Wednesday, May 30, 2007

Buy your new Dell at Wal-Mart ?

A recent announcement that Dell will be selling it's consumer based PC products through Wal-Mart is an interesting move... and IMHO, very risky. How can they maintain that they are high-end and at the same time, sell through the low-end retailer?

Dean to Dell... are you sure about this?

What's next? Will I be buying a Dell PowerEdge at Home Depot or Lowes? And would I go to the "Information Desk" for support?

Some would argue that Dell is already low-end and they belong in Wal-Mart.

What do you think?


JohnP@Dell said...

Hi Dean,

Our deal with Wal-Mart is just the first step in a global retail strategy that will unfold over the next several quarters. We'll still be selling direct, for sure, but thought it timely -- as part of our turnaround -- to broaden our distribution to consumers who prefer to look and feel before purchasing. We really don't see selling select low-end models through Wal-Mart as a risky move.

For perspective, we have a very broad range of products, ranging from low- to high-end consumer systems. But, about 85 percent of our sales are to commercial and government customers.

FixingStuff said...

Wow. I didn't expect to actually get any kind of response from Dell, but it's very cool and appreciated!

My concern is that the Wal-Mart move may "cheapen" the brand name. I say this because I have actually defended the Dell brand for years against those that slam Dell in favor of IBM or HP. I am a Dell Small Business customer running about 60 Dell PowerEdge machines in the data center and 50 business line desktops. I am still and will continue to be a committed Dell user because I believe that Dell delivers the "Best Bang for the Buck".

thank you johnp@dell

BTW, I just have to ask. Is this your job to do damage control?