USPS takes Dell Account

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vet

Guest
Don't trade in your SUV till you've got your new Dell. Those boxes don't fit in a VW bug. Can you see your gramma going to the PO & asking the 'nice' mail clerk to load her new computer in her car for her?
 
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gman

Guest
SAN FRANCISCO, Sept 29 (Reuters) - Dell Inc. will stop its practice of sending low-end computers to customers homes without charge in order to cut costs, the company said on Thursday.

Starting on Oct. 10, Dell's free shipping offer on basic models will apply only to people willing to pick up their computers at the post office, said Jennifer Davis, spokeswoman for Dell's U.S. consumer business. Customers will have to pay extra for home delivery.

Dell's direct sales model helped it become one of the lowest-cost computer makers as it bypassed retailers. But aggressive price-cutting caused the Round Rock, Texas-based company to miss analysts' revenue-growth forecasts last quarter.

Now, Dell wants to trim costs and boost revenue. On Wednesday, Chairman Michael Dell unveiled a line of high-powered luxury desktop computers and notebooks starting at $1,099 compared with $299 for the lowest-priced models on the company's Web site.

"We are always looking for ways to pass savings on to our customers," Davis said on Thursday. "We look at ways to keep costs low and be able to deliver systems within the value and pricing that people want."

The new shipping option is convenient for customers who aren't at home when deliveries are scheduled, Davis added. Now they can pick up their computers at the post office after work or on Saturdays, depending on hours of operation, she said.

Davis said the fee for home delivery had not been determined. Post-office pickup will eventually be made available on all Dell consumer computer models, including the new luxury line called XPS, Davis said.

Dell's Web site offers free home delivery on some models of desktop and notebook computers. Shipping costs amount to $99 or more for three to five-day ground delivery, according to Dell's Web site, but Davis said free shipping is "very common" because of its popularity among customers.

Dell is among shippers taking part in the Postal Service's "hold for pickup" program, launched on Thursday, which is aimed at consumers who want to save money by picking up packages held for them at the post office.

Customers have 10 days to pick up parcels before they're returned to shippers, the Postal Service said in a statement on its Web site.
 
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racerx

Guest
Susie, to answer your question, yes we are keeping all of the other Dell business that we have, small package and other-wise. It is NOT a wholesale divert from UPS. From reading what gman posted, it looks like Dell has completely revamped their delivery model in order to cut costs. This will be interesting to watch will Dells customers who have been getting free shipping to their doorstep now pay for that service or accept the responsibility of trekking to the local Post Office to pick it up their new computer? Will the Post Office be able to offer the caliber of service that Dell has been used to (read that as what UPS provided)? And if not, how long will Dell put up with inferior service? Again, I believe that we will have this business back in 2 months.
 
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susiedriver

Guest
racerx,

Good to hear we retained the profitable end of the business. The question now is, do we want the home delivery business back?

I can't see too many of my former workmates missing multiple Dell shipments in their over dispatched package cars come the holidays. In my old center we had to call with the disposition of every Dell shipment. What a PITA, and invariably, it took multiple attempts, because Dell had notified their customers that the computer wouldn't ship for weeeks, multiplied by the fact that the entire shipment would straggle in over a period of days, instead of all together. In any case, it sure didn't hurt the share value!

Thanks for the info, racerx.
 
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racerx

Guest
Oms, that may be part of the reason, but I believe that the main reason is for cost savings. If it was just a response to their customers, then they would have just offered USPS Hold for Pickup as an option. But given the fact that they are ending the free shipping to your home promotion and charging $99 for that same service now, it was purely a financial move to shore up their earnings, not a move to give their customers more options.
 
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dannyboy

Guest
I was in the post office today. Interesting. Lady asked if the letter will arrive in a town 20 miles away will get there tommorrow. Clerk punched the computer and told her, "it says one to two days"

Hell I run misloads that close to my route.

I agree with racer, they will be back. No way the local offices can hold that many large boxes.

But on another note, talking to some of our shippers, and from personal deliveries, they have improved the delivery times of the packages they do handle. So while they have their faults, they are a serious threat, both finacial and service.

d
 
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ezrider

Guest
Racerx

Many thanks for shedding light on things that a driver like myself doesn't have the slightest clue are going on. Perhaps you could offer some insight to something many resi customers have asked me..."How come UPS and DELL won't ship it to where I work during the day?"

If I recall, the last time DELL tried to get it there on the cheap, FED EX either punted it back or fumbled on the kickoff, but the boxes were back several months even before peak began that year. This time, it's being tried much closer to Christmas. Supposing DELL's customers react as negatively to the changes as the last time around, how willing this time will UPS management be to say "All sins forgiven" if DELL management shows up in late November saying "We'll give it back to you."

One of the biggest selling points to my customers in ordering a DELL was that they knew that they would HAVE ME, THE UPS GUY, DELIVERING IT. They knew that I either knew thier nieghbors or that I'd leave my cell phone number or knew exactly where I'd be on the route later during the day and that if they needed it that day that I'd make it happen. It's obvious that wasn't the case with the independent contractors DELL tried before, and at best the jury is out on this latest venture. If this trial balloon DELL is floating deflates, will the people in power at UPS draw the line this time and tell DELL that they either get what they pay for, or they won't get what they won't pay for?
 
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upsdude

Guest
Any of you folks remember "Dock Merge" labels on Gateway shipments?

How many Dell's during peak are Christmas gifts? If I'm buying someone a computer and need to keep it secret the USPS option may be a good one.

susie....... You're right, Dell can't seem to ship multiple packages in such a way that allows same day arrival. How many times have we heard, "That's not supposed to be here for another week".
 
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racerx

Guest
Ezrider glad to help! As for your question about how come Dell and UPS wont ship it where I work during the day, that is strictly a Dell question. As far as UPS is concerned, we would much rather have a delivery to a commercial address than to a residential one. So why Dell wouldnt let their customers do that is beyond me. Well, actually, I know why cause they are Dell, dude, and they can do what ever they want!

Now the good news is, if this experiment with the Post Office backfires and Dell has to come back before Christmas, we now have what we call negotiating power. I know of companies that thought the grass was greener with FedEx or DHL and left us even though they had discounts of 35% and higher in place. Two months later, they called us back wanting to go back to the way it was. Well guess what? Their old contract was cancelled and the best we can do now is only a 15% discount. But you can have the service that you need as soon as you sign on the dotted line. He, he, he! I LOVED DAYS LIKE THAT!!!!!!
 
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rushfan

Guest
In my humble opinion, I can see why they want to change. The PC market is competitive, and profit margin on them is slim. I built one of my machines for $500 which has the same equipment I wanted from dell. I saved over $300.

We have bent over backwards for dell. They got their money's worth from us. From holding the refused pc's so they could call the customers, Call tag control logs, and individual drivers making several attempts to deliver the packages...we did it all.

(Message edited by rushfan on October 01, 2005)
 
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deliver_man

Guest
I agree with you, Rush. Once I started building my own rigs I could never go back to ordering a whole system fom an OEM. And it's really not that hard at all, I'm surprised more people don't do it. I've never met anyone who's thrilled with the service they get from the post office, I suspect this deal won't last that long.
 
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susiedriver

Guest
On top of that, Dell's are POS. One of the many things I now do is computer repair. Dell's and Gateways I charge extra for, too many proprietary parts.
 
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ddomino

Guest
EZ, I think Dell will only ship to the address that the credit card used for payment bills to. It is because of fraud. They have probably been burnt more than once. I recall a driver getting $100 or $300 from UPS for averting a fraud with computers, may or may not have been dell. Some college students had 10 computers sent to a vacant house. Day after first attempt, someone tried to collect those 10 from driver on route, not at the house. Driver asked for ID. Didn't match anything. Notified center. Matter looked into. Decided fraud and packages returned. Driver awarded $.
 
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ok2bclever

Guest
Our policy with Dell is currently really stupid in my opinion.

Originally we couldn't redirect Dells even to a valid business.

At the counter the customer has to have a drivers license with the same last name and address, but anyone can call in (unseen, unproven, unidentified in any valid manner) and have the Dell redirected to anywhere.
 
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ddomino

Guest
OK It should not be that way, but I know it is. Packages that come thru A6, adult at this add only no alt l/a or sig rel, get address corrected. When I contact the center, I'm told there must be a legit reason for add corr and to go ahead and deliver(against our customers,the shipper not the receivers, request and fee paid). I am not sure why we offer the service if we are going to randomly choose when to follow the rules we allow?
 
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tieguy

Guest
Why yes Dell I think that covers it, I want the computer , the 19 inch monitor, printer and all the bells and whistles. Shipping? Whats my choices?

Lets see UPS can deliver to my front door

or

I can go to the post office during a limited time span pick up the 5 boxes, cram them in the back of my car, drive them back , unload them. carry them in the house.

Hell of a choice Suzie Q.
 
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ups_gal_710

Guest
Ok here is my question regarding all of this. Our center was told that when all this post office pkgs started that it was new volume. The post office should only get pkgs from customers UPS never had before.
So if any of that is correct then how can UPS take a union pkg "DELL" that was already ours and move it to the post office?? My understanding was that the post office volume was only for new accounts UPS sets up.
 
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racerx

Guest
Ups gal, I think you are a bit confused. The Dell packages that we have been referring to in this thread were totally UPS package moving via our regular ground service. Dell decided to move all of this volume to the USPS we will no longer (well, at least until Dell comes to their senses and gives it back to us) handle any part of these particular shipments.

What you have described is UPS Basic service. That is where a very large shipper processes their low priority ground packages through Worldship and they are picked up by a UPS driver at the same time as regular ground and air shipments. We move them through our system until we get to the final delivery center. Some of these packages (the ones with the highest last mile delivery cost, such as super-rural residential shipments) are then dropped of at the local post office for them to make the last mile delivery. UPS Basic is a very limited service offering, reserved only for high volume, low value, shippers. We do not offer tracking and insurance on these packages and we charge less than ground prices. This service was designed to take catalog and internet business away from the post office. We would not want to cannibalize our ground business because the profit margins on ground is higher than basic.
 
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