Sunday, December 02, 2007

Buy Dell computers below cost

You can now buy Dell computers below cost.

Sounds like this is not really a new special because it turns out in the past few months, Dell has been selling their computers below cost. I am constantly amazed how cheap computers are these days and practically every week there's always a Dell special. A few weeks ago a client of mine bought a brand-new Dell Vostro PC with a 19-inch monitor for about $470. When I saw that price, I just found it hard to imagine how Dell could squeeze out a profit. Turns out there were no profits. What kind of a business is Dell trying to run?

Dell's U.S. sales fall, profits disappoint

Is this similar to how some car companies sell cars below cost to earn their money back from repair parts and hope that they win a customer for life? But if computers are this cheap, when it's time for a computer repair, it might be cheaper to just get a new one. In fact there are a few computers and monitors sitting in the floor of my office from clients who just recently upgraded their computers. These are 2 to 3 year old computers that are in fairly good condition, but the Dell ads for a new computer with a flat-screen monitor for about $500 was too enticing to pass-up.

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