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Dell To Hone Pricing, Cut Promotions And Bundles

In a move to simplify sales and regain lost market share, Dell said Thursday it will streamline its online pricing and end most consumer and small-business rebates over the next 12 to 18 months.

Plans call for Dell to halt its complex and constantly changing price promotions tied to its Dimension desktops and Inspiron notebooks, which the Round Rock, Texas-based computer maker said would "make buying easier and improve the overall customer experience."

The strategy won't impact pricing for Dell's enterprise business. On the consumer and small-business end, though, the result is that Dell's list prices will drop over time, and many of its promotions--including the bundling of free hardware with systems--will cease.

"This is not about lowering or raising prices," said Ro Parra, senior vice president and general manager of Dell's Home and Small Business Group. "This is about taking out the complexity in the pricing we offer our customers."

Dell aims to cut the number of promotions per product line by about 70 percent and the number of promotions tied to a single product by 80 percent during the next year to year-and-a-half. The company also plans to begin migrating its paper mail-in rebate programs to an electronic rebate filing system.

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