DELL is desperate?
- Thread starter a529612
- Start date
I think this may be a good move for Dell. The key problem with selling retail is the the margins that you must provide for the retailer eats into your already thin profit margins as an electronics manufacturer. The only successful alliance for Dell would be one with a retailer that could:
a) move volume
b) required only thin margins on the re-sale.
Walmart meets both of these expectations for Dell, along with the condition that you do not want these sales cutting into your business or high-end sales via the web. Walmart will be selling a couple of low end Dell models which they can move in volume with razor thin margins. If Dell had teamed with a standard electronics Brick & Mortar store then the store would expect the entire Dell consumer computer product line and a lot higher margins on each sale (ignoring that most of these chains do not have the reach and scale of Walmart).
This alliance may work out very well for Dell.
- Greg
a) move volume
b) required only thin margins on the re-sale.
Walmart meets both of these expectations for Dell, along with the condition that you do not want these sales cutting into your business or high-end sales via the web. Walmart will be selling a couple of low end Dell models which they can move in volume with razor thin margins. If Dell had teamed with a standard electronics Brick & Mortar store then the store would expect the entire Dell consumer computer product line and a lot higher margins on each sale (ignoring that most of these chains do not have the reach and scale of Walmart).
This alliance may work out very well for Dell.
- Greg
Hopefully the next move will be to offer computers with Linux or Windows OS. Setting up Linux can be a hassle and I think Linux would be popular.
I whole heartly agree with you. When I stick my computer in the shelf tucked away so I can't hear and see it, I like to rest in the comfort that it looks good.
