What Happened to Dell's Customization?

[Jason Dunn]

<p><img src="http://images.thoughtsmedia.com//dht/auto/1289441699.usr1.png" style="border: 0;" /></p><p>I don't know about you, but I feel like Dell's customization options have become dramatically restricted over the past year or so - it's like they're trying to get out of the custom, built-to-order computer business and into the "Buy Model A or Model B" business. I can't tell you how many times over the past year I've tried to spec out a computer or laptop and found that I'm locked into a "template" where the CPU, screen resolution, and GPU are locked down - allowing customization of the RAM and hard drive, and that's about it.&nbsp;</p><p>Case in point: the above computer is the Dell Inspiron All-in-One desktop computer. My wife's aunt is looking for a new computer, and an all-in-one would have several advantages for her. Dell Canada's email promo talked up the touch-screen aspect, so I assumed that the touch screen was an integral part of the product and included in all versions - it's not. <a href="http://www.dell.com/ca/p/inspiron-one-2305-amd/fs?dgc=EM&amp;cid=61111&amp;lid=1539013" target="_blank">When you go to the product page</a>, there are three configurations you can chose from: <MORE /></p><ul><li>The $599 model with an AMD X2 CPU at 1.6 Ghz, 3 GB of RAM, a 320 GB hard drive, and no touch screen</li><li>The $749 model with an AMD X2 CPU at 1.6 Ghz, 4 GB of RAM, a 500 GB hard drive, and the touch screen</li><li>The $849 model with an AMD X4 CPU at 2.3 Ghz, 4 GB of RAM, a 750 GB hard drive, and no touch screen</li></ul><p>Bizarrely, you can't add a touch screen to the $849 model. Nor can you upgrade the CPU on the $749 model. So you have to choose between having a touch screen and having a powerful CPU. I can't think of any possible reason why the X4 CPU wouldn't be compatible inside the chassis of a computer with a touch panel. You can't add a bigger hard drive, or more RAM, to the $599 model.</p><p>Why would Dell force customers to chose between a touch screen - which is key to the product - and a quad-core CPU? I'd never suggest anyone buy a dual-core 1.6 Ghz CPU for a desktop computer - that's just not very much grunt.</p><p>Why is Dell restricting customers from building the computer they want? That's Dell's key advantage against HP in Canada - HP only sells locked-in product models here in Canada, much to my continued dismay - but I find Dell more and more inflexible when it comes to offering me choice as a customer. What's going on with you Dell?</p>

[Bob Christensen]

Well, it just so happens I can answer your question with some authority (from the horse's mouth, so to speak). I just read this today:

http://forums.rampantspeculation.com/showthread.php?t=7000

Dell thinks the people want LESS options, so they have complied by reducing their options by 90%!

I'm with you... big mistake.

[Jason Dunn]

Well, it just so happens I can answer your question with some authority (from the horse's mouth, so to speak). I just read this today:Latest progress (email) report on Dell CAP days - Rampant Speculation Forums (http://forums.rampantspeculation.com/showthread.php?t=7000)
Dell thinks the people want LESS options, so they have complied by reducing their options by 90%!

Whoa. :eek: Thanks for sharing.

That certainly explains what I'm seeing - and I can understand some of that, but there should ALWAYS be an option for someone who wants to configure everything themselves. Locking the customer into a restricted configuration with virtually no options is ridiculous - especially since, in basically every case, it involves the customer spending more money. I want a FASTER CPU, MORE RAM, etc. That means more profit for Dell.

In the example I raise above, I want the X4 CPU + the touch screen - so it would likely be a $949 configuration. Why doesn't Dell want the extra $100?

[Lee Yuan Sheng]

That's easy, it's likely to cost them more than $100 to put them together. I'm guessing they're streamlining operations and all.

[Jason Dunn]

That's easy, it's likely to cost them more than $100 to put them together. I'm guessing they're streamlining operations and all.

Could be. But from a product perspective, why would you make touch a central part of a product's marketing push, and in the top-end configuration OMIT the key feature? That's baffling to me. I wouldn't mind not having the customization options if the top-end configuration included everything the model below it had.

[Bob Christensen]

That's easy, it's likely to cost them more than $100 to put them together. I'm guessing they're streamlining operations and all.

Certainly could be. But if so, Dell is being very duplicitous since they've officially said the cutback in configurations is due to what we "customers" want.

But Dell... duplicitous? Tell me it ain't so!

[marvi1]

It also appears that you can't get the touch screen model. At the moment, there is only the $849 model showing up.

[Jason Dunn]

It also appears that you can't get the touch screen model. At the moment, there is only the $849 model showing up.

Is that in the US? At Dell Canada there's a touch screen model $749 - there's actually four models now, but still only one with a touch screen. Weird. :confused:

[Sven Johannsen]

In the example I raise above, I want the X4 CPU + the touch screen - so it would likely be a $949 configuration. Why doesn't Dell want the extra $100?May not actually get them $100 more. If you offer 3 different cpus, you need to purchase and stock 3 CPUs at lower volumes and potentially higher unit price. Do that enough and you could wind up diluting your buying power with options. I prefer the options myself, but the market demands you produce stuff as inexpensively as possible. I don't really believe Dell ran a poll and people said. we want less choice. I think they looked at their sales and found the majority gravitated to particular configurations, (default, or cheapest), and decided to concentrate on their best sellers to lower material costs and either increase profit or lower price. A good marketing guy can spin that as the public was confused by all the options, and actually believe it.

[Jason Dunn]

I think they looked at their sales and found the majority gravitated to particular configurations, (default, or cheapest), and decided to concentrate on their best sellers to lower material costs and either increase profit or lower price. A good marketing guy can spin that as the public was confused by all the options, and actually believe it.

Quite possibly - but it's an accepted axiom that you want to offer customers a "Good, Better, Best" scenario. Each option gets more expensive, offers more, and builds on what the previous model has. In this case, Dell is offering the touch screen only on the slower CPU unit - forcing a choice between a much faster CPU or a touch-screen. It breaks all the rules of how you should market your products - Dell should *always* provide a top-end config that has everything included. That's my complaint.

[Lee Yuan Sheng]

This reminds me of Microsoft's previous generation Windows and Office offerings; it was either buy the silly expensive Ultimate packs, or having to make some really hard choices...

[Jason Dunn]

Well now, isn't this entertaining: Dell has expanded the product line for a third time since I posted this:

http://www.dell.com/ca/p/inspiron-one-2305-amd/fs?dgc=EM&cid=61111&lid=1539013

Now they have a $999 and $1199 config with touch screens! So, basically, they launched the product, promoted it, and THEN expanded the offering. :confused:

[Vincent Ferrari]

May not actually get them $100 more. If you offer 3 different cpus, you need to purchase and stock 3 CPUs at lower volumes and potentially higher unit price. Do that enough and you could wind up diluting your buying power with options.

If you were talking about any other company, I'd buy that, but I know for a fact that Dell is completely JIT as far as inventory goes (Just In Time) meaning they don't stock anything that isn't in a standard config for any reason. If you order anything that isn't pre-configured, they order the part from the manufacturer (CPU / RAM / HD) through a logistics provider and then custom build. The only things they have stock of are things they make, and even then they run on bare minimums (think cases, and keyboards and mice).

Honestly, this is just Dell trying to take Apple's philosophy and apply it. Fewer options, more "standard" configurations. Unfortunately, unlike Apple customers, people have come to expect lots of build-to-order options over more standard configurations. It's what made them successful in the first place. The machine I want, the stuff I want, at a good price. The prices are still good, but it isn't as easy to get exactly what you want anymore and often hardware tweaks involve compromises.

[Jason Dunn]

Honestly, this is just Dell trying to take Apple's philosophy and apply it. Fewer options, more "standard" configurations. Unfortunately, unlike Apple customers, people have come to expect lots of build-to-order options over more standard configurations. It's what made them successful in the first place. The machine I want, the stuff I want, at a good price. The prices are still good, but it isn't as easy to get exactly what you want anymore and often hardware tweaks involve compromises.

Yeah, that's really the kicker - by offering fewer options, and frankly the WRONG options for certain segments of buyers (like me!), Dell is going in the wrong direction. Default configurations are fine to make it easy for people to buy, but it should always be easy to bump up the specs to whatever I want.

[nyankee2003]

Not only, that, now you can't even customize the hard drive or RAM on XPS models!! But thank god you're FORCED to get DataSafe and McAfee. And I'm so glad I have to go through like 5 or 6 other software pages, 2 types of Dell support (3 for laptops). No to mention optional additional monitors, for which you can't even choose ANY 2 of the same models on the off chance you wanted them to match.

Years ago, there used to be a decent argument to be had, Dell vs complete custom from scratch. Today, it's not even a competition.

There's been discussion that Dell might exit the consumer market, but it won't be because consumers forced them to... it'll be because they forced themselves out.