India Broadband Forum

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Dell is stepping up efforts to simplify pricing for U.S. consumers, today announcing that Dimension desktop computers and services have joined Inspiron notebooks, Dell televisions and other products as “rebate free.” The addition of services and the desktop computer line is the second milestone in a plan to reduce use of mail-in rebates, and remove complexity of promotions and discounts for Dell consumer products and services. The net effect is list-price reductions and instant savings that result in the same or better overall value customers have come to associate with Dell.

“Customers are seeing the final price they are paying for a computer system is as low as it’s ever been from Dell and easier to understand,” said Rocky Mountain, vice president of Dell’s Home and Small Business group. “Rebates can place an undue burden on customers whether shopping online or at retail. We believe this pricing simplification will contribute to a better, no hassle experience for Dell customers.”

For example, one desktop computer advertised at retail for $99 actually cost $689 at the register, requiring three separate rebates and the requirement to enter a cell-phone contract with a third-party vendor. A comparable Dell system is priced at $579, includes a flat-panel monitor and is delivered directly to the consumers’ home.

Dell’s efforts are part of a larger initiative to remove complexity from the buying experience and provide more transparency to the value of its list prices for products and services. The company has reduced use of promotions and discounts from as many as 50 per product line several quarters ago to fewer than 10, and customer feedback has been extremely positive, Mr. Mountain said. “As we head into Black Friday, we’re seeing strong interest for our new Inspiron 1501 notebooks, and overall for XPS-branded products,” he added.