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Technology Stocks : Dell Technologies Inc.
DELL 123.98-3.0%Jan 5 3:59 PM EST
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To: JRI who wrote (48391)6/21/1998 12:44:00 AM
From: rudedog   of 176387
 
John -
I think I have talked a little about some of Dell's very clever steps to give them an edge in large corporate accounts. Many of these would, individually, be hard but not impossible to replicate. The trick is to take a diverse bunch of possible arrangements and deliver the appearance to the customer that the one presented is the 'Dell way' of doing business. As you would expect Dell executes very cleanly against this strategy.

I'll give just one example of this, because the list is long and some of the methods are pretty arcane. Dell became a LAR (large account reseller) for Microsoft. This gave them the ability to sell select agreements to large customers, but since most of those customers already have select agreements, this was not the primary purpose of the exercise. I believe that Dell's purpose was to understand the relationship between microsoft and its select customers better than any other vendor, and what better way than to get involved in the process? Dell was then able to craft agreements with large accounts which helped the CIOs of those companies to fulfill their agreements with Microsoft. No direct cash benefit to Dell, but a significant headache removed from the customer. This also enabled Dell to NOT sell some software to these customers, when the customer's deal with Microsoft actually provided a better price.

This kind of thinking and customer relationship builds trust and creates a lasting value for the partnership that goes on long after the hardware sale is over.
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