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Old 04-10-2008, 10:15 PM   #41 (permalink)
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I heard Dell loses money on every hardware sale, and that all their profit comes from software and tech support.
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Old 04-10-2008, 10:20 PM   #42 (permalink)
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That wouldn't surprise me, they do some outstanding deals.
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Old 04-10-2008, 11:06 PM   #43 (permalink)
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Hey, I'm looking at your pink computer here and you've got in the fine print "** Requires DVD Decoder (not included)."

You can take that out, Vista Premium plays DVDs in Windows Media Center without any extra decoder.
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Old 04-10-2008, 11:07 PM   #44 (permalink)
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Oh really? Excellent, thank you for that info!
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Old 04-10-2008, 11:15 PM   #45 (permalink)
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Ok. If you don't mind, I'd like to give you some helpful tips.

First of all, you have no reputation. There's no incentive to buy from you.. You're a fly-by-nighter, working out of your bedroom. There's no guarantee you'll be there in six months if I need warranty work or support. In fact, there's a better than average chance you won't be.

Your prices are too high, and your quality is inferior. Again, no incentive to buy. I can buy a far superior Computer from Dell or HP, from a company that's been around and will continue to be so long after you're gone, for less money.

Based on the parts you use, and certainly your input here as well as your hopeless ebay listings, you really are an amateur. I hope you don't take that offensively as I'm trying to be purely objective.

You're one of those guys that thinks throwing a couple of crappy parts together (Foxconn is crap for instance) and selling them for big bucks you're going to strike it rich. You're not. Sorry.

At LEAST be competitive. Even then, you'll be hard pressed. AMD is a perfect example. They've just been in the news again, suffering serious financial woes because they're getting their arses handed to them at every turn.

So. Up your quality, or seriously lower your price. Like, WAY down. The trouble is that then it's not worth selling on Ebay. Ebay as it is has a reputation for people selling crap... and the prices of computer items have been driven down as a result. Even worse that you have NO feedback for the last two and a half years.

So.. Get a bunch out at cost. Like, several dozen. Get a reputation for quality (and Foxconn/Athena and $20 cases aren't it). Build up a substantial feedback score. THEN start charging a premium.

And give it up on the Via thing.. They have a use, but only experience will help you know what it is. For instance.. One company that contracts me builds computerized distribution cabinets. The computer is the size of a shoebox and it has a Via CPU in it. The link as it's called is highly specialized, performing a very specific task set.

Unless you're using it to play multimedia on a TV, the Shuttle's are useless.. and at the price you're trying to get, people can buy a real good machine that is far superior in every way.

So. Learn your products first. Learn their applications. Build a reputation. Develop an online presence that's even half-way professional, don't brag about owning some POS AMD system... develop an identity..

THEN sell for a profit. Because really, people can buy garbage anywhere. They don't need to buy it from you working out of your bedroom. Dell would be more than happy to give them a $399 Dimension. Once you have a satisfactory business presence/reputation then you can start pitching service agreements. THAT's where Dell makes their money.
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Old 04-10-2008, 11:27 PM   #46 (permalink)
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Quote:
Originally Posted by fortyways View Post
I heard Dell loses money on every hardware sale, and that all their profit comes from software and tech support.
Actually, Dell incorporates the "lost leader" strategy. They offer a couple of base units below cost to get people in the door. Then they upsell like mad. The way they do it, actually, is rather ingenious and quite transparent. The average user has no idea what hit them until after they've hit the checkout. I'm impressed actually.

They also make huge money on their extended warranty plans. For the most part it's pure profit.

There's a lot I could share with you about marketting and what have you. The balance between quality and profits, etc.. There's a whole story behind the scenes. In fact, I was on the phone today with a representative from a muli-billion dollar worldwide electronics manufacturer... An amazing conversation, one that I wish never had to end.

If you have the time, there's a whole other world out there.
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Old 04-11-2008, 04:23 AM   #47 (permalink)
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Quote:
Originally Posted by SirKenin View Post
Actually, Dell incorporates the "lost leader" strategy.
Loss leader.
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Old 04-11-2008, 02:29 PM   #48 (permalink)
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Quote:
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Loss leader.
grammar nazi
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Old 04-11-2008, 02:34 PM   #49 (permalink)
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grammar nazi
Heh. Well, I'm unfamiliar with the "lost leader" business principle. I'm assuming it was misspelled, but, whatever.
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Old 04-11-2008, 02:42 PM   #50 (permalink)
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Quote:
Originally Posted by mep916 View Post
Heh. Well, I'm unfamiliar with the "lost leader" business principle. I'm assuming it was misspelled, but, whatever.
If you watch the office, Michael Scott would be a lost leader, lol
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