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

To: The Phoenix who wrote (60264)	8/22/1998 3:38:00 PM
From: stock bull	Read Replies (6) \| Respond to of 176387

Gary, regarding the question you asked: <<Why do I spend an extra $20,000 for the DELL system?>> Let me answer your question by asking another question. (I realize that my question may seem a little strange, but think about it.) Why don't you separate Dell as a company from Dell's stock? The company may be all screwed up. For example, they don't offer a sub $1000 pc, their competition usually under prices Dell offerings, Dell is growing to fast and won't be able to manage this growth, etc. Given all the problems that Dell has, and the risks involved with an investment in the company, why has the stock consistently performed so well? Why do so many institutions own the stock? Why has the stock been one of the Street's top performers for a number of years now, etc., etc.? So even if the company is all screwed-up, the stock isn't. So, given the stock's volatility, and one's ability to cope with this volatility and risk, why not invest in the company until the Street falls out of love with the stock? Stock Bull PS: Please don't take my comments as investment advice. Do your own analysis and then decide what you want to do.

To: The Phoenix who wrote (60264)	8/22/1998 4:08:00 PM
From: Tumbleweed	Read Replies (1) \| Respond to of 176387

re 'extra $20k' Dont confuse published list prices with what a large buyer will pay. There is a story (supposedly true) much earlier in the Compaq thread, and of which I have heard a different but similar version much closer to hand, which goes like this. (I'll summarise) On a big deal, Dell will bid below cost price if necessary to get the business. They will also guarantee the price for a certain time (say 6 months, because if you are buying say 20k computers, you are probably mot going to buy them all on day 1. Over time, costs drop, so the Dell price creeps back into profitability, plus the Dell rep is speaking to the company. Maybe the 15k computers still awaiting delivery need some more memory? Or bigger discs? Or faster modems? Or the new model XYZ is a better deal and its only $75 more (But its $150 more profitable to Dell?) Whatever, Dell end up with profitable business via a loss-leading entry stage of the sales process. And of course, Dells production model, which is by far the most efficient in the business, enables them to better undercut the competition, and get into profit quicker, and make more profit quicker when component prices drop. Lastly, its not all about price, there are many intangibles which Dell would focus on in a big corporate deal. JoeC

To: The Phoenix who wrote (60264)	8/22/1998 4:30:00 PM
From: JBird77777	Read Replies (1) \| Respond to of 176387

Re: Why do I spend an extra $20,000 for the DELL system? Are you suggesting that Dell's prices for equivalent systems are higher? If so, why? Because no competitor produces for less than Dell, Dell can afford to meet or beat any competitor's pricing. Since most substantial purchasers are repeat purchasers, most purchasers presumably would also look ahead to the supplier's capability to respond efficiently to future needs. Here again, Dell should prevail, due to its unsurpassed ability to respond promptly and cost effectively to the specialized needs of each customer. JB

To: The Phoenix who wrote (60264)	8/23/1998 9:18:00 AM
From: jbn3	Read Replies (2) \| Respond to of 176387

Re: Let's say I'm a company looking to buy 100 new PC's. I want 400mhz, 128KRAM, 10G hard, etc. etc.. Dell's package is $3000, Compaqs is $2800. Why do I spend an extra $20,000 for the DELL system? Gary, A. First, you are assuming that the price is inflexible and that CPQ beats DELL by $200 a machine. ALL of the anecdotal evidence I have heard is to the contrary--DELL has the pricing advantage. B. Every PC magazine report I have seen for the past 18 months lists DELL in a higher consumer confidence position than CPQ. So perhaps that says something for DELL quality. C. DELLs come with a much superior on-site warranty. Say, 10% of your machines (from either company) have problems each year. If DELL can fix theirs next day, and you have to wait 'x' days longer for CPQ to fix theirs, then that is effectively equivalent to 10x man-days per year. Now you determine the value of a "man-day" in your organization. D. DELLs come with YOUR customized corporate software installed, if you wish. Now, re your Isn't DELL just a distribution company? ROFLMAO. Great sense of humor. Regards, 3.