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Dell to Stop Free Home Delivery of Computers

malebolgia   on 30 September 2005 - 19:39 · 48 comments & 5670 views

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Dell Inc. will stop its practice of sending low-end computers to customers homes without charge in order to cut costs, the company said on Thursday. Starting on October 10, Dell's free shipping offer on basic models will apply only to people willing to pick up their computers at the post office, said Jennifer Davis, spokeswoman for Dell's U.S. consumer business. Customers will have to pay extra for home delivery.

Dell's direct sales model helped it become one of the lowest-cost computer makers as it bypassed retailers. But aggressive price-cutting caused the Round Rock, Texas-based company to miss analysts' revenue-growth forecasts last quarter. Now, Dell wants to trim costs and boost revenue. On Wednesday, Chairman Michael Dell unveiled a line of high-powered luxury desktop computers and notebooks starting at $1,099 compared with $299 for the lowest-priced models on the company's Web site.

News source: Reuters


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(2 replies) #1 TrekXP on 30 Sep 2005 - 19:44
understandable; shipping bulky parcels is extremely expensive.
#1.1 ishtar on 01 Oct 2005 - 08:32
Thats no really true I can send a bulk package from local fedex over 50 pounds computer size for around 17.00
#1.2 leesmithg on 01 Oct 2005 - 11:03
They should give people a choice, either pay for delivery or they can pick em up for free.

I see some company's charge £60 for delivery, which it' doesn't cost that amount including insurance.

I sent a PC, Monitor and printer to an ebayer including insuarance and next day delivery for £22.

They are skimming off the top.
(4 replies) #2 webeagle12 on 30 Sep 2005 - 20:00
well all I can say is I guess I'm not buying anything fron dell

there used to be a law in US, all shippings are free, that got expired
#2.1 machorro on 30 Sep 2005 - 20:08
well shipping is still free...

however DELIVERY is not... 2 different things...

QUOTE
Dell's free shipping offer on basic models will apply only to people willing to pick up their computers at the post office


besides this is for low end models
#2.2 rangermcfadden on 30 Sep 2005 - 23:38
QUOTE
there used to be a law in US, all shippings are free, that got expired


Lies.
#2.3 jivemastert on 01 Oct 2005 - 03:06
someone call the whaaaambulance.... we got a cry baby. so what if you dont get free shipping on your pc? just because they gotta charge for shipping now doesnt mean that you shouldnt buy from them. grow up.
#2.4 aristotle-dude on 01 Oct 2005 - 03:45
QUOTE
there used to be a law in US, all shippings are free, that got expired

You see boys and girls? This is why you should stay in school. There was never any such law.
(2 replies) #3 Merkava on 30 Sep 2005 - 20:04
Actually if you have a business account with UPS shipping is extremly cheap. So its not really a cost cutting plan but rather a new surcharge they can allow themselves.

It cost me $5 to ship a 50 pound box for example. This was on a 1 package a week deal. Imagine if you get a deal like Dell its probably $5 a PC.
#3.1 rbet on 30 Sep 2005 - 23:01
exactly, well said.
#3.2 RangerLG on 01 Oct 2005 - 03:00
The article said post office, nothing about UPS.
(2 replies) #4 djsaad1 on 30 Sep 2005 - 21:05
think $5 per pc times at least 100 pc's per week probably per day. Then multiply that to get the cost per year. Trust me it adds up.
#4.1 Nightwind_Hawk on 30 Sep 2005 - 23:44
Yeah, it adds up but on the other hand, let's say you buy a $400 computer and get free shipping (I think I was over $500 to be free) and the shipping costs $5. That means it's only 1% of the price that they just payed. They're not losing money on it.
#4.2 Kormac on 30 Sep 2005 - 23:47
Older article (November 2004), but its ALOT more than 100 PCs/week...

...try 80,000 every 24 hours... (which seems INCREDIBLY high)

QUOTE
Eleven years ago, Dell carried 20 to 25 days of inventory in a sprawling network of warehouses. Today, it has no warehouses. And though it assembles nearly 80,000 computers every 24 hours, it carries no more than two hours of inventory in its factories and a maximum of just 72 hours across its entire operation.


Source: FastCompany article on Dell
#5 Iluvatar on 30 Sep 2005 - 21:21
they havent had free shipping on the low end stuff <550 for months now if not longer.
#6 Richardo on 30 Sep 2005 - 22:17
Good. their cheap prices/equipment is hurting small computer vendors.
They're like walmart taking over a small town, cutting out the competition.

I'm convinced they make more profit on their after warranty support calls + parts. Their replacement are Motherboards $250-350, like printer manufacturers make little profit on their printers knowing that people will buy their seemingly 4000% mark-up ink cartridges.

#7 vetSMeK on 30 Sep 2005 - 22:26
dell uk only does free delivery as a special offer

i got my laptop with free delivery and free double ram :E
#8 QuantumTrickery on 30 Sep 2005 - 23:13
None of the shipping was ever free anyways. It was always included in the price of the products, just as most companies do.
#9 j0j081 on 01 Oct 2005 - 00:14
I don't know...I guess Dell is okay for the average computer user (like my mom) but I've played around with a few of their mid-range desktops owned by friends and I wasn't impressed at all with a lot of the system components and build quality. I know hp isn't a fav, but at least with them you often get motherboards with nForce or ATI chipsets, on all their systems not just high-end.
#10 Echelon Left on 01 Oct 2005 - 00:29
1) I don't want any POS Dell box.
2) There is no second item.
3) I really don't want anything from Dell.

What, you were expecting some snapy one-liner?
(3 replies) #11 Foub on 01 Oct 2005 - 00:41
Can you say Chapter 11?
#11.1 darkhooda on 01 Oct 2005 - 01:27
Dell is doing pretty well, they're just about the only large American OEM that is earning money right now. The only other one that I can think of is Lenovo.
#11.2 WDGC on 01 Oct 2005 - 04:33
Lenovo an American company?

Try Chinese.

http://www.lenovo.com/lenovo/us/en/index.html
#11.3 Foub on 01 Oct 2005 - 10:27
Plus, Dell uses India as well for its call centres. No, when companies start cutting costs like this it means they are having problems and are trying to hide it by playing with the numbers. i.e. Worldcom.
(2 replies) #12 soldier1st on 01 Oct 2005 - 01:28
building your own pc is better than buying one.
#12.1 Jeremy1 on 01 Oct 2005 - 02:51
Buying a PC is better than building your own.
#12.2 Echelon Left on 01 Oct 2005 - 06:07
Uh-huh...Um, Dirtie, remind me to keep you away from any pets or small children. No, on second thought you just keep your mouse and your mirror the hell away from me.

Now, for those of us here who are not deranged lunatics AND who know how to build a PC, I think I can safely say that we all agree that building your own PC is the only way to go.

*Phe preceding was poking fun at a member of this board, and was intended for a mature audience. Small chuckleing noises and a reasonable abount of smileing are advised. Please smile responsibly.*
(1 reply) #13 TRC on 01 Oct 2005 - 01:53
Does Dell ship by truck? I know that Gateway actually ships on foot from there commercials; all their employees run across the country like cattle carrying computer boxes. Seems like a bad way to do it to me, but I guess it saves them money.
#13.1 gizmostripe on 01 Oct 2005 - 08:49
#14 Staind on 01 Oct 2005 - 02:21
If Dell is cheap why we choose to get its low-end?
#15 FutureKid on 01 Oct 2005 - 03:43
WAHOO...i live in Round Rock...go Tigers!
#16 Mister Lamar on 01 Oct 2005 - 04:24
dudes I want a dell
#17 ambiance on 01 Oct 2005 - 06:31
dell is fine for n00bs. thank god im not...
#18 imtoomuch on 01 Oct 2005 - 07:07
So it's fine to pay for destination and setup fees on a new car, activation fees for cell phones and cable, but paying for shipping on a computer is crossing the line? What am I missing here?
#19 XT. on 01 Oct 2005 - 08:04
Eventually people will realize that Dell makes terrible PCs.
#20 beauvoir on 01 Oct 2005 - 08:46
Edit: Irrelivant
#21 Aapke on 01 Oct 2005 - 11:55
Dell was shipping in the States for free? I hope for all of you guys that they aren't going to practice the same tactics as they do in Holland.

I.E.: SPECIAL OFFER!! Pentium 4 530 with FREE DOUBLE RAM!!! Only $499!!!*

(The following is printed on the very bottom in a font which is just as readable as Chinese without a magnifying glass): * Excluding shipping. &#8364;89,-- for desktops.

That's right! 89 euro's for shipping! That's almost one hundred dollars!! I think the word rediculous fits in here very nicely.

But hey, I wouldn't buy the tiniest thing from Dell anyway..
#22 Tech001101 on 01 Oct 2005 - 15:22
well with GAS prices on the Hike. Prices on everything is going up. Food, Electricity, and obviously Shipping. everything depends on fuel some way or the other..

#23 Neomac v6 on 01 Oct 2005 - 15:24
If this is the beginning of the end for Dell, we might see the weird situation of Apple being one of the last surviving brand-name PC vendors. And with the switch to Intel it might pick up some big enterprise contracts.
#24 matt74441 on 01 Oct 2005 - 16:43
Comments Cleaned
#25 vetSMeK on 01 Oct 2005 - 17:00
when i had to RMA my pc case ( a small soltek qbic ) the postage alone cost me £20 and that was just for the small 7kg case

imagine a whole pc :p

any pc part i order in the uk i have to pay delivery costs, the only things ive found in the uk i dont have to pay delivery costs for are things which can fit through my letter box
(1 reply) #26 Pliskin on 02 Oct 2005 - 00:41
Dell is for experts - only losers with no GF and a life build computers
#26.1 teckels on 02 Oct 2005 - 07:13
So you've built how many now?
#27 teckels on 02 Oct 2005 - 07:14
I've shopped on Dell's web site, and believe me by the time you get through upgrading their "$500.00" PC into something useable, you will wind up spending at least $1,300. That's not counting shipping if you're not lucky enough to qualify.
The worst part is that most of their systems only come with Windows XP HOME edition, and they don't offer an upgrade to Pro, so no matter how much horsepower you buy you're stuck with the lame home edition of XP.
#28 ggareis on 02 Oct 2005 - 08:58
I would only buy a dell if it was a laptop as those you cannot really build yourself easily right now. If you want a PC your definitely better off building it yourself.
#29 halflife28 on 02 Oct 2005 - 23:55
Who the hell here doesn't build their own computers. Dell sucks, they all sell over priced intergrated components.
(1 reply) #30 hash on 03 Oct 2005 - 02:17
Let's face it. Everyone is going to have their own opinions about buying vs building a computer system; and the makers available. But when it comes down to affordability, and financial ability, nobody can disagree where to go when you are strapped on cash.

(Although, I know some of the people here will still argue with that assessment because they have nothing better to do than try to prove how right they are.)

My familiy needed a second PC, just something basic to run a few programs and use the internet. Nothing spectacular. We certainly would not (could not) go out and buy some $2000 system, nor invest the money in some custom built computer. Even if you get fairly low end parts at good cost, by the time you add up all the accessories the small budget you're working with is in the red (think monitor, be hard pressed to get -anything- less than $100).

There came Dell.

We managed to get it at the right time where we got their low end system, with an 15" LCD, and free shipping. The entire system arrived at our door for $315.

$315 was entirely affordable for this basic computer system. The free shipping was the icing on the cake because we may not have bought it if we would have had to pay the $100 shipping or whatever it was. To Dell's credit this made the sale.

So some want to complain about free shipping being a bad thing. Some want to complain about Dell being cheap (quality), or overpriced (??), but in the end for some people Dell is one of the only ways to be able to get what is needed/wanted.

Not everyone has as much money to throw around as some, and people seem to forget that.
#30.1 Makere on 05 Oct 2005 - 13:54
you get 15" lcd's free from people who want to get rid off em, and you can build similar pc cheaper if you dont buy windows

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