MWM,
Good points! My question would be whether CPQ is 'dumping' older, slower machines in the 'channel', or the 'new' fast babies? Since DELL is BTO, they are already in a position to deliver the 'old' at a reduced price due to the cost of components dropping, or the 'new' at the best possible cost because of their 'inventory' turn?
CPQ will still have to resolve the conflict between the 'retailers' and the 'BTO' in order to keep the sales moving! That may be harder to do than one might think!
Conversation goes something like this:
Customer, "Mr. Retailer, why should I buy my computer from you when I can get it BTO from CPQ?"
Retailer, "Well, you know that we will be here to service your machine and help you every step of the way!"
Customer, "How much is the cost for this service?"
Retailer, "We charge $xx per hour for support, and $xx per hour for repair, plus parts!"
Customer, "I see! Is your support available 24 hours per day, 7 days a week?"
Retailer, "No, support is available from 8am to 6pm, Monday through Friday."
Customer, "Now let me get this correct! If I buy my computer from you, I get to pay more for the 'older, obsolete' machine, and get less support! Is that about it?"
Retailer, a little flustered, "Well, now that you put it that way....."
Customer, "In addition, if (or is that when) I have trouble, you will fix my computer for $xx plus parts! By the way, how many computers are in the shop NOW?"
Retailer, "We have a completely trained staff, and there are currently 'xx' machines in the shop!"
Customer, "Maybe I should investigate DELL, I heard that there support staff is available 24 hour per day, 7 days per week! My friends have DELL computers, and they don't ever seem to break down! Thanks for your help!"
After the customer gets home, they call DELL!
Thoughts?
Ken |
