attempt to sell 4 systems.
A good person to ask would be Brian from TechYesCity, a popular Youtuber who makes his living doing exactly what you think he does. Buying used parts and assembling them into complete systems.
Idea sounds unique, definitely give it a shot.
I've been looking at computers a lot recently especially on gumtree.
There are a couple of sellers who do as you described above so you will have some competition.
As for me personally, I wouldn't buy something with parts so old second hand. It's a bit risky especially with no warranty. But those sellers on gumtree probably get away with it by putting RGB lights everywhere and marketing towards really casual gamers/enthusiasts who don't know much about PC specs etc.
Yeah it's the bloody lights! I live in Melbourne, and doing a search on Gumtree found nothing competitive in the price point. I will be replacing the power supply FWIW and hopefully my mediocre skills in Photoshop can draw buyers in. Hopefully if I can sell some for a start I can start delving into more modern budget systems. If not then the system is going to help my console peasant friend ascend :)
Are you going to get second hand psu and GPU.
If not it will be tough to make a profit because you will already lose at least $50 in "resale value".
Brand new power supply second hand GPU.
Can you do it? yes
Will you make a profit? No
Will you learn something? Theres a chance
Why wouldn't I make a profit?
Hagglers.
Margins are really small even for legit hardware stores…
Far better price/performance of new and even secondhand playstations and xboxes at that price point :/
7
Definitely. However PC has the advantages of being the best platform for competitive play with KB&M, the versatility of just… being a PC and also no paying for online play. Price to performance the XB and PS definitely win.
@Void: You're right, but the XB1/PS4 still have the better User Experience when it comes to the TV for "pick up and play" lifestyle. And also, you're guaranteed to a large extent to not be griefed by cheaters on consoles. And lastly, you generally have "better" games on consoles, since that's where AAA-titles throw their money at, and some of these are exclusive titles.
You need to put those things into consideration too.
PS: on a HTPC you can have Unlimited Backwards Compatibility, some great Game Mods (GTA V, Fallout 4, Skyrim etc etc), fun from Emulation (Switch, WiiU, PS3, Wii, GameCube, PS2, PSP, Dreamcast, PS1, N64 etc etc), and lastly you can have a better TV Show/Movie experience with your HDD loaded up with BluRay quality media.
Wow. The effort.
@Speckled Jim: Not sure why the down-vote?
But that's not even what I was alluding to.
The "big screen" feature on Windows10 isn't fleshed out well. And the lockscreen is annoying on HTPC. Even with Steam running in Big Box mode, you will have to resort to seeing the old/small Settings page and to use a mouse every so often.
Overall, it's not as cohesive and friendly interface. I should know, I've got both. The best thing about a HTPC is the features, as I've pointed out above, it is not about a seemless user experience (for that, get an Apple TV and live with those mobile games).
@Speckled Jim: Thanks, I feel better now ;)
Yeah, it's pretty annoying. But I have a wireless Logitech keyboard with touchpad, which is used everytime. Also have a transforming coffee table, so it's mouse friendly. Unfortunately SteamOS is obsolete, and Windows10 is pretty much mandatory for HTPCs (codecs, games, etc etc).
Yes there is a market. But I would not call that cheap. You can probably sell it to people who don't know better. But someone can put together an entry level system brand new for the same money. Also techfast can do the same for people.
How so? At $600 you'd end up with a 3200G, unless they themselves also go the Optiplex route. At the $550 price point I'm aiming for the cheapest thing Techfast offer is $599 with an i5-2500 instead of the i5-3470 that would be in my system.
Edit: Can pair Athlon 3000G with RX 570 at ~$580 brand new.
Is a 3470 better than a 3200G? Keeping in mind it is now 8 years old. You'd also get warranty with the 3200G. Not sure how accurate it is but passmark clocks the 3200G as way better than the 3470. https://www.cpubenchmark.net/compare/AMD-Ryzen-3-3200G-vs-In…
Also Techfast offers some pretty mad deals. I got my current PC for $600 from them. Ryzen 5 1600AF, RX580, SSD, 8GB ram. Albeit this was just before rona struck.
If you're confident in this plan you should just try it out and see. Be cautious and don't invest too much money. I'm coming with this argument as a PC and hardware enthusiast. I would assume that your target market would not be people like me. If you can market the product, you can sell the product.
Again, remember to be cautious. Don't invest too much money. More businesses fail than those that succeed. But if you keep trying you will eventually succeed and then it will all be worth it!
I meant you'd be using the integrated on the 3200G. To pull something off with the 570 at this price all that can be had is a 3000G, which is quite weak. Yeah Techfast deals are not very good right now during COVID. I'm only going to do one system, and see where it goes. If it succeeds I will maybe do another one, if not then I will find a use for this PC. I scored a mad deal on a used 570 4GB for $140 (asked about temps etc.) and will be using that in the system, maybe with the savings I can bump it up to a 4th Gen i5.
@Void: I dunno about the first claim. $50 more and you can do a full build with 3200G and a 570. https://au.pcpartpicker.com/list/FZkQsk
Drop the powersupply and go with a thermaltake or antec case/PSU combo and I reckon you could get pretty damn close to $550. Not exactly, but close.
Again though I don't think your target market are people who would build their own PC. Good luck with business! I do hope you succeed
Maybe?
For a kid I bought a Lenovo small form factor i5 at xmas, with the intention of adding a low profile 1050 it for $200 when his birthday rolls around. (Guess what our max budget is for presents!).
So DIY is under $400.
Add a bit because graphics cards are more expensive now, maybe $60?
Dunno.
Seems like a fair bit of drama ahead if you sell a ‘gaming’ pc and Karen’s demand refunds in 10months because they don’t play Skyrim 7 in HD.
I think you'll also find many Optiplexes dont use std. atx psus…
Further look into the legal implications of selling refurb PCs with Win10 on them… even with a valid Win7/10 key its a minefield.
Using a 7010 MT which does use a standard PSU. This will also help me get rid of my Techfast PSU for some $$ since no one in their right mind would buy it standalone. I'd just use the key that came with the refurbished Optiplex, I also doubt anyone buying such a PC would check.
power supply will be replaced with something that isn't a bomb.
Techslow's cheapest offering is $599… and a bomb power supply.
This will also help me get rid of my Techfast PSU for some $$ since no one in their right mind would buy it standalone.
Cos…it's a bomb?
Way to start your enterprise!
No, Techfast's lower end offerings are "bombs" as they use the Allied units. Mine was slightly higher end and came with the TT Litepower, not a bomb but just not a great power supply. Again, not an enterprise just a casual thing I can do to make some money every now and then.
Edit: On second thought all of this sounds really shady doesn't it? Maybe I shouldn't be calling Techfast's power supplies bombs when I'm pretty much at their level…
I hope you have a stash of full sized Optiplexes, I've seen a lot of different PSUs in various Dell PCs and I know the smaller Optiplexes have non standard PSU's or did when I last opened one up.
Yeah I'm getting the 7010 MT. It will fit. Might have to sand the DIMM clips because they could stop the GPU from fully seating. I'm just doing this for a one off test, I'm not banking on selling a bunch of Optiplexes in one go.
What is the point of asking? Seems your mind is made up.
Not with techfast here. Problem is you're only going to hook morons who dont know how old a 3rd gen machine is.
I also dont see much of a margin unless you are in the exlease business yourself so you're getting the old boxes cheap.