Wal-Mart to Sell Build-To-Order PCs
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Via: BetaNews
Soon Wal-Mart customers will be able to build their own computers through the expansion of a pilot program in 1,200 of its 3,200 stores in the United States. 200 more would join the program by the end of the year, and possibly more during 2007, the company said.
The new program is a departure from Wal-Mart's current strategy of selling pre-packaged systems. Consumers would be able to choose various components to build their own PC, including processor, monitor and other computer specs.
It is also an effort by the company to increase its profit margins by focusing on high-margin products. Traditionally, Wal-Mart consumers have stuck to much lower margin items, such as food.
However, unlike build-to-order providers like Dell, the customer would be able to take the computer home right away, saving on shipping costs and other related expenses associated with ordering a system online or through a mail order catalog.
Companies like Dell and Gateway, which have become proficient at the build-to-order business model, are able to offer much more customization since the computers are not shipped instantly. Secondly, these companies make a lot of money through business contracts rather than consumer sales, a market Wal-Mart's program is not targeting.
But analysts agree that if the company extends its low-price philosophy into the computer sector, it could become quite popular among its loyal customer base.
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