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Wal-Mart to Offer Components for DIY Computers
FearTheFrail writes "Reuters reports that Wal-Mart is preparing to put "build your own computer counters" in 1200 of its 3200 stores, with plans to do so in at least 1400 by the end of the year. Maybe this will bring on an influx of new hardware enthusiasts, along with plenty of horror stories about attempted computer assembly. Do you think this will have an effect on the OEM parts market? And what about the operating systems to be offered? Will Wal-Mart shoppers migrate to Linux in order to save a hundred bucks or more, or will they even have the chance?"
Walmart is going to sell Towers, Monitors, Keyboards, Mice, and Speakers seperately. Not the individule hardware pieces of the tower. Can't anyone read articles before posting them?
~~ Please keep your arms, legs, and outright stupidity inside the ride at all times. Thank You ~~
>I don't think you'll get a whole lot of hits on a
>open source OS at the same place that has a gun
>counter and offers hunting licenses.
Eric would disagree.
So would I.
-l
(former sys/net admin, drives a 4x4 with a gun rack (with at least one gun in it), hunts regularly)
What you're seeing is market segmentation. The companies which make the "branded" formula sell it under their brand at every possible location, and at full price, and then license it out to the people like Wal-Mart, Costco, Sam's Club, etc.. to sell as a generic, at a much lower price. Given the choice between not selling it at all at the full price to a section of the market, and selling it at a lower price, they're going to go for selling it at a lower price every time. You can read an interesting explanation of this technique in the context of software over here.
The same is true for most of the "generic" items you're going to find at these stores. If you can get over the fact that you're not buying the branded item, you can save a boatload of money while not sacrificing quality one iota.
The only store that they closed, was one in Quebec. They said that it was no longer profitable. The real reason is that people were able to start a union in that aparticualr store. Doesnt that seem odd?
In defense of WalMart, it is certainly quite possible that the workers becoming unionized and demanding more could make a store not profitable. It's debateably what is causing the headaches some of our domestic auto producers are having.
Meanwhile, my Honda was built by Americans in East Liberty Ohio by non-unionized workers. It's better quality, higher resale value, more dependable then the Ford built in Mexico, and the Honda workers are better paid and quite happy. Just a mini-rant against unions... I simply don't think they serve a purpose anymore.
Besides, WalMart is obligated to no one to even give a reason for closing a store. What difference would it make if they simply came out and said "we didn't want a store with a union?"
That said, in offense of WalMart, the problem I have is they sell inferior products. Even the brand names often make lower quality products to satisfy WalMart's price demands or risk getting locked out of the largest retailer in the country. As an example, Sears sells Levi Strauss jeans, but WalMart sells Levi Strauss "Signature Series". An unsuspecting customer might think he's getting the same product for less... or hey! "Signature Series!" Maybe it's even better! But those jeans are lower quality for volume retailers like WalMart.
Every once in a while Sam's Club will have $25 Rebocks. For some reason they don't last as long as the $35 pair I got at the Rebock outlet store... about half as long.
Electronics are the same way.
Yes, some of the products are the same thing, and might sell for cheaper, but they are subsidized by all the lower priced crap that is actually making Walmart a larger profit. I am a member of Sam's club, and bought several cheap HP PSC printers there... they all broke or were not functioning 100% correctly within a year after purchase. I only have one left and it won't scan anymore. So I spent twice as much on a Cannon printer from Newegg that's been running great. From now on, at Sam's, I will stick to things where quality either doesn't matter, or when I know it to be a like product.. things like books and PS2 games.
So I have a feeling we'll be seeing the same thing. A DVD ROM drive that only works until the warranty expires, cheap fans that will give out before a year is up (possibly ruining other components). Repackaged IBM "Deathstar" drives WalMart got for next to nothing. Power supplies that will cause major headaches when the user can't figure out why his computer randomly locks up.
And like many others what I've noticed is that, for many things, buying the more expensive product saves you money in the long run... so WalMart really is taking advantage of the people who don't know any better.
Stupid sexy Flanders.