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Dell in channel lather over prices in Japan

Margins?!? Sheesh
Wed Aug 08 2007, 11:29
AN ATTEMPT by formerly direct PC seller Dell to get into retail in Japan appears to have hit something of a snagette.

A report in today's Nikkei Marketing Journal said that kit it's selling in 22 Bic Camera stores nationwide cost an average of 10 per cent more than the same machines you can buy on the Dell interweb.

Oops.

The reason won't be hard to understand by other PC manufacturers who understand the channel - both shop and distributors.

The magazine reports that Bic Camera adds a profit margin to the machines it buys from Dell. So Dell is competing with itself. It has another cunning scheme in Japan, however. It has installed Dell kiosks nationwide where people can buy its kit online. The shops get a commission for every sale.

Sooner or later, we're sure, Dell will get the handle on this pesky channel thing. ยต

L'INQ
Nikkei Marketing Journal sub needed

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