Quote:
Originally Posted by fortyways
I heard Dell loses money on every hardware sale, and that all their profit comes from software and tech support.
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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.