On Mon, 04 Aug 2003 14:06:04 GMT, "rAD" wrote:


"Jim Turner" wrote in message
ws.com...
On Mon, 04 Aug 2003 05:44:48 GMT, "rAD" wrote:

I haven't tried this, but suppose you have the customer order the parts
with
THEIR credit card? Then only charge them for assembly. Technically, you
didn't sell them any hardware at all.


Depends on the state you live in. Some tax labor. If you don't sell
them the parts, then you don't make any profit on the parts.

God you guys are thick. I KNOW services are taxable. But the bulk of the
value in a computer you build is in the hardware purchased, not in YOUR
labor. So you could reduce the taxable amount from say $1000 down to $100 if
you make the customer purchase the parts from the supplier on the Net. And
whether you charge them a markup on the parts or just strictly charge them
for your time is irrelevant. It amounts to the same thing if the amount
charged is the same.

The snag here is that people are usually tight-fisted and don't want to pay
you until the computer is up and running perfectly.


You are the one being thick here. There is more that adds to the cost
of parts than sales tax.

1. The sales tax paid is often offset by the shipping and handling
charge on small orders. (The parts needed to make a single computer
will be a small order) Larger orders, like a real dealer/system
builder does will have a much lower shipping cost, which will more
than make up for the sales tax difference.

2. If the mail order company has a "presence" in your state, they
still must collect sales tax.

3. If you are a real dealer that does more than one or two systems a
month, then you can get deals from REAL distributers that will allow
you to sell the parts to your customers at about the same internet
price, including sales tax, and still make a bit of a profit.

4. Your method of doing systems would be an RMA/warranty nightmare.

What is your real goal? To sell your customers a quality system at a
very good price? Sell to your customers at the lowest cost no mater
what? Or avoid sales tax whenever possible, even if there is no real
savings and the hassles go up? It's your business, but I wouldn't do
it that way, and never have.