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Online Pricing for PDAs... Go Figure!
by WirelessDevNet Editorial Staff (editors@wirelessdevnet.com), Mar. 12, 2003
I recently decided to get myself a nifty Dell Axim PDA. The unit, announced late last year, runs MS Pocket PC 2002 and is
Powered by the Intel® XScale Processor at 300MHz or optionally at 400MHz for those needing a bit more zip. The Axim is not widely available
via the traditional online outlets so consumers wanting one generally need to make their purchase from Dell.com. (ebay is also a source but no cost savings will be realized)
As a journalist you might think that I have easy access to the latest devices, however, that can often be more effort than its worth!
Hardware and device manufacturers usually have a very long line-up of media, developers, and others requesting demo units.
Besides, it was time for me to make a purchase and I've been anxious to get ahold of one of these units.
Let me now play the role of the consumer. I determined that the most direct method of purchasing my PDA was via Dell's online store.
A brief search of the web using my favorite engine (Google) turned up a couple of useful product reviews as well as some dated material that
led me to believe that a 400MHz device could be obtained for roughly $299. Going back to Dell's online store I was disapointed to find that
the unit was actually now priced at $349 and a $50 rebate had ended just the day before (bummer). Looking deeper at the online mechanism I notice there are even more options
that may influence prices. Consumers have the option of purchasing as a home/home office or a small business user... unfortunately there
is often some overlap in these categories - I know several at home workers that have small business accounts.
Purchasing from Dell generally means that it will take up to 2 weeks to receive a PDA. Since I was anxious to get the unit I go ahead and
order the unit. Over the next 2 weeks I cusiously monitor the online pricing, only to my dismay finding that on any given day the price jumps
from $349, to $314, and as low as $299... the explanation... you tell me? The only rational I can come up with is that Dell is content on
driving a wedge between itself and the consumer. Do you think customers will apreciate ordering product only to find it offered at a reduced price the next day?
As a consumer, take it from me Dell... you are going to pi@# people off.
Want a bit more bitter ironly. With my wife's birthday approaching I decided to get her an Axim as well [since she's always using mine!]
... heck it's only $249 - the 300MHz unit will do her just fine. So I point my browser to Dell.com, order the unit feeling pleased because on the day I decided to order it
they were offering it for a reduced price of $224 or 10% off... I'm feeling like I scored the winning goal now! Unfortunately,
it turned out I accidentally ordered the device via the small business store rather than the home office area so several days later I actually receive an email and a call from
a Dell service rep... very cool, real people are now communicating with me! They request that I re-order my device so I reluctantly do so... bummer,
now the PDA won't be here in time for her birthday. So yesterday I re-order the Axim and now everything is cool... it will be here in 10-14 days.
End of story; well, not quite. In my daily cruise through Cnet.com I notice a Dell ad that gets my attention. I decide to go to Dell.com
to see how much the device is retailing for today... holy crap... it's now being offered for $199 (with a mail-in rebate). Wouldn't you know it!
Some advice to retailers; if you want to keep your customers happy, changing the price every day is not going to cut it.
Online retailing is convenient but as far as a satisfying experience it leaves much room for improvement. The big box stores and
electronic retail outlets have nothing to worry about. Statistics show that Dell sold more than 40,000 PDA devices in Q4 last year, however,
unless a more predictable pricing scheme is offered and a more pleasurable online shopping experience is offered, I don't expect
the big-box electronic retail outlets to lose much marketshare. And as far as my wife's next birthday, flowers are likely in the picture!
Note: on the upside, Dell's service reps have been very accomodating and quick to respond to my email requests...
a pleasant surprise from an online retail outlet... kudos to Dell. Got memory? I'm now searching for expansion memory cards for the devices.
If you have a suggestion please feel free to share your ideas with me.
News-wireless home
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