I am beginning to think that the coupon thing of DELL is just a marketing ploy. From what I have seen in the past, various companies send out coupons once a year or so, just to drive sales for a particular quarter. DELL on the other hand, just sends out coupons like crazy. On top of that, they regularly have $100 off and free shipping. I think they are making no profit and just doing it to create an ever bigger customer base. They are gonna lose money now, but reap the rewards in the future.
What is up with DELL and their coupon marketing?
- Thread starter TommyVercetti
- Start date
LOLI dont think it is possible to make a profit on some of their systems:
Dual Xeon E7500 (PCI-X, PCI-66, Adaptec U320) mobo w/ 2Ghz Xeon
Dual 73GB 10K RPM U320 SCSI drives
Gigabit ethernet
+extras and warranty
$600 shipped
And just recently for $475 shipped:
2.66Ghz P4
Intel 845PE board
Radeon 9700TX
+extras and warranty
it's just like lexus did when they first started to sell cars in america. the ls400 was about 30K. they just wanted market share and could afford to lose money.
1. Joe Shcmuck is a stupid idiot and once he sees something with a coupon on it, he automatically assumes it's cheap.
2. Dell loves the just-in-time inventory system. They have so many coupons and specials going on, I'm beginning to suspect they're just trying to make room for new inventory. Especially considering how the one big claim to fame for Dell is a highly efficient, streamlined inventory.
3. Market share. It's all about building a monopoly, which requires shutting out your competitors one by one until you're the only one left. After which, one can just sit on the proverbial laurels and let the profits roll in without much effort.
4. Dell buys at such low prices and has such low overhead that the profit margins were high to begin with and an extra 10-20% off the top doesn't cut into margins.
5 It's the work of the Big Guy upstairs.
6. It's the work of the Big Guy downstairs.
7. Evil plot by munchkin gremlins to advance the Colonel's Evil Empire.
2. Dell loves the just-in-time inventory system. They have so many coupons and specials going on, I'm beginning to suspect they're just trying to make room for new inventory. Especially considering how the one big claim to fame for Dell is a highly efficient, streamlined inventory.
3. Market share. It's all about building a monopoly, which requires shutting out your competitors one by one until you're the only one left. After which, one can just sit on the proverbial laurels and let the profits roll in without much effort.
4. Dell buys at such low prices and has such low overhead that the profit margins were high to begin with and an extra 10-20% off the top doesn't cut into margins.
5 It's the work of the Big Guy upstairs.
6. It's the work of the Big Guy downstairs.
7. Evil plot by munchkin gremlins to advance the Colonel's Evil Empire.
yup, dell buy stuff for cheaper than dirt, and then coerces old people and children to buy their products. they're lcds are sooo sweet, but i would be disgusted to support dell...
D'oh! If you had posted this yesterday (uh, on a thread created today...) I could've sent you the 15% off coupon I got from Dell (which expired yesterday).
I imagine dell makes out very little on the coupon deals, but prolly compensates with their corporate clients...who go on recommendations of techie nerds who used said coupon deals.
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