July 11, 2006 11:10 AM PDT

Dell set to change consumer pricing

Apparently, the price is wrong at Dell.

The company plans to announce "a major pricing initative" for consumers and small business customers on Thursday, it said in a press release distributed Monday. Further details were not immediately available, but Ro Parra, senior vice president and general manager of Dell's new Home and Small Business Group, will lead a conference call.

Dell has been looking to jump-start its consumer business this year. Although enterprise customers account for 85 percent of its business, the company has sought ways to expand its presence among home users of technology. As the PC market share leader, Dell has tried to get its PC customers to purchase other electronic gear, like televisions and printers, with mixed degrees of success.

As a whole, however, the company has blamed the consumer business for much of the earnings shortfalls that have stifled Dell's runaway growth.

CEO Kevin Rollins blamed some of the shortfall on increased sales to the unprofitable low end of the PC market as the company focused on maintaining market share. But a resurgent Hewlett-Packard has caused problems for Dell. A mounting number of service complaints also has forced the company to belatedly improve its technical support operation.

Thursday's pricing initative will probably look to recapture some of that lost momentum. Dell cut prices on a number of desktops and notebooks earlier this year as stalwart partner Intel cut its own prices on certain chips. Intel is also planning price cuts during the upcoming quarter as it gets set to launch its Conroe desktop processor.

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18 comments

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Screwed by outsourcing? Good Karma!
I love it when people tell you that if you outsource you will alienate the people that you are screwing while going after nothing but a soulless bottom line.

I have said many times already that the 0,1 Revolution is putting power back into the hands of the people who have had their respect and dignity taken away by soulless companies bent on empire building.

I continue to believe that the individual is gaining something back because of the power of the internet. Adam Smith the founder of capitalism believed that the people are the ones that will make this economic modle successful. They would do this in part by communicaing to one another and sharing what companies are good and what companies are bad. The people vote using their dollars.

In a world where they mass produce soulless music and companies pretend to be just like you and I, there is a empty feeling that they leave you with. Screw Dell, screw aol, screw the cell phone companies that make you have contract with them while providing you nothing of real value in return. If you want my allegiance, or more appropriatly my money, than try to remember that I am a human being just like you.

The 0,1 Revolution is just beginning, it is going to get much better for the people before we really see what it is capable of.

Respectfully,
Posted by juchestyle (21 comments )
Reply Link Flag
Dell
Dell getting complaints about lousy outsourced tech support? Nah, say it isn't so. Their tech dept's answer to every problem is formatting the drive. Surprised? <a class="jive-link-external" href="http://www.techknowcafe.com/content/view/551/43/" target="_newWindow">http://www.techknowcafe.com/content/view/551/43/</a>
Posted by (156 comments )
Link Flag
Are they joking?
Any one tried ordering Dells top of the line XPS 700 lately. If you go to <a class="jive-link-external" href="http://forums.us.dell.com/supportforums/board/message?board.id=xps_desk_genhdw&#38;message.id=14277" target="_newWindow">http://forums.us.dell.com/supportforums/board/message?board.id=xps_desk_genhdw&#38;message.id=14277</a> you will find 30 pages of unhappy customers. It seems Dell has not managed to ship any units, and the keep moving back shipping dates for orders in there system. Whats the problem? Who knows, Dell wont say. They barely acknowledge a problem. They keep taking orders and their CSR tell people there are no delays in shipping.

All the people on Dells user forum just want an honest answer. Dell will not even tell them if the XPS 700 is Core 2 compatible. But what should one expect, this has become the norm for Dell customer support. Dell use to be a respected company but they do not seem to care about their customers any more. They need to take a trip back to their roots.

It just could be that they do not care about their customers and their customers are beginning to realise this.
Posted by ordnance1 (6 comments )
Reply Link Flag
Tech Support tinkering with my Dell?!?
We're talking about Dell's imcompetent consumer tech support connecting to your laptop/desktop and tinkering with the system settings, programs and confidential data. I'd highly recommend backing up everything and keeping a hand on the network cable, ready to disconnect at a moment's notice.
Posted by menehune (8 comments )
Reply Link Flag
Price Doesn't Fix Unacceptable Service, Etc.
I had one Dell computer - never again.

My current HP computer has been problem-free since I bought it in 2002. Why would I want to switch back to Dell?
Posted by john55440 (1020 comments )
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They created their own problems.
Dell created this cutthroat PC market. Someone that buys a PC for $299.00 really has no desire/or ability to buy a nicer computer. Furthermore, by selling computers only based on price, you do not earn much brand loyalty.

I would also argue that someone who buys a pc for $299.00 is not that tech savy, and will make more calls to customer service. Then when that person calls CS, and talks to "Bob" in India who is only reading from a manual, they are so frustrated that the whole experience motivates them to buy from another brand in 5 years.

I actually like Dell. I bought a decent Pentium D with a really nice 19" Ultrasharp monitor. I bought from Dell because I can choose exactly what I wanted, and get pretty decent quality. So my point is competing solely on price is always going to fail.
Posted by will0861 (3 comments )
Reply Link Flag
listen to your customer base
The 2 main reasons Dell has struggled lately:
1. Outsourcing customer service to countries that speak english as a second language. If you have ever called their tech support you know what I mean.
2. Their denial of AMD has hurt them as well. AMDs are faster and cheaper, which has helped the sales of HP and the like. It is difficult to build an Intel to compete dollar for dollar with an AMD. Maybe Conroe will help in this area.
Posted by bnz320 (4 comments )
Reply Link Flag
Jumped the Shark!
dell's qwest to take over the world has left them uncaring about the needs of their customers. Seems like a classic case of jumping the shark to me. GO HP!
Posted by juchestyle (21 comments )
Reply Link Flag
Price Doesn't Fix Unacceptable Service, Etc.
I had one Dell computer - never again.

My current HP computer has been problem free since I bought it in 2002. Why change brands?
Posted by john55440 (1020 comments )
Reply Link Flag
Cut Prices? Customers time/grief worth more...
They just don't get it! How much is a customer's time worth? How much is a customer's grief worth? How much is a customer's data worth?
Yes, they will get some sales out of lowering the prices but primarily to those that haven't had to go through the "Matrix of Dell Hell".
Either start listening and respecting your consumer side customers or get out of the consumer arena. Dell's problems started when they tried to capture the low-end market. When they did that their whole line was affected.
Posted by fred dunn (793 comments )
Reply Link Flag
Lost me years ago
I purchased a Dell laptop in 2000, and after it was stolen, another one. I spent over 3 hours of hold time on customer service, without ever getting my (one) question answered - so their lousy customer service predated outsourcing - it has been prevalent for a long time. My memory is long, and I am in the market for a new laptop - Dell - regardless of price - is not on my short list.
Posted by Casablanca2936 (1 comment )
Reply Link Flag
Laptop Deals
<a class="jive-link-external" href="http://www.glass.in/result.php?Keywords=Laptop+Deals" target="_newWindow">http://www.glass.in/result.php?Keywords=Laptop+Deals</a>
Came across this site which has good deals on laptops.
Posted by 206538395198018178908092208948 (141 comments )
Reply Link Flag
Worse than you think!
We recently ordered a new expensive desktop for the office. The HD died. Dell sent over someone to swap in a new drive. But we could not get on the internet, and had no sound and low video resolution. Dell told us that they don't require service to load drivers, just XP. Their OEM XP disk is unique in that it has a hidden procedure to load their OEM drivers. We spent hours getting customer service to figure this out. We will never purchase from Dell again; never.

Richard
Posted by RFtoo (4 comments )
Reply Link Flag
I forgot to add .....
They no longer send an operating system disk with the PC. They expect you to get the drivers off their web site, but you can't get on their web site without the proper driver installed first. I had to have them send me the OEM XP disk first, and they saw no problem on their side with their policy of not having the drivers installed during a hard drive swap procedure by their contractors.

Richard.
Posted by RFtoo (4 comments )
Reply Link Flag
dell still rocks after all these years
Been buying dells on behalf of clients for 6 years. As the old ones fade away ( eg celeron 433s ) they are getting replaced with newer dells. Always buy the second from the bottom. In over 150 pcs so far, only had 1 doa, 2 on site service calls. Thrue, some of the contract on-site techs are clueless, and the offshore support team more so, but other maufacturers are the same. My own personal computer is a dell, which replaced the previous dell that was getting too slow. Which replaced a stinkpad. (now Lenovo is a POS to stay away from - talking about outsourced support)

Now you may say that 150 PCs is not a big deal - but I never said it was. YMMV
Posted by gggg sssss (2285 comments )
Reply Link Flag
Dells tech support used to be great....
Now, it's little more than automated telephone calls or waiting for way, way too long to talk with a real person!

Have owned Dell computers &#38; stock for over a decade now, but have sold the stock after 911 &#38; refuse to buy another Dell computer because competition has a better product! &#38; TECH SUPPORT!!!
Posted by gary85739 (613 comments )
Reply Link Flag
Dell and Vista
How long do you think it will be before Dell offers free upgrade to Vista with prchases made from now until release. I for one do not want to pay for XP and then pay again to upgrade in January.
Posted by Bobkat12 (2 comments )
Reply Link Flag
Dell set to changeconsumer pricing
How long do you think it will be before Dell offers free upgrade to Vista with prchases made from now until release. I for one do not want to pay for XP and then pay again to upgrade in January.
Posted by Bobkat12 (2 comments )
Reply Link Flag
 

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