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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: edamo who wrote (133893)	6/22/1999 6:51:00 PM
From: Mohan Marette	Respond to of 176387

ed:we will have to wait for the details,I don't think Dell is doing this as an avocation or pastime.

To: edamo who wrote (133893)	6/22/1999 8:37:00 PM
From: Meathead	Read Replies (3) \| Respond to of 176387

edamo, you're reading waay to much into this internet auction thing. Maybe I can answer some of your questions and address your concerns. First, it will cost Dell nothing to implement. It will be nothing more than an extension of the Dell Factory Outlet where refurbished systems are stacked to the ceiling... systems that failed in the field within the first 90 days, excess and obsolete systems that are at end-of-life. Dell has a very large dedicated factory floor fully staffed with trained personnel to refurbish systems. This model has been in place for several years. Utilizing the DFO, Dell has been able to effectively recapture invested capital rather than scrap or donate. It may not seem like much but it recovers millions yearly... millions which normally would come directly out of the bottom line. The online auction is a minor move but a smart one nonetheless and here's why. Dell's volumes have outgrown the DFO's ability to sell all the excess into the Austin Metro area. The online auction provides a worldwide pressure relief valve and as previously mentioned, the model is already in place so it will cost nothing. And, like all other online ventures, it's a seed that's infinitely scaleable to include just about anything that makes sense in the future. Instead of diverting much of your attention and criticism to these minor initiatives and lambasting Dell for not pursuing other minor initiatives like colored PC's, why not focus on Dell's strategy for expanding it's services portfolio? Were talking tens of billions of opportunity here alone. What are some of the areas for service expansion that would be a logical fit for Dell's unique model? Which areas of service should they avoid and why? MEATHEAD