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Dell to Simplify Pricing, Reduce Mail-in Rebate Offers; Efforts Aimed at Consumers, Small Businesses in the United States

Posted on: Thursday, 13 July 2006, 12:00 CDT

Dell (NASDAQ:DELL) today announced it will simplify its pricing structure and promotional offers, including reducing the number of mail-in rebates on products and services it sells to consumers and small businesses in the United States.

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(TM) notebook computers and Dell(TM) televisions.

Dell will also reduce the frequency and complexity of promotions tied to the sale of Dimension(TM) desktop and Inspiron notebook computers, and other products such as televisions and services. Over time, the company projects a 70 percent reduction in the number of promotions per product line and about an 80 percent reduction in the number of promotions tied to a single product.

"Through direct relationships and more than a million interactions with customers every day, 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. "They told us what they wanted and we're delivering what they asked for. We'll continue to offer customers the best value every day with excellent support."

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, the company said.

Mr. Parra also announced that even as Dell moves to dramatically reduce the use of rebates the company will be moving to a paperless process for those remaining rebates on Aug. 1. This will make it easier for customers to electronically file for rebates and get their money back, he said.

Dell said the pricing and promotion simplification augments a previously announced $100 million investment and efforts to regain its leadership position in customer experience, including:

-- Hiring and training thousands of sales and support personnel to handle inquiries;

-- Expanding its call center network to accommodate growth;

-- Deploying DellConnect(TM), a diagnostics tool used to troubleshoot and help solve a customer's computer problems remotely;

-- Simplifying navigation and making content and usability enhancements to www.dell.com to improve the shopping experience; and

-- Improving product designs that simplify access and use while delivering quality and reliability.

Dividends from the investments have been positive, including a 50 percent reduction in telephone hold times and a 95 percent approval rating from more than 800,000 customers who said DellConnect is a tool that makes troubleshooting easier for them and they would recommend its use to others.

Editor's Note: A media teleconference with Ro Parra will begin at 12 p.m. EDT/11 a.m. CDT today. Call in numbers are: U.S. and Canadian media: 866-617-8381; International media: 706-758-0557; Conference ID: 2712231.

About Dell

Dell Inc. (NASDAQ:DELL) listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell sells more systems globally than any computer company, placing it No. 25 on the Fortune 500. Company revenue for the past four quarters was $56.7 billion. For more information, visit http://www.dell.com. To get Dell news direct, visit http://www.dell.com/RSS.

Dell, Inspiron, Dimension and DellConnect are trademarks of Dell Inc.

Dell disclaims any proprietary interest in the marks and names of others.

Source: Business Wire

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