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Back to Dell Computers: Michael Dell (2018), with Dell Computers & Michael Dell.

How Soon Did Dell's On-site Service Double Sales?

Michael Dell says Dell's on-site service doubled sales after about three months.

Dell had decided the company had to differentiate on the basis of service and created on-site service. Back then, if a computer broke, the owner put it in the trunk of a car and took it back to the computer store. The store shipped it off somewhere, and the owner waited weeks and weeks and supposedly got it back. Before the internet, the customer called Dell on the phone. If Dell could not resolve the problem on the phone, Dell sent a technician with parts to the customer's location to fix the computer on site. Dell offered on-site service all across the United States.

Dell thought sales would double the minute the offer was announced, because on-site service was so much better than what Dell had been doing before. Sales did not double instantly. After about three months, they doubled.

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Transcript

Dell Computers: Michael Dell (2018) ·

How I Built This with Guy Raz

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  1. How Much Was Dell Making at Age 21?At 21, Michael Dell was already running a company making about $60 million a year. Guy Raz says that was just the beginning for Dell Computers.
  2. How Did Michael Dell Make Over $18,000 at 17?At about 17, Michael Dell made a little over $18,000 in a year mailing Houston Post offers to new marriage-license applicants.
  3. How Was Dell Twice as Fast for Half the Price?Michael Dell sold a 12 MHz 286 computer for $1,995 while IBM sold a 6 MHz 286 for $3,995.
  4. Why Was Dell Told to Stop Making Computers?Michael Dell says a letter from the Federal Communications Commission told Dell to stop making computers.
  5. Why Did Dell Go Public in 1988?Michael Dell took Dell public in 1988 because the company needed the capital. Dell was only four years old and growing at like 80% per year.
  6. What Was Dell's Olympic Project?Olympic was Dell's wildly ambitious engineering program. The technical leap was too big, and the project failed.

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