__/ [lqualig@uku.co.uk] on Sunday 09 October 2005 16:10 \__
Roy Schestowitz wrote:>> Apologies if this was mentioned in COLA already.>>
Dell are allegedly charging more for their open PC than they charge for a>> machine with a commercial O/S installed.>>
To me, this raises many concerns. Is it possible that Microsoft are>> funding hardware to preserve the integrity of their shackles? Are they>> relying on expensive Office licences and user dependency through>> familiarity? If so, is this not unethical? Must anti-trust be woken up>> again?>>
Are Dell just too blind to see an irrational pricing scheme? I once went>> to a restaurant where half a litre cost less than half than an entire>> litre. Is it merely a fluke or a master plan?>>
I suspect the reason for the lower price is that the windows machines> are sold in mass quantity and the "Open PC" models are somewhat> non-standard at the moment. Both manufacturing and support are> different than usual for Dell so this might explain the price> difference.
I don't buy your argument; sorry about that...
Toss hard-drive down the bin, bundle empty Maxtor hard-drive to package. Now, was that _so_ hard? If the will is there, practical changes will follow.
I guess that the folks at uk.comp.os.linux were right when they raised skepticism with regards to this move by Microsoft's so-called Hardware Department. They anticipated no change in terms of price.
Is it possible that Michael Dell's donations to RedHat were merely serving the interest of promoting his Web servers? I continue to wonder. I also wonder how much HP's Ubuntu desktops and laptops will cost. Their marketshare is similar to that of Dell. Their ties with Ballmer et al. appear less tight.
I don't know how reliable it is, but the Scandinavians are not inclined to serve the Redmond agenda.
Roy
-- Roy S. Schestowitz | "Did anyone see my lost carrier?" http://Schestowitz.com | SuSE Linux | PGP-Key: 74572E8E 6:10pm up 45 days 6:24, 3 users, load average: 0.53, 0.36, 0.49
Erik Funkenbusch 10 October 2005 00:55:34 [ permanent link ]
On Sun, 09 Oct 2005 18:23:16 +0100, Roy Schestowitz wrote:
I suspect the reason for the lower price is that the windows machines>> are sold in mass quantity and the "Open PC" models are somewhat>> non-standard at the moment. Both manufacturing and support are>> different than usual for Dell so this might explain the price>> difference.>
I don't buy your argument; sorry about that...>
Toss hard-drive down the bin, bundle empty Maxtor hard-drive to package.> Now, was that _so_ hard? If the will is there, practical changes will> follow.
You really don't undestand the manufacturing business, do you?
There are a set amount of costs in any large manufacturing process just to start the process. Those costs have to be built into the expected number of machines sold. If it costs $100,000 to setup, and you expect to sell 1,000,000 of that product line, that that's a cost of 10 cents added to each PC. If, however, you expect to sell 1,000 then that's a cost of $10 added to each PC.
I dont' know what Dell's costs are, but you have to figure R&D (the machines are uniquely designed, they're not just rebadged machines from other lines), Training (in the shop floor, sales, and support), Marketing (while they don't seem to be doing a lot of marketing for the n series, they have to have web pages designed, brochures printed, etc..).
All those costs are amortized over the number of machines you sell, and low volume product lines have higher fixed costs than high volume ones.
Website Has Email 10 October 2005 01:59:39 [ permanent link ]
Erik Funkenbusch wrote:
On Sun, 09 Oct 2005 18:23:16 +0100, Roy Schestowitz wrote:>
I suspect the reason for the lower price is that the windows machines>>> are sold in mass quantity and the "Open PC" models are somewhat>>> non-standard at the moment. Both manufacturing and support are>>> different than usual for Dell so this might explain the price>>> difference.>>
I don't buy your argument; sorry about that...>>
Toss hard-drive down the bin, bundle empty Maxtor hard-drive to package.>> Now, was that _so_ hard? If the will is there, practical changes will>> follow.>
You really don't undestand the manufacturing business, do you?>
There are a set amount of costs in any large manufacturing process just to> start the process. Those costs have to be built into the expected number> of machines sold. If it costs $100,000 to setup, and you expect to sell> 1,000,000 of that product line, that that's a cost of 10 cents added to> each PC. If, however, you expect to sell 1,000 then that's a cost of $10> added to each PC.>
I dont' know what Dell's costs are, but you have to figure R&D (the> machines are uniquely designed, they're not just rebadged machines from> other lines), Training (in the shop floor, sales, and support), Marketing> (while they don't seem to be doing a lot of marketing for the n series,> they have to have web pages designed, brochures printed, etc..).>
All those costs are amortized over the number of machines you sell, and> low volume product lines have higher fixed costs than high volume ones.
BWAHAHAHAHAHAHAHAHAHAH!!!! In your wildest dreams sunshine!
Products are manufactured in bulk as if there is no tomorrow in places like China. Then they are sold as if there is no tomorrow. Because there isn't any tomorrow for factories that don't produce and market in the same breath. The likes of Dell$ execs just come along on executive shopping trips into places like China, Hong Kong and Taiwan and say ye or ne to goods on display. They can always walk away and find their competitors armed to the teeth with new products. So they don't, and sign contracts to buy in huge quantities trying to drive the price lower and lower.
Erik Funkenbusch 10 October 2005 10:44:45 [ permanent link ]
On Sun, 09 Oct 2005 22:59:39 GMT, 7 wrote:
Erik Funkenbusch wrote:>
On Sun, 09 Oct 2005 18:23:16 +0100, Roy Schestowitz wrote:>>
I suspect the reason for the lower price is that the windows machines>>>> are sold in mass quantity and the "Open PC" models are somewhat>>>> non-standard at the moment. Both manufacturing and support are>>>> different than usual for Dell so this might explain the price>>>> difference.>>>
I don't buy your argument; sorry about that...>>>
Toss hard-drive down the bin, bundle empty Maxtor hard-drive to package.>>> Now, was that _so_ hard? If the will is there, practical changes will>>> follow.>>
You really don't undestand the manufacturing business, do you?>>
There are a set amount of costs in any large manufacturing process just to>> start the process. Those costs have to be built into the expected number>> of machines sold. If it costs $100,000 to setup, and you expect to sell>> 1,000,000 of that product line, that that's a cost of 10 cents added to>> each PC. If, however, you expect to sell 1,000 then that's a cost of $10>> added to each PC.>>
I dont' know what Dell's costs are, but you have to figure R&D (the>> machines are uniquely designed, they're not just rebadged machines from>> other lines), Training (in the shop floor, sales, and support), Marketing>> (while they don't seem to be doing a lot of marketing for the n series,>> they have to have web pages designed, brochures printed, etc..).>>
All those costs are amortized over the number of machines you sell, and>> low volume product lines have higher fixed costs than high volume ones.>
BWAHAHAHAHAHAHAHAHAHAH!!!!> In your wildest dreams sunshine!>
Products are manufactured in bulk as if there is no tomorrow> in places like China.> Then they are sold as if there is no tomorrow.> Because there isn't any tomorrow for factories that> don't produce and market in the same breath.> The likes of Dell$ execs just come along on executive shopping> trips into places like China, Hong Kong and Taiwan> and say ye or ne to goods on display.> They can always walk away and find their competitors> armed to the teeth with new products. So they don't,> and sign contracts to buy in huge quantities> trying to drive the price lower and lower.
That's nice.
Now, what does that have to do with my comments?
Nothing I mentioned had anything to do with the cost of the parts. That's the same (more or less) across all products. I was talking about fixed costs per model line, which adds to the final cost of that model line.
