Direct Dell
Nov 27th, 2010 by Zheng (Kathy) Li
Usually, products that you buy in store come from a long supply chain. Once it is produced by the manufacturer, it goes through the distributor into warehouses, then to the retailers, and finally to the hands of the consumers. However, that means the product will go through double marginalization, which will cost more to customers who only want a fair price.
Dell, on the other hand, not only supply to retailers such as Futureshop, but they are also a direct business on their own. This means having a possibility to customize products for consumers and also having the ability to charge lower prices while earning more profit.
Dell uses mass customization in its factory outlet. The consumer chooses the model of the product, then gets to customize the storage space, docking, audio system, battery type, and also the skin. The buyer can also choose to include accessories along with their original purchase, such as getting the mouse, office software, product bags, headphones, or others. Dell also provides free shipping for shoppers who order from their factory outlet.
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