Dell Gets a Charge Out of Canada

My blog is a bit different this time. I decided get on the soap box and talk about something close to my heart. Money.

I use my laptop a lot, especially on my frequent road trips. There’s writing to do, plus business reports and the ever popular emails. Thus my laptop battery, after a couple of hundred charges, is nearing the end of its life.

So I did a search for a replacement battery, starting with Dell, the maker of my laptop. I contacted Dell via a chat line.

The lady was polite, but I expressed a bit of a surprise at the $120.00 price tag. She checked again and came up with a new price for me. $165.00! The reason for this new and improved price was because I live in Canada. This is despite the Canadian dollar (at the time) was higher than the US dollar. The batteries aren’t made in the US; likely China or maybe Korea, so shipping isn’t likely the cause. Maybe greed is.

Let’s see what the profit is. The batteries cost about $40.00 if you were to buy it from a wholesaler (obviously even less for a corporation like Dell).  The formula for Profit Margin is rather simple:  Price – Cost/ Price = Margin x 100%

For the US this is: 120 – 40/120 = 67%    (Or a markup of P-C/C = 200 %)

For Canada this is: 165 – 40/165 = 76%   (Or a markup of P-C/C = 312 %)

What does this tell me? That I should buy stock in Dell Parts Division? Possibly. But definitely that Dell thinks Canada as a place to pad their profits. Although not from me- I bought my replacement battery from a third party. $68.00 Canadian and that included shipping.

So, a pox on companies that cranks up their prices just for Canada.

Not all goods are priced different from the USA to Canada. I was at The Viewpoint, a great bookstore at Lake Louise Village, and their American and Canadian prices are matched. Maybe Dell could learn something from a retailer that does understand what their customers want, and not make it so obvious they want to rip you off.

Okay, off the soap box and back to writing.

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