Dell Following Apple's Retail Example?

[ToddW]

The reason why Apple's model works so well (as mentioned elswehere) is you can go in, test it out and take it home if you like it. They do offer BTO orders but the majority of the configurations are stock. Dell on the other hand specialises in BTO orders, just take a look at their configuration page on the site, they have waaay more options than Apple ever will. There's a reason why you can't just buy these in stores and that's because it doesn't fit in with their business model. What purpose does a store have if you can't buy anything in it, is everything going to be special order? I wonder how much of Apple's retail business comes from people going in there and coming out with something, I'm guessing its a pretty good percentage.

Its a good thing to try something out before you buy but its something else entirely when you can bring it home with you. I mean, how many retail stores operate on that kind of business?

My thoughts exactly this is why Gateway's retail business plan failed. This is what I like about Apple stores, I have the choice to either buy it and take it home or order it. Dell should follow the business plan more and offer some stock items and offer some upgrades that can be done in the store.

 

[joeboy_45101]

This is a ridiculous concept for a store; it's just one giant display case.

Where I live you can't throw a rock without hitting like 20 honky-tonk hicks, yet what's even stranger is how much these damn people LOVE Dell machines. They get so defensive when you bad mouth a Dell PC; really strange stuff.

So, I wouldn't be surprised if Dell makes this concept successful; just as long as they play to the hickbilly crowd.

 

[Timepass]

well I see it as the next logical step for dell. There Kosios they have in malls more than likely where working really great in the numbers of computers they where selling for dell. Opening up 2 stores is a good way to test the waters to see if opening up more would be worth it. Gateway failed in how they didnt. It doesnt mean that dell with fail as well.

Could working really well. As for choosing Dallas, I think it is a good choice since they are based out of Austin so they are going to want to stay in the state for the first store. The laws are a lot simplure to deal with no foreign Corpration laws only texas corprate laws on it. Then it comes down to choosing a major city. Best 2 are houston and Dallas. Dallas is a much better location and not as far separted as houston is. Houston is just out of the way from everyone else.

Sum it the 2 real choice for Dell to open up a store was either Houston or Dallas. Dallas is better of the 2. Plus the DFW area has more poeple than houston area

 

[macEfan]

PCPro reports that Dell has announced plans to open two retail stores later this year. Dell has been successful as a direct (mail order) only operation which is claimed to be the most cost-effective.



Dell currently does operate 161 kiosks in shopping centers nationwide, but this retail initiative would open two 3000 square foot stores - one in Dallas, TX and another in New York. Customers will not be able to purchase Dell computers at the store, however. Instead, the stores will simply offer demos and sales staff to answer questions.

Dell's expansion, of course, will draw comparisons with Apple's retail expansion which has received a lot of media attention. Apple's 5th Avenue Store opened just last week to a long line of waiting customers.

can't be a good idea for dell. Remember Gateway? They tried that and almost went bankrupt...

 

[dontmatter]

Hmm, this strategy will depend on Dell's ability to convince people to buy higher margin machines from them. If they can make a machine that's got more shelf appeal than statistics/bargin appeal, they're golden. If not...

For Apple, where their computers were generally sold through third party retailers, opening up stores was a move towards profitability, because they got the margin on the computer and on the retail, and the bonus of making the brand better. But for Dell, it's clearly a move towards more expenses. But if they've got high margin computers, those expenses will not matter so much, and the increase to the appeal of a dell will.

Well, time to wait and see.

 

[Demoman]

I did not read every post to know whether I am duplicating something already written. If so, please forgive me.

Dell's decision to not make direct purchasing available in retail outlets makes perfect sense for them. They absolutely do NOT want retail customers coming in and accosting their staff over failed systems. No way. I have a short story.

Before I became enlightened, I purchased one of the very first P4's (1.4 G) from Dell. Within a few weeks the system would not boot. I spent a couple hours with their 'home user' staff troubleshooting, which entailed removing most of the removable components from the motherboard. Bad motherboard. A friend had the same experience. Now, we are IT pros and can do this. Another friend was not so lucky. He is technically challenged. Dell refused to send their promised 'on sight' repair person until he could go through the necessary troubleshooting steps. It turns out they had a bad batch of motherboards. But, the last one was sent out a couple months after ours. So, it appears they were shipping crap and fixing the failures. There is no way someone's mother could have solved this.

So, I have done some research for our employees who want to buy Dells. I will call the 'home user' tech support and try to get help. Then I will call the business tech support for the same help. Folks, it is not pretty. Dell spends its' resources on helping their business customers and the home user gets the second string. Home users buy a computer maybe one every 3-5 years. For many, you can sell them crap, and five years later convince them that you are new improved Dell. As a side note: All of our employees who have Dell issues, I send them to our business tech support.

So, I do not think Dell can afford to let their retail customer get anywhere close to Dell human beings.

 

[Flynnstone]

So now repeat after me:

"Mr. Jobs, what would ya do to fix Dell's failed retail attempt?"

"What would I do? I'd shut it down and give the money back to the shareholders."

Too funny !

and true

 

[kcmac]

Maybe it just me, but I see an oportunity here for Dell. Copying Apple or not aside, there's the other side of the Apple Store Dell could emulate. The Genius Bar.
Think of it. If people could take their PC to get serviced or get their questions answered a la Apple style, that would have a huge impact on the way people think about Dell and PCs in general.
But then again, who knows if they'd actually do something like that. Just a thought.

Ha! Just think about this for a moment.

Dell opens the Genius Bar. So many people come in to get their computers fixed that it makes all the would be buyers very nervous.

Or better yet. They have a hotline phone behind the genius bar. This is for software issues where your friendly off shores employee is ready to take your call. They will then need to expand these phones to little booths placed all over the store.

Nope. I don't think they will utilize the Genius Bar idea anytime soon....

 

[Flynnstone]

I did not read every post to know whether I am duplicating something already written. If so, please forgive me.

Dell's decision to not make direct purchasing available in retail outlets makes perfect sense for them. They absolutely do NOT want retail customers coming in and accosting their staff over failed systems. No way. I have a short story.

snip

But just think .. the stores will be crowded with people !

 

[supremedesigner]

Not selling computers in-store is the first mistake right there...

Secondly, they don't have a top-selling iconic product like the iPod to lure customers in. The world knows Apple for their iPod and stylish computers.

And thirdly, what kind of experience is going to keep the customers coming back for more? Apple Stores offer everything: demos, customer service, workshops, in-store purchases

I look forward to going to Apple stores for the immaculate design they represent. Will Dell off that? Most likely not.

I know I sound biased, but it's true.

You are right! You know what? I'm gonna bring my new macbook box in dell store and will be like "oh sorry, I already got a mac right and I have no money for this bulky thing, sorry". That would be evil and sweet revenge!

Or I can walk in around dell store with macbook and maybe bring along with my friends too with their boxes and that will probably lure them out of the store!

whatever.

 

[rxse7en]

"Instead, the stores will simply offer demos and sales staff to answer questions."

I like to go to restaurants and not eat.

Apple should put a store next to each Dell store . That way, when people walk out of Dell because they can't actually "buy" a computer at…the…store, they can buy an Apple next door.

B

 

[miniConvert]

This all sounds like a massive waste of time and money to me. The stores could at least sell the products. It sounds like Dell is becoming confused as to what exactly it is. The more it tries to be all things to all people, the higher the chances that it will take an almighty tumble.

 

[theBB]

I don't think Dell is trying to compete with Apple here. Everybody who is trying to buy a PC knows how Windows works; nobody needs to play with a demo PC to see how Windows feels like. Apple needs the shops to show its OS to the people who has not used a Mac in a long time. If not for the stores and the clerks who could answer some of my questions, I would never switch. (Mac corners in CompUSA stores lack the knowledgable employees around here.)

Dell stores would be competing with HP/Compaq, Toshiba, Sony and whoever else sells PCs through BestBuy or CircuitCity. Now, you can actually see how you like Dell's laptop as well as the others, feel the touchpad, judge the quality of the screen with your own eyes, check whether it comes with IEEE1394 (Firewire) ports or see how many USB ports it has. (The last two are questions that I have a hard time answered through Dell's website.) It could work, as long as they don't spend too much money on the stores.

The reasons, this may not work: First, 3000 squarefoot stores. That must be a much larger area than BestBuy's PC floorspace. A lot more rent per PC, not good... Besides, Dell's are so widespread, you could probably find a friend who owns one for a test drive, so stores might be unnecessary. Of course, there is the missing "instant gratification" angle as well.

 

[TheMasin9]

dude youre goin to hell

what is the point of having a store you cant buy anything at...

 

[081440]

"What!! I have to order that computer!!" - dissapointed potencial costumer

I don't see why they can't stock at least some models for resale.

I mean for gosh sakes the people buying the 300 dollar Dells often don't know much about computers or are buying it for word processing and internet only, so these people are not going to BTO any machine, they don't care about or know about the differences between components. And they'd still have to wait for a run off mill machine.

Plus Dell could at least sell their TV's and LCD, I can't see them becoming BTO anytime soon.

This strategy makes no sense for Dell to succeed, unless these stores rival Apple in creativity and allure. Along with the tech support becoming something worth mentioning.

 

[Dr.Gargoyle]

I believe that the success of Apple retails stores are mainly due to design. Jobs realized long ago that people are visual. Consequently, he had all the brilliantly designed gadgets displayed in a beautiful setting - Apple stores.

The only feasible way for Dell to make just as sustainable visual impact, would be if Dell displayed their ugly dustbins at the local dump.

I just dont see the financial benefits from this scheme. I really think it is in Dells best interest to keep their abominations out of peoples sight as much as possible.

 

[yg17]

Looking at the map for Northpark, the dell store will be just upstairs and almost overlooking the Apple store. Those not familiar with the way northpark looks... if you walk out of the Apple store, lookup and right you will see the dell store through the glassrailings.
strange.

At one of the Apple Stores in St. Louis (West County Mall location), there's a Dell kiosk directly outside of the Apple Store. Once, I was walking past both with my brother, and a couple people were looking at the Dell kiosk, and told him loudly while pointing at the Apple Store "BETTER COMPUTERS ARE THERE!!!" The last time I was at the Apple Store, the Apple Store was packed with people, and the only people at the Dell kiosk were Dell employees, probably wishing their products were cool enough to draw hundreds of people into a store.


At the time, I was considering buying a Dell 2005FPW widescreen display. I kinda wanted to go to the guy working at the Dell kiosk and say "Can I take that monitor in there to make sure it works on my computer?"


But what I was thinking's already been stated. At the Apple Store, you can try, and buy. That's whats great about it. No waiting. The Dell store is nothing more than a place to order something to be shipped to you in a couple weeks. You don't go to a car dealer and test drive a car, only to wait a few weeks for the car to be delivered. You usually try and buy if you like it. I know there are special cases where you might have to special order a car, just like a BTO computer, but typically, you're taking one home the same day.

 

[BornAgainMac]

Dummy Bar

Instead of a Genius Bar, Dell will have a Dummy Bar. It would be named after the customers.

"We think our customers feel that they are stupid when it comes to our products and technology. So if they have a question about anything, we have a techie guy at the bar to help them."

 

[andiwm2003]

i hope dell isn't so stupid to sell nothing in their stores. at least the high price standard items like monitors, tv's should be available at the stores. i don't need to see a computer before i buy it (aside of apple machines, but thats entirely different ). but a TV or a large monitor is something i want to see and take home immediately.

in general i rated this positiv. if they do it right it just means more choices for me. and it means more jobs.

.............................. You don't go to a car dealer and test drive a car, only to wait a few weeks for the car to be delivered. You usually try and buy if you like it. I know there are special cases where you might have to special order a car, just like a BTO computer, but typically, you're taking one home the same day.

aehm, at least in germany 90% of all new cars sold you have to order and wait.

 

[yg17]

Dell stores would be competing with HP/Compaq, Toshiba, Sony and whoever else sells PCs through BestBuy or CircuitCity. Now, you can actually see how you like Dell's laptop as well as the others, feel the touchpad, judge the quality of the screen with your own eyes, check whether it comes with IEEE1394 (Firewire) ports or see how many USB ports it has. (The last two are questions that I have a hard time answered through Dell's website.) It could work, as long as they don't spend too much money on the stores.

But the thing is, you can already do that at Circuit City or CompUSSR and walk out with a computer. That's the important thing. The Dell store might be good for first time computer buyers who think they'll get a better Windows demonstration at a Dell Store than an electronics chain, but frankly, in 2006, how many first time computer buyers do we have left?

For people who already have computers but are dead-set on getting a Dell, they can get those questions answered elsewhere. Forums, customer reviews, professional reviews, friends and family who have Dells, ect. Then they can order the computer, all from the comfort of their own home. I could see the Dell store being a success if you can actually buy computers there, but not being able to buy computers was the downfall of the Gateway stores, and will be the downfall of the Dell store.

aehm, at least in germany 90% of all new cars sold you have to order and wait.

Sucks for them

 

[CompUser]

Customers will not be able to purchase Dell computers at the store, however. Instead, the stores will simply offer demos and sales staff to answer questions.

Well that sounds like fun. I wonder how many millions of people will go there and expect to buy a computer only to find it has to be mailed to them. What would be really good for them is if they had a build a bear workshop type thing, pick out the specs of your computer. Wait 20 min and have them give you the computer


I suppose its better than asking for help that can't even speak english.

 

[GPTurismo]

I remember in 98-2000 there was this computer company that was #1 due to it's direct ordering model, and insisted on opening stores nationwide where customers could not buy hardware direct, but instead customers had to place orders to have machines shipped to them...

And look at gateway now.

 

[cxny]

Ha ha ha

Yet another ghastly "showcase" concept, yawn! Samsung has a giant showcase in the Time Warner building in NYC, absolutely unsexy! I hate going there, nothing for sale, information very hard to come by.

Apple's retail concept is and always has been visionary, their stores are breathtaking with hundreds of people busily trying out the cool products (but most actively using those products not just demo-ing). No pressure to buy but plenty of everything if you want to.

Giant lines forming at every new OS update or major product release, plenty of information to glean, (they have nothing to hide!)

And BTW one of those few positive ratings was mine (an almost 10% boost), I'm pretty used to clicking that here! I meant negative!

 

[LittleJoe]

so they are basically just building giant kiosks?

 

[pjkelnhofer]

I find the whole tone of this discussion hilarious. As if previous to the Apple store no one sold computers outside of mail order! Maybe Apple invented the whole concept of a store and currency. I remember when I got my first computer. I had to trade 27 goats for it!

Now that we have the MacBooks things sure are going to be slow around here for a while...