How much do you think Dell plays for the nvidia 8800 installed in the xpa 1730 ?

How much do you think dell pays Nvidia for 8800 they install in the xps 1730 ?

 

Probably 20 or 30 cents on the dollar because they buy an insane amount.

 

Dell's profit was only about 5-8% last time I was looking, so I imagine that it's about 70-80c to the dollar.

 

Total profit on the computer without coupons would be 5-8% (which would be 92-95 cents on the dollar if you want to say it that way).

Profit on a single item is anyone's guess. As the item becomes more and more expensive, like the higher end processors and GPUs, margins increase as well (for example, insane margin on 4 GB of RAM).

 

rofl, no frickin' way that they're only taking in 5-8% profit on a notebook.

You guys are all nuts if you think there's such a small margin. I got 23% off no questions asked on my laptop. You telling me that dell is willingly losing money selling me a laptop?

Seriously, get real. Dell prices are higher then retail, and there's a 300-400% markup on retail prices.

The 20/30c on the dollar by the 2nd poster is much more accurate.

 

I've been through this many times and I don't feel like arguing it anymore. Profit margins are razor thin on laptops, and Dell (or any other company) frequently take losses selling laptops to increase volume. Profit margins are 5-10% without coupons, and is a well-known fact in the industry. I would love to see a company be rolling in 300-400% margins. I would be in that business faster than you could blink.

http://www.nytimes.com/2006/05/19/technology/19dell.html
http://online.wsj.com/public/articl...IamZvhktGYnGLRBVSB9EI_20070613.html?mod=blogs
http://www.forbes.com/2007/05/24/dell-retail-bentonville-tech-cx_bc_0524dellmart.html

Now stop making up ridiculous numbers just because you think you're getting screwed on your purchase. The only thing in retail with 300-400% margins are cables, USB, HDMI.

 

ok given the price that dell is giving is 2,000 .the cheapest the upgrade can be is about 1500 plus installation? I hate to say it but the only realalistic option I now have is to sell my xps 1730 and get somehing else .

 

The stance I am getting is we promised and upgrade we did not mention price at any time .If dell offered the upgrade for 3,000 they would be able to say we we given the option of upgrading the card .

 

You sir are terribly uneducated in the ways of business. I think you're confusing growth margins with profit margins. Two very different things.

I said it before and I'll say it again, 300-400% markups are standard in the industry. I'm not saying they make that much, I'm saying that's what the part markup is with respects to what they pay. This covers manufacturing cost, overhead, and puts a nice profit margin in the dells wallet.

e.g.

$1000 laptop
parts will cost ~$300
mfg/overhead cost ~$200
shipping/customer support $100
total cost to dell: $600

In this case this would be a 67% profit margin. Most companies shoot for a 30-40% profit margin on their product.

 

nobody's forcing you to get it.

I have to pay 800+ for 1 card so I can have sli in my rig.

I will pay it. so I can have the fastest laptop on earth.

 

for instance, sony ps3's in the beginning cost was like 600 to make.

and they were selling it under that. just to make margins.

look it up.

 

Oh I Know it is my fault for jumping the gun .but I can not give l dell anymore money.Would rather sell what I have and buy somehing else .Will at least take some comfort in knowing dell will not get anymore of my money .

 

Actually the card is available for upgarde on the XPS M1730. Check out the official forum for the part number.

You won't be impressed with the price though, $1999 for sli 8800M GTX's.

They haven't released the official program yet because of part shortages, or so the rumor goes.

Of course Lithus will tell you that they're only making 5-8% profit on this card....lol

I would estimate that dell pays roughly 500 per unit on the 8800M GTX sli based on the prices that other's have negotiated and what dell is offering this card at through spare parts (remember the 300-400% markup rule).

 

Actually it cost Sony slightly over $800 to manufacture the first PS3's that were being sold for $600. Right now they are breaking even with the PS3.

 

i knew my figures were off! but the premise was correct!

 

A few things you need to realize. Yes I've heard that story.

First, initially production is always exponentially higher then later models where they've refined the process. Just look at desktop CPU selling for 1400 then 6 months later that exact same CPU is selling for 300. They may have lost money on the first models, but they're definetly recoverying the cost on models they sell today.

Second, How accurate is that information? Even if it were true, yes they may have lost money on their first few batches of PS3's but that would've been to keep their market share against competitors like XBox360 and Wii.

Third, PS3's can rely on profits from software sales rather then the actual unit since they have exclusive rights on the software the profit margins are fantastic.

 

people that have "any" sort of bartering skill. are getting them for no more than 800bux.

I know of 5 people personally that have done this.

call get price barter, hangup call again. do this until the price is right.

 

Ok, and do you think they're losing money by selling them at 800 or gaining money?

A new XPS M!730 owner pays $1000 for 8800M GTX's.

All of this only proves my point that they aren't settling for a 5-8% profit margin.

 

I can go into Best Buy any time of day and pull up cost, margin, and revenue. I've worked in the industry, selling and repairing. I know how much computers cost. You are pulling random numbers out of your ass and you know it.

BTW, A $600 laptop selling at $1000 is 40% margin and <100% markup.

 

As was giving an example, and man are you ever off your mark. Go back to school and learn some math. If you spend 600 dollars on merchandise and resell for 1000, that's a 66.667% profit, not 40%.

You don't have the slightest clue what you're talking about.

Sorry man, but this will be my last post. I have better things to do then continue this worthless discussion.

 

You haven't the slightest clue what you're talking about, making random numbers up and trying to pass it as truth.

Profit Margin: Income / Net Sales. Income = 1000-600 = 400. Net Sales = 1000. 400/1000 = .40 = 40%.

I can do math. Thanks.

 

It's not terribly difficult, go look up Dell's earnings from last quarter and plug a few numbers in, they're a public company. They don't always make money, sometimes they post a loss.

As for the PS3 comparisons, why? Sony was paying for asap market share, it's like comparing the iPhone to a Dell laptop - doesn't make sense. Compare Dell's to Dell's.

My guess is under 10% from quick calculations in my head.

 

That doesn't work too well, as Dell sells more than just laptops. Profits on desktops tend to be higher, as well as monitors, TV's, etc...

The actual margin they make on a computer is hidden very well from the public, but I'll guarantee you with a million dollars that it's no where near 300-400%.

However, as far as the 8800 itself is concerned, there is a very high markup on it. Whether the reason is lack of supply, or just that Dell doesn't "want" to sell that card is unknown, but like I said in my first post, margins on individual parts increase greatly as the part goes into that "elite" range - the highest-end processors, the 4 GB of RAM, and the best GPU.

 

I wasn't even arguing!

I was telling the gentelmen how to get their cards cheaper!