Dell Ends Desktop Rebates

Dell today said that it will end the use of rebates for its Dimension destkops, instead lowering the base price of systems or offering instant, unconditional discounts. The sometimes heavily criticized practice has caused confusion and often resulted in ultimately higher prices, according to Dell. The company notes that some of its discounts were overly dependent on rebates and subscription tie-ins, masking the true cost of the system to the buyer. In one circumstance, Dell says, a Dimension listed as $99 at one store required three separate rebates and a cellphone plan to qualify, making it virtually impossible for the customer to buy the system as it was advertised. Dell is also likely to have instigated the rebate-free plan as a reaction to multiple below-average quarterly profits within the past year, which the company has partially blamed on excessive discounting. The new discount approach takes effect immediately.

By Electronista Staff