Dell XPS for $2500

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Whizzard9992

Whizzard9992

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Jan 18, 2006
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Ok so I go to Dell now and them, admittedly, to see what the global populus must endure.

Just so you can mock the poor souls with the jet-engine looking POS called an XPS, for a mere $2561, you get:

E6300 ($183 + $100 mobo)
Windows OS (MCE) ($100)
1GB 667MHz DDR2 ($100)
250GB SATA @ 7200 ($80)
DVD & CD Drives ($80)
20" LCD flat panel ($300)
GeForce 7900 GS ($200)
SoundBlaster X-Fi ($160)
Crap Speakers, Kbd, Mouse ($30)

Prices to right are (estimated) newegg prices for a grand total of $1340. Other than the flat panel, this is a joke. The case is apparantly costing you an additional $1100. I won't even go into what you could get on Newegg for $2500...

I know. It's not news to anyone here, but christ....
 
Unknowledgble consumers, can't live with them, can't live without them...

Eh, Dell also has some great deals. All about being able to find them. Top of the line though, is never a nice deal, even something mid-end like this.
 
It's Dell's revenge. Every AMD system is 100s less with more RAM and HDD and GPU.
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Dell's revenge for what? People buying their computers? For them being the biggest computer company in the world?

Enlighten me BM, what have we done to deserve this from Dell?
 
It's Dell's revenge. Every AMD system is 100s less with more RAM and HDD and GPU.
Click to expand...

Dell's revenge for what? People buying their computers? For them being the biggest computer company in the world?

Enlighten me BM, what have we done to deserve this from Dell?

He's talking about revenge against Intel. I'm sure Intel was taking them to the cleaners for a while....

It's funny cuz AMD strong-arms the industry with a great product and finally convinces Dell to share the market, and then Intel beats down AMD like a red-headed stepchild.

Someone at Dell hates their life.
 
No, that $1100.00 is the cost of someone other than you assembling the computer, loading the software and testing the computer. It also covers the overhead and profit for the company. You have to make enough to cover the lights, building, sales reps, customer service reps, Mike Dell's boat...

Actaully in the scheme of things a 100% mark-up isn't bad. Most of the products you buy have around a 400% mark-up from manufactur to consumer.

How much is your time worth? For some people it's worth more than the $1100.00 for others they can't build their own. It fills a nitch, just not one for most of the people who visit these forums.
 
Think customer support and warranty. That and for them putting it all together insuring that its guaranteed to work is where the cost comes together.
 
Not that I'm saying that this is a good deal from dell, far from it. But the price you claim to have found at Dell's website seems exagerated. The system you described shows up at $2000 for me (actually $1999). I suppose you are also getting some version of norton and 15-months of updates for it (for whatever it's worth).
 
I've gone with Dell and custom. They both have their perks. Dell used to have great customer support a few years back before they outsourced it. Now, it's just okay. They used to give 3 years standard, but now it's cut back to 1 year for the default price, which isn't as great of a deal. They replace anything with 2-day cross-shipping, paying for it both ways. This is really nice for businesses where parts go bad all the time just due to numbers.

As with any "finished" product, of course, there's going to be a significant mark up. As a builder, it's easy to bypass that, but of course, not everyone has the want or is able to build a box. You could say that same thing about lots of stuff. If you go to a cloth store, buy the materials, you could make your own clothes significantly cheaper, but not everyone has the expertise and/or time to do so. To a lesser extent, the same can be said for food and restaurants. You pay for service and knowing the food will usually turn out fine.

For really low end stuff, Dell does pretty well since this is their bread and butter business. For higher end boxes, agreed, it's much better to build your own if it's feasible.
 
Ok so I go to Dell now and them, admittedly, to see what the global populus must endure.

Just so you can mock the poor souls with the jet-engine looking POS called an XPS, for a mere $2561, you get:

E6300 ($183 + $100 mobo)
Windows OS (MCE) ($100)
1GB 667MHz DDR2 ($100)
250GB SATA @ 7200 ($80)
DVD & CD Drives ($80)
20" LCD flat panel ($300)
GeForce 7900 GS ($200)
SoundBlaster X-Fi ($160)
Crap Speakers, Kbd, Mouse ($30)

Prices to right are (estimated) newegg prices for a grand total of $1340. Other than the flat panel, this is a joke. The case is apparantly costing you an additional $1100. I won't even go into what you could get on Newegg for $2500...

I know. It's not news to anyone here, but christ....
Click to expand...

Actually, my friend just got done ordering his... everything listed there minus the 20 inch and put in a 19 inch, also take out the sound blaster... for... 1300? Yea... 1300. He also didn't get speakers... built the same rig on newegg for... 1100. He said the extra 200 was worth it because of the warranty and one place to call for parts replacement.
 
Hmmmm, I think someone doesn't like Dell... I could have gone to work for them, but I decided making beer is much more fulfilling way of life. I make people happy this way, instead of having angry consumers yell at me when they don't know how they broke their machine...
 
Sorry for not being more specifc. I'm having trouble finding the original link I had to the XPS. The price was with the default configuration of an XPS 700, Black edition.

http://configure.us.dell.com/dellstore/config.aspx?c=us&cs=19&l=en&oc=DXCWMPS&s=dhs

I just thought it was a little rediculous to put an E6300, 1GB RAM, and a 7900GS in a box for $2500. That's all. Overhead or not, it's still huge.

And for the record, standard markup from Mfr to consumer is 20%, and the proices you see on newegg, ZFF, and tigerdirect are already marked up.
 
True true, but see, everything is variable. How much Dell wants to pay depends on their contract with Intel, so we don't even know how much the real price of these things are. However, I know Directron puts a small mark-up on their individual items compared to other stores. How much they pay for the original items however, would depend on how many they buy, history, yadda yadda...
 
Overhead at Dell is at a minimum. How many thousands of computers do they make? Their overhead is spread over so many units that it would never even begin to approach $100 a PC.
Click to expand...

Even if they sell a million computers a month, how much do they spend just on advertising? $50 million a month? That right there is $50 of the cost of each computer. Warranty claims actually cost Dell more than people pay for. Salaries, profit, etc do all play a part and probably account a nice chunk of the difference.

How about engineering and R&D, that could easily run in the hundreds of millions a year.

Then think of the loss leaders which Dell sells more of than the cash cows (and I'm not talking about XPS systems). For every XPS they sell where they make $100 (and really, they probably just break even), they sell 100 $399 machines where they lose $50 each. Why? So they can be everywhere so business customers buy their stuff (which is where every large computer company makes their money).

Here's a tip- servers are where the money is at. the consumer computer business is just advertising.
 
Overhead at Dell is at a minimum. How many thousands of computers do they make? Their overhead is spread over so many units that it would never even begin to approach $100 a PC.
Click to expand...

Even if they sell a million computers a month, how much do they spend just on advertising? $50 million a month? That right there is $50 of the cost of each computer. Warranty claims actually cost Dell more than people pay for. Salaries, profit, etc do all play a part and probably account a nice chunk of the difference.

How about engineering and R&D, that could easily run in the hundreds of millions a year.

Then think of the loss leaders which Dell sells more of than the cash cows (and I'm not talking about XPS systems). For every XPS they sell where they make $100 (and really, they probably just break even), they sell 100 $399 machines where they lose $50 each. Why? So they can be everywhere so business customers buy their stuff (which is where every large computer company makes their money).

Here's a tip- servers are where the money is at. the consumer computer business is just advertising.

It honestly doesn't matter what Dell does with their money. What matters is the value of their product to the consumer. For the XPS, the value of the system versus the cost is way off. You can't tell me that $1100 is an acceptable price to pay for tech support.
 
Overhead at Dell is at a minimum. How many thousands of computers do they make? Their overhead is spread over so many units that it would never even begin to approach $100 a PC.
Click to expand...

Even if they sell a million computers a month, how much do they spend just on advertising? $50 million a month? That right there is $50 of the cost of each computer. Warranty claims actually cost Dell more than people pay for. Salaries, profit, etc do all play a part and probably account a nice chunk of the difference.

How about engineering and R&D, that could easily run in the hundreds of millions a year.

Then think of the loss leaders which Dell sells more of than the cash cows (and I'm not talking about XPS systems). For every XPS they sell where they make $100 (and really, they probably just break even), they sell 100 $399 machines where they lose $50 each. Why? So they can be everywhere so business customers buy their stuff (which is where every large computer company makes their money).

Here's a tip- servers are where the money is at. the consumer computer business is just advertising.

It honestly doesn't matter what Dell does with their money. What matters is the value of their product to the consumer. For the XPS, the value of the system versus the cost is way off. You can't tell me that $1100 is an acceptable price to pay for tech support.

If you're referring to what I said about my friend, the newegg machine was 1100, the Dell machine was 1300, a difference of 200 dollars. And to my friend it was worth it because.
1) the system came ready to turn on, didn't need to be built or configured
2) OS was installed, sure it had other stuff on it that wasn't needed, but I think it's pretty easy to Start>Control Panel>Add/Remove Programs...
3) Tech support, not that great if you're speaking to a guy you can barely understand, but at least I don't have to call Seagate, Gigabyte, Intel, Crucial, or look up their numbers if one of my parts goes bad.

EDIT: BTW I'm a big advocate of building your own system if you have th time and know how. My friend had the know how, just not the time. In those situations I support buying a Dell, HP, Alienware, whatever... Sure it's a whole seperate entity trying to make money off your 1 purchase you just got to know what to buy to make it the best value for YOU. At newegg and such it's easy to do that because you have control over what goes into your system.
 
It honestly doesn't matter what Dell does with their money. What matters is the value of their product to the consumer. For the XPS, the value of the system versus the cost is way off. You can't tell me that $1100 is an acceptable price to pay for tech support.
Click to expand...

That's why you don't buy Dell, (amonst other reasons) but to a lot of people out there, that $1,100 would be a bargin at twice the price. Cost to cover a working computer, warrentee, no time spent assembling the thing. I can see a lot of people thinks it's worth every dime and laughing at the fact it isn't more.
 
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