NotebookForums.com › Forums › Notebook Manufacturers › Dell Forums › Dell Home (Inspiron, XPS, Studio) › Why does Dell charge so much for their RAM?
New Posts  All Forums:Forum Nav:

Why does Dell charge so much for their RAM?

post #1 of 38
11/22/05 at 4:47am
Thread Starter 
Why does Dell charge so much for their ram?

It was my impression that all 1GB 200-Pin DDR2 SO-DIMM DDR2 533 (PC2 4200) RAM are the same.

Is there any difference in performance, quality, RMA support, warranty, etc???

Dell RAM - $167.99 ($209.99)

http://accessories.us.dell.com/sna/P...ctListing.aspx

Transcend - $91.22

http://www.newegg.com/Product/Produc...82E16820208024
Reply
Reply
post #2 of 38
11/22/05 at 4:58am
cuz they think we're idiot
Reply
Reply
post #3 of 38
11/22/05 at 5:17am
Sayakawill - You're post is so ironic.
Reply
Reply
post #4 of 38
11/22/05 at 5:24am
They do charge too much I said it earlier you're basically screwed from dell when you buy that XPS and you're sitting there picking up your RAM assortment. Basically you get one gig you pay nothing but you have 2 512 sticks. This means any upgrade would require you to throw out your old sticks and buy your news which would cost you about 170 dollars. Now if you get 2 gigs they charge you 300 something.
Reply
Reply
post #5 of 38
11/22/05 at 9:27am
its there way of getting more money, they get the customer in and then once you start adding things the price shoots!!

Its actually a very good marketing plan, but if your wise you know you can just swap it yourself in 2 mins, but some people just arent bothered!!

Dell wanted £840ukp for 2gb ram when I ordered the XPS2 they must think I have half a brain!!!!!
I got it for £187ukp delivered and managed to undo the 2 screws on the memory cover myself

I guess thats why there successful and they can get away with it!!
Reply
Reply
post #6 of 38
11/22/05 at 9:51am
Does somebody know if installing (non Dell) memory yourself will break your warranty?
Reply
Reply
post #7 of 38
11/22/05 at 9:59am
Maybe, will you tell them about it?
Reply
Reply
post #8 of 38
11/22/05 at 10:02am
Quote:
Originally Posted by Cootje
Does somebody know if installing (non Dell) memory yourself will break your warranty?
Id be sure it does.....In Oz if you buy 2 gigs of DDr2 after taking possession of your machine Dell will charge you $A1400 ....... I bought 2gigs of DDR2 ram for $334 from a local supplier.....
Reply
Reply
post #9 of 38
11/22/05 at 10:10am
Installing 3rd party memory won't void your warranty, the memory itself just won't be covered by Dell's warranty, rather by the manufacter (buy from a store with a reliable RMA policy, like Newegg). Same thing goes for hard drives, optical drives, mini pci cards, etc etc. Only if you buy the part from Dell and install it and go through their tech support routine will the part be covered under your system's warranty, as is the case with the 7800 GTX.
Reply
Reply
post #10 of 38
11/22/05 at 10:32am
most retail outfits make very little on systems. To use CompUSA as an example their markup on Laptops and PC's varies between 5 and 10% BUT thier markup on accessories are generally around 150%.

Dell on the other hand doesn't have as many accesssories to sell so they make thier money where they can on what they can. why do you think that XPS backpack that dell pays $9 for sells for $75 <shrug> they are just trying to make a buck.

I mean shoot look at how many poeple just get the dell flyiers and order and pay $500 to $700 to much for a lappy or PC. THey are just trying to clear the suckers out.
Reply
Reply
post #11 of 38
11/22/05 at 11:25am
Another thing to consider is the effect with coupons/discounts. I did purchase 2 GB of RAM with my XPS but feel it was reasonable. When you consider I had the following rebates: 33%, 12%, and 2% - then the net cost of the RAM is significantly reduced. Granted I supect I could have still saved a little $$$ by buying 3rd party RAM, however not enough to make it worth the hassle of having to place another order, installing the new RAM, having to deal with separate warranties (one for the RAM and another for the sysetm), and having to keep the old RAM around in case I ever had to return the notebook to DELL.
Reply
Reply
post #12 of 38
11/22/05 at 1:27pm
"I got it for £187ukp delivered and managed to undo the 2 screws on the memory cover myself "

I paid about £110 from america for 2Gb, no import tax either to the UK!

Dell charge insane prices!
Reply
Reply
post #13 of 38
11/22/05 at 1:39pm
Quote:
Originally Posted by Bal`thzar
most retail outfits make very little on systems. To use CompUSA as an example their markup on Laptops and PC's varies between 5 and 10% BUT thier markup on accessories are generally around 150%.
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.
Reply
Reply
post #14 of 38
11/22/05 at 1:46pm
LOL. Why do you think they charge so much?

I'd say it's for one reason: the convenience of having them supply it and install it for you. If you want it so easily, you pay.

Undoubtedly they make massive profit on it considering they buy in massive quantity so they have huge leverage over the supplier for pricing. No supplier wants to lose their business so they price it incredibly competitively.

It's just one way they make back their loss on pricing their systems so cheap.
Reply
Reply
post #15 of 38
11/22/05 at 2:54pm
Quote:
Originally Posted by swaaye
LOL. Why do you think they charge so much?

I'd say it's for one reason: the convenience of having them supply it and install it for you. If you want it so easily, you pay.

Undoubtedly they make massive profit on it considering they buy in massive quantity so they have huge leverage over the supplier for pricing. No supplier wants to lose their business so they price it incredibly competitively.

It's just one way they make back their loss on pricing their systems so cheap.
CHEAP???? I paid over $1000USD for a barebones lappy made in MALAYSIA. Do you know how CHEAP it is to make stuff there? I have personally worked side by side(training) Malasian factory workers....and they don't make this in a year. On top of it I would venture to say my screen is a factory second with all the damn light bleed.
I totally agree that Dell is WAY out of line on their upgrade prices and do not like their upgrade marketing scheme. Look at the 7800 GTX price...is this for convience? No, it's because they have you by your nuts and you have no other choice.
Dell told my mom that no other ram would work on her computer besides the dell ram, and then proceeded to rape her purse!
I asked a rep this very question.... and they argued that "their ram is better" and "warrantied".

.
Reply
Reply
post #16 of 38
11/22/05 at 3:03pm
Quote:
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.
Reply
Reply
post #17 of 38
11/22/05 at 3:08pm
Cheap yes when placed side to side with AW, Sony, Toshiba etc.. Dell sells their laptops cheaper than other companies and thats a fact. Yes all companies have their low end stuff thats basically all comparable but pricing a loaded 9300 or XPS2 is cheaper then a comparable product from another manufacturer. Plus then you add in the 750.00, 35% or 40% off coupons you can really get a high end laptop cheap.
Reply
Reply
post #18 of 38
11/22/05 at 4:17pm
And how do you think Dell has gotten so big? Not by being a friend to the customer. They aren't going to send you somewhere else to save a buck.

It's all big business man, you gotta fend for yourself or ask around at places like this forum. It sucks ass, but it's how it is. Dell is out to get your money any way they can.

I'm not overly surprised that these machines may cost them only $50 to build lol. The parts themselves aren't going to be pennies though. Obviously the labor is though. They can't sell them for $400 in the US though because they would be 1) throwing away margin 2) undercutting the perceived value of the machines.
Reply
Reply
post #19 of 38
11/23/05 at 1:27am
Why did I get a gig of ram and not 512 from dell? is the real question I bit my lip, took the loss, i'll be alright.
Reply
Reply
post #20 of 38
11/23/05 at 2:06am
Quote:
Originally Posted by andy3000
I strongly disagree ........
Ummm ok....
Reply
Reply
New Posts  All Forums:Forum Nav:
  Return Home
NotebookForums.com › Forums › Notebook Manufacturers › Dell Forums › Dell Home (Inspiron, XPS, Studio) › Why does Dell charge so much for their RAM?