DELL and quarter-ending sales...

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Thread: DELL and quarter-ending sales...

  1. #1
    Join Date
    Dec 1969

    Default DELL and quarter-ending sales...

    Bought a DELL a few weeks back...and the day it was delivered, I lost a BIG client. Felt bad...but as this notebook was for that client&#039;s PM...I just had to return same. <BR><BR>Called DELL and asked if their advertised 100% no questions asked return policy was in effect?<BR><BR>Yup, answered the girl...but might a discount make you think twice about returning same?<BR><BR>Dunno, I much?<BR><BR>10% ?<BR><BR>Nope...<BR><BR>20% ?<BR><BR>Nope...<BR><BR>30% ?<BR><BR>Nope...<BR><BR>Oh well, she said, we can only go as far as 33% credited today to your credit card....will that do?<BR><BR>Hmmm...yup I said...and the kids got a great new box!<BR><BR>Way I see it is that they&#039;re were days away from the end of the second quarter, and needed the sales...ANY sales...<BR><BR>Anyone else ever run into this kind of weird discount?<BR><BR>Jim

  2. #2
    Join Date
    Dec 1969

    Default RE: DELL and quarter-ending sales...

    I would bet it had less to do with second quarter sales then it does with the huge costs of RMAs. Look at the example of a $1000 computer. <BR><BR>If they sold it for $1000 to you it couldn&#039;t have cost them more then $600. <BR><BR>Add to that cost the charge to ship it back to dell, at least $50.00 even with their sweetheart deal with UPS. <BR><BR>Add to that the handling expenses at their warehouse, at least another $50.00. Now they&#039;ve increased their expenses on this item to $700 from $600. But here&#039;s the real pain in the ***: They have to inventory it (which costs $$ and Dell despises) because they can&#039;t sell it as new anymore. It&#039;s now an open box item and will sell for 20-20% below their retail price. <BR><BR>So if you couple the charges they&#039;ll face with the fact they won&#039;t be able to re-sell it at the price they sold it to you, they make the same amount of money off it by just giving you a 1/3 discount and not using any more time in Customer Service / Receiving / Warehousing / Re-Packaging / Re-Shipping / More Customer Service when its new owner buys it.

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