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

To: emil who wrote (106379)	3/3/1999 1:57:00 AM
From: Don Edgerton	Respond to of 176387

RE the new Dell store. www.gigabuys.com WSJ article says Dell is using Ingram and Merisel for fulfillment. On Sale has similar approach using Tech Data. On Sale's "On Cost" site sells at cost plus an add on for the credit card fee and a $10.00 or so transaction fee (e.g. on an AST PIII PC). Seems that Dell would have to be in that ball park. ON Cost cliames to have 30,000 items. Buy.com aslo sells as deep discount. However, as Mike says in his book, focus is not always price but cost of ownership. Dell can incorporate the gigabuys.com into its corporate premier pages, prividing a true one stop shop for Corporate IT requirements - paperless ordering and billling and standardized software and equipment throughout the global enterprise. Wonder if Dell will load the software above and bewond what is now offered. They do tailored software set up for corp bus now. Having just finished reading MD's book, I am a but puzzled as to whether this is a value added service worth entering. As I see it, it will likely increase sales, but obviously the margins on the added sales will likely be sparton. On the other had the incremental cost of this additon to Dell may be such that it is profitable for the start and "dollars is dollars". All of this negativity in the techs sure screwed up the run up into the split I was hoping for. Bet it didn't cost DEll anything near what it cost CPQ to but the money losing retailer they bought. Plus bet CPQ doesn't get nearly the site hits of DELL. I noted recently that both CPQ and IBM have hit $1 million a day in Web sales. They are at that rate where Dell was over two years ago. I bet Dell increments its next million faster than either. Guess the aftermarket hit on Dell was 3 Com related. Three com needs a buyer fast. CISCo seems to be eating their lunch and the hand held PC is getting awfully crowded. Aloha