Computing Computing's True Cost

December 3, 1996

Computing Computing's True Cost

orporate computer managers have known it for years, but most individual personal computer buyers learn it the hard way: the purchase price of a new PC is just the tip of the iceberg.

Many families are saving to buy a new computer for the holidays. But the excitement of getting the new plaything can evaporate quickly if one does not account for the myriad additional expenses that it brings. For those who will be receiving a PC from Santa, remember: a computer is a gift that keeps on taking.

Beyond the obvious extra outlay for sales tax, other hidden or camouflaged costs can surprise, disappoint and ultimately dismay the buyer. In general, if a new personal computer costs $2,000, it will demand another $2,000 worth of software, peripherals and toys.

The budget creep begins on the first day of shopping.

First, the advertisement may show a computer with a CD-ROM drive, a big-screen monitor, a keyboard and mouse and perhaps a printer, topped with a sign that reads, "Only $1,495" or something like that. Grab the magnifying glass. The small print typically advises, "monitor and printer not included." Monitors and printers add at least a couple of hundred dollars each to the system price.

We tend to think poorly of used-car salesmen, but at least they do not ambush us with "Steering wheel and tires extra."

Or, the macho-looking PC is shown with two headlines, one that reads, "250 Megahertz!" and the other, "Starting at $1,999!" Do not assume the two selling points are related. Again, the fine print reveals that the $1,999 model uses the runt littermate of the fast chip, or has only half the memory of the bigger model, or has the bargain-bin 4X CD-ROM drive, and so on.

We tend to think poorly of used-car salesmen, but at least they do not ambush us with "Steering wheel and tires extra."

By the time the sales person persuades you that you really want the better components, the extra memory, the modem, the year or two of on-site service, and the surge protector, and the box of diskettes, and the external speakers, and -- what the heck -- the mousepad, and the wrist rest, and the joystick, the video eyeball gizmo, and the special printer paper, the scanner, the special ergonomic chair and computer desk, the propeller beanie . . . Yow! Your budget is in shreds.

Most of these things are subject to my 180-day rule: As soon as you determine you absolutely have to have something, put it on a list and date it. Wait six months. By then, you will have discovered either that you really don't need it or that its price has come down and the bugs have been fixed.

Some of the extra dollars, however, are well spent at the time the computer is bought.

Although many new PC's come with 16 megabytes of system memory, there are a few that still come with 8. Meanwhile, the software companies continue to crank out bloatware, and there are no signs the trend to memory-hogging software is abating.

Fortunately, memory chip prices are very attractive right now. One can add chunks of memory in 8-megabyte increments for about $50 each. Consider equipping the new PC with 32 megabytes of RAM while the price is right.

Software is likely to be the biggest additional expense over the life of the personal computer. This is the reason Bill Gates is the richest man in America.

Many computers come from the factory loaded with software, in some cases dozens of programs with an advertised value of $1,000 or more. In truth, many of the programs are likely to be demonstration, outdated or "light" versions that lack key features, so take the monetary claims lightly. Then add to the budget to cover the cost of upgrades.

And then there is the Internet, which turns your cash into electrons.

It is not unheard of for a family to spend the equivalent of the computer's purchase price for software over the life of the machine. High-end productivity packages can cost hundreds of dollars, and the Cool Game of the Month always seems to cost $50 or more.

All that software has to be backed up. The downside of having a gigabyte hard drive is that the cheapest way to back it up is on megabyte diskettes. To save time and sanity, not to mention huge stacks of diskettes, consider getting a Zip drive (about $150) or one of its removeable cartridge drive cousins.

And then there is the Internet, which turns your cash into electrons.

If the computer does not come with a 28.8-kilobit-per-second modem, or something faster, plan to spend about $150 or more to add one. These days, a computer without a modem is seriously underequipped.

Once the modem is installed, plan to budget at least $20 a month for Internet access.

And then there are the hidden costs of telephone lines.

If some family members plan to take advantage of unlimited Internet access, other family members may be frustrated when the phone line is constantly busy. A second phone line will ease the disputes, but again, the phone company's fingers will go walking through your wallet.

The unkindest cost of all is the long-distance charges spent for waiting on line to talk with technical support.

The list goes on. There will be spare cables to buy at $10 to $15 each, at least one exotic adapter for a couple of dollars, a few magazine subscriptions, membership dues for a local computer club and the bribes paid to the neighbor's high-school kid to debug your mysterious Windows .INI files. In the final accounting, when you assess how much you have spent, the extra money for the "Dummies" books will seem quite appropriate.

PERSONAL COMPUTING is published weekly, on Tuesdays. Click here for a list of links to other columns in the series.