Dell, the worldâ€™s largest computer manufacturer, announced several changes to its pricing strategy today, including a move to reduce the use of mail-in rebates and short-term promotions.
The initiative is aimed at helping customers by presenting a clearer price they will pay when buying Dell products.
It became increasingly clear that a simple pricing and sales structure would make it easier for customers, said Ro Parra, senior vice president, Home and Small Business Group.
The new strategy will unfold over the next 12 to 18 months, beginning with the reduction of mail in rebates for the consumer line of Inspirons and Dell televisions, the company stated.
The majority of sales for the company take place online or through catalogs, with only a small portion coming through retail kiosks. Rebates coupons are usually bundled with the delivered hardware.
Rebates have long been popular with retailers as they entice customers who buy products at a higher price with the hope of redeeming the rebates for cash. However some people do not take the time to fill out the paper work, or end up waiting an excessive amount of time for the rebates.
Dell says it will invest over $100 million into new customer support services in addition to implementing a paperless rebate process which is scheduled to go into effect Aug 1.
They told us what they wanted, Parra said, and weâ€™re delivering what they asked for.