Saturday, July 30, 2005

"It's not what you Say it's the way that you Say IT.."

"..That's all brother, that's all." - Mae West

Giving Dell the Business.

A prime example of the controversey that it caused when manufacturer's hoard sales and distribution.

Dell is quickly become the Microsoft of the hardware industry because of a few minor glitches in the sales line up.

Typically the food chain goes as follow:
Manufacturer -> Wherehouse -> Retailer -> End User/Consumer/Customer

or

Manufacturer -> Retailer -> End User/Consumer/Customer

or

Manufacturer -> Business (who buy in bulk at wholesale prices)

Dell is not alone but are the ring leaders for the new and improved methods

-> Dealer/Retailer/Reseller ->End User/Consumer/Customer
Manufacturer -> Business (who buy in bulk at wholesale prices)
-> End User/Consumer/Customer

Why does this methodology piss everybody off?

For those trying to make a solid living off of reselling Dell Products they are losing customers because the end user or business can buy direct.

The advantages of buying direct are: Lower cost, access to more accessories at the the time of main purchase with no waiting, incentives like free peripherals, free shipping, discounted wireless services.

The disadvantages of buying direct are: Having to reship items for repair or replacement, less customer service or direct assistance, and not enough tech support in real time.

What Dell's goals are, are quite simple to sell more of what they make, increase sales by maintaining low costs, and partnering with service providers that have easy to use applications; Finally, to sell to any and everyone that is in the market to buy.

How we do business in America for Dummies:

We start a business which sells products or services -> we sell this products and services to all sized businesses who are in the position to buy and sell and increase brand awareness -> we then make our products available to retail outlets who may then inform the public that they are now able to buy these products and services for their personal use including making suggestions for product development.

Why do we do business this way in America? Because in so doing we are keeping the cycle of life a circle. Businesses are in the position to increase jobs who are then in a position to increase revenue and handle a larger sales volume and move more of the product or service. While giving other businesses the opportunity to compete in the open market.

Dell does not like to do business the American way. Dell wants to innovate. Dell wants to the Alpha and the Omega the beginning and the end. Dell wants to be in the position to determine, define, dictate what consumers can have, to what extent, and to what cost.

Dell is playing a very dangerous game.

Dell also promotes the sales of some of the most affordable laptops available. So we go to the web site, we see 499 for a laptop a big step down from the 899 and up price tags. We get offers like get more for another 200, add the cd/dvd rom drive for 60 dollars more buy the time we check the 499 laptop cost the same amount as any other somewhere between 799+.

"Hey! How did that happen?" I went to Dell to save money, but you really didn't, the only way to check out at Dell.com for less is to be very happy with simplicity. Simplicity and Technology do not mix. Technology is advanced by definition. Technology faciliates more, better, faster, for less.

Sales people like Dell because the spend a lot of money on advertising and flaunt low prices that customers associate with their needs. So what happens because of the psychology involved in branding a novice consumer is going to think Dell when they are in the market to purchase hardware. Why because Dell is good and cheaper. In reality, Dell products are no more superior nor are they less expensive but because Dell has manipulated the laws and science of advertising Dell is getting everyones business. Once you become a Dell customer you will stay one because they consistently plant the seeds of co-dependency.
Writing the whole bottlenecking (rednecking) off as well "Hey, they bought I sold.."

Buyer beware, buy what you want where you want and for the price you are willing to spend. Check those rebate, warrenty, and service contract fine print.

What Dell is really guilty of is distorting the truth about what is possible regarding the affordability of Hardware and what is honest about Advertising. But what do they care, by the time consumer's figure that out you'll be rich and it won't matter? Or will it?

My next best advice is stick to the plan that provides more jobs and better quality for the longest haul.
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