CRN Champions: PC Competition -- Quality, Availability Tilts Contest To Dell CMP Media Inc. - Friday, June 16, 2000
Jun. 16, 2000 (Computer Reseller News - CMP via COMTEX) -- Dell Computer Corp. is as popular as it is controversial among solution providers.
The Round Rock, Texas-based company was selected the top vendor for desktops and notebooks in the CRN Champions survey of 364 solution providers.
Solution providers liked the quality and reliability, compatibility and scalability, price/performance and availability of Dell's products, and gave the PC maker the highest satisfaction rating in those areas. Dell also tied for first place with runner-up Hewlett-Packard Co., Palo Alto, Calif., in marketing support.
Dell fell behind its rivals in three other areas: profitability and profit margins, training and certification programs, and technical support.
The contest among PC vendors was tight this year. Dell's overall satisfaction rating of 5.24, out of a possible 7 points, edged out HP's second-place 5.16 score. IBM Corp., Armonk, N.Y., came in a close third at 5.14, followed by Compaq Computer Corp., Houston, at 5.08, Toshiba America Information Systems Inc., Irvine, Calif., at 4.92, and Acer America Corp., San Jose, Calif., at 4.89.
Although Dell sells primarily to end users, the company sells about 10 percent to 15 percent of its desktops and notebooks through solution providers, said Cliff Mountain, Dell's vice president and general manager of corporate accounts. Some Dell customers prefer to go through solution providers to take advantage of value-added services, Mountain said.
"If I had to recommend [a desktop] to someone, I'd recommend Dell. They're the best in terms of quality," said John Wardwell, owner of Infotek Computer Networks, Bangor, Maine. "Compaq is the best at real high-end [products] because they've been making them for much longer; but Dell is the best at smaller machines."
Dell's direct model also allows it to deal directly with customers, which can be both good and bad, Mountain said. "There is some pain associated with taking those phone calls, but there's also important feedback."
Solution providers gave Dell its widest lead in product availability, where its 5.76 bested Acer, which came in second at 5.45. Mountain attributed that to Dell's build-to-order model.
But the build-to-order model also can create availability problems in emergency situations, said Scott Gilbert, president of Unetra Systems Corp., New York. Because distributors are not stocking inventory, units are not immediately available.
"If it's an emergency, we can't get it. Maybe as our relationship grows with them that won't be the case, but we have to wait now," said Gilbert.
On the other hand, Gilbert said Dell was consistent with delivery times, which gives Unetra the ability to give its customers accurate information. "Every once in a while, there's a delay, but more often than not they're ahead of schedule," he said.
One area in which Dell had room for improvement was technical support, according to the survey. Dell's 5.35 finished second in this area to IBM's rating of 5.47. In the closely related area of training and certification, Dell came in fourth at 4.28, more than a half-point behind Compaq.
"I've waited 30 minutes in a phone queue. I've heard others had to wait a lot longer," said Eddie Ellis, owner of Service Center, a Statesville, N.C.-based VAR.
Part of the technical support problem is Dell's direct strategy, Wardwell said. "Problems with PCs from direct vendors almost always take longer to solve," he said. "I've had people say to heck with the warranty. Businesses need problems to be resolved quickly. They're not worried about being out a few dollars; they're worried about keeping [their business] going."
But solution providers who are members of Dell's Premier Provider program report a different experience. "The No. 1 reason I sell Dell is because they provide support for me," Gilbert said.
Dell's weakest area, in the eyes of solution providers, was in profitability and profit margins. Here, Dell finished in last place at 4.27, which was more than seven-tenths of a point behind Acer (4.99), the profitability leader.
"Because Dell sells direct to end users, people already know what the price is," Ellis said.
2000 Champion Manufacturer: Dell Computer Corp. Popular Product: OptiPlex GX200 Key Strengths: Quality and reliability; availability
Partner Comment: "If I had to recommend [a desktop] to someone, I'd recommend Dell. They're the best in terms of quality." - John Wardwell, Infotek |