Dell hooks up PC customers with online support

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Dream on

Dell hates computer dealers. They ran an ad campaign a long time ago making fun of computer
dealers.

They even ran a half-hearted attempt to sell PCs
through dealers. At first, dealers couldn't even
claim the PCs were Dell. At any rate, the PCs
cost the dealer more than what an end user could
buy them for from the Dell site. Get the picture?

Such channel conflict reflects the love/hate
relationship that most manufacturers have with
indirect channels.

A good example is the auto industry. If car dealers hadn't lobbied state legislatures to set up strong pro-dealer laws around the country, GM would have closed 1 or 2 divisions already, or chosen to sell its products directly.

Dell's goal is to make PCs as cheap as toasters
and automatically tied to them via high speed
Internet connection. If the hardware fails, the
end user just goes out and buys another toaster,
er, PC. The net connection is to activate the
MS software Dell is a distributor for, and also
to back up user data, snoop on user activity,
keep constantly updated images of the user's hard disk, etc.

Under such a scenario, which we would have reached
if it weren't for MS keeping the price of their
software high, there wouldn't be much need for
dealers at the desktop level.

Posted by: rosanlo   Posted on: 06/04/06 You are currently: a Guest | Members login | Terms of Use

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