NOT HOT: Dell ends free shipping starting Oct 10

[estew33]

Originally posted by: darkswordsman17
Ugh, this his horrible.

USPS is by far the worst at handling large packages, at least in my experience. I don't know how its going to end up being cheaper either, but I guess they probably cut Dell a very nice deal to get their business.

Whats going to happen if you buy a large television or a bunch of stuff (say several computers and monitors)?

Since they've already started charging a handling fee, I guess we'll have to see how bad shipping costs are.

Who started charging a handling fee. Dell ? the P.O. ?

 

[Ze]

not sure if this is such a big blow, their deals have gotten significantly less hot over the past several months anyway.

 

[spanky]

Originally posted by: usernamemax20charact

Originally posted by: V00DOO
WTF. First they started charging handling fee and now we have to will call in post office. What's next?

90 day standard warranty on everything, with 1 yr, 2 yr, or 3 yr upgrades available. Just watch.


EDIT.........

Dang, I was right, sorta....

QUOTE:

Now the company, which revolutionized how PCs are sold with its direct model, has plans to change how PC support is provided. On Sept. 28 it announced a line of higher-priced PCs, dubbed the XPS line, that will come with improved levels of service. XPS owners who call in for help will be routed onto shorter queues to dedicated teams made up of the company's "best" phone reps, says Michael A. George, general manager of Dell's U.S. consumer businesses. "The goal is for the vast majority [of XPS owners] to wait for less than five minutes."

That's one of several ways in which Dell will encourage customers who want more support to pay extra for it. In November the company will launch a slate of new offerings, including remote assistance so technicians can take control of the customer's PC to fix problems. And early next year Dell will introduce a series of one-year memberships so customers can opt for various levels of help, at various prices. One of the options will likely include a quarterly PC tune-up, in which a techie would remotely clean up the hard drive and check security settings.

All of this adds up to a quiet attempt to reset customer expectations in the PC industry. While execs won't say so publicly, the message is clear: That new PC you bring home comes with only the most rudimentary support. More hand-holding costs extra....

It's tough medicine that fits with Dell's pragmatic approach to business. The company is the No. 1 player in the U.S. consumer PC market. But sales to U.S. consumers carry margins of 6% -- compared with 11% for corporate buyers. The new "pay-up" strategy could help make sure the consumer unit doesn't eventually become a drag on earnings.....

Other key PC makers are increasing the pressure on Dell. Apple, which consistently ranks high in customer surveys like Michigan's, recently decided to start using chips from Intel Corp. (INTC ), making it a more direct competitor to Dell. And Hewlett-Packard Co. (HPQ ), Dell's biggest competitor, seems intent on distinguishing itself with customer service.

Over the past year, HP has launched several initiatives to build loyalty. One lets HP employees key in information on product glitches they hear about from customers, who then are supposed to receive a call from a rep within 48 hours. Another is a diagnostic tool HP developed to help consumers figure out what kind of problem they have, even if it doesn't involve HP gear. Dell won't help customers with non-Dell problems unless they pay extra. "Given today's digital lifestyle, it's vital," says Diana L. Bell, HP's senior vice-president of total customer experience. "We have to do more than say, 'here's the product, and catch me if you can."'

i thought they did away with the standard 1 year warranty already? i forgot if it was a year or two ago, i got a dimension 2400 for $400 with $200 mir. at that time, the deal was incredibly hot, and it came with a 1 year warranty. i remember becuz i gave that computer to my sister and i told her that if she had any problems, it had a 1 year warranty. now a days, all the hot deal low end computer have that weak 90 day warranty. it only cost like $20 to upgrade to 1 year warranty, but still... thats 3 days lunch 😛

 

[Robisoda]

Won't be just Dell doing it:

FOR IMMEDIATE RELEASE
Contact: Media Relations 202-268-2155
Sept. 29, 2005
Release No. 05-082
www.usps.com

POSTAL SERVICE ADDS 'HOLD FOR PICKUP' TO DELIVERY OPTIONS

WASHINGTON, DC - Hold everything!

The U.S. Postal Service today launched a new delivery option that can save customers shipping costs on products they have ordered by agreeing to pick them up at a designated Post Office. "Hold For Pickup" meets the needs of cost-conscious mailers shipping high-value and heavyweight goods and the customers receiving them.

A package delivered Hold For Pickup will be kept safely at the Post Office until the customer collects it. Items shipped using Hold For Pickup are delivered directly to the Post Office instead of customers' street address. This provides additional security for mailers who may not want expensive products left at a customer's door.

"Hold For Pickup is another way we are transforming our products and services to better meet the needs of our customers," said Nick Barranca, Vice President, Product Development. "The advantages are cost savings to the shipper, customer convenience, and security for both the business client and the consumer."

Hold For Pickup parcels are shipped to a designated Post Office where they can be picked up by the customer within 10 calendar days.

Barranca said the Postal Service was responding to several requests from shippers wanting the option of notifying customers that their items were being held at a local Post Office, resulting in the Hold For Pickup option.

Shippers using Hold For Pickup will notify each customer of the Post Office holding their package. If the package has not been picked up within three days of its arrival at a Post Office, the Postal Service will send an additional notice to the customer alerting them of the delivery. Items will be held for pick up for 10 days at the Post Office before being returned to the shipper.

"We expect that Hold For Pickup will be expanded in the future to include all parcel products to further meet customer needs around greater access and convenience," Barranca said.

 

[darkswordsman17]

Yeah, I think Dell might be stopping a lot of the things that made them worth buying from.

They've started charging a handling fee.

They're stopping free shipping to your home/office. I wonder how many of you who say you actually like this have had to deal with your local post office. I've just not had good experiences with mine and I don't like to go there (the workers are unpleasant even when you're nice to them and have everything ready so that its easy for them).

They've knocked the standard warranty period down to 90 days, except on XPS models that get 1 year. However, it looks like they're going to exclude the XPS models from their deals/coupons for the most part. There might be a few decent ones (maybe a 20%), but I think the days of 40% off of any desktop/laptop might be over. Couple this with the fact that Dell has moved half of their desktop lineup over to XPS (and adjusting the price on them as well), this is even less good the us hot dealers.

Their return policy might become more stringent. In the past, Dell's return policy was second to none, and thats a big reason why I bought from them. I could return anything within 21 days and just pay return shipping. No problems, and now worries. Just recently I tried to return a system that I bought, and they said that they would be charging me $300 to ship it back and a 15% restocking fee. Needless to say, I'd rather sell the system at a slight loss than to pay 25% of the cost just to return it.

I think this is just another sign that the deals Dell was running were too much for them, and that they have to change it if they hope to stay in their market position and get their revenue back up.

 

[arcas]

This really isn't all that surprising. Dell's stock has traded at $33-$36 for a couple years now (ignoring a brief spike up into the 40s earlier this year). I imagine Dell's execs are beginning to feel pressure from large institutional investors to make something happen. Not to mention Dell's own execs, who are probably growing restless to see their unexercised stock options grow in value.

This doesn't bode well for future big discounts on Dell LCDs. I was hoping to pick up a 2005FPW or 2405FPW pretty cheap this fall. Looking like the cost-cutting measures aren't going to let that happen.

 

[spanky]

Originally posted by: darkswordsman17

I think this is just another sign that the deals Dell was running were too much for them, and that they have to change it if they hope to stay in their market position and get their revenue back up.

i dont know the numbers but i did not think that those in the "hot deals" community make up for much of their actual sales. isn't dell's bread and butter the corperate custmers (big business and educations institutions)? i would guess that dell actually benfitted from those "hot deal" customers. for me, becuz of the good deals i get from dell, i recommend dells to anyone who asks me about computers when i cannot be bothered to build one for them. for ppl close to me, i will tell them to wait for a coupon or what not. for those ppl i dont give a crap about, i just tell them to go to dell and let them get raped 😛

 

[newbiepcuser]

Originally posted by: spanky

Originally posted by: darkswordsman17

I think this is just another sign that the deals Dell was running were too much for them, and that they have to change it if they hope to stay in their market position and get their revenue back up.

i dont know the numbers but i did not think that those in the "hot deals" community make up for much of their actual sales. isn't dell's bread and butter the corperate custmers (big business and educations institutions)? i would guess that dell actually benfitted from those "hot deal" customers. for me, becuz of the good deals i get from dell, i recommend dells to anyone who asks me about computers when i cannot be bothered to build one for them. for ppl close to me, i will tell them to wait for a coupon or what not. for those ppl i dont give a crap about, i just tell them to go to dell and let them get raped 😛

You're right that Hot deals community probably only make small percentage on their total profit. But if they can show any growth, it can spike the stock past resitance point which can push up the stock. As the saying goes, every penny counts.

 

[Injury]

Originally posted by: Solema
I also wouldn't mind picking it up. I'd feel more secure that way than being away from home and hoping nobody grabbed my package off my front doorstep.

Exactly my thoughts. You can also get it first thing in the morning rather than waiting until mid afternoon, too 😉

 

[imported_goku]

I'd be fine with it if it was an option, but not a requirement...

 

[toant103]

Originally posted by: ToyYoda

Originally posted by: RMSistight
Actually I like it that way. I'd rather drive to my post office knowing that my package is there than to wait and guess when it might arrive....time wise that is.

Same here 🙂

same here. And i'm only 1 mile away from the post office

 

[jbwhite99]

all I have to say is that we should be getting a reduction in the price of either the product or the shipping/handling charge. If Dell is going to save money, and get us to deal with this silly policy (I haven't seen Gateway, HP, or IBM do it), then they need to pass the savings on to us...

 

[ElFenix]

Originally posted by: jbwhite99
all I have to say is that we should be getting a reduction in the price of either the product or the shipping/handling charge. If Dell is going to save money, and get us to deal with this silly policy (I haven't seen Gateway, HP, or IBM do it), then they need to pass the savings on to us...

way to read the OP!

Dell's free shipping offer on basic models will apply only to people willing to pick up their computers at the post office

 

[AquariusX]

Originally posted by: jbwhite99
all I have to say is that we should be getting a reduction in the price of either the product or the shipping/handling charge. If Dell is going to save money, and get us to deal with this silly policy (I haven't seen Gateway, HP, or IBM do it), then they need to pass the savings on to us...

Uh, reducing the price of the product would defeat the purpose of them needing to offset losses by charging for shipping.... its either higher prices and free s/h or same prices and higher s/h.

 

[cyrax78]

Originally posted by: jbwhite99
all I have to say is that we should be getting a reduction in the price of either the product or the shipping/handling charge. If Dell is going to save money, and get us to deal with this silly policy (I haven't seen Gateway, HP, or IBM do it), then they need to pass the savings on to us...

I don't think you understand the concept of cost cutting..

 

[GregANDTCH]

"at a designated Post Office"
This might be a killer for some people.
Might not be your local PO, but a larger one.