Spiffyfast said:
I think dell puts out coupons like that for the people that are willing to do the research. If I was running a business and I knew I had people that really knew there stuff with computers and researched buys alot b/f making a purchase I'd make sure my company looked apealing to them, and posting coupons like that on certain websites works well. If I also knew I had ppl that new nothing about computers and just buy something and dont care about the price b/c they dont know any better then why would I want to post the best prices everywhere, that cuts into the profits. In all actuality how many people out of your total customers do a good amount of research on something b/f they buy it? I'm betting not alot so this way that can capture both markets.
That is a good point and I agree with your logic. I also think that is the exact rationale for rebates. The return rate for rebates is around 50% and then also many of the rebates that are submitted can easily be denied if the consumer doesn't follow the million instructions exactly; for example if you don't fill in your phone number on the rebate form or circle the price or any number of things, the rebate offer is void [read the fine print carefully].
So the business has two choices:
1. Offer a low price that undercuts the competition
2. Keep the price the same, but offer a rebate that, if processed, would make the price competitive. Given that very few consumers actually return the rebate form on time or the rebate is denied for not following the instructions exactly, the company gets to sell the majority of the items at full price.
Like Spiffy says, which option would you choose if you wanted to make the most money?
I'm sick of all the rebate offers. There was news some time ago that Best Buy and Circuit City were going to abandon the whole rebate game, but I don't remember the timeframe for when they would start doing that.