Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jeffrey Chan who wrote (32799)	3/6/1998 8:00:00 PM
From: Bill Murphy	Read Replies (1) \| Respond to of 176387

If I were to buy another computer, which I will, for myself and my business, I would buy a DELL, no matter how cheap CPQ, GATE or anybody else is. I can not even begin to guess what a large corporation would do if the exact same computer were produced by both DELL and CPQ and CPQ's were 2% cheaper for a $10,000,000 order. It depends on the historical relationship between the buyer and seller, the amount of support necessary. I mean, it depends on the purchaser. What are they looking for, if price is all that matters to the buyer, and CPQ is cheaper, then CPQ will win. If the buyer wants more than price, then DELL can compete even better. But, it seems to me, that DELL does not like to get into pissing matches when it comes to price. They give a price, you take it or leave it. They know they deliever a superior product and service and they don't want to lower themselves, that is always a big mistake. Just like a full service broker doesn't try to compete with an online broker, they are distintly different and I am not saying that one is any better then the other. People say that DELL is just a boxmaker, and that it makes a commodity product. So, logically, if CPQ makes a similar model to DELLs for less, then logically CPQ should sell more computers then DELL. This is true in a sense, and therefore if the whole industry slows down so will DELLs business. But, I do think that when you buy computers, and lots of them, you are not just buying the computer. You are buying a relationship, and service and support. You are making an investment, and you will probably make another one 2 to 3 years down the road. And then you may need to buy some servers etc.. Purchasing managers also want conveinance and reliablity. I think you get my point by now. I do not know the business enough to comment much more then this. It only my opinion from my experience and instinct. In speaking with customers of mine that buy in larger quantities then me, like 100 computers at a pop, they now prefer DELL. Why? No screwups. They get what they ordered, when promised. Support is excellent. Product quality is superior, price is rarely an issue. No component conflicts with software. In fact, I just spoke with a client last week that bought 20 CPQs. He was sent computers without any software installed on them, nor was any sent to him. Man he was pissed, I had never heard of such a thing. But, he picked CPQ because when he compared their ads to DELL, CPQ was cheaper. But, he didn't read between the lines. Only read the large print. He got what he paid for and I hope he learned his lesson.