Originally Posted by
tarwheel
I have had all of my bikes built up from frames and components rather than buying pre-built. You can save money if you are diligent, plus you can build your bike exactly the way you want. I buy a lot of parts on-line, either on sale or good quality used. Also, I typically have parts on hand or can swap from another bike. Most mechanics don't charge that much to swap parts from one bike to another.
When I had my Bob Jackson World Tour built, I swapped the wheels, derailleurs, handlebar, seatpost and saddle from another bike. I bought a new crankset, bar-end shifters and stem. Total cost was about $1,200 including parts and labor. Later, when I could better afford it, I bought some sturdier, touring strength wheels.
I am in the process of buying a new Salsa Casseroll, and the total build w/ parts and labor will be less than $800 because I am using parts I had on hand and wheels and shifters from another bike. The components will be a mix of Shimano Ultegra, Dura-Ace and Campy Centaur -- all spec'd much higher quality (and lighter) than a factory-built Casseroll.
Let's compare apples to apples and not cheese to chalk. You said that your total cost of the Jackson build was $1200 and then you bought new wheels. Those new wheels had to cost something and add to the cost of the build. If you took the parts off an old bike, the old bike cost something too. In an honest accounting of the cost of the build you need to include the cost of at least the parts you removed. If you old bike was no longer serviceable, then you should include the cost of that bike as well. Same on the Casseroll.
I have a list (which my wife
never sees

) of my bikes and the costs involve in building and upgrading them. If I used old parts or took parts off on old bike or upgraded a bike, I include the cost of the old parts and/or the original bike. As I change parts, I change the price sheet on each bike. My 'cheapest' bike cost me $1500 to build...not including my labor. I also tend to, rather hypocritically I'll admit

, not include shipping and taxes. Those would add another 10%, roughly. Nor do I include my labor on building the bike or chasing down parts...again hyporcritically

In the interest of honesty, the build above includes a $500 set of wheels which are probably a bit much on a $150 frame but I wanted them, so there
When I do a build, or upgrade, my method of accounting for the cost makes me realize the true cost of the build. It's also good for insurance purposes, especially if you happen to have a replacement policy and you bought parts for cheap.