On Tue, 4 Jul 2006 10:08:43 -0700, you wrote:
Isn't that basically what I said?
If it ain't broke don't fix it!
>
>I think you are missing the whole economies of scale theory of mass
>production. Using your analogy, the washer that the local hardware store
>sells for 5 cents, Home Depot can sell for 2 cents because they get a lower
>cost by buying from the manufacturer in bulk. In the same way, Dell should
>be able to buy fans at a lower per item cost than an OEM small time builder.
>
>
>Chuck may not be able to provide full time telephone support because he
>would spend too much time waiting for the phone to ring, making his costs
>very high per support call. On the other hand, Dell can have a centralized
>tech support center that employs hundreds of people answering calls from all
>over the world almost continually. This reduces their per call cost. And,
>Dell can locate that call center in India and further reduce its costs.
>
>Dell sells direct, eliminating the "middle men," further reducing the number
>of steps where addition profit/costs can creep in. Dell can mechanize its
>production line and use custom built components to further reduce production
>costs. Dell is designed to mass produce identical units at the lowest
>possible cost with ACCEPTABLE quality.
>
>I think any small builder will agree that they cannot compete on price with
>the likes of Dell, HP, Compaq, Gateway, eMachine or other mass produced
>computers. When I look at the advertised prices in the Sunday ads, I know
>that I cannot compete on a line item quote basis with the general specs to
>build my own systems. But I realize that I can purchase higher quality
>components that can be replaced or upgraded "off the shelf."
>
>Sometimes I think some of the people on this list forget that Dell is a
>business and as such, it major goal is to make money. As long as they can
>fill a need, they will be successful and will have satisfied customers. Not
>all people will be satisfied with Dell, but that does not mean Dell is the
>devil. I don't agree with some of their policies, but then, I have never
>purchased a Dell.
>
>I am sure that Dell has done testing to determine the needs of the average
>user as far as case ventilation, and implemented the lowest threshold
>necessary. That means the majority of users will get satisfactory results,
>but some will feel the need for additional fans. They provide the means to
>add the additional fans. The end user can easily add a fan for a couple of
>bucks. If Dell added the fan to every unit, it would increase the cost to
>the users that did not need the additional fan. So Dell goes for the
>price/performance point that will maximize their profits.
>
>Just my thoughts for this 4th of July.
>
>Jim Maki
>[EMAIL PROTECTED]
Sir Hugh of Bognor
--
Remember. You may honestly believe that you understood everything
you thought I said but what you thought you heard wasn't
exactly what I said.
[EMAIL PROTECTED]
[EMAIL PROTECTED]
[EMAIL PROTECTED]
E38
Bognor Regis, W.Sussex, England, UK
--
----------------------------------------
The WIN-HOME mailing list is powered by L-Soft's renowned
LISTSERV(R) list management software. For more information, go to:
http://www.lsoft.com/LISTSERV-powered.html
