"This is not about lowering prices," Ro Parra, senior vice president of Dell's home and small business group, said. "This is more about taking the complexity out of our pricing. This is entirely in reaction to customer feedback."
Dell is reevaluating their pricing model, and mail-in rebate offers in order to reduce confusion from small businesses and other customers about their mail-in rebates. Dell has decidedto phaseout the mail-in rebate offer program completely within the next year or so. The decision was based on improving their custmer service results. The computer maker and self-distributor says that they have seen a reduction in customer call hold time by as much as fifty percent. I believe that where Dell once dominated the home PC industry, their popularity is now being recently rivaled by their other competitors. Loosing a significant amount of market share from a business perspective means that they are having to make major financial cut backs such as their mail-in rebate promotion, and entire pricing model.
http://www.ecommercetimes.com/story/PDMft6Yz6Lb8F5/Dell-Revamps-Pricing-to-Reduce-Confusing-Rebate-Offers.xhtml
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