NOT HOT: Dell ends free shipping starting Oct 10

[gedman]

Dell to stop free home delivery of computers

Summary: No more free shipping from Dell Home. Dell will ship for free if you pick-up the package(s) at the Post Office. If you want it shipped to your home/office, you have to pay for shipping. It is not clear if the new policy applies to Dell SB.

GedMan

Dell Inc. (Nasdaq: DELL - news) will stop its practice of sending low-end computers to customers homes without charge in order to cut costs, the company said on Thursday.

Starting on October 10, Dell's free shipping offer on basic models will apply only to people willing to pick up their computers at the post office, said Jennifer Davis, spokeswoman for Dell's U.S. consumer business. Customers will have to pay extra for home delivery.

Dell's direct sales model helped it become one of the lowest-cost computer makers as it bypassed retailers. But aggressive price-cutting caused the Round Rock, Texas-based company to miss analysts' revenue-growth forecasts last quarter.

Now, Dell wants to trim costs and boost revenue. On Wednesday, Chairman Michael Dell unveiled a line of high-powered luxury desktop computers and notebooks starting at $1,099 compared with $299 for the lowest-priced models on the company's Web site.

"We are always looking for ways to pass savings on to our customers," Davis said on Thursday. "We look at ways to keep costs low and be able to deliver systems within the value and pricing that people want."

The new shipping option is convenient for customers who aren't at home when deliveries are scheduled, Davis added. Now they can pick up their computers at the post office after work or on Saturdays, depending on hours of operation, she said.

Davis said the fee for home delivery had not been determined. Post-office pickup will eventually be made available on all Dell consumer computer models, including the new luxury line called XPS, Davis said.

Dell's Web site offers free home delivery on some models of desktop and notebook computers. Shipping costs amount to $99 or more for three to five-day ground delivery, according to Dell's Web site, but Davis said free shipping is "very common" because of its popularity among customers.

Dell is among shippers taking part in the Postal Service's "hold for pickup" program, launched on Thursday, which is aimed at consumers who want to save money by picking up packages held for them at the post office.

Customers have 10 days to pick up parcels before they're returned to shippers, the Postal Service said in a statement on its Web site.

 

[Vegito]

So far only for home. its cutting cost big time..

If they're not deliverying my servers to my business, Ill order from elsewhere.. then again.. you rarely get small business free delivery..

 

[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.

 

[akubi]

oh noes!

 

[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 🙂

 

[TwiceOver]

No big deal for me. I'd rather pick up my stuff anyway. Could be a problem for those that aren't very close to a PO though.

 

[Sparke]

I'm glad my post office is right down the street from me. This stinks for people who have to drive a long way!

 

[dbleoslow]

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.

What?!?! I disagree. Anytime I have a >50lb package, I'd rather have them carry it to my door. I'm a lazy bastard 🙂

Edit: And not to mention if it's something really big, stuffing it in the car could be an issue.

 

[mugs]

Eh, if they can save money that way I have no problem driving to my local post office and picking it up.

 

[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.

 

[darkswordsman17]

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.

I don't think this is going to save the customer much if any money, I think this is just going to save Dell money. They have to find a way to cut corners to make up for all the lost revenue.

 

[spanky]

its actually better for me, since i am never home when the UPS guy shows up. too bad i dont get a discount on top 😛

 

[ElFenix]

$99 is such a rip for shipping a computer. especially when people buy an LCD or no monitor at all.

 

[jpeyton]

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.

 

[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.

 

[Nutdotnet]

Originally posted by: ElFenix
$99 is such a rip for shipping a computer. especially when people buy an LCD or no monitor at all.

Yup, I just paid $160 on a LCD and a Computer. I live in Alaska so the only option is Next Day Air...

However, the grand total was $1090 for a fairly loaded 9100 and 24" LCD. 😉

 

[pxc]

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.

QFT. It's much more convenient for me to pick up a computer at the post office. 😀

edit: even if Dell switches to "free" shipping, there's still the new $29 handling charge. :thumbsdown: Dell shipped a computer to me before and included the actual price on the label: it was $15.46 for a 35 pound computer by FedEx ground from TN to CA. The $29 handling charge covers shipping to the buyer plus packaging materials easily.

 

[chrisf776]

I'm not sure what any of your post offices are like, but picking up a package from mine means a tedious hour wait while some idiot USPS employee goes to the back to look for one package at a time.

 

[Sixthday]

noooooo

u got the 9100 deal...damn

Originally posted by: Nutdotnet

Originally posted by: ElF
enix
$99 is such a rip for shipping a computer. especially when people buy an LCD or no monitor at all.

Yup, I just paid $160 on a LCD and a Computer. I live in Alaska so the only option is Next Day Air...

However, the grand total was $1090 for a fairly loaded 9100 and 24" LCD. 😉

 

[cruzer]

I'm guessing this will be similar to the Post Office's deal with Airborne Express.... Airborne Express sorts and transports the packages and drops them off in bulk at the local PO for delivery, and in this case they will just hold it for you to pickup. I think UPS would be happy to finally have access to deliver stuff to a post office.... how many times have we seen the disclaimer "cannot be delivered to a PO box address" cause the merchant uses UPS?

 

[darkswordsman17]

Originally posted by: cruzer
I'm guessing this will be similar to the Post Office's deal with Airborne Express.... Airborne Express sorts and transports the packages and drops them off in bulk at the local PO for delivery, and in this case they will just hold it for you to pickup. I think UPS would be happy to finally have access to deliver stuff to a post office.... how many times have we seen the disclaimer "cannot be delivered to a PO box address" cause the merchant uses UPS?

Didn't DHL buy Airborn Express? Dell has stopped using UPS when shipping to me, they only use DHL now, so maybe thats why this is coming about.

 

[cruzer]

Originally posted by: darkswordsman17

Didn't DHL buy Airborn Express? Dell has stopped using UPS when shipping to me, they only use DHL now, so maybe thats why this is coming about.

Yes I think we solved it, lol. On the downside, DHL/AE's tracking sucks worse than UPS, IMO.

 

[V00DOO]

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

 

[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."'

 

[cutty]

I don't think size is a problem since it's all LCD now.
It will be a problem if you buy a 21" CRT and try to put in a car, but for a 21" LCD, it should be easy.

Originally posted by: dbleoslow

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.

What?!?! I disagree. Anytime I have a >50lb package, I'd rather have them carry it to my door. I'm a lazy bastard 🙂

Edit: And not to mention if it's something really big, stuffing it in the car could be an issue.