Time is reporting a big change in Dell Inc.'s (DELL) operating model. Business to business selling currently represents 80 % of Dell's sales. The remaining percent is business to consumer sales handled through telephone/catalog, online sales, and the more recent development of setting up mall kiosks where customers can order. Retail sales were not on the agenda - until now.
Dell's new plan is to increase overall sales by adding retail stores. Interestingly, customers will not be able to purchase a computer and walk out with it like they would at Best Buy or Comp USA. Instead, they will be able to examine floor models and place orders for delivery.
Assuming the plan works and Dell expands its consumer market, how will it affect the business accounts? Even though the article quoted Dell CEO Kevin Rollins as saying the consumer market is secondary to the their corporate customers, one still has to wonder what impact the increased volume will have on service and support.
It's also mentioned that Dell received a lot of criticism in the past for having huge wait times (exceeding 30 minutes) for customers to talk to phone reps. That brought back a memory for me from my old Buying Assistant days. I once waited exactly 37 minutes on hold for a Dell rep when I wanted to place an order. I had kept track because it always took so long that I wanted to prove to the Procurement Manager how much of my time was being taken up on placing the daily orders.
I think Dell makes good products, I just hope their customer service and support will rise to the occasion if sales explode for them and business accounts will not suffer.
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