BGR - re: Gigabuys - I agree
Gigabuys is not well done...at least for now. Pricewise, it's generally not competitive (if you don't beleive me, take a few popular products and compare the prices to Buy.com).
Dell management must believe that customers are not fickle when it comes to price. They are, particularly over the internet. And they must believe that customers will not compare prices. They will, especially over the internet. And they must be convinced that inflated prices at Gigabuys will not damage their computer sales. It will, especially over the internet. And doesn't MD beleive that the company's future is on the internet???
Besides pricing, I have noticed two fundamental problems that will turn away a lot of business.
First - it takes too many clicks, to buy what you are looking for, a violation of one of the more obvious and fundamental rules of etailing. Secondly, you can't get a price because they won't tell what shipping and handling charges are. It takes 1-2 days to find out - via email. This last item is something they can, and should, change in the computer web site as well.
Take those two problems and add the fact that its not price-competitive and you have to come to the conclusion that Gigabuys has the potential to be a gigabust. Not just in and of itself, but also by damaging Dell's reputation in the new computer marketspace.
I just hope that their investment is insignificant and that the pricing problems (which will eventually be publicised by the PC Mags of the world) don't damage their pricing reputation in the the computer sales arena.
It could happen. After I paid $50 too much for a modem from gigabuys, it has this die-hard Dell fan wondering. It can damage sales by giving customers the incentive to look elsewhere, rather than their just trusting Dell, the BTO champ to give you a fair shake.
I am a big, big fan of Dell and I have staked my financial life on it. But Dell has made blunders before, one big one with the portables in 1989, and they are not immune to making blunders in the future. In fact, the more things they dabble in, the more likely it is that a blunder will occur. Here's hop9ing that they don't prove to be too damaging. |
