Selling ubuntu preinstalled computers

[Matthewthegreat]

I had a Idea that I might want to start a small on-line business selling custom built Ubuntu pre-installed computers. Do you think there is a large enough market to do this or is this just a crazy idea? Any tips?

[izizzle]

If you sell them cheap enough and still make a profit, it could be a stable business. After all, System76 (http://www.system76.com/) does the same thing and they seem to be doing well.

[ddrichardson]

Well, you'd be competing against Dell and System76 who already do it, so there must be a demand

[pastalavista]

There is a company doing that now.. System76 (http://www.system76.com/)
see how well they're doing.. I like the idea, but they charge too much. Cheaper to buy an Acer and put Ubuntu on yourself

[Swarms]

You have to do it right, otherwise I believe you will fail.

[zmjjmz]

No love for ZaReason (http://zareason.com)?
:(

[starcraft.man]

Well, you'd be competing against Dell and System76 who already do it, so there must be a demand

Call me sceptical but I don't think Dell will be in the business by the end of the year.

System76 and a handful of smaller outfits are still good, no reason we can't have more. Just ensure you've a good business plan, including suppliers, where your shipping and a website to sell through.

[gn2]

It's very difficult to start up in a new business and succeed.

It's pretty much impossible to do it selling a product that almost no-one wants.

As for System 76, occasionally someone will achieve the seemingly impossible, but don't expect to be able to do the same yourself.

You'll never know unless you try though, so good luck.

There are a few businesses doing it in the link in my sig, but I doubt many of them will be making big bucks from it.

[ddrichardson]

Call me sceptical but I don't think Dell will be in the business by the end of the year.
Why?

[aysiu]

As far as I know, System76 does not ship outside the US/Canada.

So maybe if you're in a country that doesn't have a lot of Ubuntu-preinstalled computers, and you're willing to have a very slim profit margin for a while, then you can succeed.

Linux users tend to be quite ruthless about pricing. For most of them, if a Windows-preinstalled computer can be found for the same price or cheaper, they'll go for the Windows-preinstalled computer.

[Swarms]

Sell from a country inside EU to other countries that are members of EU, then you don't have to worry about customs. :)

[KiwiNZ]

The profit margins are too fine for start ups to compete with the established companies.

This is why so many start ups fail with two years. There are other factors such as second year tax burden etc but generally its lack of profit margin making the enterprise not viable.

[tsali]

I have actually been down this road...

I built and shipped machines with Ubuntu (Feisty) and Via processors.

I was able to leverage open source, the low cost Via chipset and customer service guarantees to move these units at $199

I sold 231 of these machines.

Many of my buyers were skeptical about Ubuntu. First, many were elderly and had trouble even pronouncing "Ubuntu". So I offered an "at cost" OEM Windows guarantee. If they didn't like Ubuntu, I would install Windows XP OEM at cost within 60 days. I also offered phone support for the first 30 days.

I ended up retrofitting over 53 machines, and practically living on the phone supporting the remainder.

By the time all was said and done, I lost a lot of money on this venture. I continued to sell the remainder of my stock with WinXP installed at $250.

I had very few support calls on the Windows machines.

This venture did not work out well for me. General consumers did not find the Ubuntu and open-source adventure pleasant at all.

[arcdrag]

I would say it would be better to sell custom built rigs that have Ubuntu as an option as the OS along with Windows. Most people that buy custom built pc's do so for gaming...and not to many hardcore gamers are going to want Ubuntu as their primary os.

On the other hand the people that want crazily cheap PC's can usually get them from a mass producer like Dell for far cheaper than you can offer making them by hand (assuming you want to make more than $5 an hour for your work).

[aikiwolfie]

A number of OEMs are selling either Ubuntu or some other form of Linux on their systems. The key at the moment is tapping the right market. Like netbooks for example.

There's no point in selling Ubuntu machines to iPod toting teens. They won't be able to use iTunes. Similarly if you pre-install with grannies in mind then you need to do more than just a straight OEM install of the standard Ubuntu set up. You need to tailor the system to the consumer.

That is why Linux on netbooks works. It's been tailored to that purpose. Even then there have been a lot of returns. Apparently.

[starcraft.man]

Why?

Call it a well educated hunch. I just get that feeling from everything I've been reading about Dell linux and a few topics on the periphery. I'm pretty certain that by year's end Dell will be back to selling just Windows PCs.

Frankly, I never thought Dell's market was the kind of user that'd want to use Linux anyway.

Anyway, this topic a bit tangent to the OEM start up discussion...

[ddrichardson]

Call it a well educated hunch. I just get that feeling from everything I've been reading about Dell linux and a few topics on the periphery. I'm pretty certain that by year's end Dell will be back to selling just Windows PCs.

Frankly, I never thought Dell's market was the kind of user that'd want to use Linux anyway.

Anyway, this topic a bit tangent to the OEM start up discussion...
Ah I see, from your last post I thought you thought Dell was going under.

[aikiwolfie]

Dell never really seriously sold Ubuntu PCs. They were always buried in the bowels of their web site. Only the US ever got a decent selection of systems to choose from and the UK is now down to one Ubuntu option. The Mini 10.

The next PC I build will be a home build project.

[starcraft.man]

Dell never really seriously sold Ubuntu PCs. They were always buried in the bowels of their web site. Only the US ever got a decent selection of systems to choose from and the UK is now down to one Ubuntu option. The Mini 10.

The next PC I build will be a home build project.

Tell me about it. They don't even list Ubuntu as an option on the CA desktop site anymore, and we're down to just the Mini 9, 10, 12 netbooks and I'm not buying a neutered machine.

Have fun home building, good experience. It's advisable sometime to take apart an older machine first to understand all the parts and how they connect. It's not that hard really though. And be careful with the stupid SATA connectors. I HATE them.

[Swagman]

ALL my pc's have been home built.

Starting at 286 -> 386 --> P2 -> P3 -> K4 -> K8 -> K9

I've built around 30 machines over time. NEVER for profit... just as and when friends have asked. They always gave me a few bob for doing it.

I've only ever bought 2 versions of Windows outright... Win 95 (P2) Win2KPro (p3).. I went halves with my Bro on a Win98 upgrade disc.

The machines I built for friends were all dual boot XP & Ubuntu (from 7:04)

I made ALL of them sit there with me whilst I built it and installed BOTH O/s's on them, Explaining various stuff and answering questions on the way.

[ezsit]

From a buyer's point of view, I can easily get a cheap computer with Windows and install Ubuntu myself. I would do this just to get the Windows License and use it in the future if need be. Then again, I build my own systems because I enjoy it and it gives me complete control. I would hope more and more Linux users are doing the same thing.

I think most people interested in Ubuntu, and assuming they are new to Linux, would want and need Windows as a dual boot, just in case. If you are targeting the experienced Linux user wanting a cheap rig with Ubuntu pre-installed, you are shooting for a very, very, very small market segment, at least in the U.S. World-wide market could be very different.

Good luck if you try this business endeavor.

[speedwell68]

I think it is a great idea, but I don't think it will succeed.

[SuperSonic4]

I think it could work but you'd need to be strict about hardware compatibility. If I was going to buy a new computer I would immediately remove ubuntu and put arch on it so the only real difference would be in hardware compatibility

[aysiu]

Yes, the last few posts also bring up a good point. Even though I myself have never built a computer in my life and wouldn't know the first thing about doing it, a lot of Linux users (probably the vast majority) do build their own desktops.

So as long as you're selling laptops or netbooks with Linux-preinstalled, and they are cheaper than the Windows-preinstalled ones, then you're in business. I don't know how you'd be able to undercut the major OEMs, though.

[jersoncito]

Its not easy to sell Apple's computers neither.
We need to use some old marketing tricks: an artist, a famous person showing What we can do with Ubuntu. Like Apple with Mac OS.

We should donate some money to make the best Linux advertising ever.

[jersoncito]

Selling the results with the extra software. (open office, brasero, gimp, etc, etc, etc...no virus, more secure, stable....)Do not sell linux only. Sell the results with the programs. The solution, the security!
What if you reveal many of the easy ways to get Windows password?... a kind of FUD but really justified against windows?

[aikiwolfie]

Tell me about it. They don't even list Ubuntu as an option on the CA desktop site anymore, and we're down to just the Mini 9, 10, 12 netbooks and I'm not buying a neutered machine.

Have fun home building, good experience. It's advisable sometime to take apart an older machine first to understand all the parts and how they connect. It's not that hard really though. And be careful with the stupid SATA connectors. I HATE them.

Thanks. But I'm not new to building PCs :p

[aikiwolfie]

Yes, the last few posts also bring up a good point. Even though I myself have never built a computer in my life and wouldn't know the first thing about doing it, a lot of Linux users (probably the vast majority) do build their own desktops.

So as long as you're selling laptops or netbooks with Linux-preinstalled, and they are cheaper than the Windows-preinstalled ones, then you're in business. I don't know how you'd be able to undercut the major OEMs, though.

Some people who know how to self-build will still buy retail purely because it can be easier and faster. Not everybody who know how to do self-builds wants to come home from work to sit down and tinker with the guts of a PC.

Some times you just want to unpack the PC. Plug in and switch on.

[andrewabc]

You'd probably be better off starting up a linux shop locally assuming there are no other places that sell linux computers.

[ugm6hr]

A lot of small suppliers offer systems OS free; if you were doing that, there would be little problem in offering Ubuntu as a free (or very low cost) option.

Here is a UK example of an Ubuntu supplier who have been around for a while: http://www.efficientpc.co.uk/desktops/

Hence, it can work.

However, if you are considering making Ubuntu part of your core business, I would suggest trying to concentrate on niche markets where the margins would be expected to be larger, and the competition from bigger suppliers is less.

Examples:
Home theatre / Media centres
Network storage / Backup
Torrent boxes

Or some combination of all the above. They would obviously require customized Ubuntu's, which would increase the work...

You could also offer compatible remote controls, cabling etc for complete solutions. This way, your "Ubuntu Desktop" would be a sideline in addition to these other appliances / devices.