Dell

Dell

Our Observations - January 29, 2013:

1. Dell sold us a system with a defective design.
2. Dell never admitted the design was defective - they made us lose 100´s of hours trying to make the system function properly - with and without their tech support. (documented)
3. Dell then sold us an extended warranty - to assure us that the faulty system would have parts covered.
4. We spent xx in phone calls to Dell USA (long distance) and Dell Spain (toll number only).
5. The extended warranty was breached. Dell España took 2 months off the 12 months paid.
6. We put up this site and sent it to Michael Dell to express our anger with the warranty breach.
7. We received inappropriate phone calls from Dell Ireland and Dell Europe and asked them to only communicate in writing. We continued to receive three more call after advising Dell not to phone us.
8. Dell first refused to send another machine.
9. All components in the original system have been replaced and it still fails - overheats - crashes and is unstable. Every day represents more loss of time = loss of money.
10. When we posted photos of the burned inside of our system - Dell offered a new system - admitting ours is faulty and even dangerous.
11. The system Dell offered was for a 15" screen. We had purchased a 17".
12. The offer was made December 20, 2012 - right during the holidays.
13. Dell constantly pressures us (demands our time) to make a decision.
14. Dell sent a total of 6 offers - requiring hours to research.
15. Dell gave us multiple ultimatums - to pressure us to decide on the six new systems offered.
16. We finally received advice from a tech expert - as to what components fit our needs. Dell refused to advise us - after asking multiple times.

We lost hundreds of hours - and Dell does not recognize this loss.

We have tried to settle directly - yet feel we have a very clear case and are tired of Dell´s muscle-man techniques with unexplained deadlines and ultimatums. They DEMAND our time and attention - taking away from other obligations.

This is a brief summary - to be expanded and further - fully documented - and with references to class actions taken against Dell for similar stories.


Factors:

Deceitful business practices -

• Faulty systems - sold without recall.
• Refusal to admit systems are faulty
• Further sales - extended warranty on system Dell knew was faulty
• Dell´s profit - toll call charges for warranty and tech help
• Breach of Contract - warranty

Lose of time - with faulty system + warranty
Loss of Sales
Loss of Production
Harassment - coercion - intimidation

Conclusions:

Quite frankly,

We purchased a system five years ago - and began using it 2 1/2 years later.

We had over-heating problems beginning six months after use (documented).

Despite stating numerous times to tech and customer support in the USA and later Spain that we found our system to be defective, Dell employees completely ignored our concerns and gave feeble excuses.

After purchasing an extended warranty (Dell employee recommendation) - all of the components have been replaced. The system still fails.

Dell employees refused to respect our extended warranty agreement - multiple times.



We felt that Dell

• breached the terms of our extended warranty contract (seen within site),
• needed to recognize that the system we purchased is a faulty design and send us a new one.

Dell finally agreed to send us a new system - only after we spent countless hours on this site - showing Dell and - the world - our evidence: the scorched interior of the machine we own

Dell proposed sending us a system that is inferior to what we purchased five years ago and began using 2 1/2 years ago - yet similar to Spanish retail value. The process to review the system has taken many more hours of our time.

Dell has sent a total of six offers - taking more time to research each one - as Dell would not aid us in the technical needs we have and our lack of knowledge of the latest components on the market.

We resorted to our technical consultant (costs money) - to guide us through the labyrinth of choices Dell sent and publishes within endless amounts of web pages - and who has made proper component recommendations - in our interests.

Now - Dell needs to understand that the faulty system and the time ( 2 1/2 + years ) they took to admit that it is deficient - the breach of contracts - etc. produced and is producing a large loss of profits (TIME = MONEY) for us.


and that - using a standard mark-up formula - Dell´s hypothetical direct cost of the system that they propose to send - could represent 10 - 15 % of the retail prices.

Using a simple standard mark-up chart - and remember - Dell sells direct (we do not know Dell´s direct costs and quantity discounts - of course):
100 - Retail price without VAT
  50 - Wholesale price
  35 - Profit Mark-up over direct cost
  20 - Direct costs of product

Gross Margin = GM
$10 retail price - sold by retailer to consumer (Retailer GM = 50%)
$5 wholesale price - sold by distributor to retailer (Distributor GM = 30%)
$3.50 distribution price - sold by you to distributor (Manufacturer GM = 43%)
$2 - your cost to produce product

Applying above hypothesis (formula/equation) to the fourth offer:

4,797.65 with VAT = Offer four

3,965.00 without VAT
1,982.50 wholesale price
1,189.5 profit margin
793 - Direct cost of product

Now Dell proposes we pay 1098.21 Retail (with VAT) ? - we do not know where this figure sits.
907.61 (w/o VAT) - for components we have been advised to be necessary for our business needs.
454.00 Wholesale margen
180.00 - or probably less - Direct cost of components =

880.00 - Profit on components - probably more.

Taking into account the following profits Dell has made from:

• Original defective system they sold us,
• Extended warranty purchase - not fulfilled - nor coherent - for a faulty system,
• 902 - toll calls - % profit to Dell
• etc.

We now ask - what would any business answer to this ? ... and beg Dell to stop playing with our time and become responsible to their customers.

Dell´s reputation is extremely tainted due to all said. We are not the only sole victims - yet Dell fails to see that their profits have dropped drastically due to their faulty machines and services.

The competition is fierce - word-of-mouth is still extremely important. Dell has a terrible reputation locally and on the internet.


We do not feel that it is appropriate for Dell to profit from their mistakes, ejem.:

• charge us retail prices for updated components,
• "give us" a technical support that will cost us 5.50 euros/hour and where Dell makes another profit.
• hypothetical cost - 100 hours/year x 5.50 euros = 550 euros/year x 5 years = 2,750 euros in "free" tech support. We calculate 10 hours a month - 5 of which are used passing us around to all the Dell departments and repeating ALL information required to talk to us. READ >> DELL SUPPORT

902 numbers

to be continued ...

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