It's a done deal: Dell puts an end to all 140 US mall kiosks
[Image courtesy of NotebookReview]
[Image courtesy of NotebookReview]
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Reader Comments (Page 1 of 2)
Jiffylush @ Jan 30th 2008 12:17PM
Great news for people who want to order stuff direct from dell without paying sales tax.
like this guy
Georgy McFly @ Jan 30th 2008 12:21PM
Have you proven this? Dell will do what they can do to say they have a "presence" in those states. Damn corporations.
Pastry Chef @ Jan 30th 2008 12:33PM
According to a former kiosk employee on the other Dell kiosks closing post, tax will still be charged. WTF???
Don @ Jan 30th 2008 12:37PM
Just because you buy onling does not mean that you do not have to pay tax, it simply means that the retailer does not have to charge you for tax. Technically you are required to file this purchase on your taxes at the end of the year, however I'd guess that most don't. Dell does however charge tax now when you purchase something online unless you have a Tax ID for exemption.
Davaid @ Jan 30th 2008 3:06PM
My friend works for the internal revenue service (IRS). Why do people say this? You do not have to claim sales tax. If you do, you are giving the state a "gift". Then go for it
mike_p @ Jan 30th 2008 8:11PM
Sorry but 140 stores ain't shit... you can say "Oh, well what will the employees think!?" I say, they'll have to think about which job they'll be applying to next...
Dell is already in big chains and if they didn't see this coming, shame on them for being naive... and shame on the people that think they won't be paying sales tax in the US at all!
Flashpoint @ Jan 30th 2008 12:18PM
Dell would be much better off in the Big Box Marts than having these kiosks. First of all, paying people to be in them is expensive. Placing equiptment in them is expensive. Renting space is expensive...
They'd be better off doing what Apple does. Run aggresive marketing campaigns and use all your money stocking your product to be sold.
Austin @ Jan 30th 2008 3:07PM
yeah, the kiosks weren't ever a good investment. the problem was that having samples of all the crap you sell on a big desk in the middle of a mall doesn't really solve or offer anything. all the frustration of buying online and having to have it be shipped, and the occasional (reason I avoid best buy) representative that doesn't know anything and spews you a bunch of inaccurate rubbish and corporate slogans. On the plus side, i might be able to find some of those desk parts on the cheap at some type of online auction.
BowserUSC @ Jan 30th 2008 6:06PM
Yeah, cause it's not like there's a physical place where apple sells its stuff exclusively and has to pay people who work there, pay for the hardware displayed and pay for the real estate.
Derek Calkins @ Jan 30th 2008 10:09PM
To respond to your post, it cost $750/ month to rent the space in my mall. We had five employees who made on average $16.50/hr for 24-40 hours a week. We got product paid for by advertising on Dellivision and other outlets. That equals free.
We did, on average, $64,500K a week! Our Profitability was through the roof. Pleas explain how the kiosk business was a bad idea. The only thing that killed the kiosks is the fact that HP is killing Dell in market share. Dell believes that they can make up the gap by throwing out crappy systems that are not upgraded at all.
Flashpoint @ Jan 30th 2008 12:20PM
Dell is big in China. The Chinese perfer to buy DELL or HP (because they are American brands) rather than SONY and they even much perfer it to Chinese no-name brands.
I lived in Shanghai on business for over 2 years. The Chinese LOVE Dell and alot of hiring of techs is done by Dell in their top universities. China is a huge market if you can effectively serve them.
Mark R. @ Jan 30th 2008 7:34PM
Pfffff...sorry Dell's market share in China is anemic to be kind. Nothing like America, where they lead in overall marketshare.
Mike @ Jan 30th 2008 12:22PM
This doesn't surprise me. Look at all the people around the kiosk, oh wait, it's just an employee.
Ryan Trevisol @ Jan 30th 2008 12:31PM
I honestly don't get it. If I understand it correctly, you still didn't walk away with a computer, right? They just helped you order the computer? ANd you still had to wait?
Greg @ Jan 30th 2008 12:26PM
Death to the infiDells?
John @ Jan 30th 2008 12:27PM
Damn outsourcing! Now all our kiosks are going to foreign countries!
JON BLAST @ Jan 30th 2008 12:28PM
Where will all the recently laid off Mortgage Brokers and Realtors go work now?
Flashpoint @ Jan 30th 2008 1:13PM
You asked a question I rarely hear.
After the subprime mortgage collapse, most "mortgage brokers" ended up getting laid off or fired. I worked in that buiz with a friend but I was smart enough to get retrained and graduate with an M.S. degree. He didn't even get a Bachelors.
In the buiz, we were getting STUPID Commission checks. 30% of a broker fee (up to 50%) . Our checks for the month were usually over $4000 (sometimes over $10,000) depending on how many loans we closed.
NOW ITS ALL OVER.
My friend works 7 - 7Pm 7 days a week for the NYC DEP.
I assumed after the collapse, brokers would resort to "short sale" scams. Problem is, no one can get mortgages anymore unless their credit is substantial.
painty @ Jan 30th 2008 6:05PM
@Flashpoint
maybe if you had pushed through so many loans to questionable borrowers, there wouldn't have been a collapse in the first place
Ty @ Jan 30th 2008 12:32PM
How will my grandparents buy a new computer now!?
They're going to call me and have me order it. That's how. Damn you, Dell!
John M @ Jan 30th 2008 12:38PM
Is it just their kiosks or are they also closing their full size mall "stores".
gimpy530 @ Jan 30th 2008 12:38PM
I am a (now) former Dell Direct Store employee. Dell gave no warning what so ever that we would be losing our jobs. I was called while in school a few hours ago and told to get on a conference call, in it they just pretty much said "you're fired". Not only did Dell's 9 months temporary-to-hire employees (such as myself) get the boot, but the Dell hired employees are gone too. Even up to my boss' boss' boss.....all gone. The only idea anyone had that this was going to happen was another kiosk in my region got a notice from their mall security office about staying open that night to remove the kiosk itself....last night someone I work with heard about that, and leaked it to engadget, that is where the other engadget post came from.
Dell gave no warning at all that we would be losing our jobs....the kiosks themselves were removed BEFORE we had any notice that we are fired.....bulls**t, pure bull*t.
Andrew @ Jan 30th 2008 1:01PM
Tell us how you really feel.
tiuk @ Jan 30th 2008 1:20PM
If anyone needed further confirmation that Dell is evil, this is it.
Rob @ Jan 30th 2008 1:49PM
I feel for you. It sucks really.
To be fair though, Dell had to do this. And they soon will have to do a lot more. Dell is not in the position they were once in; on top and unchallenged. HP has mounted a worldwide assault on dell that's huge. Even in the US, Dell's home ground, HP is no.2 by only the smallest of margins.
Dell's product line, specifically build-quality on the products seeing the highest sales growth (Notebooks), is far from stellar. Add to that the eroding market share due to competition in the PC market as well as the steady migration away from Windows to macs (granted, in its infancy stage now), does not bode well.
In addition, the downturn in the markets recently and fears of recession has put most government and corporate plans to upgrade systems on hold, putting further pressure on Dell as those are its bread-and-butter clients.
All these, collectively, makes me wonder why it took them this long to do this in the first place, especially considering their reactive-move against HP to put products in mainstream retail channels. This news really should not come as a shock, but I do feel for you that at least they should have been more forthcoming with their employees. But considering how forthcoming they generally are with their customers, are you really that surprised?
Max W @ Jan 30th 2008 2:49PM
Get used to this stuff, with the economy slowing more of this is going to happen. Funny thing most younger people have never really gone through a downturn in the economy and have no idea that big companies will just walk in during the day and tell everyone thanks for all your hard work, but we don't need you.
CKMBA @ Jan 30th 2008 5:05PM
OMG, I feel so sorry for you. What will you ever do now without this amazing career as a kiosk salesperson?
Ohhh wait...you're in luck, I heard the T-Mo kiosk is hiring at the other wing of the mall.
John @ Jan 30th 2008 5:48PM
This is standard protocol for any business, especially little sideshows like kiosks. Even major franchisees are called by corporate to say, "you're store's closing at 1pm today for good. balance your tills before you leave."
It sucks, but be lucky that you're just a kid and not one of the higher-ups who counted on the money for a living.
Rocketboy @ Jan 30th 2008 12:41PM
Anyone who buys anything from a mall Kiosk is an idiot. I know, that's where I bought my old phone service from. Granted, it was a nice way to look at three different plans from three different companies, but they screwed up EVERYTHING on the order.
Blackster @ Jan 30th 2008 12:50PM
nice! :(
so how many are unemployed, statring tomorrow?
i hate that all those big companies are doing that for the sake of better profit *gr*
same goes for nokia and the planned shutdown of their german factory!
George McFly @ Jan 30th 2008 1:17PM
Welcome to America. I guess that's what companies are supposed to do.
LennyS @ Jan 30th 2008 1:47PM
each kiosk had an average of 6 employees times the 150 stores. Then you add in the middle management, it comes close to 1000 people plus or minus that now have no jobs.
insertAlias @ Jan 30th 2008 2:59PM
But, honestly, do you think that Dell actually has an obligation to continue employing those people in an unprofitable environment? The business model that they tried failed. I feel sorry for the people laid off, but I don't think that Dell is evil for doing it.
Blackster @ Jan 30th 2008 4:07PM
No one said that they are evil. It's just not the proper way of ending a job contract, don't you think? ;)
Andrew @ Jan 30th 2008 6:17PM
Blah, blah, I'm sick and tired of hearing you Germans complaining about Nokia closing that factory. Get over it, Germany's not cheap, and you know it. What do you expect? Nokia produces where it pays to do it because *you* want great and *cheap* phones!
Companies do this all of the time all over the world. It's called economics.
Blackster @ Jan 31st 2008 4:18AM
yeah sure andrew. the plant made profit ;) and they were almost as cheap as that new crap factory in romenia :-p
Fred @ Jan 30th 2008 1:00PM
Is this the same Tony Weiss from CompUSA? We see how well the execs from that company did with Comp, Tony's been gone from there for a while (although CompUSA was well on it's way down at that time). Nice to see him jacking up someone else's livelihood.
Fozzie @ Jan 30th 2008 1:07PM
dude, you're getting a pink slip.
Rammer @ Jan 30th 2008 1:14PM
What does this mean for Alienware kiosks?
stromm @ Jan 30th 2008 1:29PM
First, I feel for all of you. I've been there myself at least 8 times in 6 years. You know, back when tech companies were dropping like flies.
However, anyone who thinks that there is any loyalty from an employer is naive. I've been in the tech field for over 20 years and there's never been a "oh yea, just to let you know, in a few days/weeks you're going to have to find another job".
NO Employer will keep an employee they are going to get rid of for longer than it takes to tell them goodbye.
There are all sorts of reason, and not just company sided. Imagine the worry you'll have knowing you're going to be let go.
If they told you in advance, at the least, you might screw off, not do any work while getting paid, at the worst, you might decided to rob them blind, bad mouth the company to customers or even hurt the employee who didn't lose their job.
This is standard operating procedure people. Quit your whining, accept that it'll happen again sometime in your life and go find another job.
Oh and for all you who did get canned... How many of you have left without notice? Do you honestly think it's ok for you to do this but not the employer?
Welcome to the real world.
Rob @ Jan 30th 2008 1:34PM
Never noticed them. Then again, I hate going to the mall and having to deal with teeny boppers, and thugs wannabes.
Fred @ Jan 30th 2008 1:37PM
Right, who goes to the mall anymore? I can buy all my stuff online and usually avoid the tax.
Jeremy K. @ Jan 30th 2008 1:45PM
@Fred
Ever need to try on clothes/shoes before you buy them? Or buy a suit? Good luck buying those online. Where I live we don't have to pay tax for clothes anyway.
Fred @ Jan 30th 2008 5:27PM
Actually, I do buy clothes online because I am how "Big" and "Tall" (cursed by genetics, and McDonalds). But I see your point, still I wouldn't buy my clothes from a kiosk either.
MrWhite @ Jan 30th 2008 1:41PM
Why would any one buy from a Dell Kiosk any ways. Think about it, you basically have some guy up sale you on a product(s) you can't take home. You have to wait for it to be shipped to you. That's stupid. I'm in a mall to buy stuff to have it in my hand, not shipped to me later. If I want to order stuff off the Internet I can do that myself at home or at work. Glad their gone, waste of space, time and money.
daniel tatlow @ Jan 30th 2008 2:01PM
Engadget readers are tech savvy enough to find the computer they need and be satisfied with that purchase by just looking online and reading reviews. at my years working at a Dell Direct Store Kiosk I've helped thousands of customers who had questions and concerns or just wanted to see the product, or really had no idea what they should buy in a computer.
Even customers looking for high-end products had specific questions about things Dell doesn't detail on the website, and no best-buy employee is going to ever know the answers to any of those questions, but a rep at a Dell Kiosk would, because he loves the product and knows it inside and out.
Derek Calkins @ Jan 30th 2008 10:10PM
Most people bought because we had 10% off coupons. It covered tax plus more. And it stacked with Employee Purchase Program.
Kurt @ Jan 30th 2008 2:34PM
I'm now a former Dell employee too. So let me clear something up about what we did at the kiosk. We were there to make sure that people had what they needed to enjoy a system. We weren't there to rape anyone out of their hard-earned pennies. There are a LOT of people that would buy 1GB of RAM to run Vista. That's not a good computer by any means. I worked really hard explaining what the hardware and software would do for people and what they really needed for a great performance.
Now that I've tried to explain that, remember: 1,000 people are out of jobs. Jobs that they thought were secure yesterday. So whether you believe the kiosks were pointless or not, show some humanity for people that are now in some trouble.
For their performance: kiosks have been operating for 24 fiscal quarters, missing goal on only 3 of those. We have been the face of Dell for 6 years and deserve better treatment than what we got. I understand enough of the business world to say that it MAY have been a good call, but how they did it was unprofessional, unkind and made everyone feel unappreciated.
Andrew @ Jan 30th 2008 6:28PM
Hey Kurt, I'm sorry you lost your job and thanks for letting us know more about your job. I however think it's perfectly understandable that they closed down the kiosks. If anything they should have gone the way of Apple - and at least tried that. I doubt it would have worked as great but it could have saved your job.
Now, as for the 1000 people you say lost their jobs. How many of those actually worked full time and how many were just students with part-time jobs?
Kurt @ Jan 30th 2008 7:39PM
Well one of the guys I work with just came back from the national guard, full time with Dell. He's married with two kids and that was their only form of income. Now if he falls behind on bills and his credit suffers, his military clearance will be taken away.
One of the regional managers in New Jersey had just bought a new house.
I am not as dependant on that income as the rest of my team was. So it's not the job or the money that upset me. Just how it was handled. I really loved that job. It was a respectable thing to do where I got the chance to interact with people, help them make an informed decision and even follow up with them weeks or months later and hear both the good and bad.