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Sneaky as Dell
I was pricing some laptops at work when I noticed something interesting about Dell’s pricing. Now, hold on tight cause this can give you a headache.
I was running a spreadsheet by hand for the boss, listing out what each added item was and how much it added to the cost of the laptop when I noticed my subtotal at the end did not match Dell’s website. This particular laptop had a $250 off automatic price break from Dell applied to it. The “problem” with my math turned out to be the starting price.
When I chose the laptop it had a starting price of $899 in bold (with the original price of $1149 crossed out above it). I added all the additional parts to the $899. What Dell is doing is starting with the original price of $1149 when there is a discount applied.
Now get this — when you get to the final total they are the same. Start at $1149, add all your stuff, take $250 off and you end up with the same price as if you’d started with $899 and added it up. The $250 off just looks enticing because Dell is offering you a (fake) discount!
Sneaky, says I.
Kell
| Print article | This entry was posted by Kelley on March 8, 2007 at 7:47 am, and is filed under Family Stuff, Kell's Blog. Follow any responses to this post through RSS 2.0. You can leave a response or trackback from your own site. |

about 3 years ago
Alright, I have related my story to several people who have had varying reactions. Some were like me — this is sneaky — while others felt that this is a completely acceptable way of doing business.
I will amend my thoughts to say this…While this may be a perfectly acceptable business practice, I feel it is misleading to show one price in bold with another (higher) price crossed out above it – then use the (higher) crossed out price for your calculations.
Kell