Dell to begin charging for shipping again

“In a move to improve its bottom line, Dell is changing its shipping options for its low-end desktop and notebook computers, ending a promotion that offered free shipping to customers’ homes,” Red Herring reports. “The policy, which goes into effect October 10, encourages buyers of the company’s least expensive computers to go to the post office to pick up the boxes if they still want the free shipping. It is part of a “hold for pickup” program launched by the U.S. Postal Service Thursday.”

“Dell, like many computer makers, has been cutting back on prices to ship more units and grab market share. But the severely reduced prices are cutting into hardware makers’ profit margins,” Red Herring reports. “Dell PCs lately have been suffering in consumer ratings of reliability and service, according to BusinessWeek. Complaints filed with the Better Business Bureau increased 23 percent in 2004 compared to 2003, and rose another 5 percent in 2005. The company’s customer satisfaction rating also fell 6.3 percent to the industry average of 74 in a survey by the University of Michigan.”

Full article here.

MacDailyNews Take: Get free ground shipping on all in-stock orders totaling $50 or more at the Apple Store.

Related MacDailyNews articles:
Apple continues to lead in customer satisfaction, Dell loses more ground – August 16, 2005
Apple Macintosh leads in personal computer customer satisfaction – August 24, 2004
Apple Macs top PC Magazine’s ’17th Annual Reader Satisfaction Survey’ – August 10, 2004

45 Comments

  1. Dell to customers: “Hey ****nut go pick it up yourself, shithead!”

    LOL Isn’t it kind of pathetic that the free shipping is cutting into their profits that much? We can only hope one day Dell will drive itself out of business.

  2. Now you know why Apple doesn’t play in the low margin arena.

    Dell has realized their fate, the fate that happened to IBM, to Compaq, to Gateway and the rest. They race to the bottom in price, sacrificing quality, playing on the customers desire for cheap cheap cheap and wind up getting a name for themselves as a garbage generator.

    Dell has recently introduced a line of rather expensive PC’s, hoping to grab some of the high end market, but it’s already too late. The word is out, Dells are cheap garbage and everybody knows it.

    Anyone who is anyone with brains and cash buys a Mac, plain and simple, nothing Dell can do about that. Perhaps why Dell was hoping to sell a OSx86 for Apple. (fat chance Michael Dell)

    So now Dell’s star is fading, just like all the other PC makers before them, soon they will be not making a profit like HP, Gateway are and IBM was. (they sold their PC division)

    The time is right for Apple to take over, with Dell in decline and Microsoft barely breathing.

  3. This is why Apple doesn’t play in the low margin area of the computing market. When you race to the bottom on price to increase market share, you lose quality, support and innovation along the way.

  4. If they need to cut down on free shipping what Dell was making out of its cheapo PCs? Few bucks here and there?

    Looks like they cut as much in the past as to be selling at a loss now are selling now at a loss.

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