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Dell Plans to Sell PCs at Wal-Mart

Posted by Zonk on from the just-a-bit-outside-the-norm dept.

DJAdapt writes "In a departure from Dell's approach of selling machines only directly to customers, a Dell spokesman said Thursday that the computer maker will begin selling two of its Dimension desktop computers in about 3,000 Wal-Marts beginning June 10. Dell spokesman Dwayne Cox said the Wal-Mart deal 'represents our first step' into global retail. 'Customers want more and new ways to buy our products, and we plan on meeting their needs on a global level,' Cox said. 'Offering Dell Dimensions in Wal-Mart is a great example of this approach.'"

4 of 221 comments (clear)

  1. Increase sales volume, destroy the brand by traindirector · · Score: 4, Insightful

    This screams "We want to be the #1 North American computer seller again and we'll just have to deal with the negative effects of that on margins and brand perception".

    I'm sure they'll sell a ton of these because of the nature of Wal-Mart, but this seems like a horrible move in terms of the perception it will create about the Dell brand. I can see those who know little about computers who are looking for quality rather than bargain basement pricing steering away from Dell because they will be the new "cheap Wal-Mart computers". Dell will surely be offering low-end models and will make even less on them because a portion of the purchase price goes to Wal-Mart.

    I imagine they're going with Wal-Mart because

    • Wal-Mart takes less of their profit margin than a Best Buy or Circuit City
    • it's a quick way to sell a lot of computers
    • pushing up sheer quantity of computer sales to achieve the highest number is their primary goal at the moment.

    Either I'm missing something or this is a short-sighted move.

    1. Re:Increase sales volume, destroy the brand by SEAL · · Score: 5, Insightful

      Either I'm missing something or this is a short-sighted move.

      You're missing the minor point that HP is killing Dell lately, and HP sells most of their computers through traditional brick&mortar channels. Dell is trying to get back in the game.

  2. Sold at Wal-Mart != low quality by tepples · · Score: 5, Insightful

    I can see those who know little about computers who are looking for quality rather than bargain basement pricing steering away from Dell because they will be the new "cheap Wal-Mart computers". Any more than a PLAYSTATION 3 video game console is perceived as the "cheap Wal-Mart console"?

    Dell [...] will make even less on them because a portion of the purchase price goes to Wal-Mart. As opposed to a portion of the purchase price going to DHL (or whatever shipping company Dell uses)?
    1. Re:Sold at Wal-Mart != low quality by traindirector · · Score: 3, Insightful

      Any more than a PLAYSTATION 3 video game console is perceived as the "cheap Wal-Mart console"?

      A PlayStation 3 is a single item with a single manufacturer that doesn't vary in price or quality depending on where you get it. No matter where you buy, you get the same PS3. Do you really think the same is true with computers for someone who doesn't know much about them? I'm going to leave the burden of proof with you, as this doesn't seem worth writing an argument for.

      As opposed to a portion of the purchase price going to DHL (or whatever shipping company Dell uses)?

      It's clearly cheaper for Dell to pay their super cut-rate DHL shipping than to give Wal-Mart a portion of the profit and to ship to their DCs. If it weren't, how would Dell be saving money by only selling direct for so long?