Originally Posted by poolek
How would giving a high discount - likely below cost on some models - make up for a sales shortfall? The company is judged on revenues, margin and profit. Giving a big discount -might- increase revenue if it drives a higher increase in sales relative to the discount - but it kills margin and profits. Dell's too smart financially to make that mistake.
Dell hasn't missed numbers in over 2 years. I doubt they're at risk of missing them now. I figure they've offered these deals to attract new customers, generate some buzz, and increase their lead in market share over their competitors.
Whatever the case - I'm happy they've offered what they have. My new laptop should be here this week!
that's my theory too. it was to liquidate their inventory, attract new customers, GENERATE BUZZ (i think they are the king of marketing), and increase the lead in the market. just because deal is in the lead is why i think they can actually do this.
i also think that they also don't offer aluminum cases (more durable), so that customers can come back in 2 years (instead of 4 or whatever) and buy another notebook. i mean how much more would it cost dell to offer an aluminum chassis comapred to plastic? i'm guessing it'll cost no more than $30 to offer aluminum cases and, in turn, they could markup their notebooks by $150 more or whatever.
oh and back to the original question, i would say no.. dell will not have another huge promotion on their notebook lines (at least for a long time). the first 500 + $200 mir deal lasted 3 hours before the coupon code was taken off. i think they did this to see how hard the consumers wil "bite" ... then 2 weeks later they offer a $750 coupon based on the results of the first promotion (as in they knew what to expect and achieved their goal in sales).
but, after the first 500 + 200 mir deal, i would have said "no they won't have this deal again.. not for a while" .. so who knows?