Large OEMs are capable of cutting costs significantly by...

• Assembling parts in countries where they only have to pay 50c a day or something like that
• Outsourcing tech support to India. I think we all know how much fun it is to talk to a guy who claims in a thick Calcutta accent that his name is Jeff, and then goes on to prove he's just reading from a script
• Getting special deals with manufacturers like Foxconn, to supply purpose designed motherboards by mass volume
• prototyping and extensively testing builds to reduce their warranty claim rate

The last thing is what makes it so difficult for local PC stores to compete. In order to survive on their 10-15% mark-ups, they have to keep low stock levels, and move quickly with their suppliers. They certainly don't have the resources to test their builds properly. But, you do get

• Real advice and options that will steer people to better quality
• Local tech support
• New technology, not 2 year old stocks
• More honesty

Unfortunately, local PC stores don't make enough money to employ real expert, and tend to be understaffed and inefficient, and can be very badly run. Furthermore, in the bid war at the front of PC sales, PC store technicians have to really lower their standards and sell cheaper hardware or lesser quality. What they need is support; for people to recognise that buying a Dell is actually really bad for the PC industry. To recognise that they're hanging on tooth and nail, and that for the most part, it's a sense of duty to the public that keeps them from throwing in the towel.

People only buy PC World machines out of ignorance.