Dell and Credit

November 30, 2008 at 11:53 pm (Uncategorized)

Taken from newyorktimes.com

Just last week, Dell talked about turning conservative with its cash and financing programs because of the uncertain economy. Then on Wednesday, Dell began touting a zero percent financing program for large business customers. Go figure.

After, a week of conservative talk and cutting back mass spending it seems kind of silly to start offering credit and zero percent financing during a time when credit problems and debt ratio’s are off the chart. Dell is hoping that by offering this rate that people may look past the current market and financial problems and buy a computer anyway.

But Dell, even with $9 billion in cash, had been warning that it was going to be more conservative in granting credit. “We tightened our credit in general, and it has affected our ability to provide financing,” said Brian Gladden, Dell’s chief financial officer, last week.

They plan to screen better than they had before in order to offer this plan to its buisness… but honestly those who have great credit most likely are in debt in the first place… and probably aren’t hurting for a zero percent financing anyway.

Along with the financing programs, Dell said Wednesday that it was slashing prices by as much as 20 percent on products like servers and laptops.

This statement also amuses me, because slashing prices 20% when you look at othe rcompetition only makes them slightly more expensive instead of vastly.

www.aeoncraft.com

www.cyberpowerpc.com

www.xoticpc.com

Advertising should be watch with closer attention. A company that uses a lot of its money to advertise and create a huge name for itself, often falls below the line of the cutting edge and are often overpriced… reminds of certain car companies.

1 Comment

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