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Selling Ubuntu on Refurbished Dells? Business Idea

Archived thread 1011577 from Dell Ubuntu Support (CLOSED). Markdown source: Dell_Ubuntu_Support_(CLOSED)/thread_1011577_Selling_Ubuntu_on_Refurbished_Dells_Business_Idea.md

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#1

I'm planning on starting a side business that sells used Dell computers with Ubuntu installed. There's a market for lower cost, reliable, computers due to the current US economy.

Are there any issues that I should be aware of when selling used computers with Ubuntu installed? Has anyone here doing that now, or done it in the past?

I'd love to hear ideas, success (or horror) stories.

thanks,

Matthew

#2

Lol i dont know about the dell part but yeah using ubuntu on refurbs is a very popular idea already among mom and pop computer shops.

I talked my old boss into doing it a while ago. The linux systems are VERY cheap but solid. And all running either ubuntu, SusE, or Zonbu (zonbu is crap, not my idea). I didn't work at their retail location very much and did development at a corporate location So i wasn't there enough to know how well the boxes sold tbh.

www.journeysystems.com

#3
#4

Here's an update to this thread.

I have actually opened a storefront in La Crosse, Wisconsin that sells refurbished Dell computers with Ubuntu. I just opened and most of my business is actually repair, upgrades, and removal of viruses on Windows machines.

I have sold one computer with Ubuntu already and hopefully more will sell soon.

I'd love to connect with other people who are doing something similar in other cities. It would be great to be able to compare notes and share information (as we wouldn't be in compitition with each other and a small community devoted to this idea would be beneficial to all involved).

#5

here is an idea

since both xp and barely capable vista machines are even slower when crippled with ever present virus protection, offer to set up dual boot for improved performance [free OS but not free install] and when asked how will it run have a spare HDD with ubuntu loaded to demo. [or just demo from the live cd]

#6

armandh,

thanks for the idea. I'm apprehensive about doing dual boot on other people's hard drives. I'd hate to cause a larger problem that results in data loss.

However, a "safe-mode" bootable external drive might be something that could be marketed. I don't think it would be very profitable, though.

#7

Everex/Gos tried this at Wal-Mart a few years ago. It didn't work because people can't figure out linux....even something as simple and user friendly as Ubuntu. It's easy to forget how difficult it is to transition to linux. I've been using it over a year and a lot of it is second nature to me now (especially with Ubuntu....far and away the most user friendly) but it is STILL not like windows and that is all that most people have ever known. They try, it's different, they bring it back. It happened at Wal-Mart and I don't believe linux desktops will ever be reliable/stable sellers until it moves more out of the fringe and more into the mainstream.

#8

cptr13,

thanks for the comment. I definitely considered your expressed concern. I think that I'll be successful in this because of my small scale. I don't have the overhead of a large store and most of my income comes from computer repair and virus removal.

It's been going well so far. I hope the trend continues!

I think things are changing. The economy is forcing people to look for lower cost computer (which linux can provide) There is also a whole demographic of people who only use a web browser when using a computer. Linux is great for people like that, too.

#9

Idea #2 don't pay a fee to recycle Custom refurbish and repurpose that old computer..... and if you have no need for an extra working computer give it to a 501[C][3]

old desktops can become media room boxes

my media room box is a 933 P-III with Ubuntu 8.10 fast enough to play DVDs and AVIs

#10

I do not see why this could not be successful, but the "confusion" factor is an issue.

For example, the story of the student who bought an Ubuntu Dell *by accident* and then couldn't bet online, or use .doc files or complete her University degree rings alarm bells.

I have myself donated / sold a few older machines with Xubuntu on. While most caused me no problem, I did sell a 8-year-old (Dell as it happens) laptop (Inspiron 5000e from memory) last year which was a less than pleasant experience. Despite a very clear "Windows not included" and "Xubuntu Linux Operating System" in the advert, and demonstrating this in person, and having a discussion why I would not be installing Windows on it, I received an angry email and phonecall the next day asking for his money back on the basis that "You can't sell a computer without Windows".

Just be aware that as a private seller, it was not too much of an issue for me. However, as an independent store, your customer relations are your biggest draw for future customers, and a single "bad" experience will be spread to 10 other potential future customers, which may impact on your main income stream from repairs etc.

Just something to consider: be prepared to support your customers for free for at least a month if you do this, and perhaps give refunds for those people who genuinely don't understand.

#11

My humble opinion...and what I tell people when I explain linux. If you're not prepared to make it a hobby, you may want to consider sticking with windows. It is impossible, even with Ubuntu to just slap it in there and have it run if you've only used Windows prior. There's a learning curve, there's ALWAYS a problem that needs solving and most people don't have the time or the energy or care enough to handle that. Like it or not....windows "just works". Ubuntu is the closest I've seen to this but iit still requires a lot of time and effort to learn if you want to do anything other then surf the web and check email.

#12

I forgot to elaborate one point. When I said "successful" I meant you can't build a business around selling linux boxes to normal people. You can sell them, and some folks will pick it up and learn it and be greatful, others will bring it back. But if you try to stick with that for your primary income.....well....I wouldn't do it just yet :)

#13

You could offer linux support.

#14

I'm interested in connecting with other people who are selling used computers with Ubuntu on them.

If you know of anyone, please leave a reply here.

thanks,

Matthew

#15

Well I wish you well and hope that you are successful. However, that being said, you must be aware of the various annoyances of Linux. For most of the people here in Forum, they can find resolutions. Can you imagine when the next kernel update comes along and all of a sudden they have their video resolution screwed up. They are going to be at your door with tar and feathers.

If you are to have a successful business you must really take a close look at your customer, it just cannot be someone right off the street. You must really educate them about Linux and they must realize that a lot of the updates they get could screw their systems up. All you have to do is take a close look in these forums and you will see the myriad of problems, e.g., screen resolution, sound disappearing, colors changing, etc. Of all the distros, Ubuntu is probably the best one, but while getting close to prime time, it isn't there yet.

#16

Thanks to everyone that's responded. I'm definitely understanding people's hesitation with selling linux on computers.

I'm confident that I can meet the challenges. I've sold two computers so far. While I agree that Ubuntu isn't quite ready for prime time, it will be soon. I want to be positioned so that my business is ready for that.

And for now, most of my money is made from repairing Windows computers.

I'm still interested in connected with other people who are doing something similar.

#17

MatthewMetzger said: And for now, most of my money is made from repairing Windows computers

Thought you might like to hear a positive story - check this thread!

wolfen69 said: i make all my money from pc repair and sales. that's what i do.

#18

MatthewMetzger said: However, a "safe-mode" bootable external drive might be something that could be marketed. I don't think it would be very profitable, though.

Don't use a hard disk, use a 2GB flash drive. Customize startup to remove the install to hard disk and check CD for defects items. Drop a link to your web site on the desktop ...

Also, I agree with those saying GNU/Linux is a hard sell - to the general public. To a small business - that's serious about doing business - not so much.

#19

I would recommend focusing on the small business Server market. Significant cost savings for businesses here, who do not desire to "shell out" thousands of dollars for Windows 2K/2K3/2K8; Mail Server/Exchange; Server versions of Virus software, etc. just for 3 or 4 people in an office.

Write yourself a small service contract, at least 2 visits each year (checkout, etc.) and many businesses woukd be very grateful. Be available when they call, and set either a minimum fee per call (or a charge of at least one hour). Most businesses will wait till they have multiple problems then call you. *I did this 2 years (graduate school) -- in mid-1980s when the world was MS-DOS and Novell/3Com servers -- for small busineeses (real estate appraisers, law firms, etc.) with office (LAN) solutions.*

Desktops are another animal. For the Pentium 3 machines -- the slower ones (450 MHz) can be dedicated to specifc tasks (media server, etc.) on the network. IF the customer only knows MS Windows -- then fix his problems (make some $$). I would purchase Ubuntu marketing materials (coffee cups, labels, T-shirts, posters, etc.) and have in prominent areas of the store. [i]Believe me -- that you will find one or two adventursome customers in your community -- that will ask you about it and try it. Convert that specific influencer in the community -- and the community will flock for "conversion" or dual-boot ability.[/i] Religious and volunteer organizations have used this concept for years (increasing memberhsips). The "Ponzi" (Madoff) and "Pyramid" schemes seem to use variations of this -- to get started.

I find 90% of the novice/home users just desire: 1. Browse the Internet (participate in some on-line interest forum). 2. Get their e-mail 3. Use basic office functions (OpenOffice) for a letter or 2 each month.

beatgr

#20

cptr13 said: My humble opinion...and what I tell people when I explain linux. If you're not prepared to make it a hobby, you may want to consider sticking with windows. It is impossible, even with Ubuntu to just slap it in there and have it run if you've only used Windows prior. There's a learning curve, there's ALWAYS a problem that needs solving and most people don't have the time or the energy or care enough to handle that. Like it or not....windows "just works". Ubuntu is the closest I've seen to this but iit still requires a lot of time and effort to learn if you want to do anything other then surf the web and check email.

QFT, we had so many problems with Ubuntu, because we just slapped it on our computer, knowing nothing about it. We still have a lot of problems, but it's gotten better. And as for selling computers with ubuntu on it, it's a good idea because ubuntu is free :D

#21

Well, with almost two months of business, I'm happy to report that I'm doing very well selling computers with Ubuntu. There have been few problems and most people are very happy with their computers.

The dire predictions posted by others earlier in this thread have not yet come to pass. People have questions, but nothing nasty and I can usually solve any problem quickly.

Something that helps is that I give away a copy of Keir Thomas' Pocket Ubuntu Guide with every computer purchase.

I make about half of my profit from fixing Windows computers and removing viruses, but I'm happy to say that the other half is from installing Ubuntu on people's computers because they want it (and aren't confident enough to install it themselves) and from sales of computers with Ubuntu.

So, down with the naysayers. The business is successful and it looks like it will continue to be.

#22

Hey, glad to hear it's been a success for you! :) I'm also interested in the "production" side of your setup.

I'm assuming you picked a few specific Dell models to work with, so that you can be fairly certain about what hardware you'll be dealing with, instead of having to wrestle with a bunch of random stuff. That should make it a lot easier when people have questions about their setup. Done thoroughly, you could even roll your own auto-installing Ubuntu CDs or flash drives, one for each model, and set everything up without lifting a finger.

Is that something along the lines of what you do?

#23

Thanks for the questions, yther. You guessed right.

I do only carry a few models that I've chosen specifically because I believe they are high quality. I carry the Dell Optiplex line (mostly GX260, GX270, GX280) and the Latitude line (D420, D620, D820). I try to keep to just those six models. I'll try out some of the newer models as they become affordable to purchase used.

I set up a computer exactly how I want it (with extra software like gnucash and inkscape), then make an image of it using CloneZilla. My CloneZilla images are on an ssh server and it takes under fifteen minutes to set up a new system (if there are no hardware problems). They install over a local network connection. I have separate images for the several of the different models, but the Linux kernel is great in that it will boot up on most anything, even if it was installed on very different hardware.

I want to create an open documentation project around the processes and business concepts that I use in my shop. Similar operations could be opened in every city with a population over 30,000.

A computer repair shop has to work on Windows computers, of course. But I'm doing just fine with only selling computers with Ubuntu (I do offer Windows, if someone requests it, but I haven't sold a computer with Windows, yet).

Please post to this thread if you are interested in the Computer Sales and Repair Shop Documentation Project (I just made that name up).

#24

Matthew congratulations! This is indeed good news. Keep us posted on well it is going. Sounds like you may have a winning business model.

#25

Congratulations.

I am impressed half your revenue comes from Ubuntu-related offerings.

Sticking with hardware that works was obviously an excellent idea; I suppose if Walmart can do it, no reason why a small customer-orientated shop can't.

Perhaps include this forum as the default homepage (or at least a visible bookmark), if that's possible on OEM installations?

#26

I just ran into this thread. I've been thinking about doing something like this on a very part-time basis. I've put together a bunch of ubuntu machines for myself and others. Are you still doing this?

#27

Well...I say this to a lot of people but, I have a dell I got used from a business who was getting rid of their old machines, for $30. I went on Newegg, and invested about $70-80 on upgrades. These included 1GB of RAM and a XFX NVidia GeForce 6200. So, the entire computer totals ~$100. It is very fast, actually.

So...if you did something similar, you might be able to make a bit of cash, say selling the computer for around $200. You would have to install *everything* for the user because of the command-line and different interface. That includes everything from Java to Wine. You would also have to make some sort of User Manual, that answers FAQs etc.

It will be harder to sell a used machine running a Linux distro compared to a new machine running Windows, but it is possible.

Here are pictures of my modded, upgraded Dell GX260 SFF PC (The orange door is for Ubuntu!!):

[IMG]http://i288.photobucket.com/albums/ll183/Theaxethrow/IMG_2720.jpg[/IMG]

[IMG]http://i288.photobucket.com/albums/ll183/Theaxethrow/IMG_2712.jpg[/IMG]

[IMG]http://i288.photobucket.com/albums/ll183/Theaxethrow/IMG_2719.jpg[/IMG]

#28

Oh I am sorry, I didn't even see the date on this thread. Well congratulations on your business. Open source is growing on society. People are understanding it and going for it.

Nice.