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Dell steals $300-400 off customers!!!!!!

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June 2, 2006 12:15:38 PM

http://www.extremetech.com/article2/0,1697,1970767,00.a...

Seriously..... go onto Newegg and put the following items in your cart

A 975X chipset board
A P4 930 CPU
512mb of expensive DDR2 memory
An Antec P180 (or any decent case that catches your fancy)
a 500w+ PSU which is SLI capable, modular and so on

Tell me how much it costs you. Don't know if they include an OS and it doesn't state this so I didn't include it! I suspect that as it doesn't have a hard drive it doesn't include an OS.
June 2, 2006 12:48:47 PM

No suprise there, business as usual - its why I've always wondered why so many people buy Dells
a b B Homebuilt system
June 2, 2006 1:03:44 PM

Interesting, Dell selling bare bones systems so Dell buyers can do their own upgrades/carry over old components. Do you think that extra 400 bucks will be enough to cover the flood of calls for tech support?
Related resources
June 2, 2006 1:40:14 PM

:lol:  :lol:  :lol:  :lol: 

Like $1200 for a case, power supply, motherboard, Pentium D 930, and 512MB of RAM? Thats funny. Especially considering its a shitty Dell motherboard and just regular Value RAM. Their cases aren't horrible but they're no Lian Li or Silverstone.
June 2, 2006 1:45:58 PM

Quote:
No suprise there, business as usual - its why I've always wondered why so many people buy Dells

Well there is a little thing called "value added". Dell assembles the system for you, tests it, and provides support for the whole system (even though the componants come from different sources). I think we should also assume that Dell is trying to make a profit, not just break even. And let's also asume that they have to pay emplyees, facility fees, insurance, etc... So adding $300-$400 seems fairly reasonable to me.

Personally I wouldn't buy a system from Dell, but for people who don't want to spend an entire weekend building a system, loading the drivers, updating the OS, and loading software... that sound pretty reasonable.

Let me ask you, if you build a nice system for around $850, including Windows... how much would YOU sell it for?
June 2, 2006 2:01:19 PM

It's already been pointed out...but how exactly are you going to be "stealing" a profit of that margin? It's not like they're tripling the cost of the machine to bend you over on the costs; hell, I find if anything they found the right margin to help compensate for not only parts testing, but R&S and tech support as well.

I don't know about you, but if I built a barebones machine and sold it off, I'd make as much as I could off the thing. Hell, whenever I build PCs for other people, I try to make at least $200-300 off them, so does that mean I'm stealing from them as well? No, it's just smart business practices.

The solution: DONT BUY FROM DELL IF YOU DONT WANT TO. Call me crazy, but ranting about this to people who wouldn't in their right mindset buy combos like that from ANYONE is futile...and as I know from many customers I deal with, there are plenty of people out there that would rather spend top dollar on namebrand merchandise then worry about quality or even performance (see the iPod).
June 2, 2006 2:10:29 PM

I can't wait to start a business where I will just give away my product without making a profit. Boy, I'll turn the business world on end!

:roll:
June 2, 2006 2:52:46 PM

Quote:

Well there is a little thing called "value added". Dell assembles the system for you, tests it, and provides support for the whole system (even though the componants come from different sources). I think we should also assume that Dell is trying to make a profit, not just break even. And let's also asume that they have to pay emplyees, facility fees, insurance, etc... So adding $300-$400 seems fairly reasonable to me.

Let me ask you, if you build a nice system for around $850, including Windows... how much would YOU sell it for?


I belive I said BUSINESS as usual - and as well all know, businesses try to make money. But what I can make for $850 is not what they can make for $850. They have a bit more buying power than I do so comparing me to a multi-billion dollar corporation seems a bit of a stretch :wink: Based on experience I would put their price at around $500 (If that). Now given their markup size and that fact that you can get a non-barebones PC from HP with a D940, 1GBRAM, DVDburner, 160GB HD w/ MCE OS for $1109.99 - or a similar from Gateway for $50 less - is why I wonder why so many people buy Dell
June 2, 2006 3:00:42 PM

dell looks to make profit, they have on site support if you get the right warranty, a bit easier than going through each company you brought from.

keep your eyes open, there is almost ALWAYS an good deal coupon code you can find that reduces the price by a marginal amount, as for right now there is 40% off dimension desktops (you could of gotten 2405fpw w/ a standard e510+x600 gfx for 960$) ...the monitor alone is around 700 (then sell the dual core pentium system w/ 512mb ram and an x600 for XXX, making a decent profit.) or just give it to your kid/friend with a different monitor as a gift/sale.
---the 2405fpw was taken out of the choices because so many people did the deal mention aboved, the 40% off is still in action until 6/8. (the 2005fp is still a choice)

dell charges a bit extra to make money, but look at their value systems (as low as 300$ per system)...okay it is a 2.53 celery with 512 and a 160gig but that is what schools would use. buy 100 of them with the 40% off, that is a deal(heance why dell is the largest computer retailer in the world)


well..after conroe there should be amazing deals at dell and everywhere else for that matter.
June 2, 2006 3:01:47 PM

Very good point.
June 2, 2006 3:02:19 PM

Very good point.
June 2, 2006 3:09:44 PM

OMG Dell actually makes money from selling computers???? world shattering news.... and you know what they probably make more than just 400 bucks a PC.

I dont think they buy their parts from newegg either I think they just bulk buy their PCs.

I hear they have good customer support, but then again never had a dell.... never been ripped that badly.
June 2, 2006 3:23:23 PM

Quote:
OMG Dell actually makes money from selling computers???? world shattering news.... and you know what they probably make more than just 400 bucks a PC.

I dont think they buy their parts from newegg either I think they just bulk buy their PCs.

I hear they have good customer support, but then again never had a dell.... never been ripped that badly.


I wasn't suggesting that they buy their parts from Newegg :roll: No Tier 1 buys parts from retailers or etailers :roll:

The point I'm making is that this isn't even a system......it doesn't have a graphics card, hdd, optical drive or OS. It doesn't require Dell to assemble a bespoke set of applications for this particular PC and test that it works properly as they'd do with their normal PC's. This is just some guy in a factory screwing in a mobo, putting a CPU in and screwing the PSU in. It's blatant highway robbery. I wouldn't be surprised if they're making US$600 on these systems........

It's be just like being able to buy a BMW in bits and paying someone to assemble it for less than what it costs to buy one from the showroom floor.

Of course Dell have the right to make money. But this verges on theft
June 2, 2006 3:23:45 PM

Quote:

Well there is a little thing called "value added". Dell assembles the system for you, tests it, and provides support for the whole system (even though the componants come from different sources). I think we should also assume that Dell is trying to make a profit, not just break even. And let's also asume that they have to pay emplyees, facility fees, insurance, etc... So adding $300-$400 seems fairly reasonable to me.

Let me ask you, if you build a nice system for around $850, including Windows... how much would YOU sell it for?


I belive I said BUSINESS as usual - and as well all know, businesses try to make money. But what I can make for $850 is not what they can make for $850. They have a bit more buying power than I do so comparing me to a multi-billion dollar corporation seems a bit of a stretch :wink: Based on experience I would put their price at around $500 (If that). Now given their markup size and that fact that you can get a non-barebones PC from HP with a D940, 1GBRAM, DVDburner, 160GB HD w/ MCE OS for $1109.99 - or a similar from Gateway for $50 less - is why I wonder why so many people buy Dell

You don't provide 24/7 Tech support, onsite service for 3 years (standard on business systems) either. Newegg is always going to be cheaper, but if your system breaks after 2 weeks, you won't be calling Newegg for troubleshooting, if it were a Dell you can call them for help.

Besides, this is a free market economy, price is based on what people are willing to pay. Dell is not ripping off anyone, they are simply doing what they are REQUIRED to do (to their best ability) by law, increase shareholder value.
June 2, 2006 3:35:46 PM

Quote:

Well there is a little thing called "value added". Dell assembles the system for you, tests it, and provides support for the whole system (even though the componants come from different sources). I think we should also assume that Dell is trying to make a profit, not just break even. And let's also asume that they have to pay emplyees, facility fees, insurance, etc... So adding $300-$400 seems fairly reasonable to me.

Let me ask you, if you build a nice system for around $850, including Windows... how much would YOU sell it for?


I belive I said BUSINESS as usual - and as well all know, businesses try to make money. But what I can make for $850 is not what they can make for $850. They have a bit more buying power than I do so comparing me to a multi-billion dollar corporation seems a bit of a stretch :wink: Based on experience I would put their price at around $500 (If that). Now given their markup size and that fact that you can get a non-barebones PC from HP with a D940, 1GBRAM, DVDburner, 160GB HD w/ MCE OS for $1109.99 - or a similar from Gateway for $50 less - is why I wonder why so many people buy Dell

You don't provide 24/7 Tech support, onsite service for 3 years (standard on business systems) either. Newegg is always going to be cheaper, but if your system breaks after 2 weeks, you won't be calling Newegg for troubleshooting, if it were a Dell you can call them for help.

Besides, this is a free market economy, price is based on what people are willing to pay. Dell is not ripping off anyone, they are simply doing what they are REQUIRED to do (to their best ability) by law, increase shareholder value.

Yes. But with the money you save by buying a PC from a local PC that still comes with a warranty ..... you could get a better specced machine than this. Or a HP and have something that's better than the Dell, higher specced and still has a warranty
June 2, 2006 4:01:41 PM

wow. a bare bone system for the price of a fully functional pc!

yeah sounds like big business and marketing pulling the wool over the uneducated customers eyes.

i also noticed that they threw in the letters XPS as many times as possible (marketing), making it sound like its some sort of top of the line parts. HA!
June 2, 2006 4:34:22 PM

Its called buesniess, they can make a good PROFIT this way, Intel does it 2

it cost Intel 45USD to make one of their 650USD chips.
June 2, 2006 4:48:23 PM

Quote:
Its called buesniess, they can make a good PROFIT this way, Intel does it 2

it cost Intel 45USD to make one of their 650USD chips.


But how much does Intel pay for the first CPU off the line? with their research, costs of making a plant... AMD just spent 2.5 billion on a factory...
June 2, 2006 5:29:33 PM

Quote:

Well there is a little thing called "value added". Dell assembles the system for you, tests it, and provides support for the whole system (even though the componants come from different sources). I think we should also assume that Dell is trying to make a profit, not just break even. And let's also asume that they have to pay emplyees, facility fees, insurance, etc... So adding $300-$400 seems fairly reasonable to me.

Let me ask you, if you build a nice system for around $850, including Windows... how much would YOU sell it for?


I belive I said BUSINESS as usual - and as well all know, businesses try to make money. But what I can make for $850 is not what they can make for $850. They have a bit more buying power than I do so comparing me to a multi-billion dollar corporation seems a bit of a stretch :wink: Based on experience I would put their price at around $500 (If that). Now given their markup size and that fact that you can get a non-barebones PC from HP with a D940, 1GBRAM, DVDburner, 160GB HD w/ MCE OS for $1109.99 - or a similar from Gateway for $50 less - is why I wonder why so many people buy Dell

You don't provide 24/7 Tech support, onsite service for 3 years (standard on business systems) either. Newegg is always going to be cheaper, but if your system breaks after 2 weeks, you won't be calling Newegg for troubleshooting, if it were a Dell you can call them for help.

Besides, this is a free market economy, price is based on what people are willing to pay. Dell is not ripping off anyone, they are simply doing what they are REQUIRED to do (to their best ability) by law, increase shareholder value.

I don't belive I mentioned giving customer support. In fact I mentioned that comparing me to Dell was not a good idea. I am not a corporation of thousands of people. I also didn't say anything about buying from newegg. I compared dell's barebones PC to a full PC from HP and Gateway. I understand that Dell is trying to make money, hence the 'business as usual' remark - my comment is simply that I don't understand why people overpay for their Dells. I will say that Dell does sometimes give good discounts - but often, even with their 40% coupons, fall short of an HP or Gateway computer price (Which is why I speculate that they are the only computer company (besides Lenovo-mobile only) that lost market % last quarter. HP, Acer, Sony and Gateway all posted % gains
June 2, 2006 5:37:35 PM

I wonder if anyone here has even SEEN this chassis. Even though I would never buy the combo mentioned in the first post, I WOULD consider buying just the case and power supply. Did you know that the red one comes with a 1Kw power supply, standard? Not to mention, the case is pretty sexy if you ask me. Just wish they would take the letters D-E-L-L off the front...
June 2, 2006 6:01:07 PM

What I find is funny how people are talking about the price but forgetting they are using CHEAP parts.... Who gives a rats arse if your drive space is 500 Gigs if the thing is slow as crap. Dell, Gateway, etc build PC's to a price point with very little thought to quality. I built my PC a year and a half ago and other than not having a SLI or Crossfire motherboard I am sure that my system is at least 2-3 times faster than the lemmings who buy a new computer based of off drive size, memory (512mb), DVD, USB, etc.

MY Comptuer specs are as follows:
Aspire XNavigator Case (500w Power supply)
ASUS A8V Deluxe motherboard
AMD 3800 64 Bit Processor
3GB Corsair XMS Pro CAS2 Memory
Dual 74GB 10kRPM SATA Raptor drives
Plextor SATA DVD R/W Drive
X800 Pro (only weak link now) Video Card
XP Pro

My cost via Newegg was 1800.00 or so and I spent about 5 hours putting the system together, loading the OS and then patching.

Go ahead lemmings and buy from Dell, Gateway, etc and you will get what you paid for.. Cheap box with cheap slow parts. instead of speaking to tech support here in the US, which when you buy your speaking to someone who speaks our languange, you will have to deal with someone in india who is just reading from a series of scripts on how to fix your computer.
June 2, 2006 6:24:56 PM

i am glad that people finally realise that dell does add alot to the price of a computersystem.. i have an example.. but even though it is in USD it is still the danish prices (wich are alot higher than those in US)
just for fun i collected a very good gaming computer at the danish dell website.. the price was nearly 4000$
to compare i collected the exact same computer (with asembling) at a danish site named shg.dk (where i buy my system soon) they did it for about 2200$.. so even though dell migt have price knockoffs up to 40%.. it is just not enough to make up for the price, and about support, there are always forums like this one, where alot of people wants to help.

so unless you know nothing about computers at all, dont go for Dell!
June 2, 2006 6:25:45 PM

i am glad that people finally realise that dell does add alot to the price of a computersystem.. i have an example.. but even though it is in USD it is still the danish prices (wich are alot higher than those in US)
just for fun i collected a very good gaming computer at the danish dell website.. the price was nearly 4000$
to compare i collected the exact same computer (with asembling) at a danish site named shg.dk (where i buy my system soon) they did it for about 2200$.. so even though dell migt have price knockoffs up to 40%.. it is just not enough to make up for the price, and about support, there are always forums like this one, where alot of people wants to help.

so unless you know nothing about computers at all, dont go for Dell!
June 2, 2006 6:39:29 PM

I am a network admin by trade and before that I worked in electronics for 18 years. When someone asks me my opinion on what computer they should buy, and I know that person knows little or nothing about computers, you know what I tell them? I tell them to go to Dell, or HP, or Gateway and pick one out and buy it. Why? So I don't have to offer them tech support myself.

I'll help my friends with computers, but I'm not going to get involved with helping every tom-dick-harry with computer problems.

There are a lot of people who know nothing about computers, and it's easy for people on this or other hardware forums to try to make sense of them buying from OEM manufacturers that we would never consider, but hey, if no one was buying from Dell then they wouldn't be in business. I'd be more than happy to own a business as sucessful as Dell has been. I'm sure most everyone posting in this thread would too.

I personally buy my company machines from Micron, or MPC as they are known now. Not because I couldn't build a better machine but because it's not worth my time to build every machine by hand. MPC actually uses very good parts and has excellent tech support for their business clients...I can't speak about consumer tech support.
June 2, 2006 7:11:50 PM

Quote:
No suprise there, business as usual - its why I've always wondered why so many people buy Dells

Well there is a little thing called "value added". Dell assembles the system for you, tests it, and provides support for the whole system (even though the componants come from different sources). I think we should also assume that Dell is trying to make a profit, not just break even. And let's also asume that they have to pay emplyees, facility fees, insurance, etc... So adding $300-$400 seems fairly reasonable to me.

Personally I wouldn't buy a system from Dell, but for people who don't want to spend an entire weekend building a system, loading the drivers, updating the OS, and loading software... that sound pretty reasonable.

Let me ask you, if you build a nice system for around $850, including Windows... how much would YOU sell it for? DUDE IAM 12 AND IT TAKES ME LIKE 6 HOURS TO BUILD A COMPUTER AND DO ALL THAT STUFF....NOT 2 DAYS(MAYBE IF UR A NOOB) I THINK DELLS ARE A RIPE OFFFFFF!!!!!!!!!!!
June 2, 2006 7:15:14 PM

Quote:
It's already been pointed out...but how exactly are you going to be "stealing" a profit of that margin? It's not like they're tripling the cost of the machine to bend you over on the costs; hell, I find if anything they found the right margin to help compensate for not only parts testing, but R&S and tech support as well.

I don't know about you, but if I built a barebones machine and sold it off, I'd make as much as I could off the thing. Hell, whenever I build PCs for other people, I try to make at least $200-300 off them, so does that mean I'm stealing from them as well? No, it's just smart business practices.

The solution: DONT BUY FROM DELL IF YOU DONT WANT TO. Call me crazy, but ranting about this to people who wouldn't in their right mindset buy combos like that from ANYONE is futile...and as I know from many customers I deal with, there are plenty of people out there that would rather spend top dollar on namebrand merchandise then worry about quality or even performance (see the iPod).
but if ur a billion dollar company like dell you dont need to make that much profit
June 2, 2006 7:22:31 PM

to go along with your coupon post,

ive found out personally that if you call dell and jsut talk to the customer service rep for long enough they will give you all the discounts without the coupons. Dell does offer some really good deals. too bad this is not a deal.
June 2, 2006 8:03:00 PM

Quote:
I personally buy my company machines from Micron, or MPC as they are known now. Not because I couldn't build a better machine but because it's not worth my time to build every machine by hand. MPC actually uses very good parts and has excellent tech support for their business clients...I can't speak about consumer tech support.


Ughhhh!! Micron...

I bought my first PC from them back in 1998. My worst purchase ever. They seemed to be good PCs, and many of thier PCs got good reviews. But I must have gotten a lemon or something 'cause that thing just kept crapping out on me. They had to replace the CPU and motherboard once each, and the PSU twice. It was definitely $2,200 worth of junk.

Since then I educated myself about PC components and how to build my own PCs. Damn, that was some expensive tuition.
June 2, 2006 9:22:48 PM

I buy them now because the company I work for was buying them when I started there in 2000 and I kept buying them. I've had nothing but good experience with them, and they use quality, name brand parts and offer good support. I like them, personally.

In your case it's difficult to say what the real problem was, but sometimes you do just get a lemon, no matter who you get it from.

I build my own machines of course, but for work I buy them. I realized micron was good when I opened one up and it had the same parts including the motherboard that I had just used to build my own computer.

Quote:
DUDE IAM 12 AND IT TAKES ME LIKE 6 HOURS TO BUILD A COMPUTER AND DO ALL THAT STUFF....NOT 2 DAYS(MAYBE IF UR A NOOB) I THINK DELLS ARE A RIPE OFFFFFF!!!!!!!!!!!


I must have taken a wrong turn...I thought this was THG, not some game forum I read. But, to respond, I can do that in 2 hours, from putting the machine together to loading windows and all the drivers, so you must be a noob if it takes you 6 hours. :roll: :wink:
June 2, 2006 11:38:35 PM

you're kidding right?
look: http://configure.us.dell.com/dellstore/config.aspx?c=us...

dell steals $399 off of customers!

and as much as i hate dell, you just sound like a commie. besides, people that use computers dont know how to build them. dell plays to the stupidest people on earth, aka your average consumer. there ya go. capitalism at its finest.
Quote:
It's already been pointed out...but how exactly are you going to be "stealing" a profit of that margin? It's not like they're tripling the cost of the machine to bend you over on the costs; hell, I find if anything they found the right margin to help compensate for not only parts testing, but R&S and tech support as well.

I don't know about you, but if I built a barebones machine and sold it off, I'd make as much as I could off the thing. Hell, whenever I build PCs for other people, I try to make at least $200-300 off them, so does that mean I'm stealing from them as well? No, it's just smart business practices.

The solution: DONT BUY FROM DELL IF YOU DONT WANT TO. Call me crazy, but ranting about this to people who wouldn't in their right mindset buy combos like that from ANYONE is futile...and as I know from many customers I deal with, there are plenty of people out there that would rather spend top dollar on namebrand merchandise then worry about quality or even performance (see the iPod).
but if ur a billion dollar company like dell you dont need to make that much profit

But if you can, why not?
June 3, 2006 12:39:22 AM

Quote:
but if ur a billion dollar company like dell you dont need to make that much profit


Ask that to the oil companies right now, and see what they tell you. I think you might be confusing Dell with a non-profit company.
June 3, 2006 1:02:37 AM

Dell doesn't use ethics in business, offering a great product at a reasonable price, they jack the reasonable price up compared to other unethical companies, hp, compaq, etc. It's a visious cycle.

I don't know how many times i've posted dell's ripoffs, you pay for their advertising, not their support. Think about the number of machines they sell, then think about the low percentage that actually call tech support, most of their machines don't break. You are basically paying for other people's support unless you use it.

When I ran my business, I made more than enough for myself, my partner, and 3 employees, and all I ever made off machines was $100 to $150. It takes me 8 minutes to physically build a machine, and only around 20 to configure it (do other work while waiting on the machine.) I provided a 3 year warranty and support 8:00-9:00 at NO COST cause I did it myself and I LIKE helping people. (granted large companies need support centers, but they usually get paid very poorly, only a rung up from McD's) And out of the thousands of machines I built, less than 1% came back with problems.

All of these companies are ripoffs in that all you really pay for is a crappy machine and their ads.

That's my rant for the day.
June 3, 2006 3:17:11 AM

Let's get a few things right. First, nothing from Dell is "free". They can call it whatever they like, but they aren't just giving things away. Second, their cases ares somewhere between horrible and mediocre. Third, most of the time the great tech support consists of either "put your system restore disk in the CD ROM drive and reboot", or, you've had a part fail and we'll send you a new (though not new, but refurbished) one. In the case of their power supplies, it won't matter how many they send you, they will all be crap. Cannot tell you how much trouble I've had to deal with one model in particular, the Optiplex GX280. Customers gripe at me for Dell's severe shortcomings with this model (bad capacitors, ineffective heatsink, loud fans). They go round and round with Dell when they're under warranty, then come to me for real support and hardware when the warranty is over. I have had plenty of experience with Dell stuff over the years, so I'm not talking from the perspective of just one or two machines.
June 3, 2006 8:25:02 AM

you where right that i might have been a little agressive in my post earlyer, but i was speaking to people in here, and mst people in here do know hos to work on building computers and/or solving problems.
sure there will be lots of people around the world that dont know nothing about how a computer work.
anywai i still think that it is horrible prices. and belive it or not, less than two months ago they where still telling people that their 512MB ram was double memory (it might have been dual channel but they made it sound like if any other company made 265MB computers) at least that was the situation.
my grandfather is thinking about buying a Dell.. but not if i can prevent it... at least he could buy in a store down town, as he will probably want some kind of hotline.
June 5, 2006 5:26:47 AM

Yeah i do the same i recomend dell to pplz i dont really know... tech suport and trouble shooting is a massive waste of time. and thats where dell comes in....

I think the dude that owns dell must be a millionare by now....
June 5, 2006 5:35:50 AM

Oh, you mean Michael Dell? Ya think :lol: 
June 5, 2006 11:24:00 AM

Quote:
Yeah i do the same i recomend dell to pplz i dont really know... tech suport and trouble shooting is a massive waste of time. and thats where dell comes in....

I think the dude that owns dell must be a millionare by now....


Hell, and a deserving one...
You go try and make a cool mil off assemblining and supporting PC's... you can do it too you know...
Report back and tell us how rich you are next year! :wink:
June 5, 2006 1:24:45 PM

Do you or your boss charge more than you're salary for services rendered?
Do you accept a salary? [you greedy pig]
Seems fair enough to me, as long as they are up front about what they charge, if you do not like it, go elsewhere...
Dell steals?!? Hardly theft... imo...
June 5, 2006 2:14:28 PM

Well the argument stands and I partially agree with it. Dell has been going downhill at rocket pace ever since their xps800 series which featured pIII. Many of their p4 systems were buggy as hell. No manufacturer gives you a copy of windows like they used to, the load your computer full of crap software, and their tech support gets worse by the second. Dell used to be a great company a few years back but they blazed down the path of no return just as HP, Compaq, Gateway, and all the rest. Maxi's point is that when do you call enough enough? They shouldn't market this stuff to people who don't know what they are doing and they wouldn't have to overcharge so much.
a b B Homebuilt system
June 5, 2006 2:26:07 PM

You said it. Most people have very little or no knowledge of the inside workings of a PC. Not a day goes by that someone in the office needs my help because "the mouse won't move" or "I think my moniter is bad, it only has a blue screen with white words on it".
They can do amazing things with apps like Illustrator, Photoshop, Quark, breeze through Excel spreadsheets, and kick out eyepopping Powerpoinit presentations. But if the PC has a hardware glitch, or even a software related problem, they sit there starring dumfoundly at the screen without a clue.
When my brother, sister and parents all bought their first PC's within about a year of each other, OMG, I was suddenly tech support on call 24 hours a day for 2 years.
For most people, Dell, Gateway, etc. are the best way to go. The extra cash is well spent for the support and piece of mind. Now we could go on about how terrible the support may or may not be, but I find that if you are pleasant and patient when you call, you can usually get resolution.
Gateway has even came to my parents house to reslove issues with their PC for them more than once over the past few years -no charge because they bought the extended service plan.
June 5, 2006 2:26:40 PM

They have to market to those who don't know what they are doing, because those who do won't buy from them. :wink:

A free market will weed out problem companies.
June 5, 2006 3:01:35 PM

Quote:
Yeah i do the same i recomend dell to pplz i dont really know... tech suport and trouble shooting is a massive waste of time. and thats where dell comes in....

I think the dude that owns dell must be a millionare by now....


Hell, and a deserving one...
You go try and make a cool mil off assemblining and supporting PC's... you can do it too you know...
Report back and tell us how rich you are next year! :wink:


Michael Dell is worth $18 billion and is the 4th richest American. A cool mill.. lol
June 6, 2006 2:35:09 AM

Quote:
Do you or your boss charge more than you're salary for services rendered?
Do you accept a salary? [you greedy pig]
Seems fair enough to me, as long as they are up front about what they charge, if you do not like it, go elsewhere...
Dell steals?!? Hardly theft... imo...


My point was that this isn't even a whole system and they're probably making a good 50% on the product. Find me a tier 1 that makes this sort of margin on their product ;)  I could understand if they were actually assembling and supporting a PC with a hard drive, keyboard, mouse, memory, graphics card, OS and the rest. But this is just a barebones. Dell can just say "What???? You're using a keyboard and it doesn't work? What brand is it? MS? We don't support that product as you didn't buy it from Dell" when you call up with a problem. I guess I should have said "Dell practically steals 400 dollars off customers"

:) 
June 6, 2006 3:05:48 AM

I noticed something else about the DIY, priced out the same as a non DIY:

DIY cost with 19" LCD and no OS: 3460
Non-DIY cost with 20" LCD and WMC: 3540

Hum, 19" to 20" and add the os for only $80? what a wonderful value the DIY is :roll:
June 6, 2006 3:20:52 AM

Dell isn't making a fortune by ripping off the average computer ignorant person. It's rich because of selling to corporations and schools. Plus, if you didn't know Dell rips you off by now, you better get out of that closet. Dell may have some good bargains now and then, but all the high end stuff, pure rip off, just like Alienware, which they aquired. Technical support? You guys may think that buying a computer from a company is worth it because tech support, I think TG did an article about Dell's support, getting hit by a bus would have been a better experience basically sums up the article. I think it was TG, could have been another site. So, there really is no reason to buy from Dell, or any other computer company for that matter, unless you really are computer ignorant. Heck, I built a computer just off of Newegg and Zipzoomfly 1.5 years ago, I just looked at all the compatibility specifications, and built it within a few hours. First built, I had no prior experience, and it wasn't hard at all. The hardest part was looking through the manuals to see were the switches and all connected, then "cleaning" up the wires because it has a acrylic side panel.
June 6, 2006 3:22:42 AM

Quote:


When I ran my business, I made more than enough for myself, my partner, and 3 employees, and all I ever made off machines was $100 to $150. It takes me 8 minutes to physically build a machine, and only around 20 to configure it (do other work while waiting on the machine.) I provided a 3 year warranty and support 8:00-9:00 at NO COST cause I did it myself and I LIKE helping people. (granted large companies need support centers, but they usually get paid very poorly, only a rung up from McD's) And out of the thousands of machines I built, less than 1% came back with problems.

All of these companies are ripoffs in that all you really pay for is a crappy machine and their ads.



That's really nice, but your business was privately own. Dell and others are publicly traded companies. Shareholders always want their shares to increase in price. How is that done? Volume sales, revenue, and most important the bottomline after tax profit. Face it, you filled a niche market in a large computer market. As volume increases, the scale of production must increase as well. What, you expect Michael Dell to take time out of this busy day to build a PC personally for you? He does answer to the Board of Directors you know.

Dell and others appeal to the masses, because the masses cannot be bothered with building their own PCs. They also wouldn't know what to if Windows crapped out on them. Of course some of the people want a more personalized PC, which is why you had customers. You filled the nich in between those who knows how to build PCs and those who don't know, but also do not want a PC rolling off from an assembly line.

In any case, it is a competitive market out there and Dell (and others) sells PC at a price that is high enough to make a profit, but not too high to scare off potential consumers.
June 6, 2006 4:36:25 AM

Quote:
DUDE IAM 12 AND IT TAKES ME LIKE 6 HOURS TO BUILD A COMPUTER AND DO ALL THAT STUFF

But how long would it take your grandma to do all that stuff?

And I'll bet she's got more money than you do, and would be willing to pay the service.
June 6, 2006 5:17:19 AM

OK, I get that I was not comparing apples to apples. My bad. The original post was about a bare bones system, not a complete Dell system.

I also get that Dell puts cheap parts in their computers, where home builders put good parts in theirs.

But here's my point...

Let's say you can build the $850 entry level gaming system (really needs to be a grand, but let's just say...). And Dell can put together a similary system, using their purchasing power, at around $500. But their system comes all assembled and tested w/ the OS installed, some sort of software package, and some semblence of tech support.

Why should they only charge $850 or so for their system. Sure, they'd be making a tidy profit, but their equivalent system has more value packed in, so we should expect it to cost more. Why should they give away money that the market is willing and able to pay?

That's not unethical. They're simply making money on two fronts, by offering more value at a lower cost to themselves.

Like I said, I won't be sending my money their way on either front. I don't think many people on this board will either. But don't forget good old granny !
June 6, 2006 5:23:15 AM

Quote:
DUDE IAM 12 AND IT TAKES ME LIKE 6 HOURS TO BUILD A COMPUTER AND DO ALL THAT STUFF

But how long would it take your grandma to do all that stuff?

And I'll bet she's got more money than you do, and would be willing to pay the service.

That's very true and that's why Mr Dell is rich. But a barebone system is usually something only an enthusiast would buy. So if your grandma was into gaming she'd still have to get someone to put those parts into her Dell barebone PC. But they've priced it up high. So basically if you have NFI what to do. You have to buy the barebone system at a 3-400 dollar premium and then pay someone else to put a graphics card in, some more RAM, install an OS and so on and on. At the end of the day it's hardly a cost effective solution is it? I also don't see how somone who doesn't know how to assemble a PC is going to care whether they have an XFX card or a Brand XYZ card or whether they get cheap crappy ram or nice ram with heatspreaders.
June 6, 2006 5:35:38 AM

Oh I understand, I just have something against the waste of money in big business and this was a good way to point it out. By the way, mass production lowers costs, make profit there, no need to jack the price up even more, it's all greed.
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