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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 is nothing. Dell always has sold to the business market for more.
I found this out years ago when I had to upgrade 300+ computers. I went on to their site, found the best price for the most power, and then called up for the best bulk price
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).
I told him no thanks, please give me a price on 300+ Dimensions as I specified them.
He did give me a price, but when I went to my boss to get the check, I found out that the salesguy called him and told him to but the OptiPlex! Then my PHB believed the vendor, and I eventually got fired cuz I would not support them. (The drivers for the network card would not support the latest Windows)
This is nothing new. (just to note we are discussing off the shelf price, not haggled prices through sales people) Dell (and other companies) always offer different prices to different organizations. There is the gov't groups, non-profits, small business, large business, consumer, students, etc...
The company I work for buys all dell hardware (servers, desktops, laptops, monitors) - so we get a slight automatic discount on stuff (not that much really, techbargains can usually offer a better price).
Sometimes, not always, being the big corporation won't get you the best off-the-shelf price. Also, many of times times (as it should be) companies have to input their EIN number to get the price (and usually tax discount)...students need to provide proof of their student status... same for other organizations.
I mod down so you can mod up. Your welcome.
I am wondering if it is like the extended warranty model the computer companies are using. You buy the consumer version of a computer, and you get 90 days or a year, small businesses maybe two years and large corporations a full three years. Parts bought through the corporate division might have a cross-ship arrangtement, but the consumer division might have a delay, where they wait to see the defective part before sending a replacement.
This is all speculative though.
It's actually smart marketting. They can make a profit on the low end cost, but if they feel they can make more off of certain customers, they will.
My contacts, for example, are marketted as daily wear. However, they're the exact same contacts that the manufacturer sells as their multi-use contacts, just in a different box. For people willing to pay for the "multi-use" contacts, the company simply makes extra money. It doesn't hurt them any.
Dear Lord: One of your creatures may be hurt tonight. Please let it be the other creature.
my cousin will sit all day adding and removing components from the dell website. There are lots of hidden discounts to be gotten if you are persistant. You can make a PC for 800$ or make one with more ram and a bigger hard driver for $600. One time he even got 6 free palm zires and an axion.
Furthermore, "tiered pricing" is hardly uncommon.
Law firm servicing Fortune 500 company: $600 per hour
same law firm servicing small business: $400 per hour
same law firm servicing an individual: $300 per hour
The holy grail of economics-- everyone pays what they actually were willing to spend on the item. Preferred services for the bigger spenders e.g. faster tech support turnaround and purchasing on credit. I'm not surprised one bit.
Dei watha thevidiya payale! Not everybody in India speaks Hindi, and this is especially true for half of Bangalore and the whole of Madras. If you want to verbally abuse someone (not recommended in the first place), please don't do it in a language that they hate more than the profanity itself.
..and found this out recently.
The guy that deals with buying equipment called Dell up wanting some machines like what he'd bought his kids.
For his kids, Dell charged 300gbp per box.
For the school, they wanted around 30% more!
Dell's excuse was really laughable. Something about "For schools, the computers can be further upgraded before purchasing so it gives you the option of upgrading at the point of sale.". They could be upgraded for home use too, so that didn't really wash.
Incidentally, this is one of the criticisms against the PC world made by Apple users. No hodge-podge of duplicate-priced parts from all over the place. Just order what you see at the Apple Store, customized if you want.
My contacts, for example, are marketted as daily wear. However, they're the exact same contacts that the manufacturer sells as their multi-use contacts, just in a different box. For people willing to pay for the "multi-use" contacts, the company simply makes extra money. It doesn't hurt them any.
The thing you need to be careful of is the "invisible stuff" you buy when purchasing a product. like: licences, warranties, etc...
For example, if I buy a processor from Intel in the Intel branded box, I get a warranty. If I buy the *same* processor in an "OEM" box at a discounted rate, no warranty.
This is just one example, but also consider this: You buy these "daily wear" contacts, and they have their usage guidelines printed on the side of the box. The "Multi-use" contacts may allow for the contacts to be worn under certain circumstances that differ from the "daily wear". Now, you, as consumer, save a few bucks on the "same" contacts, but use the "daily wear" in a manner than is inconsistent with their labeling and you go blind one day. You can bet your ass that the contact lens maker is going to claim that you were indeed "using their product in a manner that is inconsistent with the packaging" when you attempt to be compensated for damage to your eyes due to their product.
Just some food for thought (IANAL, however).
Yeah, I bought (and subsequently sold the next day) a dimension system. Consumer price was 600, Small Business price was 499, and for large business available only as an optiplex for 1400. I thought the whole thing was funny. The reason why I sold it next day was their crappy customer support. I called twice, each time waiting 1/2 hour to talk to a human being in New Delhi who subsequently said it was not his job and transferred to other department. No need to say, it was my last purchase at Dell.
My company buys Dell, so they get to extend an employee discount to us for home machines. But I found that it is cheaper to buy without the discount. When I punched in the company discount code, all the free shipping and upgrade deals disappeared.