I keep wondering how a manufacturer can produce a machine for $300 - $400 and still pay Microsoft a royalty on the operating system???? The only thing I can think of is huge quantity and NO quality. This is something the little guy can't do.
Perhaps you say to the sales rep over lunch, that you intend purchasing 100k processors and want to mix the order for the same price break. Do you think the sales rep will say no and or not also pay for the lunch? Don't get reticules or cute with the numbers and styles of processors, but try to be realistic for the type and style of machines you plan to build and sell. Treat it kinda like buying a used car. The sales rep isn't going to give you an instant answer until the numbers have been run and will probably come back with a counter offer. After all the deal does not want to be lost to a competitor.
Then repeat the process with each of your other vendors. At least you will get lots of free lunches.
Now you have enough materials to build 100K machines in varying styles and quality. Most manufactures will allow you payments and receipt of the products over a 90 day period. Can you keep this going and prove that you can sell the 100K machines to repeat the process and maintain cash flow, pay workers, overhead and etc.?
Perhaps the answer lies in, what kind of deal did you make with Wal-Mart, Costco and Sears (K-Mart) and what did you calculate your profits to be after expenses? We can only hope you weren't stupid enough to try to sell both Wal-Mart, Costco and Sears the same machine so that consumers could figure out what they are doing.
