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Dell Cuts Rebate Program Amid Complaints

By Mark Huffman
ConsumerAffairs.com

July 14, 2006

Dell Computers • Advertising • Credit Card Fraud • Dell Finance • "No-Interest" Offers • Rebates • Restocking Fee • Sales Practices • "Surprise" Loans Service • Customer Service • Tech Support • 30-Day Return Policy • Warranty • Extended Warranty Products • Laptops • Printers • Plasma TV Customers • Deployed Military • Small Business Customers • Dell Defenders --- News • Dell To Pay New York $4 Million In Fraud Charges Settlement • Dell Flubs Online Prices • Dell to Pay $3.3 Million to Resolve Deceptive Practice Claims • Judge Rules Dell Deceived Consumers • Dell Closes Sales Kiosks • Wal-Mart To Sell Dell Computers • New York Sues Dell on Consumer Fraud Charges • Dell Breaks Microsoft Stranglehold • Dell Settles Class Action Over Financing Practices • Dell Recalls Notebook Computer Batteries • Chinese Consumers Sue Dell • "Exploding" Dell Laptop Destroys Truck, Imperils Outsdoorsmen • Dell Denies It Knew of Overheating Battery Problem for Years • Dell Cuts Rebate Program Amid Complaints • Seeking Sizzle, Dell Goes Alien • Dell Sales & Earnings Down, Complaints Up • Computer Vendors Charge More For Less Service • Class Action Accuses Dell of Defrauding Customers --- Recalls • Dell Recalls Notebook Computer Batteries • Dell Recalls More Notebook AC Adapters • Dell Recalls Notebook Power Adapters Analysis • Dell Wins Complaint Derby • To Dell & Back • Dell Talks Back

After years of complaints from consumers about its rebate program, Dell Computer has announced it will make major changes, with the goal of simplifying its pricing.

The company said the most significant change will be a near elimination of the mail-in rebate.

The move is seen as a gesture to Dell consumers, who have complained bitterly in the past about the complexity of the company's mail-in rebates. Industry analysts said the move is aimed at smoothing customer relations, rather than increasing revenue.

The company has also suffered from complaints about its after-sale service. Consumers writing to ConsumerAffairs.com in recent months have complained both about the product and the service.

"I bought an Inspiron 6000 in Feb. and today I once again sent it back to the service dept for repair - that's the third time in the four months of ownership," said Jiar, of Alhambra, California.

"The laptop I bought was shoddy and their technical support was not helpful. I'll NEVER buy from Dell again, ever."

"I work for a small marketing firm. We ordered a laptop from Dell in March 2006. Shortly after receiving the computer we discovered that a wrong part was shipped to us. Long story short, Dell refused to fix it, because they denied that the computer was sent with the wrong part. After 2 weeks of dealing with them, we finally convinced them to take the equipment back, and issue us a full credit," Natalie, of Dallas, Texas told ConsumerAffairs.com.

"We mailed the equipment back in April. Great right? WRONG!!! A month after the issue was "resolved" we received a bill from Dell Financial Services stating that our account was past due, and we owed $550 for a computer we didn't have."

The company said the changes will occur over 12 to 18 months, beginning in August with the reduction of mail-in rebates on Inspiron notebook computers and Dell televisions.

Dell said it will also reduce the frequency and complexity of promotions tied to the sale of Dimension desktop and Inspiron notebook computers, and other products such as televisions and services.

Over time, the company projects a 70 percent reduction in the number of promotions per product line and about an 80 percent reduction in the number of promotions tied to a single product.

"Through direct relationships and more than a million interactions with customers every day, it became increasingly clear that a simple pricing and sales structure would make it easier for customers," said Ro Parra, senior vice president, Home and Small Business Group.

"They told us what they wanted and we're delivering what they asked for. We'll continue to offer customers the best value every day with excellent support."

The number of mail-in rebate offers for Dimension desktop computers will also be reduced later this year, and over time for other electronics and accessories, software and services, the company said.

Parra also announced that even as Dell moves to dramatically reduce the use of rebates the company will be moving to a paperless process for those remaining rebates on August 1. This will make it easier for customers to electronically file for rebates and get their money back, he said.

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