http://stockmarketbeat.com/blog1/2006/05/24/dell-just-being-stubborn-now/ Our beat: The stock market. Our job: Beat it. Tue, 03 Jun 2008 15:36:49 -0600 http://wordpress.org/?v=2.8.1 hourly 1 http://stockmarketbeat.com/blog1/2006/05/24/dell-just-being-stubborn-now/comment-page-1/#comment-32611 DELL: Giving Real Retail A Shot - Stock Market Beat - Our beat: The stock market. Our job: Beat it. Thu, 24 May 2007 15:27:16 +0000 http://stockmarketbeat.com/blog1/2006/05/24/dell-just-being-stubborn-now/#comment-32611 [...] One question I have had regarding DELL’s (DELL) recent slide is whether the horse that got them here has gone lame. In the past, DELL’s model was more efficient because declining prices meant that having a low inventory and no retail markup carried a large enough advantage to offset the cost of shipping the PC. Now, with the PC selling for $500 rather than $1,500 the shipping costs per unit are much higher and may actually make bulk shipments to retailers more cost effective than individual shipments to buyers. [...] [...] One question I have had regarding DELL’s (DELL) recent slide is whether the horse that got them here has gone lame. In the past, DELL’s model was more efficient because declining prices meant that having a low inventory and no retail markup carried a large enough advantage to offset the cost of shipping the PC. Now, with the PC selling for $500 rather than $1,500 the shipping costs per unit are much higher and may actually make bulk shipments to retailers more cost effective than individual shipments to buyers. [...]

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