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

To: Fangorn who wrote (36980)	4/7/1998 4:14:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

Steven, I don't think DELL charges customers until the order is shipped. (I didn't check the receipts from my DELLs. They were on time!) I may be wrong, but I don't think so. In any event, I agree much more with your post, than Jim P.'s. >>As for getting paid, in my experience (one for me, three for my friends) Dell gets paid before the order goes to the factory floor, credit card or wire transfer.<< Later. LoD

To: Fangorn who wrote (36980)	4/7/1998 4:34:00 PM
From: DaveF	Read Replies (1) \| Respond to of 176387

absolutely right on the Dell business model. Obviously larger business customers would get credit (30 days ?) but the direct cash customer makes the accounts receivable performance very healthy. Working through resellers means slow payment and higher risk. DaveF

To: Fangorn who wrote (36980)	4/7/1998 5:13:00 PM
From: Jim Patterson	Respond to of 176387

re: You are assuming CPQ gets chips before DELL. It ain't so. No, That is what you want to read. 1) I don't think DELL actually collects the money from the credit card until Product is shiped. I think there are interstate comerse laws that controll this process. I would assume that they get the card aproval upon recipt of the order. But on your Credit card statement, the charge will not hit the day the order is placed. Other wise you would be paying intrest on a purchace long before it is available. Otherwise, they would have no Accounts recievable. 2) Everybody gets the chips at the same time. What I am assuming is that because DELL is 100% build to order and CPQ preassemples and what not, that if it were a foot race, CPQ could pre build some chassies and then just plugin the parts as needed. This would imply that CPQ could get a few machines out the door just a little faster than DELL. I would assume that DELL assembles in cronological order. Meaning that orders takes yesterday get built before orders taken today. So, On 4-15, they take an order for a PC100 what ever. They have to build all the orders ahead of the PC100 before the PC100. After all, those earlier orders do have parts and what not coming. You know that loading dock inventory. So lets say they have 3 days worth of orders. that would mean that DELL would not start assembling the new order for 3 days. CPQ on the other hand has so much inventory that they can fill just about any order now. which means that they can focus on the PC100 right away. Which means that technicaly if any of this were true that CPQ could get the machine out the door faster than the Great almighty DELL. That is my point. Jim PS My discussion with LoD was fun, I am sorry that you could not see it for its the throretical nature.

To: Fangorn who wrote (36980)	4/7/1998 5:38:00 PM
From: Jim Patterson	Respond to of 176387

Steven, Here is an example. AMD today announced the avalibility of a K6-300Mhz At the same time, IBM "Says ships personal computers based on AMD 300 Mhz K6 chip." Intc and the Box makers work the same way. Intc says it is available and the box makers say they are shipping the boxes with the new stuff. I was just playing on the Not so true premsis that DELL is 100% build to order. The fact is that Dell has a small channel, and some inventory on the shelf. Yes that is right, 10-20% of DElls boxes are sold through the channel. I would imagin that If dell has a slow week of orders, they would not send their workers home, instead they would have them prebuild chasis that will have final assembly soon. To be honest, this whole thing started out as a kind of joke. I am amazed at the responce I have generated by saying that a competitor could get a box out the door faster than DELL. Dell may have some of these PC100s in their Channel the same as I am assuming CPQ and the others Do. Just think, If you had said DELL could have them in their small channel just the way that CPQ might, My argument would be out the WinTel. :) Jim