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View Full Version : Dell to Significantly Reduce Promotional Pricing


Kougar
07-13-2006, 11:08 PM
I guess Dell finally completed their analysis of their promotion/pricing methods they started late last year... this is good news :)

Dell says the program is designed to make purchasing more meaningful for customers


Dell today announced major plans to simplify its pricing structure. According to the PC giant, it will reduce the number of mail-in rebates and products and services as well as make it easier for customers to purchase its products. The program will occur over 12 to 18 months as it requires major overhauling of its pricing structures in various areas.

From consumer Dimension desktops to Inspiron notebook computers and home theater products, Dell said that it estimates a 70 percent reduction in the number of promotions per product line, and about 80 percent in promotions tied to a single product.

Dell claims “The moves -- part of the company’s efforts to make buying easier and improve the overall customer experience -- will occur over 12 to 18 months, beginning in August with the reduction of mail-in rebates on Inspiron notebook computers and Dell televisions. The number of mail-in rebate offers for Dimension desktop computers will also be reduced later this year, and over time for other electronics and accessories, software and services”

Full article is at http://www.dailytech.com/article.aspx?newsid=3239 (http://www.dailytech.com/article.aspx?newsid=3239)

Das Capitolin
07-13-2006, 11:24 PM
I guess Dell finally completed their analysis of their promotion/pricing methods they started late last year... this is good news :)



Full article is at http://www.dailytech.com/article.aspx?newsid=3239 (http://www.dailytech.com/article.aspx?newsid=3239)

Being a Dell Premier Reseller, I can tell you that Dell has been making small pricing and promotion changes all year long. First to go was free shipping, unless you were a brand new customer with no previous orders on record. Next was the discount pricing for lower tier systems. What's next?

Kougar
07-14-2006, 02:23 AM
Being a Dell Premier Reseller, I can tell you that Dell has been making small pricing and promotion changes all year long. First to go was free shipping, unless you were a brand new customer with no previous orders on record. Next was the discount pricing for lower tier systems. What's next?

Free shipping has always come and gone, and the bottom tier pricing seemed to still be pretty darn low? I suppose maybe it's from the falloff of prices on the Intel chips in them maybe... Either way though I didn't think it was quite that bad.

Das Capitolin
07-14-2006, 03:04 AM
Free shipping has always come and gone, and the bottom tier pricing seemed to still be pretty darn low? I suppose maybe it's from the falloff of prices on the Intel chips in them maybe... Either way though I didn't think it was quite that bad.

What are your quarterly gross purchases from Dell? I have to purchase 15k each quarter, and I can say this much: It's gotten worse, not better.

Kougar
07-14-2006, 03:19 AM
What are your quarterly gross purchases from Dell? I have to purchase 15k each quarter, and I can say this much: It's gotten worse, not better.

Dualy noted then. I'll bow to your experience in the matter. 8-) So where does this leave that article getting off, then? Do you think it'll start turning around and getting better as the time period they gave transpires?

Das Capitolin
07-14-2006, 07:39 AM
Dualy noted then. I'll bow to your experience in the matter. 8-) So where does this leave that article getting off, then? Do you think it'll start turning around and getting better as the time period they gave transpires?

Actually Kougar, I may do more business with Dell, but I know when someone out there is smarter at something then I am. *S*

The home users seem to have been making out the best with these pricing restructures. They get rebates, free shipping, and heavy discounts. That will probably continue. From what my reps have told me, high volume will result is low pricing, and one time purchases the same. Everything else inbetween will be less discounted.

werty316
07-14-2006, 07:45 AM
Good news as who really likes to wait a month or two for those damn rebates?

Das Capitolin
07-14-2006, 05:26 PM
Good news as who really likes to wait a month or two for those damn rebates?

I want those rebate back!!!

I would sell for very little margin, and then when the rebate came in the mail I could deposit it for myself and not be forced to have the company pay a (taxed) commission.