Only a few days after announcing its XPS line of computers with premium support aimed at luxury buyers, computer maker Dell is rolling back service for customers purchasing its low-end and basic systems: beginning October 10, 2005, Dell will no longer offer free deliver of low-end and basic models. Customers instead will have 10 days to pick up their systems at the post office, or can pay extra for home delivery.
Dell’s policy shift is built upon the United States Post Office’s new "Hold for Pickup" program, in which the Post Office holds packages at local post offices until the customer arrives to collect it. The USPS is promoting the service as a lower-cost option for mailers shipping high-value or heavy items who may not want the packages simply left at the customer’s door.
Both Dell and the Post Office argue the new service model is more convenient for customers who can’t be home when deliveries are scheduled; now they can pick up their systems at the Post Office at their convenience after work or on Saturdays during normal USPS branch hours.
However, "Hold For Delivery" presents new challenges to customers who can’t make themselves available during post office branch hours, potentially endure long waits to pick up their merchandise, or who aren’t able to move the items because they don’t have appropriate transportation or because they’re physically unable to do so. For these customers, Dell will still offer home delivery of purchases for an additional, as-yet-unspecified charge.
Dell has been successful based on its model of direct sales and service, including final delivery to customers. However, the company is now seeking to cut costs and increase operating margins, in part because it missed revenue forecasts for revenue growth during its most recent fiscal quarter.
