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Technology Stocks : Dell Technologies Inc.

DELL 122.55

+4.4%

Nov 21 9:30 AM EST

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To: Meathead who wrote (134881)	6/29/1999 10:18:00 AM
From: Craig Lieberman	Read Replies (3) of 176387

Meathead, The added benefit of dellauction.com is that it increases traffic to DELL branded sites. An auction site will generate interest more repeat visits than a fixed price site because people will be looking for a bargain. Some of those people will get tired of it all and just click on over to price the new machines and the most convienient site to do so will be www.dell.com . More visits to the auction site will translate to more sales from the new site also.After all, how many times have you gone to the store for one thing and come out with 3 things that you didn't intend to buy initially. It is recycling at its finest turning something that was scrap into a product again. Since all of the cost of the system was recovered in the lease, anything they make (even $100-400) will be pure profit. Since DELL doesn't sell units in the under $600 range, they will not canabalize their own sales. This is a way DELL can have a presence in the low end market without having ASP to cost price squeezes. They are selling a $400 box that cost $0. The competition is selling a $400 box that cost $600. Craig

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