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1690

Do not scale back build-to-order systems

1690 points posted to Desktops and Laptops by masterr Apr 5 **ALREADY OFFERED**

Today in the news I read that Dell "is moving away from its build-to-order model to reduce costs. Dell is limiting the degree to which buyers can dictate specifications while expanding its line of prepackaged models". Please do not do this. The options build-to-order system is what sets Dell above some of the competition. By scaling this back and removing customization choices you remove some of the appeal of buying a Dell machine online. Please do not scale this back.


Please scroll down to see Dawn's comments below.


lengau
Apr 5		 I agree. My needs don't fit the needs of very many other people, so limiting my customization options means limiting the possibility of my finding a Dell computer that I want.
stormrider451
Apr 6		 sorry but this has been posted already. its a very important issue though..
jervis961
Apr 6		 I think they do need to scale back a bit on the options but they need to be careful in how they do it. Some computers offer 2 processors of the same speed and others so close in speed that the difference is minor. They can cut back these options and possibly lower the cost of moving up a step in performance due to buying a fewer parts in bigger numbers.
okroger104
Apr 7		 Agree with Jervis.
phubert
Apr 7		 Yes, tiny steps between CPUs really seems pointless... BUT customizing was one reason for choosing DELLs to BEGIN with!
jervis961
Apr 7		 I can deal with less choices here and there as long as the removed options are redundant or do not make much of a difference.

BTW I see a demote from a long lost friend. :)
phubert
Apr 7		 So, it depends on what is meant by "scale back"?

If customization goes away, I'd ask "Why buy Dell?"
okroger104
Apr 7		 I don't know where folks are getting their news, but Dell is only going to limit the range of customization. They want to bring 1 million possible combinations down to a few hundred thousand. This is essential to their bottom line and to the retail strategy.

It's so funny to see how manyweb blogs title it: "Dell abandons its customization roots." where as in "real" media it's titled properly, "Dell plans to scale back customization of PCs."
phubert
Apr 7		 Again, I don't have a problem with 'scaling back' as long as the customization that's provided maintains customer interest and EXCITEMENT over Dell offerings.

If Dell becomes DULL, there are other sources... and, clearly, the sources for boxes with Ubuntu preloaded are presently MUCH better than what Dell now has.
jack8022
Apr 8		 The ease of customizing a PC to my preferences is why I've always bought from Dell.
If I wanted an out of the box machine, I could have gone anywhere.
"Scaling Back" on this would be a big mistake because they'd be alienating their current customers quite a bit.
As someone else wrote, "Why buy a Dell?"
jasondunn
Apr 10		 Indeed. The #1 reason I went with a Dell notebook (XPS M1330) was because I could customize it. If Dell stops offering that, I'll being buying HP - which I find have better build quality than Dell anyway.
phubert
Apr 10		 And, there are some pretty good 2nd tier (I've referred to them, variously, as 3rd tier) suppliers as well...

Maybe one will become the new Dell...?
joyscant1980
Apr 10		 My question is really if they are going to scale back on customization, i.e. limit the variety of components available, how are they going to do this? Are they going to, for example, check to see how many people buy the Intel Core 2 Duo t5550 and if they realise that the majority of persons upgrade to another processor and stop making Intel Core 2 Duo t5550 processor available and increase the amount of the other processors that they make available?

Or, are they are going to just stop making certain types of components available with no rhyme or reason.
jervis961
Apr 10		 They have mentioned that some components sell better than others so I would think they are going by research.
expatinasia
Apr 14		 "Are they going to, for example, check to see how many people buy the Intel Core 2 Duo t5550 and if they realise that the majority of persons upgrade to another processor and stop making Intel Core 2 Duo t5550 processor available and increase the amount of the other processors that they make available? "

Duh.

Dell has stuck to the old model of customization for too long. For example, the vast majority of the notebook computer revenue is generated by 200 models/variations. Dell offers more than 100 times this and, to support that level of customizing, has a fixed overhead of several tens of billion of dollars. Removing the fixed overhead and, for example, removing all of the revenue associated with fringe customized products (that's assuming that customers will not buy Dell if they can't get EXACTLY the model festures they want), Dell would loose 20% of its revenue, but the profits would soar. Unfortunately, Dell's current mindset is to do anything to get a buck of revenue, even if it costs 95 cents to get that buck.
wallyhorse
Apr 22		 Actually, Dell is a bit behind HP in some ways on this now.

HP and Lenovo actually have some more options, particularly on the processor (all of HP's consumer laptops have the T9300 and T9500 as options), and it is something Dell should look at doing as well on all Inspirons, perhaps if you did limit options only offering the T8100, T8300 and T9300 as options in that regard. I would look at having that as well, but also perhaps making 4GB of RAM standard on ALL laptops (especially with the recent price reduction on RAM). Keep in mind also, the costs of some processors have just sharply dropped, and that too will likely have an impact on the cost of computers soon.

I would also make the 4-year warranty with Complete Care standard as well (as well as 4-years standard on LoJack on laptops) on ALL Dell computers. It might cost more, but having the extra warranty is very important for myself and anyone else who is smart enough to realize this.
phubert
Apr 23		 When I have no position, I don't vote.
f22fighter2001
Apr 26		 I would have to agree that the simple idea and success behind dell is there ability to "customize" to our needs and wants. Dell is NOT doing this to save money, I know this because they support a buying system called "JUST IN TIME INVENTORY" where there ordering process is stream lined with there suppliers. Dell only purchases hardware and software when it is needed, resulting in a minimized overhead. If anything, this will increase overhead and fixed costs for dell (i.e. new distribution centers and construction plants to deal with volume).

I think this is a good move for Dell. It allows them to reduce costs for a single prefabricated unit and also allows them to tap a market that they may do very well in. This is certinaly a market that will welcome Dell if they can sustain customer service and quality with the new customers coming on board.
dawn_l
May 9		 All-
I read many of these same reports that okroger104 mentions above and they did seem to sound concerning. I have gone on a quest to track down the details on this change and have found the right person to ask. Apparently these reports were a little off and did not clearly reflect our plans.

Going forward Dell will continue to let customers’ build-to-order laptops and desktops as we always have. What we are eliminating is the availability of some configurations that made no sense. For example, we eliminated the option to order an operating system with inadequate memory and so on. Most technically savvy people wouldn’t have considered these choices anyway. Not only will this save money, but also save a disappointing product experience for our customers. That’s the real story. Thanks for sharing your concerns so we could look into this!

Dawn
dawn_l
May 9		 Changed status to **ALREADY OFFERED**.
lengau
Jul 2		 Thanks for clearing that up, Dawn.
Keep up the great work!
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