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Dell to cut promotions, adopt more uniform pricing

“Dell Inc., the world’s largest personal-computer maker, plans to reduce the number of promotions it offers and adopt a more uniform price system after customers complained that its discounts are confusing,” Connie Guglielmo reports for Bloomberg.

“The company will curtail rebates while reducing list prices, keeping the effective price of machines the same. As many as 80 percent of promotions will be eliminated within the next 18 months, Round Rock, Texas-based Dell said in a statement today,” Guglielmo reports.

“Chief Executive Officer Kevin Rollins is working to tap consumer demand in the U.S. after No. 2 PC maker Hewlett-Packard Co. copied Dell’s formula for trimming operating costs to offer lower-priced machines,” Guglielmo reports. “After sales growth fell last quarter to the lowest level in four years, Rollins pledged to regain Dell’s price advantage by cutting $3 billion in manufacturing, warranty and product expenses.”

Full article here.

[Thanks to MacDailyNews Reader “iSteve” for the heads up.]

Dell’s press release here.

MacDailyNews Take: Promotions or no promotions, the problem remains: Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! Don’t buy your computer from a kiosk.

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InformationWeek: Apple Mac run Mac OS X, Windows, and Linux; Dell and HP should be concerned – May 01, 2006
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Financial Times: Dell and Microsoft can never hope to attain Apple’s Mac aura – January 10, 2006
Michael Dell say’s he’d be happy to sell Apple’s Mac OS X if Steve Jobs decides to license – June 16, 2005

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