There’s an anti-Dell bandwagon that seems to be picking up speed, and it goes right to the heart of the computer manufacturer’s business model. The firm has built its success on providing decent quality at rock bottom prices, but a complex buying process, difficulties with support services and question marks over about veracity of those prices are tainting the brand. Chatter in the media, the blogosphere, and at the water cooler, has come to the attention of rivals. Born of the tech boom, is Dell’s approach now out of date?
SwelledHead first looked at this subject in December last year: PC World makes a “strippo” of Dell. We’d noticed a small, in-store campaign by a UK retailer that had done a rare thing in British marketing and drawn a direct comparison with a competitor. Clearly aware of the complaints that consumers have about Dell (read this piece in The New York Times Circuits newsletter), PC World has felt ready to take the next step. Recent TV ads from the firm (see the downloads below) highlight the benefits of being able to buy both online and in-store – something Dell cannot offer.
Download packard_bell_laptop_wk21.mpg, Download toshiba_qosmio_wk27_211005.mpg
PC World’s point of sale material hammers home the other benefits of its approach. First, the price is all inclusive. For consumers baffled by the range of options given when buying online from Dell, this is refreshingly simple. Second, if the machine develops a fault, you can bring it back to the store. That’s not quite the same as Dell’s on-site support service, but that’s a cost option and for most consumers it will seem like less hassle to go and see a real person at the store.
Though competitor comparisons are a regular feature of American marketing, it’s somewhat counter-cultural to UK audience. However, when dealing with commodities, it makes perfect sense. And to the majority of consumers, that’s what the computer has become – a commodity. Dell’s customised approach suits the tech-savvy buyer, but for Mom and Pop/Mum and Dad, it’s too much. Click a few of the options and the advertised price is no longer. It may be that Dell still works out cheaper than its competitors, but as in the analogy we drew with the US motor industry, what’s on offer is the “strippo” base model, so pared down that it’s a bit of a con.
Dell’s online business gives it the advantage of lower overheads and greater automation, but how it presents its products to consumers needs a rethink. PC World and other retailers may be a little more expensive, but they’re easier to understand and interact with. If you’ve experienced any difficulties with Dell, either with buying or accessing support, then those are extras worth paying for.
