Direct2Dell

To Kent and others who said that you will stop buying Dell because they have chosen to associate with Walmart... are you also considering to stop buying Kraft cheese, Ivory soap, Tide detergent at your local grocery store, or even stop ordering Coke or Pepsi at your local restaurant.  In fact, probably the majority of the products you buy everyday (goceries, food, even misc electronics) are also sold at Walmart.  The companies who make these products, like Dell, have also chosen to associate themselves with Walmart because a very large portion of the world's consumers buy at Walmart.

  I have been a VAR with Dell now going on three years and I must say that my feelings were hurt when I learned that Dell had merged with WalMart. I sell Dell like crazy but it seems it is getting harder and harder to compete with giants. I recently learned that im now limited to what machines I can offer my customers! WHAT! This is the craziest thing I have heard. I know that the focus for a VAR is to sell business based machines to business but now they are going to far when they only allow me to sell my customers select machines and it is very limited to say the least. I feel that Dell needs to look at the whole picture and understand that a business likes to be different just like home end users and that they may want to look at a sunshine yellow notebook instead of a black notebook. This is my way of venting so thanks for reading!

  One more thing that needs to be understood by Dell is that a WalMart employee is not trained in computers and often does not know the difference between a stick of ram and the monitor. Come on Dell!!!

It is good that Dell will be selling to retail stores such as Walmart.

I do not like having to purchase ink or anything else from websites anymore, as I have sworn off credit cards and have had too many problems with my PayPal Account....it would be nice to be able to walk into a local Walmart and pay cash to buy ink cartridges, which I hope Dell plans to do!

I do not care whether Dell sells products through Wal-Mart or K-Mart.  Dell did sell products in the past through Sears and Costco, but those relationships went belly up.  If Dell's most recent foray into the channel is only about selling boxes with a Dell logo, then Dell will curry no favor within the channel and this will be another short lived journey for Dell. 

If Dell is committed to making itself a real presence in the channel, their objective should be to develop a marketing strategy which permits channel partners to sell and support Dell products (including warranty repairs), re-sell Dell services and Dell service contracts, and to provide their channel partners with incentive plans, discounts and support comparable to other major channel players such as HP, Xerox, Oki and others. 

As a current Dell Solution Provider, the prospect of being part of the channel in which Dell will distribute (directly or indirectly) it's products has a huge upside for my business.   If I can re-sell Dell products and services, maintain a consistent margin, and count on Dell for technical support when it is needed, then this can be the beginning of a mutually beneficial relationship. Dell will be able to sell more systems and reduce their support costs.  I will be able to put a quality product into the offices of my customers and be able to provide them with the support that they expect from their chosen vendor (my company).

I don't know if it's just bad timing by Dell or just a lack of understanding about, the public's view of retail stores like wal-mart. As it's stated above by Lionel, this is just Dell's first move into retail. I hope the higher ups at Dell are learning from this mistake. A better move would have been first put computers in Best Buy or Circuit City. By timing that move first, the public's view on our products would still be viewed as "good in quality". Then a few months down the road move our products into wal-mart. My guess at this point. Is that Dell already has ties to Sam's Club ( which has sold Dell systems ) which is owned by wal-mart. So the supply chain is already in place. To make the switch to wal-mart is very easy at this point. In fact it was so easy, that it was just in time to be released to the public before our earnings were announce.;) If this move turns people away from Dell. It might only last for a few months, because once we are in other stores people will see that the products are of high quality. Even though I don't shop at wal-mart and never will if I can help it. In some parts of the world it's all people have because of the monopoly wal-mart has on that small town. Like it or not Dell has been eyeballing wal-mart for some time. I just think maybe releasing the news after we moved into other stores first might have been the better move. Either way Dell is moving in a better direction at this point.

Dell

First your selling to Walmart, Now your laying off your workers.

Plainly, You just SOLD   American jobs.  

Your spending and growth numbers show what you really care about.

Don't bother sending me a automated reply

I think this is a horrible idea.

Open up more Dell Direct Stores... Open up actual store fronts to compete with Apple.

That's the path to victory. Dell needs to open up at least 5 of these nationwide! 

Which retailers would you, current/future-to-be Dell customers, like to see Dell products be available be sold at?

Best Buy?

Circuit City?

Fry's?

Target?

How about TigerDirect.com or NewEgg.com There are alot of online stores similar this. 

I hardly don't find any decent computers at Wal-Mart so I shop online to find the computers. I tend to compare between Home PC's versus Small Business PC's to find lowest price I can get.  But if there's a retailer near me, I'd go with Best Buy.

I don't think Dell will be succeed with Wal-Mart at all. 

Lionel,

Given the kind of treatment I have received so far, I hope your blog outreach team will be able to do more than a little policy waving and profit protection.

Dell has wasted no time in proving to me what their priorities are and I'm beyond being shown the velvet glove and iron fist.

I welcome any sincere attempts to make good with me, but after the abuse and reckless disregard I have endured, unless your help is in someway remarkable, Dell has little to offer me.

I think the whole problem with Dell is that it refuses to change it's core values.  This gives way to the mentality that anything can be solved with a support team made from some rigid policies.  Dell customers have seen more than enough of that, and it's about time Dell realized that.

Dells reputation will see permanent improvement when they ship a durable, quality focused product.  I type this blog posting on a laptop that has had its hard drive fail once, and has now taken to making some strange chirping noises from the right hand side (ubuntu LiveCD).

Want to know the real kicker?  The machine isn't even 50 days old!!  I've barely had the machine for two months and it has already malfunctioned in ways that show me Dell has quality issues not at the point of manufacture, but at the point of product design.  No amount of posturing, excuses and marketing will get you around that.

Do I deny the forces of failure and manufacturing defects?  Certainly not, but there are a lot of companies in the world who have done more to address it than try to snag customers in lobster traps of low expectation legal jargon.

I'm not nearly as popular or rich as you guys, but I got enough ideas that would turn your company around.  Some of them are so simple - so I really have to wonder about Dells integrity in the end, because you're just so dang averse to making the right decisions.

My inbox is always open and I look forward to hearing from you.

Just keep bailing, right Dell?

Rather than make a permanent improvement in your company, you're going to glide it down to the ground.  Sure your stock will climb, and then drop - very fast.  Right now is a bad time for Dell and investors should be getting out - the writing is on the wall.

Dell doesn't have confidence in their product, and the reputation of your company is so damaged, going to WalMart is just going to earn you a customer base you can't handle.  These are customers who will bitch more than you have had to date - think you've got it bad now, just wait...

Really, this move seems almost perfect for the state the company is in though.  Continue asserting that your product is worse than others, I mean you're practically doing your competitions' work for you!

Well, I'm glad I can get away with reversing charges on the $2000 notebook and complete rubbish service I got from your employees.

What a horribly managed company, and so blind.

I was excited to hear that Dell was going retail. However, I was disappointed to hear the first store would be Wal-Mart. Im not here to bash Wal-Mart because quite frankly they have everything I pretty much need in one spot. Id rather shop at Target however but with soaring gas prices and the nearest Target is almost 30 miles away and the nearest Wal-Mart is within walking distance, Im no fool. Anyway, If I was Mr. Dell I would have gone with a electronics store to start things off. Best Buy would have been a great start. Despite recent allegations against the company, they are the best electronics store bar none. This would allow Dell consumers to find the right PC for them with knowledgeable sales associates. Wal-Mart seems to have a knack for hiring "less than knowledgeable" workers.

Should have gone with a electronics based store Michael. Hopefully things work out though

I agree 100% with the points that William made. This is a bad move. Some of you are missing the big picture here. Yes more consumers will be able to touch and feel a Dell product but honestly who really goes to Walmart to buy electronics? And if you are a Walmart shopper you already know that your getting something of a lower quality, hence the Dell brand Image begins to suffer.

People you need to understand that a move into an external retail channel is not the move to fix our Business and gain more of the consumer market. What we need to do is focus on Product Design and Product Support.

In the past 2 years Notebook PC sales have steadily and rapidly increased and at the the same time HP ( The New King of The Hill) has made their designs very appealing, they have been running more consumer focused marketing strategies and they have picked up on better product support tactics. By going head to head on their playing ground in retail, what will be the reason to buy a Dell over HP . Can we still say " Build to Order."

Yes the model is old but its a model that has been working for 23 years. Customers are jumping ship because of the bad press, outdated designs, weak support and not because they can't get their hands on a low end model at a place know for lowend products.This move might be great for foreign consumer markets but not here in the US.
 

I would say:

Go on! Preload a PC with Ubuntu _and_ the needed licensed multimedia codecs, then let it show directly at the customer what it can do.

But I wonder, where would the advantage for Dell be. I mean respect to the PC with Windows.

Comment on this, everybody please.

Well, I do not like this move...

1> CHEAPY: When I think of Walmart, I think of cheapy products.  I think that will carry over to the Dell brand (if not already so by some commponents that are used today).  I have nothing against Walmart per se; but if I want quality I do not think of this store.

2> BETTER CHAIN CHOICES?: When I think of buying a computer, I never think of going to Walmart to buy one and I never will.  If Dell wanted to increase its footprint into retail stores, perhaps an electronics store chain or a computer store chain would reduce the cheapy image that walmart will place upon its products.  I do not buy computers at these chains, but it may reduce a negative image that Walmart will paint onto its products.

3> QUALITY: Hopefully this move will not reduce quality control at the plants that put the computers together.  Higher ouput may equal a loss of quality which will decrease long term repeat purchases.

4> BRAND IMAGE: Dell may bring on a Compaq/HP image to their name (nothing against Compaq or HP either, I am talking about brand image here - they may make good products but they have negative brand images in my mind). Even if a quality product is produced, there can still be a negative perception of it...that's business...and I think Walmart will decrease any positive brand image that Dell may have.

5> CEOs: At my old company, I watched as high level management decisions ruined our company nearly to the ground...hopefully Dell does not do this...high levels may not care anyway as they get their bonuses before jumping ship anyway :)

Overall, I dislike this move and think it will hurt the Dell brand name and image...and branding is a big deal at Dell's level.  Time will tell either way.  Maybe things will pan out for them financially...but their image will probably never be the same.

Either way the scales tip, I wish Dell good luck.

If everyone on here didn't buy brands that were not available at Wal-Mart as a matter of if Wal-Mart sells it, then blah blah blah... how would anyone get on with their lives?

 Unless you all buy everything from Amish folk, realize that Wal-Mart is a retailer and Dell is appearing on its shelves next to such brands as Hewlett Packard, Gateway, eMachines and others.

Not everyone has access to a computer from which to order a Dell system from. These are "starter" systems. It enables the people who are not in the digital age, to join it and do it with a Dell.

 BTW, most of the anti-walmart talking points are all exaggerations, half-truths, or outright lies invented by the Unions that want desperately to Unionize Wal-Mart.

http://www.opinionjournal.com/weekend/hottopic/?id=110007634

I work at a Dell Direct Store Kiosk; this move confuses me a bit, and I think it may confuse consumers. Quite a few potential dell customers are inexperienced in buying computers and cannot immediately equate differences in price to difference in performance, and are not really sure what they need in a system or would want, especially if they want it to last them more than a few years. While a retiree who only checks email would benefit greatly from a 700 dollar configuration from wal-mart, a family of four would probably not benefit at all because it would not meet their needs or grow with them.

 Whenever someone comes into a Dell Kiosk or calls a phone representative, while we have business goals that we focus on, it's our primary goal to configure a computer that will meet or exceed all expectations that the customer or consumer will have, including price. Dell benefits from this greatly, ensuring a high degree of quality control if the customer relates accurately what they really want from that computer. A customer at walmart will not get any of the education about the machine and the differences between it and other models from any walmart employee. The customer may have a horrible experience with that computer because they expected a great deal more from it, and it's these cases that may significantly hurt dell.

 It would mean less if we don't talk to customers every day who have horror stories about budget-priced comppaqs, e-machines, and gateways that they have purchased, what they had expected from, how uneducated they were by the dealer, and what they really got. People gain genuine contempt for a company if they have a bad experience. So, there's a potential for dell to really hurt it's image in the long term.

 I understand that dell is foregoing a great deal of profit and market coverage not having a foot in retail. They could at least try to differentiate the models at retail from the models available through the direct mailer or store. HP does this with it's compaq line, and gateway with emachines. They sell the lower priced machines at retailers that they expect to bring in customers who want to spend less on a computer.

We only have had Dell computers.As Kent said you are guilty by association.

Your deal with WalMart will lose loyal customers. In the near future we were looking for laptops for two students. The laptops will not be Dell.

Kent Kacey outlined a problem with the public in general not Wal-Mart.  Wal-Mart is a good store, though not without faults.  Kent, if you have problems with Wal-Mart, you should look inside yourself first. 

I'm glad to see Dell use this venture for selling computers.  I support many folks and their computers, and frankly I'm getting tired of making excuses for folks buying cheap HP computers and not understanding why they are having problems.  Hopefully this will bring more Dell computers into folks reach so they have a better choice to get a good machine for their needs.

Ah hah!  So that explains why the standard e197fp monitors are backordered.  I was going to order a system a week ago, but it told me the 19" e197fp monitor was on a 14 day (!) backorder.  Coincidently, the new systems at Wal-Mart will offer the 19" monitor.  Now you take ~3000 stores at at least 10 units per store = 30,000 systems...and 30,000 19" lcds. :-)   Hopefully they'll be back in stock soon online as I need to order several computers and due to the (obviously) long back order, the e197fp has been temporarily removed from all Dimension configrations as both a default and an option, preventing me from placing my orders.

Anyway, best of luck to Dell with this.  I definately think its time to hit it mainstream with retail, as it is an untapped market for Dell.  However, the one thing I hope is that Dell stays competitive in its online deals (such as the Small Biz one day deals and Smart Values section), and don't go the way Gateway did where they had an online system (like Dell), but then went retail and their online became non-competitive and just not worth it anymore.

That's great!

 Now, isn't it time for you to start also selling in Israel?

 Thanks,

Jonathan 

I am excited to see Dell making some changes. I worked for a School District that was totally Dell, and life was great.

I think this transition to allow buying them from Walmart will allow them to get a broad base of people that would normally be HPs or the other brands.

Can't wait to see what else you got.

The only party that this will be good for is Dell, and that only in the short-term. Wal-mart, down the road will leverage Dell to provide the systems at a cheaper cost. In turn, product quality will suffer. Resellers will suffer because Wal-mart will get larger discounts and most likely be able to sell cheaper than the individual reseller can buy.

Snapper lawn mowers turned down Walmart for this very reason. They still have high-quality mowers. I haven't found a single product that improved in quality after selling it through Walmart, they always make it cheaper to sell at a lower price.

Additionally, buying something in a box at Walmart means you get what's in the box, period. 

Dear Dell I had a question,

As Dell sells it's computers in Walmart, will it offer service repair through Walmart possibly by a certified Dell technician or a trained Walmart employee who dell certifies?  Right now in the United States the only company to do that is Best Buy with there "Geek Squad."  Since Dell is known universally for it's excellent customer support and service, I was curious if that was going to be offered "locally" for owners who bought and purchased warrantees at there local Walmart store -- saving dell money on repairs and shipping, while giving Walmart the extra income from warrantees being sold as well as new parts that aren't covered having to be purchased.

Looking forward to what's in the pipeline from Dell!  I just posted about this on our forum.  Very interesting move on Dell's part.

Thanks for the updates!

Laura
NotebookForums.com