Same Part, Same Supplier, Different Prices 412
linuxwrangler writes "Infoworld's "Notes From The Field column this week includes a comment from a reader who found that Dell listed several different prices for the same part. Intrigued, I grabbed the first part number I found (a 512MB memory module #A0193405) and found that the list price is $289.99 which the price offered to "large businesses". Meanwhile, the GSA/DOD contract price is $266.21 while "home users" find the list-price discounted to $275.49 and "small businesses" fare even better with a $246.49 price. InfoWorld contacted Dell who responded, "Each segment sets its own pricing, and consumers are free to pick the one that's cheapest." Buyer beware."
Marketing vs IT (Score:5, Insightful)
I wonder why isn't Dell doing something to control the purchase upon "Add To Cart"? Something like:
"This item is only available to our spend-like-no-tomorrow customers, please enter SLNT code now to add to cart, or select an alternative item from the following..."
Maybe it's a miscommunication between marketing and IT department?
Re:Marketing vs IT (Score:4, Interesting)
My contacts, for example, are marketted as daily wear. However, they're the exact same contacts that the manufacturer sells as their multi-use contacts, just in a different box. For people willing to pay for the "multi-use" contacts, the company simply makes extra money. It doesn't hurt them any.
Re:Marketing vs IT (Score:2)
mine are 2 weeks. i can wear them longer if i so choose, and sometimes i do if i forget to switch them or if a new shipment is late.
however... you're wrong in saying multi-use contacts cost more. maybe they do per pair, but if you actually do what's told, your daily use ones cost more. and at least with mine, if i wear mine for
Re:Marketing vs IT (Score:3, Informative)
Don't mean to be cocky, but this isn't really news is it? I can't possibly be the only one that knew they have been doing this for years.
Re:Marketing vs IT (Score:5, Interesting)
The thing you need to be careful of is the "invisible stuff" you buy when purchasing a product. like: licences, warranties, etc...
For example, if I buy a processor from Intel in the Intel branded box, I get a warranty. If I buy the *same* processor in an "OEM" box at a discounted rate, no warranty.
This is just one example, but also consider this: You buy these "daily wear" contacts, and they have their usage guidelines printed on the side of the box. The "Multi-use" contacts may allow for the contacts to be worn under certain circumstances that differ from the "daily wear". Now, you, as consumer, save a few bucks on the "same" contacts, but use the "daily wear" in a manner than is inconsistent with their labeling and you go blind one day. You can bet your ass that the contact lens maker is going to claim that you were indeed "using their product in a manner that is inconsistent with the packaging" when you attempt to be compensated for damage to your eyes due to their product.
Just some food for thought (IANAL, however).
Re:Marketing vs IT (Score:2, Insightful)
Re:Marketing vs IT (Score:2, Funny)
I find Dell's quality to be generally acceptable, but it's a real PITA trying to get a decent price on exactly the system/service features I want without them suddenly adding in crap I don't want/need. Given a reasonable alternative (and, no, I don
Re:Marketing vs IT (Score:3, Informative)
They update their deals once weekly.. keep an eye on it until they offer something you can't resist, get a good deal.
Re:Marketing vs IT (Score:3, Insightful)
My friend was told by a customer service representative to "wait unti
Re:Marketing vs IT (Score:3, Insightful)
Re:Marketing vs IT (Score:3, Insightful)
Yes, actually. I'll lay it out real simple for you. Let's look at a few facts:
Gotta love Dell! (Score:4, Insightful)
Re:Gotta love Dell! (Score:4, Informative)
Re:Gotta love Dell! (Score:5, Informative)
Re:Gotta love Dell! (Score:4, Funny)
Re:Gotta love Dell! (Score:2)
No, then are you willing to work at the same rate as your Indian competition?
No, then if you wish to have a job you shouldn't be suprised at all that your employer would try to charge more for your services then those of someone with inferior communications skills (most Indians speak English, either as a primary or at worst secondary but daily language). Whenever I spec a server for a client from Dell it ALWAYS gets Gold support unless we are going bargain basement and getting hardware only suppo
Re:Gotta love Dell! (Score:4, Funny)
Re:Gotta love Dell! (Score:3, Insightful)
Re:Gotta love Dell! (Score:4, Insightful)
What a racist rant, modded informative by likeminded rednecks. How about you ponder who is hiring these Indians and firing Americans? It's the white-as-the-driven-snow WASP CEOs. The Indians didn't invade and conquer the American call centers, the American companies chose to outsource to bump up their bottom line.
Re:Gotta love Dell! (Score:2)
BTW it will come direct from HP.
Re:Gotta love Dell! (Score:2)
it doesn't seem like they're convinced with offering the best value on hardware.
They're a business, just like any other business they want to maximize profits.
Re:Gotta love Dell! (Score:2)
My Life is Dilbert (Score:5, Interesting)
I found this out years ago when I had to upgrade 300+ computers. I went on to their site, found the best price for the most power, and then called up for the best bulk price
The system I picked was the Dimension, with the latest tech. But the salesman wanted me to buy the 'business optimized' OptiPlex. I pointed out that each unit was MUCH more expensive for the same power, he tried to sell me that new technology was not good for business - I should use 'proven' hardware (i.e. 1 year old chips at top prices).
I told him no thanks, please give me a price on 300+ Dimensions as I specified them.
He did give me a price, but when I went to my boss to get the check, I found out that the salesguy called him and told him to but the OptiPlex! Then my PHB believed the vendor, and I eventually got fired cuz I would not support them. (The drivers for the network card would not support the latest Windows)
Re:My Life is Dilbert (Score:5, Insightful)
Your former boss may have made a bad call - but as his employee you gotta deal with it and when shit hits the fan, he will get in trouble for making the bad call....but by not being a "team player" you open yourself to a world of hurtin (i.e. losing your job)...unless that is what you wanted.
Re:My Life is Dilbert (Score:4, Insightful)
Re:My Life is Dilbert (Score:3, Interesting)
Hopefully, he would order just one machine and put it in a test environment, before buying up 300 machines.
Then, the test environment would clearly show that the version of windows used by the company does not work with the network card.
Test Condition: Connect Dell Optiplex to our network with standard company software (Windows Version XX, etc)
Result: Failed.
Reaso
Re:My Life is Dilbert (Score:3, Funny)
Re:My Life is Dilbert (Score:2)
You have to question the poster though. He's claiming the network card on the Optiplex wont support the current version of Windows. This just plain sounds wrong.
It's kind of the equivilent to saying he bought a Ford and it won't turn left, only right. It's technically possible, but very improbable.
Did he even try Dell's web site for latest driver? If he didn't,
Re:My Life is Dilbert (Score:3, Interesting)
Re:My Life is Dilbert (Score:2)
Re:My Life is Dilbert (Score:2)
I once told my boss that doing something in a specific way was annoying and a waste of time. He asked me if that meant I wouldn't do it. I told him that it meant no such thing - I would d
Re:My Life is Dilbert (Score:2)
Your hypothetical response seems to be pretty decently measured. Apart from a possible ethics or overtime issue, I don't tell my boss what I will and won't do, I'll tell him what I think is the best way to do it, but the final call on what to do is his call, not mine.
Re:My Life is Dilbert (Score:3, Insightful)
Teamwork on jobsites is vastly overrated. Most of the time, your teammates are assholes. And if your temmates aren't assholes, you are.
Either way, it never works.
Re:My Life is Dilbert (Score:2)
Being a "team player" really means nodding your head to your boss so you keep your job and getting paid. Now if someone says "what if he didn't want to
Re:My Life is Dilbert (Score:4, Insightful)
Re:My Life is Dilbert (Score:5, Insightful)
Re:My Life is Dilbert (Score:5, Informative)
First, let me say that I'm not a Dell rep and I couldn't care less where people buy their computers.
However, there is such a thing as a "business optimized" PC, and I can see the value in a business paying a premium for them. Speaking as as a person who has been charge of those who support the hardware on these things, a "business optimized" PC means a PC line whose hardware components don't change very often. I wouldn't necessarily buy into the argument that I need "proven" hardware, but having a line of PCs that don't change their overall component structure can be a very good thing in terms of supportability.
Re:My Life is Dilbert (Score:3, Insightful)
Complete and utter bullshit.
I disagree.
PC parts are, by very nature, COTS equipment - as the military would say.
True but irrelevant.
Even if all of your 300 machines are built with COTS equipment, your support burden can be significantly increased if they're not all the *same* COTS equipment.
It's well known that when you buy very low-priced computers that you can expect to get a grab bag assortment of different components. They'll all fit together and work (most likely), but they'll have whiche
Re:My Life is Dilbert (Score:5, Insightful)
What a way to inspire thoughtful and enlightened discussion...
"...I ran a small office's network (3-13 employees)..."
"...Now, while I can understand a large company's situation is definately a bit different..."
Normally I wouldn't have even responded to this, but your points are ironic, because they actually help make my case. First, a business of 3-13 employees doesn't need standardization like a large organization does - it needs dependable, easy to use, somewhat powerful PCs for competitive prices. "Business optimized" PCs don't make much sense to really small organizations.
When you get into the larger support realm however, power and individual PC price don't weigh as much in the overall support equation, but STANDARDS do. When you are deploying a new piece of software/OS/etc to 1000+ workstations, it is of TREMENDOUS benefit to the support staff to not have to worry about every one of those thousand plus workstations having different hardware configurations. So, like I said before, "business optimized" PCs are by definition:
- not supposed to be top of the line
- not necessarily the cheapest option
- usually leased and not bought (so they are replaced every so often)
- static in terms of their component configuration
and
- more easily supportable because of their static nature.
Re:My Life is Dilbert (Score:3, Insightful)
I know this is how
Re:My Life is Dilbert (Score:5, Interesting)
When I was contracting for a major corporation, they wanted to rollout new software to 4000+ PCs. Since there were only two or three different models of machines I recommended using a little known utility by Binary Research called Ghost.
One model used in one division was Compaq Presario. The wise ass IT manager of that division decided to save a little money by getting the cheaper home units instead of the Deskpro 2000 units everyone else had.
Well, come time for rollout and about 75% of the hard drives in the Presario units died after being ghosted (obviously, not the one unit we had tested on). After a couple weeks of panicked calling with 3rd level engineers at Compaq, the bottom line was that they couldn't help us with the problem. They had a room full of engineering documents on the Deskpro line and could literally follow the path of electrons if that was what was needed to fix the problem. If we wanted that kind of help with the Presario line, we would have to go find the random Taiwanese board maker who had slapped together the motherboard and see if they could figure it out.
Well, smart ass IT manager decided to secretly have a few of the now-broken hard drives put in Deskpro units then send them in to engineering. Compaq took one look at the barcodes and realized they had been swapped. Ironically, having the bad drive in the Deskpro they were able to discover there was a bug in Matrox's firmware that caused the drive to report it as having 16 heads when it only had 15 heads. Compaq theorized that the Ghost program was operating at a low enough level that the Maxtor drive was trying to squeeze a square peg into a round hole and breaking itself.
Anyway, bottom line is...if the computers work out of the box, it doesn't matter what's in them. But if you ever plan to use computers to something other than what they current doing, then you need to know that the vendor will actually stand behind them and not tell you that you are SOL. Companies may pay more of a premium for that kind of guarantee, but if you looked at the cost involved in swapping out a few thousand machines because you can't get a problem conclusively solved, that premium might not be so bad after all.
- JoeShmoe
.
And so? (Score:5, Insightful)
It's called Channel Marketing/Pricing and it's been around for years.
If it takes me an hour of research to save $10 I have lost much more than I've gained.
Re:And so? (Score:2)
Re:And so? (Score:2)
Re:And so? (Score:2)
And so you are on /. why???
Or your time is just too valuable to use the shift key?
I've never met a business owner who did not care about getting the lowest price.
Anyway, just to veer back on topic, the solution to Dells shell game is to just get your memory someplace like newegg. Problem solved.
Re:And so? (Score:4, Insightful)
If you save $10 after an hour of searching, you're in the hole. If you're buying 20 of them for your office, then you've saved your company $2000. That's certainly worth your time (unless you're Bill Gates).
I have two accounts, one at Dell Business and one at Dell Home. I buy from whichever suits my needs at the best price. I've been doing that for several years now, I can't believe this is really news...
Re:And so? (Score:3, Funny)
But sir? (Score:2)
what if you plan on buying 300 of them tommorow?
Well DUH! (Score:2)
Re:Well DUH! (Score:2)
Re:Well DUH! (Score:3, Interesting)
Hmmm... (Score:5, Funny)
nothing new (Score:3, Interesting)
The company I work for buys all dell hardware (servers, desktops, laptops, monitors) - so we get a slight automatic discount on stuff (not that much really, techbargains can usually offer a better price).
Sometimes, not always, being the big corporation won't get you the best off-the-shelf price. Also, many of times times (as it should be) companies have to input their EIN number to get the price (and usually tax discount)...students need to provide proof of their student status... same for other organizations.
Large businesses don't buy at list price (Score:2)
See, that is why you actually need all these weird people in companies that don't program: Purchasing Managers do have a purpose
Re:Large businesses don't buy at list price (Score:2)
Does it affect warranty and support? (Score:5, Interesting)
This is all speculative though.
it's like a game. (Score:2, Interesting)
And i guess... (Score:2)
Re:And i guess... (Score:2)
Priceless (Score:5, Funny)
a 512MB memory module
a 512MB memory module
a 512MB memory module
Not buying from Dell
But seriously, it always pays to shop around. You just wouldn't expect to be shopping around from the same suppiler.
We've noticed that too (Score:2)
Prices for different segments (Score:2, Insightful)
We set prices not only for different segments on any given part, but sometimes for specific customers. This practice has been done for years, and is a smart way of maximizing profit from different segments.
Dell seems to be making a mistake by telling consumers they can buy at the cheapest price if they want.
In the company I am in, if you sell to the wrong segment at too low a price, you (the sales rep) will loose out, becuase any lost GP (Gross Pr
In other news... (Score:5, Insightful)
Same can of pop from aisle inside the supermarket = 20 cents.
Re:In other news... (Score:3, Funny)
Cup of coffee back in your room = £0 (complementary) + free pack of biscuits!
(Just don't make it with the £2.50 bottle of mineral water)
Re:In other news... (Score:2)
"Same can of pop from aisle inside the supermarket" = Probably not cold
Re:In other news... (Score:2)
Capitalist version of Marx slogan (Score:3, Insightful)
If a segment can afford to pay more, Dell and other companies will find a way to get them to pay it. You find it in airline ticket prices (last minute, weekday travel fares catch business travellers), remodelling projects cost more in rich neighborhoods, sales people judge the buyer and set the price accordingly, etc.
Is it really that different from a progressive tax system in which the rich pay more than the poor?
No Kidding Shipping (Score:5, Informative)
Accordingly FedEx apparently only charges Dell about 20$ to ship a computer. Ones that are damaged go to the dump. Dell charges 99$ shipping.
Re:No Kidding Shipping (Score:3, Informative)
Re:No Kidding Shipping (Score:2)
He must have meant "sales tax" instead of "shipping". Dell Small Business charges tax in every state, so that's anywhere from 5-8% extra cost over Dell Home. So depending on your sales tax, a 15% off deal in Small Business could be more expensive than a 10% off deal in Dell Home.
"scuse me sir (Score:5, Funny)
Re:No Kidding Shipping (Score:2)
If you want to see egregious pricing on shipping, take a saunter over to eBay.
In some cases GSA/DOD price is higher. (Score:2)
In some cases (certain items/products) you'll even find that the GSA "discount" prices are far higher (even approacing double) than the other prices.
The "justification" for this is that the DOD requires the product to meet certain specifications for things such as "durability" or to have finer tolerances on certain performance attributes etc. So, since they are the ones causing the need for the "more costly" manufacturing process, they are the ones that foot the bill to make sure it meets their spec
Why are we still surprised about capitalism?! (Score:3, Insightful)
Re:Why are we still surprised about capitalism?! (Score:2)
We as a society have determined that discriminating solely on the basis of race, gender, religion, etc, to be wrong. We have not made the same determination in relation to discriminating on the basis of being a business versus being a consumer.
Nothing new here (Score:2)
High-end LCD monitors last year were seeing 25%-50% discounts on the Small Business pages. For the individual user, it makes sense (as usual) to shop around. Institutional customers are usually stuck with whatever prices their contracts are for -- the US Govt can't buy through small business, and your academic custome
Same as cars (Score:2)
I was tasked with the job of locating and pricing the suspension parts we needed for this and another project, a small dodge pickup.
Well, long story short.
I found that the part numbers on the lower control arm on the truck and the viper were the same. But the Viper part cost $900, and the truck part cost $300.
I was shocked, but I'm not surprised that electronics dealers would do the same
Anyone who thinks Dell is stupid is... wrong. (Score:3, Informative)
In this case, Dell is taking advantage of an inefficiency in the marketplace. Specifically that customers are honestly identifying themselves and they're offering the highest price they feel that particular type of customer will pay. Of course, this starts to break down when customer knowledge makes the marketplace more efficient, but the average person is not a Slashdot denizen or FatWallet (or similar site) checker.
We ran into that (Score:2)
Pricing strategy for nerds. (Score:4, Informative)
I'll join the chorus of folks who've pointed out that Dell has done this for, like, ever and that it's quite common in the industry. Best Buy, CompUSA and Circuit City each pay different prices to manufacturers and distributors for the same parts, too.
By the way, Dell's pricing strategy is primarily the reason that the first question you're asked on the Dell home page [dell.com] when you begin shopping is not "how much do you want to spend?" but "where will you be using it?".
At the large company for which I work, whenever we buy Dells, we simply have somebody buy them on a personal credit card and have them shipped to a home address.
The article talks about 256MB not 512MB (Score:5, Insightful)
"Depending on the link he followed, the 256MB SIMM cost either $88 (Small Business), $99 (Home & Home Office), or $110 (Medium & Large Business)."
Why in the world anyone would ever buy memory from dell continues to confuse me. A 256MB dimm from crucial for a dimension 4600 runs 42.99. A 512 one runs 76.99.
Why pay more than double from dell???
Re:The article talks about 256MB not 512MB (Score:3, Insightful)
If some old grandma's computer takes a dump she's not going to want to track down some 3rd party's tech support number for an RMA - rather she'll call Dell who'll send a tech onsite to fix her box or she'll return her HP to CompUSA.
Its somewhat like dealing with servers... I'd gladly pay extra (although probably not double) to have one common vendor for all of my serv
Re:The article talks about 256MB not 512MB (Score:3, Insightful)
You haven't been in an institutionalized environment, then. Like, for example, a state government or college.
We have buying departments. They go out and justify their existances by creating contracts with certain businesses for buying things. The upside for the business is they get a good lock (not 100%, but close) on the entire organization's business for that kind of product. The upside for the buying department is they jus
"solution" sellers do that (Score:2)
I take it that since this irks me, I must not be their targeted customer, so I plan to buy elsewhere.
Meanwhile... (Score:2)
Dell Says: Roll up your arm... (Score:2)
Regular or Premium?
RS
Known this (Score:2)
the real lesson is being missed here. (Score:3, Informative)
$246.49 for 512 meg of memory in todat's market and the post can call this "fare even better" ? Hardly, it's a huge over charge for buying from Dell. Sadly, some Dell systems do require "special" memory, I had tried to help a girlfriend add memory to her Dell system a few years ago and we learmed that standard memory would not work in it. Dell used some memory with very strange clock requirements. Still, we were able to get the memory from any of several large memory suppliers for about half of what Dell wanted for it (although for significantly more than "standard" (and faster) memory would cost. The lesson is don't buy memory at all from Dell, and to avoid getting "locked in", don't buy at all from them.
Crucial does the same thing... (Score:2)
I called Crucial and asked the difference and they said there was not a difference to buy the cheaper stuff. A couple of days later I checked back and they were the same price.
Phone company does stuff like this too... (Score:2)
Now we live in an age where merchandising is an art form that revolves around the science of using peoples' laziness against them economically. Products are
I used to buy a lot of equipment from dell ... (Score:2)
Price up a laptop with more memory then standard in it and you get one price for the memory upgrade. Buy the laptop and order a seperate memory upgrade at the same time (and fit it yourself) and you will find the memory upgrade is much cheaper. Most I once saw was half price for the memory.
Also, if you are buying in bulk and you wait until near the end of the quarter, the salesmen can be desperate for a deal to go in that quarter for their bonus. I managed
Got one Better (Score:2)
He asked them for the price on the base unit.
He asked how much it cost to add X amount of RAM.
He asked him to take it off and asked them the base unit price again.
That is when he noticed that the price had gone up. I guess teh time spent putting the memory in the board and then taking it out cost them something...
Dell is the Wal-Mart of the PC world. When people stop being enarmored about the retail price and get a quality product you will probal
Well, that's deliberate. (Score:2)
(Some bought a few hundreds, or even thousands, of dollars worth of merchanise. Because the corruption was random, if you didn't like the prive, you reloaded the page.)
Fox Store, at first, threatened not to honor the
Another possible reason for differing prices... (Score:2)
This isn't shady at all (Score:4, Insightful)
This is a good thing for companies to practice from a profit point of view. Its the process that makes the most money. It also means that people who can not afford to pay a higher price (e.g. students, the elderly) can get software/movie tickets at something they can afford.
Joel Spolsky wrote about it here. [joelonsoftware.com]
Pigeonholed! (Score:2)
Pigeonholed! [ibm.com]
I even used Dell as an example (either here or in the book I'm working on) of a company I won't buy from because I don't like being asked to pick a customer type before I can buy products.
VINDICATED!
I work in education.. (Score:5, Interesting)
The guy that deals with buying equipment called Dell up wanting some machines like what he'd bought his kids.
For his kids, Dell charged 300gbp per box.
For the school, they wanted around 30% more!
Dell's excuse was really laughable. Something about "For schools, the computers can be further upgraded before purchasing so it gives you the option of upgrading at the point of sale.". They could be upgraded for home use too, so that didn't really wash.
Beware of customise options! (Score:3, Informative)
Once you've worked out you need to play the Dell website game to get the best prices from them, it is just adds an extra layer of hassle to buying PCs. Perhaps someone could make an app that scrapes their web pages looking for the best deals (e.g. is it best to start with a high spec PC and customise the components downwards or is it better to start with a low spec PC and add the bits you want).
Re:Duh (Score:2)
Re:If anything... (Score:3, Insightful)
Definitely failures of the marketplace when the sellers generate a reality distortion field of Branding and the buyers are hypnotized by it. My girlfriend loves Starbucks coffee and pays a huge premium for their pedestrian flavo drinks. Look inside an Apple computer and you see a collection of off-the-shelf chips and drives.
People who are loyal to the Dell brand insist that they are solid machines -- even though they are really no different than any other collection of Taiwan/China parts.