I pointed out a number of disconcerting observations about Dell in the first part of this series. It is difficult for me to disparage a company with which I have had a long and generally positive experience, but Dell seems intent on fundamentally changing elements of its business model which can certainly alienate some of its most devout fans. Take this quote which I read several weeks ago on:Slashdot:

linuxwrangler writes “Infoworld’s “Notes From The Field column this week includes a comment from a reader who found that Dell listed several different prices for the same part. Intrigued, I grabbed the first part number I found (a 512MB memory module #A0193405) and found that the list price is $289.99 which the price offered to “large businesses”. Meanwhile, the GSA/DOD contract price is $266.21 while “home users” find the list-price discounted to $275.49 and “small businesses” fare even better with a $246.49 price. InfoWorld contacted Dell who responded, “Each segment sets its own pricing, and consumers are free to pick the one that’s cheapest.” Buyer beware.” (Posted by timothy on Monday February 07, @04:50PM from the guess-which-way-they’d-go-if-equal dept.)

While every business has a right to develop different pricing structures based on different target audiences, Dell has muddied the water so blatently that even those of us who price multiple systems a week, cannot confidently feel we are getting the best price at the particular moment of purchase. Detailed review of the variously available channels will unearth price variations which can be significant. Dell also now makes extensive use of online couponing and rebates which further muddies the pricing picture.

Note in the example cited above, the government/DOD price for this part was not the lowest (which you naively might believe should be the case given this customer’s undeniable leverage). Small busiiness wins this pricing “war.” Since this would be my classification, I suppose I should feel good that Dell sees fit to discount more heavily to those of us in the capital trenches. My concern is the next part number, the next system I need to purchase for myself or a client, may be on the losing end of the price spectrum.....

If you explore Dell’s affiliate program, with its myriad discounts, rules and regulations, you will find another layer of pricing considerations available to those willing and able to find a valid coupon code and make use of it under the company’s guidelines. Viewers of Dell’s web site will also find systems in various channels which are “almost” identical. You may find a PC which has certain hard drive options; video card alternatives; or “free upgrades;” which make direct comparison between channels difficult or impossible. This is of course by design, but further frustrates an informed buying process. There’s more. Radio and TV specials also allow for special promotion of systems which may be unique to these channels and therefore offer systems which are difficult to compare.

I still believe the Dell offers generally good “value.” This is an at times nebulous and overused term, but the company’s equipment does seem to perform reliable with as much “bang for the buck” as its primary competitors (particularly in the low to mid end PC systems market). I suppose in the final analysis, some buyer’s “value” is better than others......