Dell To Sell To Retailers 194
dmarx writes "The Boston Globe reports that Dell, which has heretofore sold only through its website, direct to consumers, will now sell generic computers to dealers. This marks a shift in Dell's business model."
Derll (Score:1)
This is great (Score:1)
To have them available in a store is even better, since the hefty shipping costs to Canada can be a bit of a deterent.
Re:This is great (Score:1)
Re:This is great (Score:1)
And I send them to Apple... Breaching the Microsoft monopoly, bringing Unix to the desktop and actually giving people a hassle-free environment... Now *that* is *helping*.
Dell has become really overpriced since their brand is so well-known.
Re:This is great (Score:1)
Re:This is great (Score:1)
Just a question: how is this a valid reply to my post? I was talking about putting Unix on the desktop and you talk about a Warez Corporate Version of Windows XP??? That helps nobody: you still help the Microsoft Monopoly by making people dependant on the platform (which is not Unix, one of my points remember?)
Re:This is great (Score:1)
Re:This is great (Score:1, Interesting)
But I'm that is why I convince people to buy a Mac. Really, I have bought one last december and I'm a "switcher". Look, I still have my P-III 800/786Meg (with a nice LCD flatscreen), which is much more powerfull than my iBook G3 600Mhz/384Meg... however, the Mac is just painless. Nice sleek interface, everything I need is there and installing soft wasn't so easy since the DOS days... What to ask more?
Point is: it is Unix. So Unix on the desktop is possible for normal users... they won't know it, but they will get the benefit of it.
People whom I consider intelligent enough will get an easy Linux distrib installed by me. At least, when the next worm-of-the-day comes along I have something to fall back on when they are in deep trouble. I hope they will give it a try instead of wasting 1.5Gig of space I usually reserve for Linux on machines that are not mine. More and more people are getting fed up with Microsoft you know, and not only geeks. (The PC I talked about belongs to a good friend of mine who is in *MARKETING*...now try to get that.)
Re:This is great (Score:2)
Re:This is great (Score:2, Informative)
Why can't they combine offers? (Score:1)
Damn, they ought to incoroprate this idea with the no-OS deal [slashdot.org] reported on a few days ago. That would make for small companies getting into the Linux scene a probable reality, IMO.
It would be nice if people could get what they wanted how they wanted it from who they wanted it from.
Re:Why can't they combine offers? (Score:1)
Re:Why can't they combine offers? (Score:3, Funny)
If he ever gets fed up with that evil free software, he can install Windows on that machine and not worry about licenses. He already bought one! How convenient huh?
Oh, and writing the name of my company with a dollar sign instead of an 's' is childish. Give it a rest. That's old already.
Re:Why can't they combine offers? (Score:1)
Thanks for the laugh.
If he ever gets fed up with that evil free software, he can install Windows on that machine and not worry about licenses. He already bought one! How convenient huh?
Not. Are they going to supply a normal install CD?
Oh, and writing the name of my company with a dollar sign instead of an 's' is childish. Give it a rest. That's old already.
Agreed. I'm tired, and it's an old habit.
10 LET M$ = "Microsoft" (Score:2)
Oh, and writing the name of my company with a dollar sign instead of an 's' is childish.
Didn't you write a BASIC interpreter for the Altair and the Apple II? If so, isn't this correct BASIC?
In old versions of BASIC (i.e. before QuickBASIC), names of string variables ended in a $ character. M$ is shorter to type than "Microsoft".
Re:Why can't they combine offers? (Score:1)
Then again, would alot of 0-100 businesses be interested in no-OS PCs. Perhaps the price savings are a nice incentive, but have there been any statistics on the percent of small, medium, and large businesses that actually use non MS OSes?
Tsk tsk (Score:2)
Re:Tsk tsk (Score:1)
Re:Tsk tsk (Score:2)
WRONG TOPIC (Score:4, Insightful)
I thought true slashdotism (not reading the story) only happens to joe six packs, and no the editor..
Re:WRONG TOPIC (Score:2)
Either way, typos obviously happen to almost everyone here.
Of course tpyos hpappen to everyone hree. But don't tell me you thought the "editors" cough cough posters you mean of course, acutally raed the arctile frist?!?!?!
Re:Dying and going to Dell (Score:2)
I would go further and say that they are designed to become obsolete quickly.
I have had several generations of Dell boxes. On my 3rd one right now. (P4-1800, 512Mb) The first time we switched from a Gateway 2000 to a Dell was back when 16 MB was a fair amount. (PII 200) Later as that box was at the slow end of our PC's it got shifted to other duties. It was upgraded to the max. ram that it could take -- 64 MB. This very limit forced this PC to be prematurely obsolete. We had upgraded its drive. It would make a nice little server. (At the time, 1999, it needed to run NT 4 as part of a pilot project we were involved in.) Later in order to do some experimenting with Win2K, this box was unsuitable due to the 64 MB limit.
The story does have a nice ending. In 1999, I was just getting into Linux. Sometime in 2000, my boss let me set up this old obsolete box with Linux. (Used SuSE 6.4) Was a wee bit slow, but worked. Shut down the GUI and it made a great little server. Good enough that my boss decided that we should set up a permanent Linux server. (Now does Apache, NetATalk, Samba, HtDig, PHP, SSH, on SuSE 7.2 -- uptime was 320 days, until we needed to swap scsi cards. Compare to NT 4 which we also run.) So what did he buy to run this nice server on? A Dell. (P3 1GHz, 256MB, summer 2001) The 320 day uptime started on 7/23/2001.
Re:Dying and going to Dell (Score:2)
Dimensions are sometimes a little... under... engineered, and I usually argue that's because Intel designs the lion share of those systems, and they have an obvious interest in getting people to buy new systems sooner.
OptiPlexes have typically been overengineered. For instance, this particular P133 had a spot for a 2nd CPU (which we populated later on) and SCSI on the motherboard. This wasn't a special order, it was simply what Dell shipped at the time for P133 OptiPlex desktops.
I have no idea if Dell still operates in this fashion, I wouldn't be surprised if they've started underengineering the OptiPlex line as well (given the penny-wise dollar-stupid corporate behavior the past few years).
Re:Dying and going to Dell (Score:2)
I meant to mention it supported - at least - 128MB. If I remember correctly the max was 256MB.
(sigh)
It was impressive given the age of the box.
Re:Dying and going to Dell (Score:2)
At last! (Score:1)
This isn't the first time.... (Score:2, Informative)
I worked on the kiosk system... it was kinda cool...
They didn't sell many systems though...
Changes in Dell's Business (Score:4, Interesting)
Re:Changes in Dell's Business (Score:3, Interesting)
That doesn't sound very mass-produced rapid delivery to me!
(Compare: I purchased a Dell earlier this summer and customized everything, so that had to be all handled specially, no basic assembly-line there. The time from ordering to arrival at my doorstep was four days. Nice.)
Maybe they're just backlogged this week, or strapped for parts?
Re:Changes in Dell's Business (Score:1)
Here's an extract from dell's website, stating their mission. Note that the new model conflicts with mostly everything.
---clip---
Price for Performance. By eliminating resellers, retailers and other costly intermediary steps together with the industry's most efficient procurement, manufacturing and distribution process Dell offers its customers more powerful, more richly configured systems for the money than competitors.
Customization. Every Dell system is built to order. Customers get exactly, and only, what they want.
Service and Support. Dell uses knowledge gained from direct contact before and after the sale to provide award-winning, tailored customer service.
Latest Technology. Dell's efficient model means the latest relevant technology is introduced in its product lines much more quickly than through slow-moving indirect distribution channels. Inventory is turned over every 10 or fewer days, on average, keeping related costs low.
---clip---
Looking at this, I cannot help but wonder what is driving these guys into mass markets? It has never been that attractive a market, as you can see when you look at most other traditional computer manufacturers (HP, IBM...), as they move away from the manufacturing into more profitable e-business, system integration and consulting.
Re:Changes in Dell's Business (Score:1)
Re:Changes in Dell's Business (Score:2, Insightful)
Re:Changes in Dell's Business (Score:2)
My first computer was a non websoite ordered dell (Score:3, Informative)
My first PC was a dell dimension 386 SX-25 with 2MB RAM bought back around 1992/1993.. and it was bought at a Price Club.. now known as CostCo. So I'm not sure that statement is entirely accurate..
Re:My first computer was a non websoite ordered de (Score:1)
BTW, it was bought in-store. You picked the one on display that you wanted, and dumped the (heavy) boxes into your shopping cart and paid for it at the register.
I do however remember the custom order kiosks another poster mentioned.
Re:My first computer was a non websoite ordered de (Score:1)
Re:My first computer was a non websoite ordered de (Score:2)
Anyway what dell did was to decide to go into mail order only and keep their different models rather then slim out into 1 or 2 lines only like HP or Compaq. Then the internet came along and they made quite alot of money through internet orders as well and then through television commercials. The investors want Dell to continue growing and non technical people get their machines from a store and prefer to look around and ask a salesmen rather then buy pc's from the internet or through mail order ads from computer magazines. I bet Dell will supply a limited selection of models for the stores and keep their customizable machines online.
It makes perfect sense.
This is do or die (Score:2)
Re:This is do or die (Score:1)
Bad move (Score:4, Insightful)
Dell has made an enormous investment in proving themselves to be a good online/catalog source for PCs. Direct sales are nice - you get fatter margins (my guess is 20 to 35% for Dell) and all you have to do is stick the labels on the boxes. Compared to the cost of manufacturing a PC, the cost of sticking labels on 100 invidual boxes vs shipping one big box of 100 pcs is negligible. The sales work is completely automated now.
What Dell needs to ensure is that their retailers are reaching *new* markets - people who would not have otherwise bought a Dell. The worst case scenario is that people browse their web site to get the technical specs and pricing, and then head down to their local retailer to actually buy it. Dell still sells the same number of units, but they make $200 apiece instead of $400.
My company [slimdevices.com] makes *half* as much per-unit when we ship in qty to a reseller vs direct to a customer. We want out resellers to be happy so they'll promote the product, but at the same time we miss the margins for direct sales. You can't be greedy though. Sometimes a smaller piece of a bigger pie is better. Good luck Dell!
Solution? (Score:1)
Or will the retailers not play that game, because obviously many people would look at the PC in the store and buy online...
Re:Bad move (Score:1)
On the other hand, people may go to a retailer, be informed and then buy the computer slightly cheaper from the website. I used to advise people a strategy like that: go to an expensive store with knowledgeable personel, make a choice and then go over to the cheapest crap store and buy it.
Re:Bad move (Score:1)
This is exactly what I have been doing for years; look at the components I want in person, get a feel for them, then go search the net for the best price. I'm sure I save well over $1000 a year if not more by doing this, with the added advantage of actually getting to touch/feel/interact with the product.
Re:Bad move (Score:2)
Re:Bad move (Score:2)
Doesn't everyone already know that this is how business works?
My company [crackaficionado.com] makes *half* as much per-unit when we ship in qty to a dealer vs direct to a customer. We want out dealers to be happy so we don't have to do all the pushing, but at the same time we miss the margins for direct sales. You can't be greedy though. Sometimes a smaller piece of a bigger pie is better.
Will Microsoft play it's hand here? (Score:4, Insightful)
Or could this be a tactic to circumvent MS? If Dell sells directly to retailers, could they install another OS onto the machines (ie Linux, FreeDOS, etc)? Does MS's license cover Direct-To-Consumer PC makers adding in the retail factor? This is going to be an issue to keep an eye on...
Re:Will Microsoft play it's hand here? (Score:1)
Clueless (Score:1)
Why do businesses constantly reorganize? (Score:1)
Why can't a company ever take a good hard look at itself, decide it's doing basically the right thing the right way, and leave well enough alone? Is the temptation to reorganize truly irresistable?
That's too bad. (Score:1)
Now I can have the radioshack pimply teenagre nervously listen to my orders of Anza Nodes and Niad Brasuhes not knowing if I'm for real or not.
You lost already, man. (Score:2)
Now I can have the radioshack pimply teenagre nervously listen to my orders of Anza Nodes and Niad Brasuhes not knowing if I'm for real or not.
It's a NIAD pulse converter and an ANZA brush. Jeez, you kids today.
Not Quite Dell + Linux? (Score:1)
Besides, aren't they looking to sell PCs with Windows, but still meet the requirement that their PCs have an OS? Forget that free DOS their including...put Red Hat on it. Then they'll have something worth talking about.
Re:Not Quite Dell + Linux? (Score:1)
Generic Dells stilll as good? (Score:2, Informative)
I wonder if the generic systems are going to be just as stable. Are they going to have to rebrand all of their parts (since all the stuff in the past 2-3 years has had Dell printed EVERYWHERE!) Maybe a migration towards not-so-proprietary hardware. In that case...d00d! Yer getting a white-box Dell! (Sorry, had to do it...gotta fit in with the rest of the posts).
And a side note about the Dell dude: Apparently he isn't much different in person. Or so I've been told by friends of mine who have met him (the Dell dude and I are from the same home town).
Re:Generic Dells stilll as good? (Score:1)
And pardon me dear sir, but what the holy heck is your excuse for not having your OWN little baggy of screws?
(I actualy have a chest of screws sorted by thread size but. . . . thats me, heh)
Re:Generic Dells stilll as good? (Score:2)
Maybe Dell screws are special. Like, their heads are made out of chocolate and shaped like small copies of Madonna? Compaq was really big on combined Torx and regular flat heads for the longest time. Besides, laptop screws are so small that if you drop them on the floor, the dust-mites inhale them.
Mmm, chocolate...
Re:Generic Dells stilll as good? (Score:1)
The first one was okay, the second one had a failing CMOS (now that is very weird) and the third one had a Harddisk that blew. All these three machines were configured in the most *bloated* way I saw.
He now has his own Dell (he absolutely didn't want to switch...and honestly, it's still better than Compaq. But my heart goes to IBM, Toshiba and Apple). It runs rock-solid and nothing bloated on it, but that's only because he bought it, never turned it on, pushed it in my hands and said "reinstall it clean". Now, seems he learned something from having bloated soft on his machine.
So far no hardware failures on that one. I still cross my fingers.
Re:Generic Dells stilll as good? (Score:1)
Same home town? (Score:3, Interesting)
Oh Great! (Score:1)
When I walk into Best Buy I will have to deal with another pubescent pimple popping teenager saying "Dude your getting a Dell!"
Dell makes a great computer.... (Score:2)
Re:Dell makes a great computer.... (Score:2)
Re:Dell makes a great computer.... (Score:3, Interesting)
A couple of years ago, I bought 50 PCs from Dell. 49 worked as expected, one had a dodgy video card (three bluescreened ('98) straight away, but that's a different story). They refused to send out a new one for ages; first of all insisting I perform a bunch of patently unnecessary diagnostics & reinstalls, then stalling me, then losing my details, then, weeks later, sending out a new card.
On another occasion, I rang about a fucked hard disk (under warranty), and they had a guy around the same day with a replacement.
Before you all berate me about my intolerance of helpdesk foibles, let me assure you I'm sympathetic. Having techsupported in the past, I'm fully aware that everyone who rings a helpdesk is a lying bastard. But really: who in their right mind insists on an OS reinstall when the machine's failing in the POST?
All my experiences have been great so far... (Score:3, Informative)
Basically, they said the monitor line was defective, I was still under warrenty (bought the computer 2 1/2 years ago with a 3 year warrenty), and they would send a new one within 2-3 business days. (This was on a Thursday, by the way.)
Great! I totally didn't expect them to do jack, especially not replace my monitor that quickly.
So...what do they do? Monitor on my doorstep via Airborne Express at 11am THE NEXT MORNING.
Yes, they overnighted me a new monitor when I was in year 2 1/2 of the most basic warrenty--all when they made no promises to me any sooner than 2-3 business days. (Meaning Tuesday or Wednesday the next week. Obvously, I wasn't thrilled about having no monitor for 5 days.)
So, in my experience, Dell's service is outstanding. They get a big thumbs up from me.
-Jayde
I've had nothing but disasters (Score:2)
When it was time to upgrade the machines, we bought all Compaqs. With Compaq, I call, 3 options in the voice mail, and I'm talking to someone within 5 minutes. They overnight all the parts to us, etc.
I've had several bad experiences with Dell, I had nothing but great experiences with Compaq (going back 5 years to a stint at Citrix).
I realize that lots of Slashdotters are really impressed that Dell gave them the overnight treatment for their basic service plans, but that didn't help me. It would somethings take 2-3 days to get someone to the office to fix the problems. We're paying for next day, so that's unacceptable.
Alex
Re:Dell makes a great computer.... (Score:1)
Haiku Article Summary (Score:1)
Dell generic comps will sell,
So called "white boxes"
The model is called,
White Box D510,
Goes for $499
It comes with Celron,
CD-ROM and floppy disk,
And Windows XP
What do people say?
Analysts like idea, but,
HP unimpressed
losing money? (Score:1)
I am guessing the Compaq HP hail Mary merger has actually got them a little nervous.
I'll buy one... (Score:1)
"Dude, I'm getting a TIVO. No more Dell Kid!"
They did retail before... (Score:3, Interesting)
My guess is these white box specials will come without Dell technical support and will sell at a lower price, all the while helping Dell get penetration into small to medium sized businesses. The consultants that service these companies often opt for generic machines so they can make a couple bucks. After all, you can't buy a pricey Dell and mark it up. This move from Dell basically allows the consultants to acquire Dell's at dealer pricing, as long as they provide the technical expertise when typical problems arise. It's less problematic than cobbling together poorly tested combinations of generic parts and there is still a profit to be made. A good move on Dell's part if you ask me.
Re:They did retail before... (Score:2)
If you'd like to stop guessing:
My question is what kind of telephone service does the dealer get. I mean, if you can get an unlimited number of lines/long distance, $499 is a great deal for one year. My dad pays SBC/Pac Bell $500 a month for telephone service.
Wait a second...
Suggested business model (Score:3, Insightful)
Dude, you're getting a... (Score:2, Funny)
Pssst...hey, kid.... (Score:1)
Why does this make me picture some shady guy stopping passerbys with, "Psst...wanna buy a whitebox?"
OK Here's a VALID question. (Score:3, Interesting)
Also, "Steven" and I were in the same class in high school. He's a nice guy, a bit goofy at times, but all in all ok. It's funny working in a world where people crack on him as an icon. I'm as annoyed by his character as the rest of us, maybe a little more. I hate anyone that acts like an idiot constantly. But way to go... If I could fall ass backwards into an ad campaign like that I'd love it. Go Dude Go!
Winning the bids. (Score:1)
My question is... (Score:1)
Re:My question is... (Score:2, Interesting)
Well, all I know is that I cracked open a couple HP LPR1000r (1U rackmount) servers and those motherboards have the ASUS name on it; however, it seems to have been a custom make for HP. Also, the same ole' sym53c1010 chips are sitting on that SCSI controller. But I believe the big difference is the testing -- the damn stuff just works together.
So, because I haven't got my hands on one of these whitebox Dells, I can't say for sure. But I'm pretty much going to guess that what makes this Dell a better no-name than the mom-and-pop no-name is that the components are tested to be reliable, but even more important, compatible.
Re:My question is... (Score:2)
Not to say that all retailer know what they're doing, but most do, especially the small shops.
Does this mean... (Score:1)
Re:Does this mean... (Score:1)
Lower Priced Dell Computers (Score:2, Informative)
dude your getting a crappy rebadged dell? (Score:1)
I suppose I'd **almost recommend dell to my non computer savy relatives (so I don't have to build their computers... and/or provide tech support.) but with this they'd get a kinda crappy oem level computer but wiht god knows what support/warrenty from the white box reseller.
dosn't sound too good to me.
Who is taking Dells space? (Score:2)
Dell start by selling cheap, quality, configurable machines direct to customers providing value and quality of service. The big boys were selling through retil channels with all the supply lag, cost increases, etc... that entails.
Now that Dell IS the big boys they start selling this way because there is more money to be made quickly. Its easier to make $100 selling a pallet of non-configurables to wal-mart than selling a pallet of individually specced machines to SMEs.
Take almost any innovative company and this will happen. So... the question is... who are stepping into Dells shoes?
Re:Who is taking Dells space? (Score:2)
-Hard Drive
-Ethernet/Modem
-Soundcard
-CD Writer/DVD Drive
-Motherboard
The only thing that's in the pc that still has a high profit margin is probably the gfx card, bu that might change soon.
It's sad really, but I think we will be seeing one of the 1st tier OEMs going out of business due to increase price pressure
Whats in a name? (Score:3, Insightful)
1) Tech Support. This includes web/phone/email etc.
2) Advertising [this alone would be around %3-%5 of a machines cost AT LEAST...
3) R&D wrt design and "dell" labeled cds/manuals/etc... [they dont have to reprint the OEM manual with their own logo] and still use essentially the same parts.
4) This could also be a way to get around certain restrictive licensing agreements that Dell has... [ie: if the machine has the name "Dell" on it they may have to pay some company something to license something else.. weather its software/bios/whatever]
All the above could EASILY make a PC %20-%30 cheaper for the end user...
Me and Dell (Score:5, Informative)
Some things:
1. I received a rude bill for $.05(no kidding)
2. I was called numerous time after I paid off my entire bill saying I better pay or they would report me.
3. One time I received a call asking me if I had the decency to return their calls.(After I already had)
4. If you paid more than the monthly bill it would screw everything up on their end.
5. Can't pay a bill on their web site, and they make it nearly impossible to pay over the phone.
They are so bad I almost think they do it on purpose to squeeze out more money from "customers".
If anyone has any info I would like to hear it.
Re:Me and Dell (Score:2)
I know how you feel. I am also willing to burn my Karm with an offtopic post, just to tell everyone out there that Fleet bank really really sucks.
tax people tax (Score:2, Interesting)
Here in Louisiana, the sales tax is almost 10%, which is a pretty hefty chunk of change on a $2000 computer.
I think Dell realizes this, and yet it still wants to be able to go after the same local markets that a Gateway store more or less owns around here. This is a way for them to get at that without taking away the sales tax advantage from their mail order business.
Won't help my resale business (Score:2)
You know what? It won't help my business at all. Customers who buy white boxes are only looking for one thing: a low price. They don't care about brands. Most don't understand the hardware specifications well enough to discern any differences between a Celeron, PIII, P4 or AMD. As long as it runs Word, Quickbooks and lets them surf the Net, they are more than satisified.
The $499 price is not going to make me nor my customers sit up a take notice because I can still get comparable computers for $100 to $150 less than that. If my customers wanted a Dell, then they'd get one. Brands don't matter to my customers. They are too busy trying to keep the doors open, and a "generic" Dell computer priced at $500 is not what they are looking for.
Dell did sell through retailers (Score:3)
This is incorrect. Dell did experiment with selling their PCs through retailers. I know, because in around 1991, I bought a Dell 486/50 from CompUSA.
Story should read "Dell sells to retailers again" (Score:3, Insightful)
$499??? (Score:2)
Re:Duuuude (Score:2, Insightful)
Market tradegies typically indicate that a person must see, hear, think of (or in any type, come across) your comapny name or product 22 times before they will potential switch to you service or product. And the 'Dude' - "Steve" just stuck one more memory in your head.. Dell !
I'm sure that Dell's move to supply a generic model to retailers can and does have a more broad plan of attack then may be seen at first. Even if the end effect is jsut to have you think, hear and come across their name once more. Though by that time you have already purchased something of theirs.
Additionally in the current market, major companies are folding and buckeling under the current market strains. Comapnies need to diversify as much as they can to ensure that they are hear for tomorrow.
I agree with an early post from someone over at slimdevices that the profit margins are cut in half (if not more) but when you have the choice of cutting profits and staying in business or closing your doors.. well.. you decide.
Re:Duuuude (Score:2)
Tivo rocks.
Re:Duuuude (Score:1)
Re:Duuuude (Score:1)
Re:Duuuude (Score:2)
.
HERE YOU GO (Score:1, Offtopic)
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{
print("#X#X#X#X#X#X#X#"."000000000000000000000000
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print("##X#X#X#X#X#X##"."OOOOOOOOOOOOOOOOOOOOOOOO
}
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else
{
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{
print("000000000000000000000000000000000000000000
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else
{
print("OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
}
}
}
?>
Hmm... Let's buy it, fit a mod ship, and then... (Score:2)
That would so totally make my day.