Originally Posted by Adrenolin
This doesn't really apply though since Dell is not a retail outfit. They sell direct and their markup is much higher then 10%. Taking a guess I'd say Dell's markup on a 9300 or XPS is likely to be 50% or more. Just look at the coupons they offer which include up to 40% off. Also note the price of a system when it first comes out selling for 2500.00 then 6 months later they are selling that same system for 1200.00.
You are right though in that they do really overly markup accessories. Most people don't know this, don't know about the coupons and don't realize they can buy whatever elsewhere for half the cost.
Edit.. Thinking about it I'd guess Dell's initial markup on a new laptop is likely to be very high.. Something like 75% to 85%. I doubt that a 9300 costs them more then 200 or 300 bucks to make.
I strongly disagree with your assumed figures. I do not know how much Dell makes in margin on PCs, but I would guess that is well under 10 percent on average.
Dell issues coupons when it needs to move product quickly. Inventory is very expensive, and it is often more desirable to sell items at a loss rather than leave them on the shelf.
Dell is both competitive and profitable, the result of a heavy investment in cost-saving measures for procurement, assembly, packaging, shipping and support. They made their name on low margins.
I also believe that you simply cannot build a computer for 200 or 300 dollars and sell it for even $500 in today's marketplace.