I went to one of these deals a few years ago, to see what was what...I know that I wouldn't want one of these.
I don't think you will be happy with the machine if you purchase it. The serger is a foot that you put on the machine to do a serge stitch and then you trim off the edge. Basically an overcast stitch.
The one that they demo'd as the $199 was a basic flatbed machine...The one that the schools supposedly ordered, is the upgraded one with a free arm.
This sale was not with a local dealer...The guys that were selling these were from Texas and I saw this in Illinois.