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| Thread ID: 88850 | 2008-04-11 10:06:00 | Dell New Zealand Prices very high compared to the USA | robbyp (2751) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 657996 | 2008-04-12 05:27:00 | They used to manufacture in the Big Rock area of Texas (Micky Dell's home turf) but are moving their stuff over to Asia or Poland where it is way cheaper - that was part of Dells problem regarding reducing manufacturing costs - so Dell still has to ship their stuff from China to the mainland US or NZ (depending on where the customer lives). Of course 4.1 million people doesn't really compete with 350 Million+ I realise notebook manufacture/assembly is done in Asia (desktops are apparently still assembled in the US for that market, I'm sure the costs have been well calculated down to the last gram), but I was addressing distribution which Dell is well known for regarding JIT manufacture and chain supply. |
sal (67) | ||
| 657997 | 2008-04-12 05:30:00 | I guess it will always suck in NZ when we have to pay/get gouged for overseas goods. They have certainly lost a lot of value in the last 6 months though.:eek: | vitalstatistix (9182) | ||
| 657998 | 2008-04-12 05:31:00 | They used to manufacture in the Big Rock area of Texas (Micky Dell's home turf) but are moving their stuff over to Asia or Poland where it is way cheaper - that was part of Dells problem regarding reducing manufacturing costs - so Dell still has to ship their stuff from China to the mainland US or NZ (depending on where the customer lives). Of course 4.1 million people doesn't really compete with 350 Million+ Well said it's a case of quantity. The same applies to milkpowder going overseas and serving the local market with the liquid form, no comparison. Lurking. |
Lurking (218) | ||
| 657999 | 2008-04-12 09:27:00 | Just build it. Never mind what beleaguered Dell has to offer. |
vitalstatistix (9182) | ||
| 658000 | 2008-04-12 10:13:00 | They charge what they like because they can because they have no real competition in the same space. The also have a marketing department that rivals that of the Sirius Cybernetics Corporation. Many people are sucked into thinking that because it's a name they have seen on TV (or other media), it must be a good brand. Unfortunately, they are seriously misled on this score...failure rates of Dell equipment are generally higher than any other brand (from anecdotal evidence I have gathered from various corporate sites I have worked at over the last 8 years that source Dell crap on the basis - I assume - that it's cheap, relatively-speaking). | johcar (6283) | ||
| 658001 | 2008-04-12 10:23:00 | They charge what they like because they can because they have no real competition in the same space. And with good reason - there is no money in the ultra cheap end of the market as Dell is finding out :lol: (everybody else already knew it.) They now have to work out how to sell PCs with a decent profit margin like their rather pricey all in one XPS (or what ever it is called) slimline desktop which they need to sell a lot of to have any real effect on things. |
vitalstatistix (9182) | ||
| 658002 | 2008-04-12 10:40:00 | I'm sure you realise the NZ market can't compare to the US market, they've probably got some distribution efficiencies in place in the States that can account for a good chunk of cheapness. You are probably right about that to some extent, although the huge percentage difference between the US prices and the NZ prices wouldn't totally explain it. Dell do advertise that you are buying directly from the manufacturer, and you are avoiding the 'middle man(retailer)' so you get cheaper prices. If that was the case then the price throughout all markets they sell to would be more or less consistent. Dell are one of the only computer retailers that advertise on TV in NZ, and also buy directly over the phone, so they do have a lot of power over the mum and dad computer buyer, who wouldn't know if they could get a better deal by buying off a NZ retailer. A lot of people don't have the time to shop around, they just want it to be a simple purchase, where they can pick a computer off a website, and it is delivered a week or two later. Therefore people will continue to buy from them, but if they saw the difference between what Dell charge NZers compared to what they charge USAers, they may think differently. |
robbyp (2751) | ||
| 658003 | 2008-04-12 10:50:00 | Dell are one of the only computer retailers that advertise on TV in NZ, and also buy directly over the phone, so they do have a lot of power over the mum and dad computer buyer, who wouldn't know if they could get a better deal by buying off a NZ retailer. A lot of people don't have the time to shop around, they just want it to be a simple purchase, where they can pick a computer off a website, and it is delivered a week or two later. Therefore people will continue to buy from them, but if they saw the difference between what Dell charge NZers compared to what they charge USAers, they may think differently. The buy online only concept is what is currently hurting Dell in a BIG$$$ way. While companies like HP, Lenovo, Apple etc have computers in stores that you can check out and buy Dell only has an online presence which is not getting them thru the current slump in PC buying. Customers like to "kick the tires" before they fork out the cash. |
vitalstatistix (9182) | ||
| 658004 | 2008-04-12 11:31:00 | The buy online only concept is what is currently hurting Dell in a BIG$$$ way. While companies like HP, Lenovo, Apple etc have computers in stores that you can check out and buy Dell only has an online presence which is not getting them thru the current slump in PC buying. Customers like to "kick the tires" before they fork out the cash. Some people do, although a computer is a computer to many people, and they don't nessessarily need to actually try it out. They did used to have them on display in the warehouse, but they never had their computers on which is a big mistake, so people couldn't try it out. Dell may have pulled out of the warehouse deal becuase it wasn't making a difference to their sales, or they were too cheap to pay the warehouse for the exposure, or maybe they didn't want to be seen as a budget brand. Apple now sell in the warehouse, so I don't think it would be the last one. The one thing retail shops have in their favour, is the impulse buyer, or the fact that you can see it and then buy it on the spot and take it home with you, which is a major advantage. Therefore there isn't that delay of the few weeks to a month, which is the problem with buying from Dell. |
robbyp (2751) | ||
| 658005 | 2008-04-12 11:43:00 | Its like most things in NZ that we are ripped off for. Digital cameras, Mobile call rates, petrol, tvs, and now milk and cheese. One of the reasons as I KEEP SAYING is that our population is too low. If we had say twice the population here companies would sell twice as much so that they can pay for their head office and managers etc etc. And when a sales rep drives round New Zealand he would sell twice as many goods to pay for his trip. But most people cannot work that out and want to stay a backwater and complain about being ripped off. We don't need more people. Britain has approx 65 million people. It's not called Rip-Off Britain for nothing. The prices of electronic goods in the UK isn't much different from here, as I found out on a recent trip. NZ is always one or two models behind in a particular item. The latest model here selling at a premium price has already been superseded by a newer model in the USA. Therefore, when you compare direct prices for a particular item at a given time, there's quite a difference in price. Yes - we do get ripped off. |
legod (4626) | ||
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