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Same Part, Same Supplier, Different Prices
linuxwrangler writes "Infoworld's "Notes From The Field column this week includes a comment from a reader who found that Dell listed several different prices for the same part. Intrigued, I grabbed the first part number I found (a 512MB memory module #A0193405) and found that the list price is $289.99 which the price offered to "large businesses". Meanwhile, the GSA/DOD contract price is $266.21 while "home users" find the list-price discounted to $275.49 and "small businesses" fare even better with a $246.49 price. InfoWorld contacted Dell who responded, "Each segment sets its own pricing, and consumers are free to pick the one that's cheapest." Buyer beware."
This goes on everywhere. The buyer continues to be responsible for getting the best price. Ever asked for your "promotional" code when ordering from a catalog. Different catalogs have different pricing and they want to make sure they quote you the price you expect to see. Buyer beware. Now as always.
P.S. The small biz prices they offer on the 2001FP flat panel a couple times a year KICKS ASS. If you will be in the market for an LCD, check it out.
This is old hat to those lurk in deal forums. Dell Small Business has the best deals... but then they smack you with shipping. The same computer over in Dell Home has a higher price... and the coupon codes don't work.
Accordingly FedEx apparently only charges Dell about 20$ to ship a computer. Ones that are damaged go to the dump. Dell charges 99$ shipping.
The comments of "Wow! That's hilariously dumb" are starting to come in already. Dell is not stupid. Keep an open mind to the fact that something that is counter-intuitive might still be the best way to do something.
In this case, Dell is taking advantage of an inefficiency in the marketplace. Specifically that customers are honestly identifying themselves and they're offering the highest price they feel that particular type of customer will pay. Of course, this starts to break down when customer knowledge makes the marketplace more efficient, but the average person is not a Slashdot denizen or FatWallet (or similar site) checker.
I'm a big tall mofo.
The system I picked was the Dimension, with the latest tech. But the salesman wanted me to buy the 'business optimized' OptiPlex. I pointed out that each unit was MUCH more expensive for the same power, he tried to sell me that new technology was not good for business - I should use 'proven' hardware (i.e. 1 year old chips at top prices).
First, let me say that I'm not a Dell rep and I couldn't care less where people buy their computers.
However, there is such a thing as a "business optimized" PC, and I can see the value in a business paying a premium for them. Speaking as as a person who has been charge of those who support the hardware on these things, a "business optimized" PC means a PC line whose hardware components don't change very often. I wouldn't necessarily buy into the argument that I need "proven" hardware, but having a line of PCs that don't change their overall component structure can be a very good thing in terms of supportability.
I was in the park the other day wondering why frisbees get bigger and bigger the closer they get - and then it hit me.
I'll join the chorus of folks who've pointed out that Dell has done this for, like, ever and that it's quite common in the industry. Best Buy, CompUSA and Circuit City each pay different prices to manufacturers and distributors for the same parts, too.
By the way, Dell's pricing strategy is primarily the reason that the first question you're asked on the Dell home page when you begin shopping is not "how much do you want to spend?" but "where will you be using it?".
At the large company for which I work, whenever we buy Dells, we simply have somebody buy them on a personal credit card and have them shipped to a home address.
Sitting in my day care, the art is decopainted.
Support plans might be nice? I don't know if you've had any experience from Dell, but unless your school has a few teachers from Bangalore India, I don't think you'll love the support options. For those of you that get frustrated with waiting for a half hour to talk to some grabass from India that wants you to reformat your computer, here's a few catch phrases you can study up on while you wait. chuutya = asshole tum chuutya ho = you're an asshole. gaand = ass hijda = transvestite kuttiya = bitch lund = dick lund choos = suck my dick Have fun, and keep it safe! :)
$246.49 for 512 meg of memory in todat's market and the post can call this "fare even better" ? Hardly, it's a huge over charge for buying from Dell. Sadly, some Dell systems do require "special" memory, I had tried to help a girlfriend add memory to her Dell system a few years ago and we learmed that standard memory would not work in it. Dell used some memory with very strange clock requirements. Still, we were able to get the memory from any of several large memory suppliers for about half of what Dell wanted for it (although for significantly more than "standard" (and faster) memory would cost. The lesson is don't buy memory at all from Dell, and to avoid getting "locked in", don't buy at all from them.
I'm an American. I love this country and the freedoms that we used to have.
If you buy a gold support plan or higher, you get an American call center. At least for small business customers.
Small Business section also makes available some great low end poweredge machines, with no windows tax. Great machines, usually from $274 to $500.
They update their deals once weekly.. keep an eye on it until they offer something you can't resist, get a good deal.
One of Dell's fun tricks seems to be charging far more for parts when brought with a PC then they would do if purchased separately. For example, a 1905FP monitor from Dell's UK site costs £284.59 on its own (including tax and shipping). A random Dimension PC from the home and home office section includes a monitor in the price and has the option of upgrading to the 1950FP monitor for £339.58. It actually works out cheaper to get the bundled 17" monitor and buy the other nice LCD screen as well then to just buy the good screen with the PC.
Once you've worked out you need to play the Dell website game to get the best prices from them, it is just adds an extra layer of hassle to buying PCs. Perhaps someone could make an app that scrapes their web pages looking for the best deals (e.g. is it best to start with a high spec PC and customise the components downwards or is it better to start with a low spec PC and add the bits you want).
Actually, Dell has been doing this on systems for years, which is why I have always bought ANYTHING from them via small business. (my experience has shows that sm. biz is always cheaper anyway)
Don't mean to be cocky, but this isn't really news is it? I can't possibly be the only one that knew they have been doing this for years.
Tequila: It's not just for breakfast anymore!
Joel Spolsky wrote about this a few months ago: http://www.joelonsoftware.com/articles/CamelsandRu bberDuckies.html
he would suggest that its not a good plan to price for the market segment.