Dell Cheating on the Direct-Sales Model?

capt turnpike writes "Despite its CEO saying that the direct model is the company's 'religion', according to eWEEK.com, Dell seems to be moving away from direct sales and working with value-added resellers." From the article: "Still, 'they'll never admit it or make [the channel] a formal program,' said one analyst who asked not to be identified. 'If you look at Dell's stock versus HP's, part of the difference has to do with Dell's reputation for owning the customer. There's a sense they own the entire margin and have higher profits because they sell directly. It makes them appear more valuable to Wall Street.'"

If I was Michael Dell....

[Anonymous Coward]

"What would I do? I'd shut it down and give the money back to the shareholders."
(Oct. 6, 1997)

Can you say "System Integrators?"

[amcdiarmid]

Dell has the "Direct Marketing" - and may not sell in stores... but they do have resellers: System Integrators, or Consulting firms that sign up with Dell receive something like 10-15% discound on product purchases.

Company: I want a Dell XYZ for $1500
Integrator: ($1500 x .13 = $$$ - $30 to actually order it = Happy Smile ;)
Integrator: No Problem, we should order it by tomorrow.

Plus, the Integrator/consultant that actually signs up with dell usually gets to avoid the script-monkey level of Tech Support.

Dude...

[Churla]

Dude... YOU'RE GETTING a sliding percent markdown based on your volume of purchases and need to bundle office software in a corporate environment !!!!!!!!!!!

Owning the customer, eh...

[frosty_tsm]

"Don't brand the cattle, brand the buyer; he's the one more likely to stray."