We (you, me, and everyone else) see it all the time. We hear about it. But just what does it mean? Parts that look the same; even have the same markings, from two different companies. It’s kind of a crazy sales and marketing ploy that’s been going on forever.
‘Whiteboxing’ is the term used to describe how companies add components to their product list without adding to their manufacturing load. The term refers to a dirty little secret that’s been happening since well before the industry even started.
So many parts are made by one company and sold to others so they can add their label and resell it under their name. Private labeling has been done for years in the clothing industry, food trade, and even the automotive business. Two pairs of pants, for example, may be identical except for the tag – saving a huge percentage in price.
“But Jeromy, your article isn’t about pants, food, or cars.” Why am I writing this then? There’s a little known secret in the computer business called whiteboxing. Company A makes the exact same product for company B (and others) to sell under their names. “Then how does it affect me?”
When you walk into your favorite electronics boutique store you’re faced with brand upon brand of almost identical gadgets priced at different levels. Salespeople may not even know they’re made by the same company. A possible scenario is that one item may have a minor feature the other doesn’t.
In the repair business I’m asked about it all the time. The typical question people ask is how my little company is able to inventory parts for so many brands. Whitebox is always my answer. Same internals, different plastic.
Computer monitors have traditionally been made by one of several companies. BenQ, a brand you’ve probably never heard of, makes many of the monitors for Dell and other companies. The only aesthetic difference is the plastic covering the electronics. Your pocketbook may notice the difference too.
Acer, now a household name, started out by making computers and peripherals for other larger companies. Four years ago Compaq marketed a laptop marked “Acer” internally. Many manufacturers use Acer to make their computers and parts under other names.
Don’t underestimate private label companies. Acer has grown to mammoth proportions acquiring Gateway, eMachines, and Packard Bell. What started as a humble little business making stuff for other companies evolved into an industry leader.
I’ll never forget the time I was training one of my technicians who was replacing a video card in his own computer. With both parts sitting on the bench we couldn’t distinguish the old from the new. Both parts where identical. The difference was the cardboard box, brand and price. The new card, which he purchased as an upgrade, was identical to the one being replaced. The biggest difference was the $50.00 he wasted for the better brand.
Last year I foolishly bought the ‘better’ brand of USB key drives thinking they would last longer. When they died after the same amount of time as the cheaper ones, I pried them open to find they were all identical. See what marketing does.
Next time you hustle to the store to buy a new doohickey don’t think it may be any better than the one sitting next to it. It may be really hard to tell if it’s identical inside and differences may be ambiguous. In the electronics world, brand doesn’t mean as much as it used to. My bottom line advice is to stop shopping by brand and start relying on your wallet to make purchasing decisions.
(Jeromy Patriquin is the President of Laptop & Computer Repair, Inc. located at 509 Main St. in Gardner. You can text him at (978) 413-2840 or call him directly at (978) 919-8059.)