Dell warranty extension

[HCHTech]

I have a a client that has 4 physical servers. They are due for replacement in 9/27. It's a lot of money, so I gave them a quick "make sure this is on your radar" email last week. I heard back that they want to delay until mid-2028 since they are expecting a bunch of extra revenue from their clients at that time. I asked Dell for a quote to extend the warranties 1 more year, which I received today. It's the better part of $7K (!) for next business day, not even 4hr SLA! I mean, I guess that's gone up along with every other darned thing, but I was still taken aback a bit by the cost. Wow.

 

[thecomputerguy]

I have a a client that has 4 physical servers. They are due for replacement in 9/27. It's a lot of money, so I gave them a quick "make sure this is on your radar" email last week. I heard back that they want to delay until mid-2028 since they are expecting a bunch of extra revenue from their clients at that time. I asked Dell for a quote to extend the warranties 1 more year, which I received today. It's the better part of $7K (!) for next business day, not even 4hr SLA! I mean, I guess that's gone up along with every other darned thing, but I was still taken aback a bit by the cost. Wow.

Prices are ridiculous now. I'd imagine enterprise grade storage/RAM is heavily factored into that along with increased labor costs.

I'm having a hard time getting units out the door with decent margins. I typically always sit at 30% margin but with a desktop like:

Dell Desktop
Ultra 5
16GB Ram
512GB Storage

Running nearly $1300 my cost, there certainly is some sticker shock.

I almost feel bad pushing these out the door because they SHOULD have 32GB in them. But 32GB Crucial kits running $500 for DDR5 makes it a no go.

I'm wondering at what point does buying garbage hardware from Costco and upgrading it to Pro for almost half the cost start to make sense. I know it doesn't due to it being risky hardware but ... this is ridiculous.

I was selling:

Dell Laptop
Ultra 7
32GB
1TB

For $2,000 in December with my 30% markup. Now the maintain my markup I need to sell it for $2500, and then probably $3,000 by the end of the year.

 

[lan101]

Yeah if prices keep going the direction they are going...my area will only buy junk or refurbished business maybe lol...with memory and hard drive prices now it doesn't even make sense to repair much of anything unless it's old old stuff and they want it fixed.

I kinda miss the repair part of this work but it's about dead other than higher end hardware and maybe gaming pc's in some markets etc. But the every day computer at these prices makes way more sense to throw it away now.

 

[lan101]

For $2,000 in December with my 30% markup. Now the maintain my markup I need to sell it for $2500, and then probably $3,000 by the end of the year.

I can make a bit of money on hardware markup on some refurb stuff but on new stuff I don't even try now lol. I just show them directly how much they are getting hosed on pricing so they don't think I'm trying to rip them off. I've just had to up my rates some to offset that...about all I can do.