04-21-2009, 09:41 PM
Robert M wrote:
Mac,
I suspect one of the primary reasons Dell's profit margin has eroded is due to the sales they have on items on a regular basis and the discount coupons that reduce the price of even sales items are readily available. That's how I got a $649 dollars display for less than $500.
Robert
Interesting to note that Apple is one of the few companies in this industry---perhaps the only company---that studiously, ferociously avoids this kind of discounting and coupon stacking and profit-shaving price competition, keeping its price almost universally fixed at each stage.
There's the retail price, then there's the refurb price. And that's about it. No wild sales, drastic discounts, sell-offs to erode Apple's stake. A lot of companies admire this, and envy Apple's disciplined protection of its profit margins. For Apple, its been a matter of survival. And growth.
Third-party retailers will never post an ad that says "50% off all new iMacs!".